Off-Road Vehicle Market Report 2025

The off-road vehicle market size has grown strongly in recent years. It will grow from $16.91 billion in 2024 to $18.06 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to recreational demand, rural and agricultural use, tourism and adventure tourism, industrial applications, infrastructure development.

The off-road vehicle market size is expected to see strong growth in the next few years. It will grow to $24.3 billion in 2029 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to rising outdoor recreation trend, expansion in agriculture and construction, adventure tourism growth, increased urbanization, environmental conservation initiatives. Major trends in the forecast period include focus on environmental sustainability, integration of advanced safety technologies, customization and personalization trends, evolving regulatory standards for emissions, market expansion in emerging economies.

The surge in recreational activities and adventure sports is expected to drive the expansion of the off-road vehicle market in the coming years. Recreation encompasses activities individuals engage in to rejuvenate their bodies and minds, enhancing their leisure time with excitement and enjoyment. Adventure sports, characterized by significant risk and conducted on land, water, or in the air, are becoming increasingly popular. Off-road vehicles, designed for both recreational activities and adventure sports, are experiencing heightened demand as a result. For instance, in 2023, reports from the Outdoor Industry Association, a US-based trade association for outdoor businesses, indicated a noteworthy 2.3 percent increase in the number of outdoor recreation participants in 2022. This figure reached a record high of 168.1 million, constituting 55 percent of the US population aged six and above. Consequently, the rising trend of engaging in recreational activities and adventure sports is a key driver for the growth of the off-road vehicle market.

An increase in disposable income is expected to drive growth in the off-road vehicle market in the coming years. Disposable income refers to the total income that households and individuals have available for spending and saving after taxes. Higher disposable income levels allow consumers to make recreational purchases, such as off-road vehicles, which fosters market growth and expands the audience for these adventurous products. For example, according to the Australian Bureau of Statistics, disposable personal income in Australia rose to AUD 387.82 billion (approximately $260.7 billion) in the fourth quarter of 2023, up from AUD 369.0 billion (about $250.0 billion) in the same quarter of 2022. Therefore, the increase in disposable income is driving the growth of the off-road vehicle market.

The off-road vehicle market is experiencing a significant surge in technological advancement, with major industry players striving to enhance their offerings. Notably, Yamaha Motor Corp, renowned for its motorcycles and motorized products, introduced its 2023 Proven Off-Road ATV/UTV and Side-by-Side Lineup in August 2022. This lineup includes the 2023 Pure-Sport SxS Lineup, featuring the YXZ1000R SS and YXZ1000R equipped with Yamaha’s Sport Shift (SS) technology, facilitating swift changes through steering column-mounted aluminum paddles. Specifically designed to navigate diverse terrains, from expansive deserts and dunes to challenging muddy trails and rocky landscapes, these YXZ1000R versions boast an industry-first 998-cc triple-cylinder engine and a sequential five-speed manual transmission, offering either an auto-clutch or clutch pedal for an unparalleled direct-connection experience in the Side-by-Side segment.

Leading companies in the off-road vehicle sector are strategically emphasizing the introduction of retro-styled off-road vehicles to attain a competitive advantage in the market. These vehicles encapsulate design elements and visual aesthetics reminiscent of classic or vintage designs. Toyota Motor Corporation, a prominent automobile company, exemplified this trend by unveiling a new retro-styled Land Cruiser model in August 2023. This model ingeniously merges the timeless appearance of the original Land Cruiser with contemporary technology and performance enhancements. By offering a fusion of classic off-road capabilities and modern features, the new Land Cruiser model is priced more accessibly, aligning with the escalating interest in both classic and off-road vehicles among consumers. Renowned for its storied history of exceptional off-road prowess, the Land Cruiser is meticulously crafted to excel across diverse terrains, resonating strongly with off-road enthusiasts and adventurous individuals seeking reliable performance and enduring appeal.

In September 2022, Mullen Technologies, Inc., a prominent U.S.-based automotive and electric vehicle manufacturer, completed the acquisition of Bollinger Motor for $148.2 million. This strategic transaction provided Mullen with access to Bollinger-designed medium-duty and sport utility trucks, augmenting its product portfolio. Simultaneously, the acquisition empowers Bollinger Motors, a U.S.-based automobile company specializing in off-road electric trucks, to tap into the electric sport utility and commercial vehicle markets. The collaboration positions both entities to capitalize on the growing demand for electric vehicles across various segments.

Major companies operating in the off-road vehicle market include Toyota Motor Corporation, Honda Motor Co Ltd., Gas Gas Motorcycles, Nissan Motor Co Ltd., Caterpillar Inc., Deere & Company, Suzuki Motors Corporation, KUBOTA Corporation, Yamaha Motor Co Ltd., Mahindra & Mahindra Limited, Textron Inc., Kawasaki Heavy Industries Ltd., Polaris Inc., Can-Am Off-Road (BRP), BRP Inc., KTM AG, CFMOTO Powersports Inc., TOMCAR Inc., Argo Inc., HISUN Motors Corp, Massimo Motor Sports LLC, Arctic Cat Inc., ODES Industries, Intimidator UTV.

North America was the largest region in the off-road vehicle market in 2024. Asia-Pacific is expected to be the fastest-growing region in the off-road vehicle market during the forecast period. The regions covered in the off-road vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the off-road vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An off-road vehicle is specifically designed for navigating challenging terrains, capable of traversing both paved and unpaved surfaces. Its defining features include large tires with deep, open treads, and a flexible suspension system to accommodate rough and uneven landscapes.

Off-road vehicles encompass various product types, including utility vehicles, sports vehicles, and others. Utility vehicles are specifically engineered for traversing challenging terrains and come powered by diverse fuel options such as diesel, gasoline, or electric, with engine displacements categorized as less than 400 (cc), 400 to 800 (cc), and surpassing 800 (cc). These vehicles find application across sectors such as agriculture, military, and various other industries.

The off-road vehicles market research report is one of a series of new reports that provides off-road vehicles optical components market statistics, including off-road vehicles optical components industry global market size, regional shares, competitors with an off-road vehicles optical components market share, detailed off-road vehicles optical components market segments, market trends and opportunities, and any further data you may need to thrive in the off-road vehicles optical components industry. This off-road vehicle optical components market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The off-road vehicle market consists of sales of off-road vehicles including low-pressure tire vehicles, amphibious machines, ground effect air cushion vehicles, all-terrain vehicles (ATVs), and recreational off-highway vehicles. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.