The off-road vehicle market is worth more than $12.3 billion globally.
With that kind of value, it’s no wonder the industry is seeing growing popularity and innovation. And, with the increasing popularity of overlanding in America, that number can only go up.
We did this research report of the off-road vehicles market to find out exactly how the off-road vehicles industry is growing and what can be expected in the years to come.
Use the table of contents below to jump to whatever most interests you:
Key Market Trends: Off-Road Vehicle Market Insights
We set out to answer a few key questions with this report:
How big is the off-road vehicles industry?
The market size for off-road vehicles is big, and getting bigger.
- In 2020, the Off-Road Vehicle (ORV) market exceeded $12.3 billion globally. (Allied Marked Research Off-Road Vehicle Report)
How big is the overlanding market?
Overlanding, or the act of exploring backcountry in a well-equipped four-wheel drive vehicle (often for days or weeks at a time), has become an increasingly-popular pastime worldwide. (SEMA.org 2022)
Of course, here at Adventures on the Rock, we are very fond of overlandering. So these statistics were of particular interest to us:
- While this trend can certainly be taken up by anyone, it is most common among affluent individuals who have the ability to afford the appropriate vehicles, equipment, and time necessary for the overlander lifestyle. Because of this, overlanding is particularly popular with Boomers. (SEMA.org 2022)
- A 2017 Overland Expo survey found that 60% of participants claimed annual incomes more than $80,000, and 30% claimed annual incomes greater than $150,000. (SEMA.org 2022)
- It is believed that overlanding—which has already substantially boosted the global adventure tourism market—will rocket the market value from $586 billion in 2019 to $1.63 trillion in 2026. (SEMA.org 2022)
Who uses off-road vehicles?
The off-road vehicles market is large and getting larger. But who are the people buying and using these vehicles?
According to the data, the biggest share is North Americans. Specifically, the off-road sport industry, which is the biggest portion of ORV users in North America.
- Perhaps unsurprisingly, North America is the largest ORV market, followed by Europe. (Mordor Industries ORV Market Report – Growth, Trends, COVID-19 Impact, and Forecasts 2022–2027)
- The off-road sports industry makes up over 30% of the North American Market share. (Global Market Insights ORV Market Report 2021–2027)
- 35% of Europe’s ORV market share is due to the recreational and sports activities of ORVs. (GMI ORV Market Report 2021–2027)
- Asia-Pacific is the fastest-growing market for ORVs, with the largest growth rate coming from the booming automotive industries in China and India. (Mordor Industries ORV Market Report 2022–2027)
- Several major industries have increased their regular usage of ORVs throughout recent years. These include:
- Military – ORVs are used to transport heavy-loaded weapons and supplies such as fuel, ammunition, and food across challenging terrain. This is currently the largest-growing non-recreational sector of ORV usage. (Fact.MR Off-Road Vehicles Market Forecast, Trend Analysis & Competition Tracking – Global Market Insights 2018–2027)
- Construction Industry – Increased urbanization and development have contributed to the rising ORV market in countries such as India and China. All-terrain vehicles (ATVs) and special service vehicles (SSVs) provide construction companies with reliable utility and unmatched mobility over difficult terrain. This in turn has led to faster land development and a higher environmental impact. (GMI ORV Market Report 2021–2027)
- Agriculture – Utility off-road vehicles allow for efficient scouting, planting, harvesting, and plotting of field lines. Analysts expect that agriculture will continue to positively impact the ORV market. (Fact.MR ORV Market Report 2018–2027)
In particular, the growing industrial usage of ORVs is expected to continuously boost market growth through the year 2030.
What is the market growth trajectory of the off-road industry?
It seems as though the off-road vehicle market is already massive. But it is continuing to see steady growth within the forecast period of the next 8 years. Rising demand is also causing off-road vehicle manufacturers to push for further grwoth.
- The off-road vehicle industry is projected to grow at 7.3% compound annual growth rate (CAGR) from 2021 to 2030. (AMR ORV Report)
- If this 7.3% CAGR trajectory is accurate, the ORV industry will surpass $22.6 billion in 2030. (AMR ORV Report)
Other Interesting Off-Road Vehicle Insights
Now that we’ve discussed the impact and size of the off-road vehicle market, let’s look at some other interesting statistics about the future of off-road vehicles and which are the most popular:
The Future of Off-Roading is Electric
With Tesla’s upcoming Cyber Truck and Cyber Quad, all-electric off-road vehicles are no longer a science fiction idea. The growth of this company has spurred innovations in already-existing vehicle manufacturers to create their own electric all-terrain vehicles.
Plus, the push for environmentally-friendly has caused the major companies to change their tune. We found that:
- Concerns from increased ORV emissions has led to the rise and popularity of electric ORVs. (GMI ORV Market Report 2021–2027)
- With about 60% of ORVs running on diesel fuel in 2017, environmentally-conscious overlanders are forecasted to exponentially increase the market for electric/hybrid off-road vehicles in upcoming years. (Fact.MR ORV Market Report 2018–2027)
- Ford, Mitsubishi, Fiat, GM, John Deere, Alke, Textron Specialized Vehicles, and Polaris are all major contenders in the electric ORV market, and will undoubtedly contribute to massive growth in that sector in upcoming years. (Fortune Business Insights Off-Road Electric Vehicles Forecast 2022–2029)
What is the highest-selling off-road car in the world?
Here are some interesting statistics about which off-road vehicles sell the most. No surprise that the Toyota RAV4 was at the top, with their amazing lineup of reliable vehicles!
- In 2021, Toyota dominated the global automotive market with three of the top five highest-selling passenger cars. (Statista 2022)
- Globally, the Toyota RAV4 was the best-selling ORV with one million units sold. (Statista 2022)
- However, in the United States, the top-selling ORV (for the 45th consecutive year) was the Ford F-Series pickup. (Statista 2022)
How many 4-wheelers are sold each year?
In 2021, 850,000 4-wheelers were sold globally (a slight dip from 874,000 units sold in 2020). (MotorCycles Data 2022)
The rise of the all-terrain vehicle on farms and in the construction industry is helping the ATV market, but the chip shortage affecting the auto industry is also affecting the entire global off-road market. This is likely the cause for the dip in 2021.
How does AWD compare to 4WD for off-roading?
AWD tends to serve best in slippery road conditions, since it is constantly engaged and monitored by computers that can react quickly to help maintain traction. (Forbes 2022)
4WD tends to serve best for off-roading, since drivers have more control over the system and can therefore dial in the right amount of power and torque needed to gain the best traction for the situation. (Forbes 2022)
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