All-terrain Vehicle Market Size, Share, Growth Analysis, By Engine Size (400 cc-800 cc, Above 800cc), By Application (Sports, Military & Defense), By Drive Type (2WD, 4WD), By Region -Industry Forecast 2025-2032

Global All-terrain Vehicle Market size was valued at USD 4.54 Billion in 2022 and is poised to grow from USD 4.71 Billion in 2023 to USD 6.35 Billion by 2031, growing at a CAGR of 3.8% in the forecast period (2024-2031).

The rising popularity of outdoor sports activities, including off-road events, the increasing number of adventure and trail parks, and the rising demand for all-terrain vehicle (ATVs) for agricultural and military applications are the major factors propelling the growth of the market. Furthermore, the growing disposable income and purchasing capacity of individuals in developed and developing economies are anticipated to drive the demand for all-terrain vehicles over the forecast period.

The demand for gasoline ATVs has increased significantly owing to their wide uses in sports and military applications. Heavy-duty ATVs are primarily equipped with diesel engines for material handling and powerful applications. Electric ATVs are gaining popularity in Europe and North America as an alternative to ATVs operating on diesel and gasoline. Fluctuating prices and environmental concerns about gasoline and diesel are some factors that are projected to drive the demand for electric vehicles across the globe. The introduction of powerful electric motors enables electric all-terrain vehicles to offer a performance advantage over the diesel and gasoline variants.