Market Insights
An off-road vehicle is designed for use in rough terrains, such as hilly areas, marshy lands, and coastal areas. It is used for traversing on tracks made up of gravel, sand, rocks, mud, and riverbeds. It is of two types: all-terrain vehicle (ATV) and side-by-side vehicle (SSV). An all-terrain vehicle is a single-rider vehicle, whereas a side-by-side vehicle is a two to six riders vehicle. Over the years, there has been an incessant shift from ATVs to SSVs because of the relatively high-safety features of SSVs. There have been continuous advancements in the technologies for an improved ride experience and high-safety features of SSVs. For example, SSVs have steering wheel handling, which is proven to be quite safer than handle bar-based ATVs.
The market has witnessed many valuable innovations over the last decade. One of the latest technological upgrades is active suspension. Polaris Industries Inc. has introduced active suspension in its Polaris RZR side-by-side vehicle. Dynamix active suspension system used in the side-by-side vehicle has two or five specific compression zones that give a more comfortable riding experience. Such technological features make SSVs more driver-friendly.
In addition, SSVs has a diversified and large customer group. These vehicles are used by different types of customers, such as landowners, recreation and hunting enthusiasts, farmers, and private property owners. These customers use these vehicles for different purposes, such as trail riding, farming, agriculture, hunting, maintaining the private property, defense, recreation, sports, and racing. As a result of its varied usage across a wide range of customers, their demand is estimated to flourish in the foreseen future. Overall, the side-by-side vehicles market is anticipated to grow at a healthy CAGR of 7.8% in the long run, reaching US$ 11.5 billion in 2028.
Recent Market JVs and Acquisitions:
There have been a fair number of strategic alliances including M&As, JVs, etc. performed over the past few years. Some of them have been mentioned below:
- In 2019, TRACKER announced an MoU to form a partnership with Textron Specialized Vehicles Inc. to introduce the TRACKER OFF ROAD ATVs and SSVs.
- In 2017, Caterpillar Inc. agreed with Textron Specialized Vehicles Inc. to manufacture and distribute utility vehicles. The first UTV models developed by Caterpillar Inc. came into the market in 2018.
- Textron Inc. acquired Arctic Cat Inc. in 2017 at an agreed price of US$ 247 million. Through this acquisition, Textron Inc. would widen the product portfolio of utility and recreational off-road vehicles, increase R&D investments, and broaden the dealer network.
Segments' Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Vehicle-Type Analysis
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Utility, Recreational/Utility, and Sports
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Utility vehicles are anticipated to remain in the vehicle category, whereas sports vehicles are likely to witness the fastest growth, in the years to come.
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Application-Type Analysis
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Sports, Entertainment, Agriculture, Military, Hunting, and Others
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Sports application is likely to remain the dominant as well as the fastest-growing application type for side-by-side vehicles, in the coming years.
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Regional Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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North America is expected to remain the largest market, whereas Asia-Pacific is likely to grow at the fastest rate, over the next five years.
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Based on the vehicle type, the side-by-side vehicles market is segmented into utility, recreational/utility, and sports vehicles. Among these sub-segments, utility is expected to maintain its market dominance by vehicle type during the forecast period, driven by its benefits of high load-carrying capacity, durability, and versatility. These vehicles also provide a better and safer driving experience.
Based on the application type, the market is segmented into sports, entertainment, agriculture, military, hunting, and others. Among these sub-segments, sports is expected to remain the dominant as well as the fastest-growing application type in the market during the forecast period. This is primarily due to the increasing interest of consumers in racing, touring, camping, and adventure activities along with the increasing disposable incomes globally.
In terms of regions, North America is likely to remain the largest market for side-by-side vehicles during the forecast period. This region alone accounts for more than half of the global side-by-side vehicles market share and is home to almost all the major OEMs, such as Polaris Industries Inc., BRP Inc., and Honda Motor Co., Ltd. These factors make the region a growth engine of the off-road vehicles industry. Concurrently, Asia-Pacific is anticipated to witness the highest growth in the coming five years, propelled by the increasing regional disposable income and the growing interest in adventure sports and off-road activities in the region.
Key Players
The global side-by-side vehicles market is highly consolidated, with the presence of a few global and regional players. These companies have an excellent brand identity, exceptional product development capabilities, vast product offerings, a large customer base, and a wide geographical reach. All the major players are concentrated in North America, having an excellent distribution and dealer network. They have been aggressively launching new products every year in order to compete and gain a share of the market. In addition, the overall competitive landscape is expected to remain unchanged during the forecast period as well. The following are the key players in the side-by-side vehicles market. Most of the major players are providing both SSVs and ATVs.
- Polaris Industries Inc.
- BRP Inc.
- Deere & Company (John Deere)
- Kubota Corporation
- Honda Motor Co., Ltd.
- Kawasaki Motors Corp., U.S.A.
- Yamaha Motors Co., Ltd.
- Arctic Cat Inc.
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s side-by-side vehicle market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The side-by-side vehicle market is segmented into the following categories.
Side-by-Side Vehicles Market, by Vehicle Type
- Utility (Trend and Forecast)
- Recreational/Utility (Trend and Forecast)
- Sports (Trend and Forecast)
Side-by-Side Vehicles Market, by Application Type
- Sports (Trend and Forecast)
- Entertainment (Trend and Forecast)
- Agriculture (Trend and Forecast)
- Military (Trend and Forecast)
- Hunting (Trend and Forecast)
- Others (Trend and Forecast)
Side-by-Side Vehicles Market, by Region
- North America (Trend and Forecast)
- Europe (Trend and Forecast)
- Asia-Pacific (Trend and Forecast)
- Rest of the World (Trend and Forecast)
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances
Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com
