Electric Off-Road Vehicle Market Research Report and Outlook by 2028

The Electric Off-Road Vehicle sector is anticipated to grow significantly, reaching a valuation of US$ 2,234.0 million by 2028, up from US$ 724.1 million in 2021. This growth represents a compound annual growth rate (CAGR) of 18.9% from 2022 to 2028.

The increasing interest in electric off-road vehicles is largely fueled by their positive environmental impact. As these vehicles operate on electric power, they do not release harmful emissions or pollutants, making them a sustainable choice. A recent report from the European Environment Agency highlighted that air pollution poses the greatest environmental health risk in Europe, leading to over 400,000 premature deaths annually. The primary health issues linked to air pollution include heart disease and strokes, with lung cancer and respiratory diseases also being significant concerns. Other adverse health effects include asthma, diminished lung capacity, and complications during pregnancy. In 2015, road transport was responsible for 39% of nitrogen oxides (NOx) and 11% of particulate matter (PM10 and PM2.5) emissions, marking it as a major contributor to air quality degradation. Growing awareness of these detrimental effects has spurred demand for electric vehicles, which is expected to further propel the expansion of the global electric off-road vehicle market in the coming years.

Effects of the COVID-19 Pandemic on the Electric Off-Road Vehicle Market

The COVID-19 pandemic had a profound impact on numerous sectors, including the electric off-road vehicle industry. In response to the crisis, governments around the globe implemented lockdowns and travel restrictions, which severely disrupted the production and sales of electric off-road vehicles. The manufacturing slowdown in 2020 led to a significant drop in the availability of these vehicles. The closure of automotive and component manufacturing plants, reduced visitor numbers at recreational areas, and temporary travel bans all contributed to a marked decline in outdoor recreational activities, adversely affecting the electric off-road vehicle market. Furthermore, the global surge in lithium prices and a shortage of semiconductors led to increased costs for components, which in turn raised the prices of electric off-road vehicles. Although production resumed in the fourth quarter of 2020, demand remained subdued, resulting in a contraction of the electric off-road vehicle market.

In North America, the electric off-road vehicle market is primarily led by the United States, which boasts the largest consumer base for outdoor recreational activities, presenting substantial growth opportunities for manufacturers in this sector. The rising interest among tourists and outdoor enthusiasts in off-road vehicle trails, including utility terrain vehicles (UTVs) and all-terrain vehicles (ATVs), is driving market growth in the region. Various leisure activity organizers and tourism boards are even developing tracks and recreational facilities to attract visitors. In the US, numerous public lands and state parks provide extensive trails and roads for ATV riding and sightseeing. To facilitate access, some parks have introduced online permit systems. For example, the Florida State Forest Service offers diverse terrains, including mountainous paths and sandy dunes, catering to all experience levels. This trend of appealing to adventure seekers is expected to create significant opportunities for the electric off-road vehicle market.

The adoption of electric off-road vehicles is also gaining traction in the agricultural and military sectors. For instance, Deere, a leading US manufacturer of agricultural machinery, has recently launched UTV models tailored for farming purposes. Additionally, in September 2020, Deere enhanced its Gator Utility Vehicles (UVs) line in response to the growing demand from the agricultural sector for versatile vehicles. Similarly, with increasing military budgets and escalating geopolitical tensions, there is an expected rise in demand for specialized military all-terrain vehicles that provide both functionality and adaptability for military operations. Consequently, the electric off-road vehicle market is poised to benefit from this anticipated demand surge.

Prominent players in the electric off-road vehicle market include Polaris Inc., PIERER Mobility, Inc., Intimidator, Inc., Zero Motorcycles, and Volcon, Inc.

The size of the electric off-road vehicle market has been established through a thorough research methodology that incorporates both primary and secondary sources. Secondary research involves a detailed examination of various internal and external sources to collect qualitative and quantitative data relevant to the market. Primary research consists of numerous interviews with industry professionals, including vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants such as research analysts, valuation experts, and key opinion leaders in the electric off-road vehicle sector. This research aims to provide a comprehensive overview and forecast of the electric off-road vehicle market across all segments, validate the findings, and derive deeper analytical insights.