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The UTV market is expected to grow to over $8 billion in 2022. By 2027, $11.8 billion of the market expects to grow at a CAGR of 11.93% during the forecasted period.
The major driving factors for this market growth are:
- increased demand for recreational/utility vehicles;
- increased ease of use and access;
- improved technological growth (parts, accessories, electronic safety devices, communication systems, etc.).
Plus, technological advancements are gradually making it easier for companies to provide services through mobile applications.
The Trendiest Types Of UTVs on the Market Now
The UTV market has seen a considerable expansion in the last couple of years. It has introduced at least three important segments into its area of general interest: sports, military, and multi-utility.
1. Sports (Off-Road) Vehicles
A sports UTV is a vehicle used mainly for off-road and outdoor activities. This four-wheel-drive vehicle has a large body and some high-ground clearance.
It is known primarily for its versatility, as it is used for mountain trails, camping, touring, racing, etc. Its versatile characteristics and its overall reliability are what makes it to be one of the favorite models among consumers.
2. Military Light Utility Vehicles
The Armed Forces employ military light utility vehicles like the Humvee. These are also known as military light trucks or light tactical vehicles.
The military-grade side-by-sides are built on a truck chassis with a more lightweight body than most SUVs and other vehicles. These UTVs have vehicle seats for two to four people and can be easily used for military (and civilian) purposes. For example, in military operations, the U.S. Special Operations Forces use them for low-profile missions and quick interventions, as in some situations, agility is favored over heaviness or armor.
3. Multi-Purpose Vehicles
When it comes to a multi-purpose vehicle, that is a sure win for any UTV lover. The most favored quality is its versatility. Its modifications, aftermarket parts, and accessories provide additional space and performance for its occupants.
The UTVs can be used for:
- snow plowing,
- agricultural activities,
- hunting,
- land surveying,
- land surveillance,
- carrying cargo.
2 Important Factors Contributing to the Market Growth
The UTV industry is expanding at a rapid pace. The growth can be seen in the adoption of new applications and technological advancements. As a result, a significant increase in UTV`s demand will be expected in the next five years.
Investors and producers alike foresee a spike in their demand. It is said that most of the requests will come from commercial and industrial establishments, the off-road and racing industry, the military, and so on.
1. A Demand for Recreational UTV Driving
The reasoning behind the prediction is that a growing number of people want to drive UTVs for recreational purposes. Additionally, the increasing demand by the U.S. military is expected to drive market growth over the next five years. Some models, like the Can-Am, are versatile and easy to accessorize. The added benefit is that many Can-Am Defender parts can be used in all vehicles, including military and civilian ones.
The flexibility and maneuverability of these vehicles make them perfect for rugged off-road terrains that other cars cannot traverse without causing damage or failure.
2. A Significant Demand in the Military Sector
The UTV market is also witnessing increasing demand from the U.S. military and the Department of Defense due to the increasing demand for off-road capabilities for military operations in different terrains.
The growing popularity of UTVs is also driven by increasing awareness about their safety features and benefits in various territories, including urban and rural areas, deserts, mountains, and jungles.
The Main Trends in The UTV Market Growth
The defining trends that stipulate the market growth are the usage of UTVs for recreational purposes and their safety measures.
1. Recreational Purposes
The increasing popularity of UTVs in various applications such as recreation, military operations, etc., is expected to propel market growth over the next five years. Moreover, rising demand from recreational users is likely to account for a significant share of market growth during this period in terms of volume sales. In addition, as the vehicle market grows, so does the demand for accessories, parts, safety equipment, etc.
The UTV market is likely to continue to be dominated by the recreational segment. The growing volume of UTVs in this category expects to drive market growth over the forecasted period.
2. Safety
Furthermore, the rising need for increased safety features during driving on rugged terrains expects to boost market growth over the forecast period.
In addition, increasing demand for UTVs due to increasing safety features, such as anti-lock braking systems (ABS) and anti-skid braking systems (ASB), is likely to support market growth.
Conclusion
There are plenty of UTVs out there, and we use them more creatively as time passes. Whether a sports utility vehicle, military light utility vehicle, or multi-purpose vehicle, it has multiple uses, and the markets are taking notice.
As side-by-sides are suitable as rec/utility vehicles, in agricultural developments, for land surveying, etc., the number of individuals and businesses/organizations using these vehicles has increased, especially as the newer UTV models have adopted new applications and technical developments.
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