Global Utility Vehicle Market Size, Share & Industry Trends Analysis Report By Propulsion (IC Engine Powered, Electric Powered), By Vehicle Type, By Application, By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Utility Vehicle Market
Market Report Description
The Global Utility Vehicle Market size is expected to reach $46.1 billion by 2028, rising at a market growth of 9.0% CAGR during the forecast period.
A utility vehicle is a vehicle that is built to fulfill a certain duty while also being able to operate on tough terrain. Utility vehicles are used for both passenger & utility commutes and offer several advantages over passenger vehicles, comprising increased passenger capacity, increased cargo-carrying capacity, greater safety and comfort, and so on. To meet operational needs, the majority of utility vehicles are equipped with an all-wheel-drive (AWD) or four-wheel drive (4WD). Utility vehicles are used in a broad array of industries, including transportation of commodities, agricultural uses, passenger commuting solutions, and more. Electric-powered utility vehicles have gained popularity in recent years due to their fuel-efficient operations and great noise reduction.
A utility terrain vehicle is a motorized vehicle that is specially built to perform a specific task more efficiently than a general-purpose vehicle or a passenger vehicle. Side by side (S-X-S), recreational off-highway vehicle (ROV), & multipurpose off-highway utility vehicle are all terms used to describe utility terrain vehicles (MOHUV). A utility terrain vehicle (UTV) is an off-road vehicle with seating for two to six people. It's made for harder terrain, towing, and other work that requires a workhorse. In the forest services, utility terrain vehicles are becoming popular for leisure activities such as trail maintenance, planned burning operations, & pesticide applications. A roll-over safety system, along with windshields, hardtops, and cab enclosures, are standard on the majority of utility vehicles. UTVs are becoming more popular in sports as trailing adventures & racing events become more prominent.
The utility vehicle market is predicted to rise as a result of factors such as increased penetration of AWD & 4WD cars, as well as government policies to encourage the use of utility vehicles like as UTVs on the road. The market's growth is hampered by a drop in car production and sales, as well as the high maintenance costs of utility vehicles. On the other hand, the development of electric utility vehicles & the expansion of dealer networks to increase product reach is expected to provide profitable growth prospects for market players.
COVID-19 Impact Analysis
Due to commuting limits & predicted dismal financial performance of market players in 2021, the outbreak of the COVID-19 pandemic has had a detrimental impact on the utility vehicle industry. It has had an impact on the economy as a whole, as well as contributors, like market players who are developing smart cost-cutting initiatives. Supply chain execution, regulatory and policy changes, labor dependency, working capital management, liquidity, and solvency management are the primary risk considerations for utility vehicle industry participants. Due to commuting limits, personnel unavailability, and a shortage of raw materials caused by supply chain disruption, most utility vehicle manufacturing facilities were shut down during the pandemic.
Market Growth Factors
Increased adoption of Sports Utility Vehicle (SUVs)
SUVs (Sports Utility Vehicles) are vehicles that are meant to be taller and more upright. Taller windows and a higher seating position improve sight from the driver's (and passengers') seat in this style. Drivers have a greater vision of the road ahead as well as the vehicle's sides and back. Typical sightline impediments, such as the automobile next to a person that drew up too close at the stop signal, are often easily seen by drivers. This allows the driver to double-check that there isn't a car approaching before turning right. Clear sight also provides confidence when changing lanes on the interstate, finding open parking spaces, and spotting potholes in time to avoid them. Some SUVs have much more features to help drivers see better.
Increasing demand for electric utility vehicles
In nowadays, with the increasing inflation all over the world, the prices of fuels, like petrol and diesel, is on a rise. Due to this, preference of people is being shifted toward electric vehicles. It is a more affordable alternate of gasoline and diesel-based utility vehicles. In terms of technological evolution, all mobility options have undergone significant changes in recent years. Due to their output efficiency and lightweight, market players are depending on electrical components to meet changing consumer needs, resulting in the development of electric-driven utility vehicle solutions. Additionally, car emissions are a critical aspect since hazardous greenhouse gases are released due to it, raising environmental & health concerns.
Market Restraining Factors
High accident rates & consequent legislation
Customers & OEMs are primarily concerned about passenger and vehicle safety. Vehicle safety is a priority for regulatory authorities around the world. Drivers of all-terrain vehicles are frequently required to monitor speed, navigation, and other data. Any operator distraction or ignorance could result in a major mishap. When an all-terrain vehicle flips or rolls over, the most common reasons of it are either ignorance or distraction. Accidents involving UTVs are becoming common across the world. They're not allowed to be used on public roads and highways in most cases. A UTV may reach speeds of up to 75 mph depending on the weather and where it is driven.
Based on Propulsion, the market is segmented into IC Engine Powered, Electric Powered, and Others. The IC engine powered segment acquired the highest revenue share in the utility vehicle market in 2021. The constantly rising growth of this segment is due to the availability of a fleet around the globe as well as its cost-effective solution. Moreover, the IC engine powered utility vehicles are observing higher demand due to the fact that these vehicles have robust power and can transport a significant amount of load in one go.
Vehicle Type Outlook
Based on Vehicle Type, the market is segmented into Sport Utility Vehicle (SUV), Multi Utility Vehicle (MUV), Utility Terrain Vehicle Type (UTV), and Others. The Multi-Utility Vehicle segment garnered a significant revenue share in the utility vehicle market in 2021. Multi-utility vehicles refer to vehicles that can be used for a variety of purposes. This vehicle is primarily intended to transport a large number of people. These utility vehicles are gaining popularity all across the world. It's primarily due to the convenience they provide in terms of carrying capacity, whether it's for people or freight. A Multi Utility Vehicle often features two or three rows of seats that may accommodate 6 to 8 passengers. This is the vehicle's most significant benefit. Moreover, they offer a flexible internal space that can be altered to meet the needs of the customer. A user can fold some of the seats if there is a need to transport more cargo. As a result, the passenger will have ample room to store all of their belongings. Additionally, the upright design style makes the inside feel wider and more open.
Based on Application, the market is segmented into Passenger Commute, Industrial, Agricultural, Sports, and Others. Passenger Commute segment acquired the highest revenue share in the utility vehicle market in 2021. The rising growth of this segment is owing to the rapidly rising prices of fuels across the world. Passenger Commute is when a person travels from their home to their workplace or school on a regular basis, leaving the confines of the place they live in. It can also refer to any regular or frequently recurring travel between areas, even if it is not tied to employment. Due to increased fuel prices, more people are preferring public commutes instead of private vehicles.
|Market size value in 2021||USD 25.9 Billion|
|Market size forecast in 2028||USD 46.1 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 9% from 2022 to 2028|
|Number of Pages||244|
|Number of Tables||384|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Propulsion, Vehicle Type, Application, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia-Pacific emerged as the leading region in the utility vehicle market with the largest revenue share in 2021. Because of their changing transportation preferences, China and India are showcasing increased requirement for utility vehicles. The regional utility vehicle market is highly consolidated, with several companies controlling the majority of the market. The majority of market players are strategically active in activities such as product introduction, expansion, cooperation, and development.
Free Valuable Insights: Global Utility Vehicle Market size to reach USD 46.1 Billion by 2028
KBV Cardinal Matrix - Utility Vehicle Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Deere & Company and Honda Motor Co. Ltd. are the forerunners in the Utility Vehicle Market. Companies such as Zhejiang CFMoto Power Co., Ltd., KUBOTA Corporation and Polaris, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Textron, Inc., Polaris, Inc., Deere & Company, Honda Motor Co. Ltd., Yamaha Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., KUBOTA Corporation, Mahindra & Mahindra Limited, Zhejiang CFMoto Power Co., Ltd., and Bombardier Recreational Products, Inc.
Recent Strategies Deployed in Utility Vehicle Market
» Partnerships, Collaborations and Agreements
- Apr-2022: Honda Motor formed a partnership with General Motors, an American multinational automotive manufacturing corporation. Under this partnership, the companies aimed to create a series of affordable electric vehicles based on a new global platform. The partnership would strengthen the ties between the automakers regarding all-electric & autonomous vehicles.
- Mar-2022: Honda Motor came into an agreement with Sony Group. Under this agreement, the companies aimed to build a new era of mobility & mobility services. In addition, the companies signed a memorandum of understanding that highlights their aim to incorporate a joint venture by which they plan to engage in the joint development & sales of high value-added battery electric vehicles (EVs) & commercialize them in conjunction with providing mobility services.
- Jun-2021: CFMOTO came into partnership with Total Specialities, based in the USA. Under this partnership, HI-PERF would be a commended lubricants partner for CFMOTO in the USA.
- Apr-2021: Polaris came into partnership with Optimus Ride, an autonomous mobility service provider. Under this partnership, Polaris aimed to bring a fully autonomous GEM vehicle to market. With this partnership, an exclusive line of Polaris GEM electric low-speed vehicles (LSVs) would be manufactured to fully integrate Optimus Ride’s autonomous software & hardware suite directly from the factory for deployment nationwide on US streets in corporate campuses, residential communities, academic campuses, & other localized environments.
- Sep-2020: Polaris came into a 10-year partnership with Zero Motorcycles, a global leader in electric motorcycle powertrains & technology for 10 years period. The partnership in off-road vehicles (ORV) & snowmobiles is a cornerstone component of rEV’d up, Polaris’ long-term strategy to deploy the Company as the leader in Powersports electrification.
» Product Launches and Product Expansions
- Jan-2022: Deere & Company unveiled the XUV865R Signature Edition Gator Utility Vehicle & the XUV835R Signature Edition Gator Utility Vehicle. These products are made with premium, automotive-inspired features that bring John Deere's line of utility vehicles to the next level for customers.
- Dec-2021: Kawasaki Heavy Industries unveiled the launch of MY22L KLX450R, which is available in “LIME GREEN” colour. KLX450R is a purpose-built off-road race machine armed with a class-leading 4-stroke engine, it has been tweaked for more low-end torque and is combined to a special wide-ratio 5-speed transmission. With a pedigree of persistent evolution, the organization never took a pause in researching and as an outcome, the beautiful KLX450R came into pervalance & holds the title of flagship motorcycle in the KLX family.
- Oct-2021: Polaris unveiled its new mid-size model of the Pro XD UTV. Bulit for lighter payloads, tighter spaces & remarkable comfort, this vehicle comes in two & four-seat versions with a capable 500-lb capacity cargo bed. Uses for the mid-size model comprise all-terrain & all-weather utility or people movement for applications like events set-up, construction, landscaping and facilities & grounds maintenance.
- Aug-2021: Deere & Company launched the Gator XUV835M Honor Edition Utility Vehicle, created to give tribute to military veterans. Showing military-inspired graphics & desert sand exterior panels, along with many model upgrades, the Honor Edition is available in an open-station configuration & an HVAC cab configuration.
- Jan-2020: KUBOTA Corporations launched prototypes of electric compact machinery (mini excavators) & electric tractors. These prototypes are presently under development at a new product exhibition located in Kyoto City. Kubota would begin with continuous development by conducting demonstration experiments & analyzing the requirements of local users.
» Acquisitions and Mergers
- Feb-2022: Deere & Company took over majority ownership of Kreisel Electric, a top pioneer in the advancement of immersion-cooled battery technology. The Austrian company manufactures, high-durability electric battery modules, high density, & packs for high-performance & off-highway applications & has built a battery-buffered, high-powered charging infrastructure platform (CHIMERO).
- Aug-2020: CFMOTO formed a joint venture with KTM, under the name CFMOTO-KTMR2R. Under this joint venture, CKM aimed to achieve their mission of improving the globalization and technology of the powered two-wheelers industry.
» Geographical Expansions
- Mar-2022: Polaris expanded its geographical footprint with a distribution facility in Wilmington, Ohio. The geographical expansion aimed to provide additional distribution capacity, expand product assortment, better delivery, customer service, & optimizing operations. With this expansion, Polaris would grow its eastern presence & in turn serve its dealers & customers in a better way.
- Aug-2021: Kawasaki Heavy Industries expanded its geographical footprints with new production facilities at its Mexican subsidiary Kawasaki Motores de México. Under this geographical expansion, these new production facilities would be added to the existing Kawasaki Motors Manufacturing facilities which would also create new, improved production capabilities in Lincoln, Nebraska.
- Jul-2020: BRP expanded its geographical footprint by expanding the manufacturing capacity with the construction of a new facility in Mexico location. This geographical expansion aimed to match demand for its off-road vehicles (ORVs) business as well as intended to assist in matching up the speed with the grown demand for Can-Am side-by-side vehicle (SSVs) experienced in latest years.
Scope of the Study
Market Segments Covered in the Report:
- IC Engine Powered
- Electric Powered
By Vehicle Type
- Sport Utility Vehicle (SUV)
- Multi Utility Vehicle (MUV)
- Utility Terrain Vehicle Type (UTV)
- Passenger Commute
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Textron, Inc.
- Polaris, Inc.
- Deere & Company
- Honda Motor Co. Ltd.
- Yamaha Motor Co., Ltd.
- Kawasaki Heavy Industries, Ltd.
- KUBOTA Corporation
- Mahindra & Mahindra Limited
- Zhejiang CFMoto Power Co., Ltd.
- Bombardier Recreational Products, Inc.
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What would be the size of the utility vehicle market by 2028?
The global utility vehicle market size is expected to reach $46.1 billion by 2028.
What are the key driving factors and challenges in the utility vehicle market?
Increasing demand for electric utility vehicles are increasing are driving the market in coming years, however, high accident rates & consequent legislation growth of the market.
Who are the leading players in the utility vehicle market?
Textron, Inc., Polaris, Inc., Deere & Company, Honda Motor Co. Ltd., Yamaha Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., KUBOTA Corporation, Mahindra & Mahindra Limited, Zhejiang CFMoto Power Co., Ltd., and Bombardier Recreational Products, Inc.
Which segment shows a high revenue share of the utility vehicle market in 2021?
The Sport Utility Vehicle (SUV) segment acquired maximum revenue share in the Global Utility Vehicle Market by Vehicle Type in 2021, thereby, achieving a market value of $15.7 billion by 2028.
Which region is fastest growing region in the market?
The Asia Pacific market is the fastest growing region in the Global Utility Vehicle Market by Region in 2021, and would continue to be a dominant market till 2028.