A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the Global Electric Off-Road Vehicle Market was worth USD 724 million in 2021 and is projected to reach USD 2,234 million by the year 2028, growing at a CAGR of 18.9% over the analysis period of 2022-2028. This can be attributed to the growing demand for eco-friendly and noise free automobiles, strict government regulations regarding emissions coupled with rising participation in off-road leisure actions by youngsters. These factors are driving the electric off-road vehicles market during the forecast period 2022-2028.
Burgeoning Demand for Electric Off-Road Vehicles to Prevent Air Pollution Driving the Market Growth
Air pollution has become a serious concern, around the world in recent years, and the vehicle industry is a major contributor to air pollution. The European Environment Agency (EEA) estimated that air pollution is responsible for more than 400,000 premature deaths every year in Europe. Air pollution is responsible for causing heart disease and strokes, which have become the most common reasons for premature deaths, followed by lung cancer and lung diseases It is well recognized that gasoline and diesel automobiles will not be available in the foreseeable future, and electric/hybrid vehicles offer a promising answer to the aforementioned dilemma. Therefore, demand for minimized equipment emissions is increasing which is contributing to overall market growth of the electric off-road vehicles during the forecast years 2022-2028.
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Sports Segment to Grow at a Higher Growth Rate During Forecast Period
The sports enthusiasts and tourists have shown heavy inclination towards trails of off-road vehicles such as UTV and ATV along with associated activities for recreational and sport activities purposes. Numerous leisure activity organizers and tourism councils are announcing UTV and ATV related activities by constructing tracks and sport setups for these vehicles to entice and retain visitors. Moreover, many countries organize yearly championships, which are progressively gaining popularity at an outstanding rate as anyone who is capable of driving ATVs can participate in these races. Consequently, a surge in the trend of such adventure sports attracts tourists and pushes the demand for ATV and UTV vehicles, which, in turn, aids the off-road vehicle market growth.
Impact of COVID-19 on Global Electric Off-Road Vehicle Market
As a result of the COVID-19 pandemic, the world witnessed one of the worst recessions since WW2. The global Electric Off-Road Vehicle market has also been brutally impacted by the emergence of the COVID-19 pandemic. During the first quarter of 2020, the global electric vehicle sales in the major markets, including the US and Europe declined significantly. The disruptions in the upstream and downstream supply chains, dwindling consumer demand along with stringent government guidelines led to the curtailment and suspension of production at the key automotive OEMs as well as battery manufacturers. Moreover, the lower demand from the consumer side due to the restrictions on movement also hampered the electric off-road vehicles market during the pandemic. Although, in the long term, the growth rate of the market is expected to become stable and experience a growing trend as the economy attains normalcy.
European Region to Grow at the Highest CAGR
In terms of regional analysis, the global electric off-road vehicle market has been classified into North America, Europe, the Asia-Pacific, Latin America and the Middle East, and Africa. Amidst the segmentation, the European market is expected to grow at the fastest rate during the forecast period. Electric vehicles are growing in popularity as they prove to be cleaner and more energy-efficient in comparison to conventional vehicles. Noise pollution is still prevalent throughout Europe, with vehicle traffic being the region’s major source of noise pollution. According to the European Environment Agency, long-term exposure to day-evening-night traffic noise levels of at least 55 dB affects an estimated 113 million Europeans.
The global electric off-road vehicle market is a semi-consolidated market. The key players operating in the Global Electric Off-Road Vehicle market are Polaris, Inc., KTM AG, Intimidator, Inc., Zero Motorcycles, Alke S.r.l, Daymak, Inc., Massimo Motors, HISUN Motors, DRR USA, Ecocharger Quad Bikes, TACITA S.r.l., Deere & Co., Electric Motion, Jiangsu Linhai, Power Machinery Group Corp., Ford Motor Company and other prominent players.
These players are creating new concepts of electrified, connected, autonomous, and shared mobility and are quickening the pace of automotive technological innovation. Companies and start-ups are attempting to electrify mobility, connect automobiles, and develop self-driving technologies. Such technological advancements will assist in lowering EV costs and making electric shared mobility a viable alternative to owning a car. For instance, Ford is investing $22 billion in electrification through 2025 as part of its strategy to lead electrification in areas where it has a competitive advantage. Ford intends to offer the benefits of electric vehicles to consumers through a more affordable price point, increased productivity, and lower total cost of ownership.
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