Global and China All Terrain Vehicle Industry Research Report 2022-2028

Published Date: 2022-05-22
All-terrain vehicle (ATV & UTV) (transportation suitable for all terrains), also known as "all-terrain four-wheel off-road locomotive", the vehicle is simple and practical, with good off-road performance, and generally has no canopy in appearance. All-terrain vehicles have large tires, which can increase the contact area with the ground, generate greater friction, and reduce the pressure of the vehicle on the ground, making it easy to drive on beaches, riverbeds, forest roads, streams, and harsh desert terrain. Can carry people or transport items.

A general overview of the development of the all-terrain vehicle industry

During the 13th Five-Year Plan period (2017-2021), the global ATV market size in 2017 was US$8,145.97 million. Due to the impact of the epidemic in the past two years, according to the company's latest research, the global ATV market size in 2021 was 13,716.95 million US dollars. The compound annual growth rate during the five-year period from 2017 to 2021 is 13.91%.

During the 14th Five-Year Plan period (2021 to 2025), the global scale is expected to reach US$17,065.65 million in 2025, with a compound annual growth rate of 5.61% from 2021 to 2025.

The main all-terrain vehicle manufacturers in the market include Polaris, Honda, BRP, Kawasaki and Huansong, etc. The top five companies in the world account for nearly 70% of the market. Most of the high-end market is monopolized by foreign companies, and the low-end market has serious product homogeneity , the price competition is more intense, affecting the healthy development of the market.

The main consumption areas of ATVs are North America and Europe, occupying more than most of the global market. At the same time, the Asia-Pacific economy has developed rapidly in recent years and has great market potential.

In the downstream market, ATVs can be used in industry and entertainment, of which entertainment is the largest consumer market, accounting for 82.30% of the market share in 2021.

Although all-terrain vehicles have brought some investment opportunities, the industry has high technical barriers and is difficult to enter. It is difficult to keep up with the pace of development of new technologies if the scale of enterprises is too small or the investment in technology development is insufficient. The increasingly fierce market competition requires enterprises Continue to expand the scale and invest more R&D strength. The research team suggests that if you only have funds, without absolute technical advantages and the support of downstream customers, do not rashly enter the field of all-terrain vehicles.

The main characteristics of the development of the all-terrain vehicle industry

After years of development, my country's ATV and its engine technology have made great progress, and the gap between the overall technical level of the industry and the world's advanced technology level has gradually narrowed. Especially in recent years, under the strategic guidance of national introduction, digestion, absorption and innovation, leading enterprises in the industry have paid more and more attention to technological innovation and technological reserves, as well as the application of new technologies and new processes. promote. Some large-scale leading enterprises with strong innovation ability in the industry already have the independent production capacity of many key components such as engine, frame, gearbox, drive axle, and balance weight. , supporting system and management system have been greatly improved.

Although my country has made great progress in the technology of all-terrain vehicles and large-displacement motorcycles, there is still a certain gap compared with developed countries. The development of a complete vehicle is inseparable from the basic accessories. For many years, the accessories, especially the key accessories, have not made breakthrough progress, and the level of key technologies is relatively backward, and there is a big gap with the international level. Manufacturers in the industry and companies that entered the industry are more willing to engage in the production of complete vehicles, which makes the development of the parts industry relatively lagging behind. For high-tech, high-value-added parts, especially electrical components, power components, etc. are too dependent on imports .

Barriers to entering the all-terrain vehicle industry

[Technical Barriers] The customer needs of all-terrain vehicles are becoming more and more personalized, and delivering products that meet the requirements to customers on time and with high quality needs to be based on excellent design and development capabilities. Therefore, design and R&D capabilities are the key for ATV companies to achieve differentiated competition and the embodiment of core competitiveness. The design of ATVs is a multi-parameter, multi-objective, multi-constraint solution and optimization problem. The R&D and manufacturing of all-terrain vehicles has high technical requirements for industrial design, EFI technology, multi-valve water-cooled engine technology, and lightweight technology. , component matching experiment, safety and environmental protection meet the standard requirements, all of which put forward higher requirements for the production enterprise's technology research and development, and its own intellectual property rights. At the same time, with the rapid development of ATVs in the leisure and entertainment market, consumers have higher and higher requirements for ATVs in terms of power engine technology, suspension capability, and appearance design. Engines designed and manufactured by well-known manufacturers are highly regarded in outdoor power products. Safety and reliability must win the market's trust.

[Environmental protection and safety certification barriers] Domestic all-terrain vehicles and motorcycles are mainly exported to North America, Europe and other regions. These regions have extremely strict requirements on product environmental protection, energy saving, and safety performance. Products must pass the corresponding certification, otherwise they cannot enter the above-mentioned regions. . With the strengthening of people's awareness of environmental protection and safety around the world, developed countries such as Europe and the United States have paid more and more attention to environmental protection and safety requirements, and have also increased the environmental protection and safety index requirements of imported products. In terms of environmental protection, represented by emission certifications such as EPA and Euro IV, the international market has set many environmental protection certification standards for ATVs and motorcycles. Passing product certification is a prerequisite for enterprises to enter the corresponding regional market. Due to technical, production management and other reasons, it is difficult for new entrants to fully meet the above standards in a short period of time, forming environmental protection certification barriers to entering the industry.

[Environmental protection and safety certification barriers] Domestic all-terrain vehicles and motorcycles are mainly exported to North America, Europe and other regions. These regions have extremely strict requirements on product environmental protection, energy saving, and safety performance. Products must pass the corresponding certification, otherwise they cannot enter the above-mentioned regions. . With the strengthening of people's awareness of environmental protection and safety around the world, developed countries such as Europe and the United States have paid more and more attention to environmental protection and safety requirements, and have also increased the environmental protection and safety index requirements of imported products. In terms of environmental protection, represented by emission certifications such as EPA and Euro IV, the international market has set many environmental protection certification standards for ATVs and motorcycles. Passing product certification is a prerequisite for enterprises to enter the corresponding regional market. Due to technical, production management and other reasons, it is difficult for new entrants to fully meet the above standards in a short period of time, forming environmental protection certification barriers to entering the industry.

[Sales channel barriers] In order to rapidly expand market coverage, reduce sales costs, implement product after-sales service commitments, and maintain brand image, most well-known domestic and foreign manufacturers have established subsidiaries or developed distributors in target sales areas and agreed with them on price policies, Regional authorization, logistics policy, promotion support, after-sales support and other rights and obligations to expand sales channels, the mode, quantity and quality of sales channels directly affect the realization of the company's sales performance. The quantity and quality of overseas distribution channels of export enterprises put forward higher requirements for enterprises. The establishment of overseas sales networks requires not only strong financial strength, but also a sufficient understanding of laws and regulations and consumer characteristics in overseas markets; The quantity and quality of dealers directly depend on the company's accumulated brand reputation and management capabilities.

[Funding Barriers] my country's all-terrain vehicle industry and large-displacement motorcycle industry are in a stage of rapid development. Intensified competition and constant changes in market demand require enterprises to actively adopt new and efficient process technologies and equipment to continuously enhance the added value of their brands. This requires enterprises to continuously strengthen the capital investment in scientific and technological research and development. On the other hand, as labor costs rise and raw material prices fluctuate, enterprises are also required to achieve large-scale production through large-scale investment in fixed assets, in order to form strong purchasing and sales bargaining power and reduce production costs. Therefore, the capital threshold for the follow-up development of the industry will continue to increase.
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