Rising investments toward construction sector to accelerate off-road tires market outlook over 2019-2025
Ongoing technological advancements in product manufacturing will stimulate off-road tires market trends. New generation tires will boast of enhanced tread patterns and performance attributes and will provide higher durability and heat resistance over the predecessor. Consistently expanding distributor & dealership network across the globe will also foster product penetration over the study timeline.
Furthermore, growing innovations to develop advanced product portfolio featuring self-sealing tires, and Self-Supporting Runflat (SSR) tire systems will positively influence business growth. The implementation of SSR system improves the safety of vehicle as it prevents the damage to side walls of tires in crunch situations. Rising adoption of advanced tire manufacturing techniques among the prominent Industry players including Michelin, Continental AG, and Pirelli will help expanding the consumer base for these specialty tires.
However, consistently changing regional trade policies and fluctuating raw material prices may negatively affect the product demand over the forecast timeframe. Some countries levy high import tariffs on rubber raw materials which should increase the product price, restricting the industry expansion. For instance, in 2018, China increased the import duties on synthetic rubber coming from the U.S., Singapore, and the European Union. Though the current scenario of global trade war may restrain off-road tires market demand, the expansion of production facilities across the globe will help countering this negativity.
Based on raw materials, synthetic rubber segment is projected to substantially grow over 7.5% CAGR through 2025. The growth is attributed to superior heat and abrasion resistance provided by the material during vehicle operations. Moreover, the tires built from synthetic rubber exhibits longer lifecycle owing to lesser wear and tear. The way these products withstand variable temperatures and permit strong hold over slippery surfaces, it will support the segment penetration over the forecast timeframe.
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Considering the tire height, above 45 inches segment is likely to register significant gains due to the increased demand from bigger vehicles such as tractors, harvesters, rock trucks, dozers and excavators. The expansion of construction activities along with the proliferating agriculture sector will drive the segmental demand. Tire manufacturers are consistently involved in new product launches for OTR (off-the-road) applications which should foster revenue generation over the forecast period. For instance, in April 2018, Alliance Tire Group launched new galaxy brand radial tires for OTR vehicles.
The product is utilized for several off road vehicle types such as SUV, UTV, 4WD, HDT, Dirt Bikes & Quad and OTR. Pertaining to rising recreational activities and dirt bike events hosted across the globe, the Dirt Bikes & Quad segment is presumed to witness substantial gains in the off-road tires market. The increasing development of recreational parks and tracks for ATV will escalate the product demand.
Increasing investment to enhance the product attributes will positively impact the market growth. For instance, in April 2016, Speedways Rubber Co. revealed that it will invest around USD 68 million to manufacture tires for quads.
Author Name : Amol Kothekar
U.S. off-road vehicles market to accumulate sizable returns from Arizona, industry valuation to cross USD 13.5 billion by 2024
The U.S. off-road vehicles (ORVs) market size, in recent times, has been the recipient of sizable gains, owing to the proliferation of outdoor activities in conjunction with the improving economic condition. ORVs are becoming increasingly popular especially among the youth across the U.S., as is obvious from the rising sales of SUVs, off-road dirt bikes & motorcycles, all-terrain vehicles (ATVs) and snowmobiles.
Arizona Off-Road Vehicles Market, By Vehicle, 2017 & 2024, (USD Million)
The mounting interest in off-road adventure activities is rather overt from the progress that the ATV industry has registered in the last few years. In 2017, the ATV Safety Institute (ASI) claimed that close to 35 million Americans use ATVs in the U.S., which would prove to majorly impel the U.S. off-road vehicles market size. ATV are bound to be used extensively in the agricultural sector for several tasks performed on farms and ranches such as general transportation, animal handling, weed control and fence mending.
The agricultural sector even now, remains one of the largest occupational arenas in the U.S. As per reliable estimates, 78% of ATVs are used for recreational purposes while 22% are used in occupational settings. In addition, the versatility of ATVs has also resulted in their use in small scale construction, manufacturing, search and rescue operations, police, utilities, mining and land management. The utility, affordability and ease of use associated with these vehicles has led to their massive adoption by the agricultural community, in turn facilitating the growth of U.S. off-road vehicles industry from ATVs.
It is vital to mention that the U.S. off-road vehicles industry has received massive support from the regional regulatory landscape. Organizations like the ATV Safety Institute have been training the youth and providing education regarding safety gears. The surging adoption of safety gears will also lead to the U.S. off-road vehicles market gaining substantial momentum in the years ahead. Even the Texas legal framework permits under-14s to drive ATVs under supervision. The enforcement of norms to enhance driver and passenger safety will boost the demand for ATVs, majorly propelling U.S. off-road vehicles market size from ATVs.
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Regionally speaking, California, Texas, and Arizona stand as the chief revenue pockets for the U.S. off-road vehicles industry. According to Global Market Insights, Inc., in 2017, California held around 10% of the U.S. off-road vehicles market share owing to the presence of several state parks and recreational areas for driving. Organizations such as California Department of Parks and Recreation’s Off-Highway Motor Vehicle Recreation Division (OHMVR) are also introducing Grants & Cooperative Agreements Program to encourage OHV adoption.
Arizona is also anticipated to witness steady growth in the ensuing years, essentially on account of the favorable regulations enforced in the region that now permits the usage of California-registered vehicles in its state parks. Indeed, Arizona, boasting of 365 riding days per year, is likely to emerge as one of hotspots for the expansion of the U.S. off-road vehicles market. The state is home to some of most iconic road trails that attract tourists across the globe, namely, the Harquahala Mountain Byway, Backway to Crown King, Broken Arrow Trail, and Cinder Hills OHV Area, every one of which boasts of being a popular off-roading community. As the popularity of these trails in addition to the many hundreds of trails that the state houses, increases by the day, U.S. off-road vehicles market players are likely to target Arizona as their potential investment hub.
Capable of driving effectively on paved or gravel surfaces, off-road vehicles have increasingly become popular owing to their versatility. The use of such high traction, higher clearance vehicles enables users to access trails and forest roads that define a rough terrain. Aided by a supportive regulatory framework and the robust demand across a slew of end-use domains, U.S. off-road vehicles market will depict a commendable growth graph ahead.
Author Name : Mateen Dalal
North America youth ATV & UTV market to be characterized by the advent of technologically upgraded vehicles, government efforts to impel industry expansion over 2018-2024
Owing to increasing preference toward off-roading events and the gradual uptick in recreational spending, the North America youth ATV & UTV market has garnered unprecedented traction in the past few years. Several private agencies, clubs, and organizations have been organizing recreation activities that consist of off-roading events across backcountry roads, trails and cross-country terrains. These events and competitions have led attracted youngsters toward adventure sports and motorsports which has, in turn, fueled the growth prospects of the North America youth ATV & UTV industry.
U.S. Youth ATV & UTV Market, By Product, 2017 & 2024, (Units)
Even though the need to utilize off-road vehicles arose out of the challenges to tackle difficult geographical terrain and climatic conditions across various nations, the popularity of ATVs and UTVs has been on the rise in the recent times. These off-road vehicles have emerged as the most preferred vehicles for touring through national parks, beaches, and for racing purposes. North American nations like the U.S. and Canada have humongous national reserves and state parks where off-beat routes and trails have been built by the government.
Various state governments in the U.S. have been spending millions to construct and maintain off-road routes and trails in national parks – a factor that has invariably benefited the North America youth ATV & UTV industry. For instance, the policy board of the State Department of Natural Resources in Wisconsin approved a master plan in 2017 to add 200 miles of routes for ATVs in the Northern Highland-American Legion State Forest. Apart from commissioning new trails, the board has completed recreational opportunities analysis of a large parcel of natural area in northern Wisconsin and has further identified potential sites for ATV routes.
Needless to mention, the initiatives being undertaken by government authorities along with increasing budgetary allocations to build new off-road trails would be helpful for recreational enthusiasts and boost adventure sports in the region. That being said, numerous national parks in the states such as Wisconsin in the U.S. have emerged as major geographical terrains that assist North America youth ATV & UTV market participants to expand their commercialization scale in the recent times.
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Subsequently, the companies operating in the North America youth ATV and UTV market have been proactive in incorporating advanced technologies in these vehicles, catering to the evolving requirements of enthusiasts participating in off-roading competitions. In this regard, it would be prudent to take note of the only single-seat youth off-road vehicle introduced last year by one of the chief industry magnates, Polaris.
Reportedly, ACE 150 EFI of Polaris is the only 150cc youth model with a protective cab frame and other safety features such as parking brake, whip flag, side nets, and daytime LED running lights. Such highly advanced ATVs armed with technologically superior safety features are being increasingly introduced by numerous companies in the U.S. over the recent years. Apart from launching high-grade off-road vehicles, the prominent North America youth ATV and UTV industry players have focused on enhancing the ergonomic design of these vehicles that undoubtedly allow easier handling for youth riders and enables seamless maneuverability over obstacles.
Although the profitability quotient of the North America youth ATV and UTV market appears highly promising, there are a few factors that might prove detrimental to the rapid product penetration in the years ahead. Rising number of accidents that are predominantly attributed to the ignorance of appropriate safety gear along with rash driving by youth could cast an adverse impact on the overall market share. According to an annual report published by the United States Consumer Product Safety Commission (CPSC), a total of 337 ATV-related fatalities were recorded across the nation in 2016. However, regulatory authorities including CPSC and other government bodies in various states of the U.S. and Canada are conducting various static and dynamic ATV-testing procedures to drastically improve the handling characteristics and identify methods to enhance the performance of these vehicles.
Owing to the launch of high-quality ATVs along with encouraging initiatives being rolled out by various governments across the continent, the North America youth ATV and UTV market is slated to register a commendable CAGR of more than 6.5 percent over the timespan of 2018 to 2024. In addition to this, the new testing guidelines and stringent regulatory overview would lead to the incorporation of more safety features in the forthcoming off-road vehicles, boosting the growth potential of the North America youth ATV and UTV industry.
Author Name : Saif Ali Bepari
Off-road vehicles market to register substantial profits from the recreational segment, demand for snowmobiles to drive the industry growth
Boasting of a remuneration of over USD 19.5 billion in 2017, the global off-road vehicles (ORVs) market has gained massive traction over the past decade from sports events, recreational activities and crucial utility applications. The increase in the use of UTVs and SSVs for agricultural and hauling use owing to their size has promoted their advantages throughout the world, while growing attraction of extreme sports and motorsports among the youth has boosted the sales of ATVs and off-road motorbikes.
U.S. Off-Road Vehicles Market, By Vehicle, 2017 & 2024, (USD Million)
The utilization of ATVs for recreational and tourist activities has majorly outlined the off-road vehicles industry dynamics, garnering support from governments and the general public alike. Rising economic status of the working class population and the advent of successful entrepreneurs have created an emerging customer base for recreational events and the off-road vehicles market.
Although the introduction of ORVs arose out of particular needs in different conditions, the extensive benefits in other areas helped the popularity of ATVs to grow in applications like racing, beach use, military use and touring through national parks. Countries like Canada, U.S., South Africa and Australia have enormous state parks and natural reserves that are open to visitors and tourists, deploying a fleet of ORVs for traversing along predetermined as well as off-beat tracks. Subsequently, the off-road vehicles industry has been able to supply need-based products to the state agencies and private touring firms for catering to increasing recreational enthusiasts. The state of Wisconsin in the U.S. had announced plans in October of 2017 that it intends to add over 200 miles of access for ORVs in the Northern Highland-American Legion State Forest.
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Reportedly, the state government there has already spent millions of dollars for ATV trail development, though the Northern Highland-American Legion State Forest was yet to have ATV access, indicating a positive step towards growth of the off-road vehicles market in the region. The Wisconsin ATV-UTV Association had disclosed numbers showing that at the start of 2015, there were around 92,654 ATVS and 8,789 UTVs registered in the state. The region has been experiencing increased popularity of recreational family trips and tourist attraction, even during the winter season, which in many parts of the world represents tremendous earning potential for the off-road vehicles market, from the demand of snowmobiles.
The Yellowstone National Park in Wyoming, U.S., is an example of a such national park where the use of over-snow vehicles has been propagated for decades and consistent improvement in the vehicles has helped to overcome several issues regarding noise and pollution. Snowmobiles not only offer a convenient way for visitors to enjoy the park in winter conditions, but also allow the park personnel to do their challenging jobs and maintain the park utilities. In many places along the northern region of the earth, parks and forest trails where ATVs are used during rest of the year can still provide recreational activities in winter using snowmobiles. As such, the off-road vehicles market for recreational purposes can benefit from vast application scope in most of the northern countries.
According to statistics, about 46 million square kilometers of Earth’s surface is covered with snow every year, with 98% of the planet’s snow cover situated in the Northern Hemisphere. The Europe and North America has therefore, significantly contributed to the development and adoption of snowmobiles for short distance travelling, remote area goods transportation and for enabling recreational uses of lakes, parks and specially built trails. The sale of snowmobiles in the U.S., records indicate, had almost 58,300 units in 2015, which was a 20% rise over a two year period and demonstrated the existing prospects for the off-road vehicles industry.
Canada-based Bombardier Recreational Products (BRP) had also informed in 2017 that the company had profited from a robust demand for its recreational vehicles, with revenues from its season products, including snowmobiles, climbing 37.2% for the quarter ending January 31. BRP, operating in 100 plus countries, has proven that huge opportunities exist for recreational snowmobiles in the North America off-road vehicles market. Concerns regarding emissions and fuel efficiency have inspired many innovations in the manufacturing of ORVs. For instance, Taiga Motors in Montreal are developing an all-electric snowmobile that would help to counter stringent regulations at many national parks and forest in Europe and North America arising from environmental issues.
Owing to such efforts aimed at providing enhanced recreational vehicles and the escalated requirement for ATVs and snowmobiles across the Northern region, the recreation segment is estimated to hold approx. 25% of the off-road vehicles market share till 2024. Polaris Industries Inc., Wildcat, Bombardier Recreational Products, Caterpillar, Yamaha Motor Co., Ltd., KTM and Kawasaki Motors Corp, are major players spearheading the global off-road vehicles market share.
Author Name : Pankaj Singh