Utility Vehicle Market

Utility Vehicle Market Statistics 2030 -

The global utility vehicle market was valued at $25.73 billion in 2020, and is projected to reach $51.69 billion by 2030, registering a CAGR of 9.4%. Asia-Pacific was the highest revenue contributor, accounting for $10,072.3 million in 2020, and is estimated to reach $22,716.5 million by 2030, with a CAGR of 10.6%. 

The COVID-19 outbreak forced governments across the globe to implement strict lockdowns and made social distancing mandatory to contain the spread of the virus. The demand for utility vehicles has impacted significantly in the year 2020 and it is expected to continue in the year 2021 as well owing to low consumer confidence, economic uncertainty, and the partial shutdown of the business across the globe. Moreover, the supply chain has been hampered significantly amid the pandemic crisis which in turn to impact the production activities as the raw material supply, delay logistics activities have been witnessed in the industry. The year 2022 is expected to witness recovery in the market owing to the streamline of the supply chain and the positive outlook of the demand for utility vehicles.

Utility vehicle refers to a vehicle type designed to perform specific task along with its ability to operate on the rough terrain. Utility vehicles are utilized for the passenger as well as utility commute having additional benefits over passenger vehicles, including additional passenger capacity, high load carrying capacity, improved safety and comfort among others. Majority of the utility vehicles are equipped with all-wheel drive (AWD) or four-wheel drive system (4WD) to attain the operational requirements. Utility vehicles has wide range of application area, including industrial activities such as movement of goods, agricultural applications, passenger commute solutions, and others. Electric driven utility vehicles are gaining traction in the recent years, owing to its fuel-efficient operations along with effective noise reduction level.

Factors such as increase in penetration of the AWD and 4WD vehicles and government rules to support driving utility vehicles such as UTVs on road are expected to drive the growth of the utility vehicle market. However, decrease in production and sale of automotive and high maintenance cost of utility vehicles restrain the market growth. On the contrary, development of electric powered utility vehicles and expansion of dealer network for effective product reach are projected to offer lucrative growth opportunities for the market players.

The global utility vehicle market is segmented on the basis of vehicle type, application, propulsion, and region. Based on the vehicle type, the market is divided into sport utility vehicle (SUV), multi utility vehicle (MUV), utility terrain vehicle (UTV), and others. The utility terrain vehicle (UTV) is further sub-segmented by application type into work, crossover and leisure. On the basis of application, the global utility vehicle market is categorized into passenger commute, industrial, agricultural, sports, and others. 

Based on propulsion, it is fragmented into IC engine powered, electric powered, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Leading players and their key business strategies have been analyzed in the report to gain a competitive insight into the market. Key players covered in the report include BRP Inc., CFMOTO, Deere & Company, Honda Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., KUBOTA Corporation, Mahindra & Mahindra Limited, Polaris Inc., Textron Inc., and Yamaha Motor Co., Ltd.

Increase in penetration of the AWD and 4WD vehicles 

The end consumers of utility vehicles are demanding more output efficient and optimum performance high-end driving operations owing to operational conditions. Moreover, end users’ demand outlook has shifted more toward added luxury, comfort, and driving dynamics. The changing demand of the end consumers is gaining traction for four-wheel drive and all drive wheel vehicles to attain the safety and vehicle dynamic levels. Moreover, majority of the utility vehicle manufacturers are developing these drive systems to cater the changing requirement of the end users. In the recent years, AWD and 4WD utility vehicles’ penetration has increased drastically and it is expected to maintain the momentum in the upcoming years, which is anticipated to support the growth for utility vehicle in the upcoming years.

Decrease in production and sale of automotive 

The automotive industry has witnessed decline in the overall growth from the last straight three years, which results in reduced sales as well as production of automotive. This is majorly attributed to changes in manufacturing standard of the automotive and low consumer confidence for buying the vehicles due to uncertainty in the government regulations regarding emission and safety, which, in turn, increases the prices of automotive. The growth of the utility vehicle market movement is completely dependent on automotive industry outlook. Thus, lowering automotive demand and weaken vehicle sales outlook is expected to hamper the growth of the overall market.

According to the OICA (Organisation Internationale des Constructeurs d'Automobiles) has recorded total automotive production of 95.6 Mn units in 2018 and it has reached to 77.6 Mn units in 2020. Moreover, the automotive industry is witnessing slower growth than expected, which is likely to downturn the demand for utility vehicle market in the upcoming years.

Development of electric powered utility vehicles

In the recent years, all mobility solutions has witnessed drastic change in terms of technological evolution. To cater to the changing demands of consumers, market players are relying on electrical components, owing to their output efficiency and lightweight; thus, manufacturing electric driven utility vehicle solution. Moreover, emission from vehicles is a crucial factor, as harmful greenhouse gases are released, which increase environmental and health concerns. Thus, governments across the globe are implementing vehicle emission norms to control greenhouse emission and maintain environmental balance. Manufacturers need to comply with these regulations to control the emission level. For instance, from April 2020, the Government of India implemented the BS6 emission standard to control the outflow of air pollutants from vehicles. Thus, all these factors collectively escalate the demand for electric driven utility vehicle in the near future. To cope up with the changing mobility solutions, market participants need to develop electric driven solutions.

COVID-19 impact analysis

The spread of the COVID-19 pandemic has negatively impacted the global utility vehicle market, owing to commute restrictions and expected weak financial performance of the market players in 2020. It has impacted the overall economy and contributors such as market participants formulating strategic cost-saving plans. The major risk factors of the utility vehicle market participants are supply chain execution, regulatory & policy changes, dependency on labor, working capital management, and liquidity & solvency management. Majority of the manufacturing facilities of utility vehicle has been shut down during the pandemic due to commute restrictions, workforce unavailability, and short supply of raw material due to supply chain disturbance.

Key Benefits For Stakeholders

• This study presents the analytical depiction of the global utility vehicle market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall utility vehicle market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
• The current market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 Utility Vehicle Market Report Highlights