According to the new research report on "Electric Off-Road Vehicle Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 2,234.0 million by 2028, registering a CAGR of 18.9% from 2022 to 2028.
The European region comprises France, Germany, Russia, the UK, and Italy, among others. Germany, France, and Italy are well-known global automotive manufacturing hubs. Due to increasing noise pollution, there is a rising prevalence of ear conditions, including deafness, in the region. Governments are implementing measures to reduce noise pollution caused by construction equipment. Furthermore, there is a growing trend among consumers to shift towards low-emission vehicles, which is boosting the electric off-road vehicle market. Additionally, the governments of various European countries are promoting the adoption of electric vehicles to reduce reliance on fossil fuels and curb pollution levels. These factors are fuelling the growth of the electric off-road vehicle market in the region.
The COVID-19 pandemic had a severe impact on the electric off-road vehicle market, causing a significant decline in demand. Many market players reported a drop in revenue due to the temporary closure of manufacturing facilities and disrupted supply chains, which were further compounded by high lithium prices. Additionally, labor shortages, contamination risks, and lack of funds also contributed to the market's decline. European automakers delayed their Li-ion battery shipments from Asia due to uncertainty in the automotive demand. The restrictions on road movement had a short-term impact on domestic supply chains, and production facility closures led to project delays, which negatively impacted the electric off-road vehicle market in Europe.
As a result of the COVID-19 pandemic, major players in the electric off-road vehicle market suffered significant losses due to restrictions on the movement of goods, labor shortages, and logistics bottlenecks. These conditions also led to delays and cancellations of research and development plans, as companies were uncertain about the future of the market. However, with the resumption of the global economy, major players have resumed operations and are continuously improving electric off-road vehicle technologies to enhance safety, efficiency, and production results. Automotive manufacturing resumed in the fourth quarter of 2020, which is expected to have a positive impact on the electric off-road vehicle market size.
The electric off-road vehicle market is segmented based on vehicle and application. Based on vehicle, the electric off-road vehicle market is segmented into all-terain vehicle (ATV), special service vehicle/utility terrain vehicle (SSV/UTV), and off-road motorcycles. Based on application, the electric off-road vehicle market is segmented into utility, sports, recreation, and military.
The global electric off-road vehicle market is dominated by the top five key players, namely Volcon, Inc.; Polaris, Inc.; PIERER Mobility; Intimidator, Inc.; and Zero Motorcycles, as of 2021. The ranking of these key players is based on various performance parameters such as overall revenue, segment revenue, geographical reach, customer base, market initiatives, investment in technology upgradation, research, and development (R&D) investments, new product launches, mergers and acquisitions, and other market-related activities. Additionally, several other prominent players in the electric off-road vehicle market include KTM AG, 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., and Ford Motor Company, among others.
Key Findings of Market Study:
The global electric off-road vehicle market value chain includes various stakeholders such as raw materials suppliers, battery pack manufacturers, off-road EV manufacturers and assemblers, quality control and inspection teams, marketing teams, sales and distribution channels, and end-users. Key raw materials used in the manufacturing of electric off-road vehicles include steel, aluminum, iron, lithium, nickel, cobalt, cadmium, sodium, and lead. While lead-acid batteries are currently the most used in electric vehicles, other metal and fluid combinations are also available. China is the largest battery manufacturing hub, accounting for over 60% of the world's battery manufacturing capacity. Major Chinese manufacturing companies such as CATL, BYD, Funeng Technology, and Tianjin Lishen have invested significantly in mega factories with a minimum output of 20 GWh, while Korean companies Samsung and LG Chem have also established mega factories in China. Most electric off-road vehicle manufacturers have their own distribution networks for distributing their vehicles, including leased whole goods distribution centers where certain models are up fitted and set-up before being shipped to distributors, dealers, and customers. The distribution networks usually comprise a network of several distribution centers, including third-party providers, through which the products reach dealers, distributors, and customers.
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