Off-road Vehicle Market - Snapshot
Vehicles that can be driven on off-road and rugged conditions are known as off-road vehicles. They generally have large tires with flexible suspension and open, deep treads. Common use of such vehicles is for exploration in areas that do not have tar roads. Utilization of higher power vehicles and higher clearance enables access to trails and forest roads that have low traction and rough surfaces. Moreover, vehicles employed in the construction industry and for farming purposes are off-road vehicles. Among all industries, the construction industry held a prominent share of the off-road vehicle market.
Rise in industrialization is boosting the development of infrastructure. Rising demand for industrial products is fueling the development of new industries. Moreover, expansion of existing industries is propelling the market for construction equipment. Rise in industries is driving the demand for minerals and metals, which are extracted from their ores. This, in turn, is boosting the mining industry, which requires mining equipment such as shovels, loaders, haul trucks, and draglines. Moreover, expansion of the construction industry depends on the economic growth of the country, as sluggish expansion is projected to hamper the market for vehicles that are utilized in construction, mining, and agriculture. The number of construction sites is rising due to increasing industrialization and urbanization across the globe. Expansion of existing industries and establishment of new small and medium enterprises are likely to boost the off-road vehicle market.
Globally, the population is rising at a significant pace, and according to the United Nations, the global population is anticipated to reach around 8.6 Bn by 2030, which was 7.6 Bn in 2016. Rising population has boosted the construction of new residential as well as commercial places, thus driving the construction equipment market. Economic expansion has propelled the investment for the improvement of infrastructure across the globe, specifically across developing countries, which are witnessing heavy construction of roads, railways, and industries.
High cost of manufacturing and maintenance is estimated to significantly restrain the off-road vehicle market. Regulatory bodies across globe are enacting stringent norms to reduce vehicle (carbon) emissions. Off-road vehicles require a large amount of power for their operation; hence, they burns considerable fuel and produces more emission, as compared to passenger and commercial vehicles. Development in vehicle emission of such vehicles is likely to boost the off-highway vehicle market during the forecast period.
Asia Pacific held a leading position in the global off-road vehicle market in 2017. The region is likely to maintain its dominance of the global off-road vehicle market during the forecast period owing to development in infrastructure in various countries of the region. Expansion of industrial and IT sectors in countries such as China, India, and South Korea is likely to boost the development of infrastructure in these countries. This in turn is expected to fuel the demand for construction equipment in the region at a rapid pace. Majority of the population in the region depends on agriculture for living. Advancements in the procedures used in agriculture is prompting the utilization of agricultural equipment. Governments of countries such as India provide subsidies to buy agricultural equipment such as tractors in order to improve the production from agriculture and increase share of the agriculture sector in their respective countries’ GDP. China and India accounted for nearly 50% of the tractor production in the region in 2017. This is due to the large land area under agriculture and exports from these countries to neighboring nations. Asia Pacific has a significantly low average price for off-road vehicles owing to higher share of agriculture equipment, which has a considerably less price as compared to construction equipment.
The off-road vehicle market in Latin America is projected to expand at a considerable growth rate due to rise in gross domestic production in developing countries of the region. Major trends driving the market in the region are significant investments by key players and governments of countries are enhancing vehicle production, which in turn is driving the demand for off-road vehicles in the region. Rapid improvement in infrastructure and expansion of the construction industry in the region are propelling the off-road vehicle market in the region. Economic development in Brazil, after witnessing recession for three straight years, is likely to improve the economy of Brazil. This, in turn, is expected to boost the off-road vehicle market in the country.
North America is home to a prominent mining industry. Equipment utilized in the mining industry are majorly produced in the U.S. The U.S. is a notable manufacturer of construction equipment. The market in North America is likely to expand at a significant growth rate owing to increase in production of agriculture equipment. This is also supported by the transfer of production bases of off-road vehicles from Mexico to the U.S. The announcement of ‘America First Policy’, President Trump, has prompted several vehicle manufacturers to move their production sites from Mexico to the U.S.
The global off-road vehicle market is dominated by a few key players, as planning, design, manufacturing, and assembly of off-road vehicles requires significant capital investment, high precision during fabrication of components, which requires technical expertise and is expensive. All players operating in the off-road vehicles market have major production bases, and they operate through various locations across the world. Major players operating in the global off-road vehicle market include Caterpillar Inc., Deere & Company, KUBOTA Corporation, Escorts Limited, YANMAR CO., LTD., CLAAS KGaA mbH, Mahindra & Mahindra Ltd., Hitachi, Ltd., SAME DEUTZ-FAHR Italia S.p.A., AGCO Corporation, AB Volvo, Doosan Infracore, BELL Equipment., Liebherr- International AG, Komatsu America Corp., CNH Industrial America LLC, ALLU Finland Oy, Manitowoc, and Terex Corporation. Some players are focused on construction equipment, some are market leaders in agricultural equipment; however, several players among those mentioned above are operating in both construction and agricultural equipment.
Major players are focusing more on joint ventures, expansion, mergers, and acquisitions with component manufacturers and local players in order to distribute the work load and increase their trade in various countries. Research & development is a major factor playing an important role in enhancing the operation, size, and effectiveness of off-road vehicles.
Off-road Vehicle Market - Overview
The off-road vehicle market has been forecasted for the period 2018 to 2026 based on revenue (US$ Bn) and volume (Thousand Units). This report provides forecast and analysis of the off-road vehicle market at regional and global levels. The study highlights the drivers and restraints influencing the market. The report also highlights the opportunities in the off-road vehicle market and underlines the technological roadmap for understanding the market.
The report contains value chain analysis, which provides a comprehensive view of the global off-road vehicle market. The Porter’s Five Forces analysis of the off-road vehicle market has also been included that helps understand the competitive scenario of the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and attractiveness.
The study provides a decisive view of the global Off-road vehicle market by segmenting it in terms of application, fuel type, engine size, and region. These segments have been analyzed based on present and future trends. Regional segmentation comprises current scenario along with forecast of the off-road vehicle market. The forecast provided is based on the compilation of current trends as well as the expected scenario in future due to change in technological, geographical, political, regulatory, and economic factors such as the rapid expansion of the electric vehicles market. Demand for fuel-efficient vehicles among consumers and government emission regulations have been considered while sizing the market.
The study includes profiles of major companies operating in the global off-road vehicle market. The major share of the market is held by a few key players and the rest is fragmented among medium-scale manufacturers. Major players operating in the Off-road vehicle market include AB Volvo, Caterpillar, AGCO Corporation, Bell Equipment, CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company, Doosan Infracore, Escorts Limited, Hitachi, Ltd., Komatsu America Corp., KUBOTA Corporation, Liebherr Group, Mahindra & Mahindra Ltd., Manitowoc, SAME DEUTZ-FAHR Italia S.p.A., Terex Corporation, and YANMAR CO., LTD. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The off-road vehicle market is primarily driven by rapid expansion of construction and mining industries, which in turn is likely to expand at a significant pace during the forecast period. Furthermore, development of new equipment for the agriculture sector is another major factor propelling the off-road vehicle market.
The report provides the estimated market size of the off-road vehicle market for 2017 and forecast for the next nine years. The global market size has been provided in terms of revenue (US$ Bn) and volume (Thousand Units). Market figures have been estimated based on engine, fuel type, sales channel, vehicle, and region. Size and forecast for each major segment have been provided in terms of global and regional/country markets.
In-depth interviews and discussions were conducted with a number of key industry participants and opinion from leaders to compile the research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be highly reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, market reports, news articles, press releases, and webcasts specific to companies operating in the market, American Automobile Association, European Automobile Manufacturers Association, Automotive Research Association of India, Factiva, etc.
Primary research involves e-mail interactions and telephonic interviews for each market, category, segment, and sub-segment across regions. Primary interviews are conducted on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
The global off-road vehicle market has been segmented as follows:
Global Off-road Vehicle Market, by Application
- Construction and Mining
- Articulated Dump Truck
- Rigid Dump Truck
- Motor Scraper
- Motor Grader
- Other Agriculture Equipment
Global Off-road Vehicle Market, by Fuel Type
Global Off-road Vehicle Market, by Engine Size
- <100 HP
- 101-200 HP
- 201-400 HP
- >400 HP
Global Off-road Vehicle Market, by Region/Country/Sub-region
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa