Off-Road Vehicle Market Report 2026

The off-road vehicle market size has grown strongly in recent years. It will grow from $17.83 billion in 2025 to $19.05 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to motorsports popularity, agricultural utility vehicle demand, military off road usage, rural mobility needs, recreational vehicle culture.

The off-road vehicle market size is expected to see strong growth in the next few years. It will grow to $25.08 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to electric off road innovation, growth in adventure tourism, defense modernization programs, advanced terrain handling technologies, aftermarket accessories demand. Major trends in the forecast period include growth of recreational off road vehicles, rising adoption of electric off road models, advanced suspension and drivetrain systems, customization and performance upgrades, expansion of utility off road applications.

The growing trend of recreational activities and adventure sports is expected to propel the growth of the off-road vehicle market. Recreation encompasses activities that rejuvenate the body and mind, making free time more enjoyable, while adventure or extreme sports involve higher-risk physical challenges on land, water, or in the air. Off-road vehicles cater to these activities by providing mobility, performance, and versatility in rugged terrains, boosting their demand. For example, in June 2024, the Outdoor Industry Association (OIA), a US-based nonprofit, reported that outdoor recreation participation grew by 4.1% in 2023, reaching a record 175.8 million participants, equivalent to 57.3% of the US population aged six and older. Therefore, the rise in recreational and adventure activities is driving growth in the off-road vehicle market.

Key companies in the market are focusing on retro-styled off-road vehicles to strengthen their competitive position. Retro-styled vehicles integrate classic or vintage design elements with modern technology and performance, appealing to enthusiasts who value both aesthetics and capability. For instance, in August 2023, Toyota Motor Corporation, a Japan-based automaker, launched a new retro-styled Land Cruiser, blending the iconic design of the original with modern off-road performance and accessible pricing. The model is engineered for diverse terrains, maintaining the Land Cruiser’s reputation for rugged capability while catering to the growing interest in classic-style off-road vehicles.

In January 2024, JSW Group, an India-based manufacturing company, acquired Gecko Motors Private Limited for an undisclosed amount. Through its new vertical, JSW Defence and Aerospace, JSW Group aimed to enter and expand in the defence-grade off-road and all-terrain mobility segment for the Indian Armed Forces. Gecko Motors specializes in designing and producing amphibious and all-terrain Specialist Mobility Vehicles (SMVs) for challenging terrains and varied environmental conditions.

Major companies operating in the off-road vehicle market report include Toyota Motor Corporation, Honda Motor Co Ltd., Gas Gas Motorcycles, Nissan Motor Co Ltd., Caterpillar Inc., Deere & Company, Suzuki Motors Corporation, KUBOTA Corporation, Yamaha Motor Co Ltd., Mahindra & Mahindra Limited, Textron Inc., Kawasaki Heavy Industries Ltd., Polaris Inc., Can-Am Off-Road (BRP), BRP Inc., KTM AG, CFMOTO Powersports Inc., TOMCAR Inc., Argo Inc., HISUN Motors Corp, Massimo Motor Sports LLC, Arctic Cat Inc., ODES Industries, Intimidator UTV.

North America was the largest region in the off-road vehicle market in 2025. Asia-Pacific is expected to be the fastest-growing region in the off-road vehicle market during the forecast period. The regions covered in the off-road vehicle market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the off-road vehicle market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The off-road vehicle market consists of sales of off-road vehicles including low-pressure tire vehicles, amphibious machines, ground effect air cushion vehicles, all-terrain vehicles (ATVs), and recreational off-highway vehicles. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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