Off-Highway Vehicles Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Vehicle Type:

Based on the vehicle type, the market is segmented into all-terrain vehicles (ATVs), recreational off-highway vehicles (ROVs), utility task vehicles (UTVs), and others.

Trends in the Vehicle Type:

• Rising adoption of ROVs for travelling and outdoor activities in rough terrains is driving the off-highway vehicles market size.
• Increasing trend in adoption of UTVs for applications in agriculture, military, and construction industries.

The all-terrain vehicles (ATVs) segment accounted for the largest revenue share in the off-highway vehicles market share in 2024 and it is expected to register the fastest CAGR during the forecast period.

• ATVs are motorized, off road vehicles that have a straddle seat for the operator, three or four low-pressure tires, and handlebars for steering control.
• ATVs do not have roll cages or any other safety equipment while having high ground clearance and durable construction.
• For instance, in July 2024, Massimo, an ATV manufacturer, launched a robotic assembly line in Texas facility. This aims to boost the production by 50%, and also reduce the labor costs.
• Therefore, the rising advancements associated with ATVs are boosting the off-highway vehicles market trends.

By Engine Type:

Based on the engine type, the market is segmented into ICE and electric.

Trends in the Engine Type:

• Rising adoption of electric vehicles due to higher operational efficiency, less emissions, and lower costs is driving the off-highway vehicles market size.
• Increasing trend in adoption of higher power ICE engines in operations in construction, mining, and military industries.

The ICE segment accounted for the largest revenue in the off-highway vehicles market share in 2024.

• Internal combustion engines (ICEs) offer benefits including fuel versatility and high-power density, which makes them suitable for various applications across industries.
• For instance, in April 2024, Cummins Inc. launched a new 15L diesel engine for the off-highway vehicles. The engine provides benefits including improved fuel efficiency, reduce operating costs, and reduced emission while maintaining reliability.
• Therefore, the wide penetration of ICE engine OHVs is driving the off-highway vehicles market expansion.

The electric segment is expected to register the fastest CAGR during the forecast period.

• Electric engines offer numerous benefits, including lower running and maintenance costs, environmental friendliness through zero emissions, and improved performance. 
• For instance, in March 2024, Powerland launched Powerland Tachyon 4x4 electric ATV in India. The ATV is powered by 11 kWh battery pack paired in integration with PMSM electric motor that exerts 800 Nm of torque and 50 hp of power.
• Thus, the increasing development of electric OHVs is expected to boost the off-highway vehicles market trends during the forecast period.

By Engine Capacity:

Based on the engine capacity, the market is segmented into less than 5L, 5L to 10L, and more than 10L.

Trends in the Engine Capacity:

• Rising trend in adoption and demand of higher engine capacity OHVs for improved acceleration and longevity.
• Increasing adoption of 5L to 10L engine capacity due to enhanced fuel economy and performance.

The less than 5L segment accounted for the largest revenue share of 54.33% in the market in 2024.

• Smaller engine capacity (less than 5L) offers advantages including lower emissions, fuel efficiency, and potentially lower manufacturing costs.
• Moreover, smaller engines are more compact, freeing up space in the engine bay for other components or features.
• Therefore, the market analysis depicts that the aforementioned factors are responsible for driving the off-highway vehicles market growth.

The 5L to 10L segment is expected to register the fastest CAGR during the forecast period.

• The 5L to 10L engines offer balance between fuel and power economy that makes them suitable for longer trips and off-road adventures.
• Moreover, these engines are mostly used in OHVs utilized in construction and agriculture sectors for transportation of materials and goods.
• For instance, Shiyan Yunlihong Industrial & Trade Co., Ltd. offers 7.5L Engine 15 Tons Cargo Truck. The engine develops 245hp at 2500rpm with peak torque of 905Nm at 1200-1800rpm.
• Thus, the market analysis depicts that the benefits provided large capacity engines are anticipated to boost the off-highway vehicles market demand during the forecast period.

By End User:

Based on the end user, the market is segmented into military & defense, agriculture, construction, sports, mining, and others.

Trends in the End User:

• Rising adoption of OHVs in adventurous sports and out camping in rough terrains is boosting the market growth.
• Increasing trend in adoption and demand of OHVs in military and defense operations for enhanced mobility and rapid troop movement.

The agriculture segment accounted for the largest revenue share in the market in 2024.

• OHVs in agriculture include combine harvesters, tractors, and other agricultural machinery that are used in operations such as tilling, harvesting, and plowing on farms and other terrains. 
• Moreover, OHVs have flexible suspension, large tires with deep treads, and caterpillar tracks to navigate uneven terrain. 
• For instance, in August 2023, Mahindra Tractors launched Mahindra OJA, a new range of light weight 4WD tractors. The tractors are built in collaboration with Mitsubishi Mahindra Agriculture Machinery, Japan.
• Therefore, the wide applications of OHVs in agriculture industry is driving the off-highway vehicles market expansion.

The construction segment is expected to register the fastest CAGR during the forecast period.

• OHVs in construction include excavators, bulldozers, and articulated haulers, that enables efficient movement of equipment and materials on uneven terrain. 
• Moreover, these OHVs are used for clearing land, digging trenches, loading materials, and other applications.
• For instance, in March 2025, Caterpillar launched the next generation Cat 330 UHD demolition excavator. The excavator is able to withstand difficult demolition of tall buildings and structures.
• Thus, the off-highway vehicles market analysis shows that the rising construction sector is expected to boost the market during the forecast period.