The global utility vehicle market is projected to more than double in value, soaring from $25.73 billion in 2020 to a staggering $51.69 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.4%, according to a new report by Allied Market Research (AMR).
Titled “Utility Vehicle Market by Propulsion Type, Application, and Vehicle Type: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the report highlights significant trends shaping the industry, particularly the surging demand for electric-powered vehicles and sport utility vehicles (SUVs).
Asia-Pacific Leads the Charge
Asia-Pacific emerged as the dominant regional market in 2020, with China spearheading growth in the utility vehicle segment. This regional dominance is expected to continue throughout the forecast period, fueled by evolving transportation trends and green mobility initiatives in China and India.
The U.S., meanwhile, led in global market share in 2020 and is expected to maintain robust growth driven by a shifting automotive landscape and increasing focus on vehicle safety.
Key Growth Drivers
Several factors are propelling the market’s expansion:
- Electrification Surge: Electric utility vehicles are expected to lead the propulsion segment due to fuel efficiency and operational advantages.
- SUV Boom: Rising consumer preference for versatile and rugged SUVs is creating lucrative growth opportunities.
- Off-Road Demand: Utility vehicles continue to find growing application in agriculture and industrial sectors, thanks to their all-terrain capabilities.
COVID-19 Impact and Recovery
The market experienced a sharp decline in 2020 due to pandemic-induced supply chain disruptions and reduced consumer confidence. Industry players responded with strategic cost-cutting measures such as extended equipment lifecycles, workforce reductions, and delayed product launches. However, the sector witnessed a positive shift in the latter half of 2022, with a rebound in demand and renewed momentum from sustainability goals.
Segment Highlights
- Propulsion Type: Electric vehicles to show significant growth during the forecast period.
- Vehicle Type: Sport Utility Vehicles (SUVs) to lead in market share by 2030.
- Application: Agricultural utility vehicles projected to witness the highest growth rate.
Major Players in the Market
Key companies analyzed 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.
- Yamaha Motor Co., Ltd.
With global trends pointing toward cleaner, safer, and more capable transportation solutions, the utility vehicle market is set for transformational growth. Electrification, technological upgrades, and increasing off-road utility are paving the way for a robust and resilient industry outlook through 2030.
