June 18, 2024
Ultra Light Vehicles (ULV) Market

Ultra Light Vehicles (ULV) Market Is Driven By Increasing Demand For Recreational Vehicles

The Ultra Light Vehicle (ULV) Market includes products like all-terrain vehicles, utility task vehicles, and recreational off-highway vehicles which are designed and manufactured primarily for recreational purposes. These vehicles provide unmatched mobility in rugged terrains along with the thrill of adventure riding. ULV has established itself as an excellent option for recreational and sporting activities like hunting, fishing, camping, and trail riding.

The Global Ultra Light Vehicle (ULV) Market is estimated to be valued at US$ 231.35 Bn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Ultra Light Vehicle (ULV) are TARDEC, Hendrick Dynamics, Lockheed Martin Corporation, General Dynamics UK, Polaris Industries, Inc, Textron Inc., BAE Systems, Cheney Industries, Kubota Corporation, Yamaha Motor Company, and Can-Am. The growing popularity of outdoor recreational activities along with rising disposable incomes have been fueling the demand for ULV across the world. Several manufacturers are expanding their production facilities globally to cater to the increasing requirements from both developing and developed economies.

Market key Trends

The growing trend of adventure tourism and off-roading activities have generated significant traction for Ultra Light Vehicles (ULV) Market Demand in recent times. Manufacturers are focusing on developing advanced features like better suspension, improved ergonomics and comfort to attract more customers. There is also a rising demand for electric ULV to cater to sustainability goals of end-users along with reduced operating costs. Several companies have unveiled prototype electric ULV models and their market introduction is expected in the coming years.

Porter’s Analysis

Threat of new entrants: ULV market requires large initial investments to acquire technology and develop new prototypes and certifications which act as entry barriers.

Bargaining power of buyers: Buyers have moderate bargaining power owing to the availability of alternatives and suppliers focus on providing customised solutions.

Bargaining power of suppliers: Suppliers possess moderate to high bargaining power as they focus on developing critical components like batteries, motors and fuel cells.

Threat of new substitutes: New alternatives like electric utility vehicles offer low threat as ULV offers superior mobility due to their small size and lightweight.

Competitive rivalry: Intense competition exists between major defense players to gain contracts from defence departments globally.

The North American region accounts for over 35% of the global ULV market value due to strong investments by defence organisations and technology players in the region for application in defence, agriculture and surveillance sectors.

The Asia Pacific region is expected to witness the fastest CAGR over the forecast period. This is attributed to the increasing adoption of ULV for last mile deliveries, patrolling of remote areas and agriculture applications in emerging countries like India and China. expanding industrial infrastructure and growing e-commerce industry in the region are driving the adoption of ULV.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.