Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
All-terrain vehicles are also known as quad bikes. There are two variants of quad bikes: three wheeler and four wheeler. All-terrain vehicles are capable of reaching remote areas in dessert, mountains, and snow lands. The lighting systems of ATV can be categorized into: front lighting and rear lighting. Due to recent developments in LED technology, the demand for ATV lighting systems have increased in the recent years. For instance, companies such as Piaa Corporation have specially designed LED and halogen lights for all-terrain vehicles. Moreover, companies are also launching electric all-terrain vehicles. For instance, Ecocharger Company launched electric ATV vehicle in December 2018.
The global all-terrain vehicle (ATV) lighting systems market is expected to witness significant growth during the forecast period (2020–2027). The market growth is majorly attributed to increasing number of ATV racing events across the globe. For instance, MX sports have scheduled 10 ATV events for the year 2020. Such racing events are increasing the popularity of ATV bikes and are expected to drive the market growth during the forecast period.
The major restraining factor for global all-terrain vehicle (ATV) lighting systems market is the high initial cost of the vehicle. The average price of ATV vehicle is around US$ 10,000.
COVID-19 pandemic has also affected the economies of various countries across the globe. For instance, according to World Trade Organization, the export volume of the U.S. in the first two weeks of March 2020 dropped down by 50% when compared to the previous year. The International Monetary Fund also reduced the projected growth rate of India for FY 2021 in March 2020 from 5.8% to 1.8%. In the economic slowdown, the GDP per capita also reduced due to which the consumers are spending money only for necessities such as food and shelter. Therefore, COVID-19 is acting as a challenge for the market growth during the forecast period.
Increasing number of all-terrain vehicle (ATV) championship and events in North America is expected to drive the market growth during the forecast period
North America held dominant position in the global all-terrain vehicle lighting systems market in 2019, accounting for 37.5% share in terms of value, followed by Europe and Asia Pacific, respectively.
Figure 1: Global All-Terrain Vehicle Lighting Systems Market Share (%)in Terms of Value, By Region, 2019
North America held dominant position in the global all-terrain vehicle (ATV) lighting systems market in 2019 and is projected to retain its dominance throughout the forecast period. This is owing to increasing number of ATV events in the recent years. For instance, according to CMI analysis, in Ontario, Canada, around 60 ATV events were held in the year 2019. Ontario is a province in Canada, which is popularly known for ATV events. CGHSF Foundation organized an ATV event to raise fund for the new MRI machine in Owen Hospital in Ontario in September 2018. Due to such events, popularity of ATV sports is increasing and lighting systems are an important part of ATV vehicles. ATVs are off-road vehicles and mostly driven on remote dessert or mountain areas. Therefore, visibility at the time of night or bad weather is very much important to avoid the risk of accidents.
Asia Pacific region is expected to show highest growth during the forecast period. In countries such as India, ATV sports is becoming popular. In March 2019, Auto Sports India organized ATV championship in three categories: Drag race, Solo Dirt Race, and Endurance Race in Goa. The popularity of ATV sports is expected to increase in the near future. Owing to these reasons, the all-terrain vehicle lighting systems market is expected to show a significant growth during the forecast period in Asia Pacific region.
Major players operating in the global all-terrain vehicle (ATV) lighting systems market include Baja Designs, Lazer Star Lights, Nextech Industries, Oracle Lighting, Piaa Corporation, Plasmaglow, Polaris Industries, Vision X USA, Warn Industries, and Xprite.
Surge in demand for OEM ATV lighting parts across the globe is expected to drive growth of the market during the forecast period
Among suppliers, OEM sub-segment is expected to hold dominant position in the global all-terrain vehicle lighting systems market during the forecast period. This is owing to the easily availability of ATV OEM parts and first year warranty given by the ATV companies. Most ATV companies such as American Honda Motor Co., Inc are now offering 1 year warranty on new vehicles. If any parts gets damaged within 1 year, then company replaces it free of cost. Also, American Honda Motor Co., Inc offers extended warranty of 5 years under the Honda Care Protection Plan. Moreover, OEM parts are more reliable and can be easily replaced with the damaged parts. Owing to these reasons, the market is expected to show a significant growth during the forecast period.
Figure 2: Global All-Terrain Vehicle Lighting Systems Market Value (US$ Mn), 2016 - 2027
The global all-terrain vehicle lighting systems market was valued at US$ 107.7 Mn in 2019 and is expected to reach a value of US$ 138.6 Mn by 2027 at a CAGR of 3.2% between 2020 and 2027.