ATV Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

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Although the industry is anticipated to grow over the next five years, an expected rise in interest rates will likely hamper industry revenue growth. For these reasons, industry research firm IBISWorld has updated a report on the ATV Manufacturing industry in its growing industry report collection.

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ATVs are a discretionary purchase, so increases in consumer spending have benefitted operators.

Over the five years to 2014, revenue for the ATV Manufacturing industry is expected to increase, bolstered by improvements in economic conditions, particularly at the consumer level. ATVs are four-wheeled vehicles that are equipped with wide tires that have a deep tread suitable for various conditions and terrain. “Industry operators manufacture all-terrain vehicles (ATVs) for recreational and utility purposes, in addition to associated vehicle parts,” according to Industry Analyst Brandon Ruiz. Because ATVs are primarily a discretionary purchase, industry revenue tends to be cyclical in nature. As a result, sales typically ebbs and flows with fluctuations in disposable income. As disposable income rises, demand at the retail level grows and subsequently stimulates demand at the manufacturing level. To this end, IBISWorld expects industry revenue to grow at an annualized rate of 7.8% to $4.9 billion over the five years to 2014, including an estimated escalation of 2.1% in 2014.

The US Federal Reserve's economic policies, particularly those related to setting historically low interest rates, are anticipated to benefit industry operators over the five-year period. During periods of low interest rates, big-ticket discretionary items, such as ATVs, are typically financed at a higher rate to take advantage of lower borrowing costs. Additionally, these policies have put downward pressure on the value of the US dollar. “As the US dollar depreciates relative to other currencies, domestic goods and services become more affordable abroad, and thus more desirable,” says Ruiz. Consequently, exports are anticipated to soar higher, lifting industry revenue in the process.

Over the five years to 2019, the ATV Manufacturing industry is anticipated to continue its upward trend, albeit at a slower rate. Disposable income is expected to rise, stimulating demand for recreational purchases. Moreover, demand related to agriculture, forestry, fishing and hunting is expected to increase, bolstering demand for utility ATVs. Although the industry is anticipated to grow over the next five years, an expected rise in interest rates will likely hamper industry revenue growth. As interest rates increase, consumers will be less willing to finance their vehicle purchases, resulting in shrinking demand for ATVs. Nevertheless, positive trends are expected to outweigh rising interest rates and industry revenue is anticipated to grow over the five years to 2019.

For more information, visit IBISWorld’s ATV Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures all-terrain vehicles (ATVs) and their associated parts. ATVs are four-wheeled vehicles that are typically equipped with wide tires that have a deep tread suitable for various conditions and terrains. They can be used for recreation or utility purposes.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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