Global 2WD All Terrain Vehicle Market Insights, Size, and Forecast By End Use (Personal, Commercial, Government), By Application (Recreational, Utility, Sports), By Type (ATVs, Side-by-Side Vehicles, Dune Buggies), By Engine Type (Internal Combustion Engine, Electric), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global 2WD All Terrain Vehicle Market is projected to grow from USD 3.3 Billion in 2025 to USD 5.4 Billion by 2035, reflecting a compound annual growth rate of 6.4% from 2026 through 2035. The 2WD ATV market encompasses off-road vehicles designed for rugged terrain, primarily utilizing two-wheel drive for propulsion. These vehicles are characterized by their robust construction, powerful engines, and ability to navigate challenging landscapes. Key market drivers include the increasing popularity of outdoor recreational activities such as trail riding, camping, and hunting, which fuel demand for versatile off-road vehicles. Furthermore, the growing use of ATVs in agriculture, forestry, and search and rescue operations contributes significantly to market expansion. Advancements in ATV technology, offering enhanced safety features, improved fuel efficiency, and greater rider comfort, are also stimulating adoption. However, market growth is tempered by stringent environmental regulations concerning emissions and noise pollution, particularly in developed regions. Concerns regarding ATV safety and the potential for accidents also pose a restraint, prompting regulatory bodies to implement stricter usage guidelines. Despite these challenges, opportunities abound in the development of electric and hybrid 2WD ATVs, catering to environmentally conscious consumers and offering lower operating costs. Furthermore, the expansion of ATV rental services and adventure tourism packages presents a lucrative avenue for market players.
Global 2WD All Terrain Vehicle Market Value (USD Billion) Analysis, 2025-2035
2025 - 2035
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North America stands as the dominant region in the global 2WD All Terrain Vehicle market. This dominance is primarily attributed to a well-established culture of off-road recreation, extensive trail networks, and high disposable incomes that enable consumers to invest in leisure vehicles. The presence of numerous key manufacturers and a strong aftermarket for parts and accessories further solidify North America's leading position. The region also benefits from the widespread use of ATVs in farming and ranching, where their agility and utility are highly valued. Conversely, Asia Pacific is projected to be the fastest-growing region, driven by rapid urbanization, increasing disposable incomes, and a burgeoning interest in adventure tourism and outdoor sports among its expanding middle class. Governments in several Asian countries are also investing in recreational infrastructure, including off-road parks, which will further stimulate ATV demand. The agricultural sector in Asia Pacific, with its diverse terrain and need for efficient transportation, also represents a significant growth area for 2WD ATVs.
The Internal Combustion Engine segment continues to be the leading segment, underscoring the enduring preference for traditional gasoline-powered engines due to their proven reliability, power, and extensive refueling infrastructure. However, the market is gradually shifting towards more sustainable alternatives, albeit at a slower pace. Key players such as Honda Motor, Suzuki Motor Corporation, BRP, Kawasaki Heavy Industries, Arctic Cat, CFMOTO, Hyosung, TGB Motor, Roketa, and Bashan Motors are actively engaged in competitive strategies to strengthen their market positions. These strategies include continuous product innovation, focusing on performance enhancements, ergonomic design, and integrating advanced technological features such as GPS navigation and connectivity options. Many companies are also expanding their distribution networks, forging strategic partnerships, and investing in aggressive marketing campaigns to reach a wider customer base. Furthermore, several manufacturers are exploring the development of electric powertrain options and integrating advanced safety systems to meet evolving consumer demands and regulatory requirements, positioning themselves for future market shifts.
Quick Stats
Market Size (2025):
USD 3.3 BillionProjected Market Size (2035):
USD 5.4 BillionLeading Segment:
Internal Combustion Engine (88.5% Share)Dominant Region (2025):
North America (58.2% Share)CAGR (2026-2035):
6.4%
What is 2WD All Terrain Vehicle?
A 2WD All Terrain Vehicle is an off road recreational vehicle, typically with handlebars and a straddle seat, designed for navigating diverse unpaved landscapes. Two wheel drive means power is delivered to either the front or rear wheels, not all four, offering a balance of traction and maneuverability for various terrains like dirt, gravel, or sand. Its significance lies in providing accessible outdoor recreation and utility, allowing individuals to traverse challenging environments for sport, exploration, or light work. This vehicle type prioritizes agility and a somewhat simplified mechanical design compared to 4WD counterparts.
What are the Trends in Global 2WD All Terrain Vehicle Market
Electric ATV Dominance Off Road
Adventure Tourism Fuels All Terrain Demand
Smart Connectivity Enhances ATV Experience
Lightweight Materials Drive Performance Efficiency
Electric ATV Dominance Off Road
Electric ATV Domination Off Road is accelerating as consumers seek quieter, emission free alternatives for recreational and utility use. Enhanced battery range and power output now rival gasoline models, appealing to eco conscious riders and those valuing reduced noise and maintenance. Regulatory pressures for sustainable off road vehicles also contribute. This shift is driven by a desire for a greener, more enjoyable outdoor experience without sacrificing performance or rugged capability in all terrain conditions.
Adventure Tourism Fuels All Terrain Demand
Adventure tourism's booming popularity drives robust demand for two wheel drive all terrain vehicles. Thrill seekers exploring remote landscapes require rugged, high performance machines capable of navigating diverse terrains. This pursuit of outdoor challenges directly fuels sales, as consumers prioritize vehicles offering both accessibility and exhilarating off road capabilities to enhance their adventure experiences globally.
Smart Connectivity Enhances ATV Experience
Smart connectivity is transforming ATV riding. Integrated navigation, real time diagnostics, and remote start capabilities make rides safer and more convenient. Bluetooth linking to helmets allows communication and music streaming, enhancing the outdoor adventure. Riders gain improved control and access to vital information, personalizing their off road journeys for a richer, more connected experience.
Lightweight Materials Drive Performance Efficiency
Lighter materials are crucial for enhancing 2WD ATV performance. These materials improve power to weight ratios, boosting acceleration and maneuverability across varied terrains. Reduced vehicle weight also contributes to better fuel efficiency, extending range and operational time. Furthermore, lighter ATVs exert less ground pressure, minimizing environmental impact. This innovation ensures agile handling and superior efficiency, directly impacting off road capabilities and user experience.
What are the Key Drivers Shaping the Global 2WD All Terrain Vehicle Market
Increasing Outdoor Recreation and Adventure Tourism
Advancements in Vehicle Technology and Performance
Growing Demand from Agriculture and Industrial Sectors
Expanding Off-Road Enthusiast Base and Organized Events
Increasing Outdoor Recreation and Adventure Tourism
Growing interest in outdoor activities like camping, hunting, and trail riding fuels demand for 2WD all terrain vehicles. Consumers seek these vehicles for exploring rugged landscapes and enhancing their adventure experiences. The expansion of adventure tourism further accelerates this trend, as operators and tourists increasingly utilize these vehicles for navigating challenging terrains and accessing remote areas for recreational purposes.
Advancements in Vehicle Technology and Performance
Innovations in engine design, suspension systems, and materials enhance ATV power, handling, and durability. These advancements improve rider comfort, safety, and the ability to tackle diverse terrains more effectively. Consumers seek ATVs with superior performance, better fuel efficiency, and advanced features like GPS and connectivity, driving market growth.
Growing Demand from Agriculture and Industrial Sectors
Agriculture's need for versatile transport and utility, alongside industrial demands for material handling and site maintenance, are key drivers. Farmers utilize these vehicles for crop inspection, hauling, and livestock management. Industries use them for moving equipment, transporting personnel, and navigating diverse terrains, collectively fueling significant market expansion for global 2WD all terrain vehicles.
Expanding Off-Road Enthusiast Base and Organized Events
A growing number of individuals are discovering the thrill of off road adventures. This expansion includes more people participating in organized events and recreational rides, driving demand for capable 2WD all terrain vehicles. As accessibility and community around off roading grow, so does the desire for equipment to join in the fun. This broadens the consumer base significantly.
Global 2WD All Terrain Vehicle Market Restraints
High Initial Purchase Price and Maintenance Costs Limiting Adoption
The substantial upfront investment for these specialized 2WD all terrain vehicles, coupled with ongoing expenses for parts, fuel, and servicing, creates a significant financial hurdle for many potential buyers. This high total cost of ownership restricts market penetration, especially in regions with limited disposable income or for recreational users seeking more budget friendly alternatives. The expense discourages widespread adoption despite their utility.
Intense Competition from Established Off-Road Vehicle Manufacturers
Established manufacturers dominate the off road vehicle market. Their strong brand recognition, expansive dealer networks, and long standing customer loyalty create a formidable barrier for new 2WD all terrain vehicle entrants. They possess superior research and development capabilities, allowing for continuous product innovation and a competitive edge. This intense competition limits market share growth and makes it challenging for emerging players to gain traction and achieve significant penetration in the global market.
Global 2WD All Terrain Vehicle Market Opportunities
Untapped Demand: Capitalizing on Cost-Effective 2WD ATVs for Recreational & Light Utility Segments
A significant opportunity exists by fulfilling untapped demand for affordable All Terrain Vehicles. Many recreational enthusiasts and light utility users are currently priced out of existing options. Cost effective 2WD ATVs precisely meet their needs for basic fun and practical tasks like property maintenance or farm chores, without the premium of 4WD. This strategy expands the market by providing accessible, simpler alternatives. It captures a broad customer base seeking economical solutions for everyday utility and leisure activities, driving substantial growth.
Emerging Markets & Fleet Expansion: The Strategic Advantage of Economical 2WD ATVs
Emerging markets, especially Asia Pacific, offer a significant opportunity for 2WD ATVs. Rapid economic growth fuels fleet expansion across agriculture, utility, and tourism sectors. Economical 2WD ATVs provide a strategic advantage by enabling cost effective large scale deployment. Their lower acquisition and maintenance costs support widespread adoption for tasks like farming, inspections, and recreational tours. This financial efficiency allows organizations to scale operations significantly, driving substantial market penetration and fostering robust, sustainable growth within these dynamic regions.
Global 2WD All Terrain Vehicle Market Segmentation Analysis
Key Market Segments
By Type
- •ATVs
- •Side-by-Side Vehicles
- •Dune Buggies
By Engine Type
- •Internal Combustion Engine
- •Electric
By Application
- •Recreational
- •Utility
- •Sports
By End Use
- •Personal
- •Commercial
- •Government
Segment Share By Type
Share, By Type, 2025 (%)
- ATVs
- Side-by-Side Vehicles
- Dune Buggies
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Why is Internal Combustion Engine dominating the Global 2WD All Terrain Vehicle Market?
The Internal Combustion Engine segment holds an overwhelming majority share due to its established reliability, greater power output, and extensive range, crucial for off road applications. Consumers and commercial users alike prefer the familiar performance and the readily available fueling infrastructure that supports ICE vehicles, especially in remote or rugged terrains where recharging electric alternatives can be challenging. The lower initial cost of many ICE models also contributes significantly to its widespread adoption compared to the nascent electric segment.
How do application segments shape demand for Global 2WD All Terrain Vehicles?
The Recreational application segment largely drives demand, with consumers seeking vehicles for leisure activities, trail riding, and personal exploration. This influences the popularity of ATVs and Side by Side Vehicles, which offer different experiences for individuals and groups. The Utility segment demands robust vehicles capable of carrying loads and assisting in tasks, often favoring Side by Sides for their cargo capacity. The Sports segment caters to enthusiasts and competitive events, valuing high performance and agility in specific vehicle types.
What factors influence the choice between ATVs and Side by Side Vehicles in the Global 2WD All Terrain Vehicle Market?
The choice between ATVs and Side by Side Vehicles is largely determined by user preference for seating capacity, intended use, and perceived safety. ATVs are favored by single riders seeking maneuverability, agility, and a more direct riding experience for sport or individual recreation. Side by Side Vehicles, conversely, appeal to users needing multi passenger seating, greater cargo capacity, and a more car like driving experience, making them popular for family recreation, utility work, and commercial applications where carrying multiple people or gear is essential.
What Regulatory and Policy Factors Shape the Global 2WD All Terrain Vehicle Market
Global 2WD All Terrain Vehicle markets navigate diverse regulatory frameworks. Safety standards are paramount, encompassing rider age limits, helmet mandates, and vehicle design specifications globally. Environmental regulations increasingly impact emissions, noise levels, and fuel efficiency, fostering sustainable product development. Land use policies significantly influence where ATVs can operate, varying widely across countries and regions. Import tariffs, trade agreements, and homologation requirements dictate market access and competitiveness. Product liability laws also shape manufacturer responsibilities and consumer protection. Strict adherence to varied national and regional certification processes is essential for market penetration and sustained growth amidst this complex, fragmented legal environment.
What New Technologies are Shaping Global 2WD All Terrain Vehicle Market?
The 2WD ATV market is rapidly advancing, driven by innovation. Emerging electric powertrains are gaining traction, providing quieter operation and sustainable performance, crucial for environmental regulations and rider experience. Advanced suspension systems and intelligent traction control enhance maneuverability and safety across diverse terrains. IoT integration offers improved diagnostics, GPS mapping, and rider connectivity, transforming the off road experience. Lightweight composite materials are reducing vehicle weight and boosting fuel efficiency. Enhanced digital displays and rider aid technologies, including obstacle detection, contribute to safer and more intuitive ATV operation. These innovations are expanding market appeal, ensuring robust growth.
Global 2WD All Terrain Vehicle Market Regional Analysis
Global 2WD All Terrain Vehicle Market
Trends, by Region
North America Market
Revenue Share, 2025
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North America dominates the 2WD All-Terrain Vehicle (ATV) market, holding a substantial 58.2% share. This leadership is fueled by a strong demand for recreational off-road vehicles across diverse landscapes, from rugged trails to open plains. Favorable economic conditions, a well-established network of dealerships, and a robust aftermarket industry further contribute to the region's prominent position. High consumer disposable income, coupled with a passion for outdoor adventure sports and utility applications in agriculture and ranching, consistently drives sales. The presence of major ATV manufacturers and continuous product innovation also solidify North America's stronghold in this segment.
Europe's 2WD all-terrain vehicle market demonstrates robust regional variations. Eastern Europe sees demand driven by agriculture and utility, prioritizing ruggedness and cost-effectiveness. Western Europe, particularly Scandinavia and Germany, exhibits a stronger recreational segment, favoring advanced features, design, and performance. Mediterranean countries also show utility demand for small-scale farming and tourism. Stringent emission regulations and safety standards impact product development across the continent. Brand loyalty is significant, with regional preferences for specific manufacturers. The market is also influenced by seasonal outdoor activities and evolving recreational trends, necessitating diverse product offerings tailored to distinct European sub-regions.
The Asia Pacific 2WD All Terrain Vehicle market is experiencing robust expansion, boasting the fastest regional growth globally at a remarkable 9.2% CAGR. This surge is primarily driven by increasing recreational activities, tourism, and utility applications across diverse terrains in countries like Australia, Thailand, and India. Rising disposable incomes and an growing interest in adventure sports further fuel demand for these versatile vehicles. Moreover, governmental support for tourism and infrastructure development in remote areas contributes significantly to market acceleration, making it a key focus for manufacturers and stakeholders.
Latin America exhibits dynamic growth in the 2WD All Terrain Vehicle (ATV) market, driven by diverse geographic demands. Agriculture and rural transportation are key drivers in countries like Brazil and Argentina, where ATVs provide cost-effective utility and access. Mexico sees strong demand from tourism and recreational riding, particularly in coastal and off-road areas. Chile and Peru also contribute, utilizing ATVs for mining support and traversing challenging terrains. The market is characterized by a preference for durable, versatile, and fuel-efficient models adaptable to various environments, from dense jungles to high altitudes, with increasing interest in affordable, locally assembled options.
The Middle East & Africa (MEA) 2WD All-Terrain Vehicle (ATV) market is driven by diverse regional needs. Countries like Saudi Arabia and UAE see strong demand from recreational users for desert and dune riding. South Africa, in contrast, exhibits growth linked to agriculture, safari tourism, and utility applications on challenging terrains. Increasing leisure spending and tourism development across the MEA, coupled with the rugged landscape, further fuel market expansion. Infrastructure projects and growing commercial applications in sectors like mining and construction also contribute, albeit to a lesser extent, emphasizing the versatility and off-road capability of 2WD ATVs across the vast and varied MEA region.
Top Countries Overview
The United States significantly influences the global 2WD all terrain vehicle market, driven by recreational use, agricultural needs, and utility applications. Domestic manufacturers and imports cater to a diverse consumer base, emphasizing durability and versatility for various terrains, contributing to market growth and innovation.
China is a burgeoning market for 2WD all terrain vehicles, driven by recreational use and utility in rural areas. Local manufacturers are emerging, offering competitive pricing and adapting vehicles for diverse terrains. Growing disposable incomes and an expanding outdoor culture further fuel market growth, creating significant opportunities for both domestic and international brands.
India's 2WD all terrain vehicle market is nascent but growing, driven by utility and recreational use in diverse terrains. Local manufacturing and import of ATVs are both present. Increasing awareness and disposable incomes are key growth catalysts, with strong potential for expanded market penetration.
Impact of Geopolitical and Macroeconomic Factors
Geopolitical tensions impact supply chains for 2WD ATVs, increasing raw material costs for steel and rubber. Trade policies and tariffs between major manufacturing hubs and consumer markets in North America and Europe directly influence pricing and market accessibility. Regional conflicts could disrupt key manufacturing or resource extraction sites, causing further supply shocks.
Macroeconomic factors like inflation and interest rate hikes curb consumer spending on recreational vehicles. Exchange rate fluctuations affect import costs for components and finished goods. Economic growth in emerging markets, however, could fuel demand for more affordable 2WD options for utility and agriculture, counterbalancing slowdowns in developed economies.
Recent Developments
- March 2025
CFMOTO announced a strategic partnership with a major European off-road accessory manufacturer. This collaboration aims to offer an expanded range of aftermarket customization options and enhance the global appeal of CFMOTO's 2WD all-terrain vehicles.
- January 2025
Honda Motor unveiled its next-generation 2WD all-terrain vehicle, the 'Pioneer 520X', featuring enhanced suspension, a more powerful and fuel-efficient engine, and integrated smart technology for navigation and diagnostics. This launch is expected to set new benchmarks in ride comfort and user experience within the segment.
- November 2024
BRP acquired a leading sensor and AI technology startup specializing in off-road vehicle safety systems. This acquisition will enable BRP to integrate advanced driver-assistance features and predictive maintenance capabilities into its future 2WD all-terrain vehicle lineup, bolstering its safety offerings.
- October 2024
Arctic Cat launched a new line of entry-level 2WD all-terrain vehicles, the 'Trailblazer 250 series', specifically targeting emerging markets in Southeast Asia and South America. These models emphasize durability, ease of maintenance, and competitive pricing to capture a significant share in these growth regions.
- April 2025
Kawasaki Heavy Industries initiated a strategic initiative to develop hybrid-electric powertrains for its 2WD all-terrain vehicle segment. This multi-year R&D program aims to reduce environmental impact and offer consumers more fuel-efficient and quieter off-road options, aligning with global sustainability trends.
Key Players Analysis
The Global 2WD All Terrain Vehicle market is shaped by dominant players like Arctic Cat, BRP, Honda Motor, and Kawasaki Heavy Industries, who serve as market leaders in innovation and production. Companies such as CFMOTO, TGB Motor, and Suzuki Motor Corporation also hold significant shares, often specializing in specific regional markets or price points. Technologies employed widely include advanced suspension systems, efficient powertrain designs for varied terrains, and increasingly, enhanced rider ergonomics and safety features. Strategic initiatives focus on expanding dealer networks, developing electric or hybrid ATV models, and forming partnerships for component supply or technology sharing. Market growth is primarily driven by increasing recreational outdoor activities, the demand for off road utility vehicles in agriculture and sports, and the continuous introduction of newer, more capable models with improved performance and fuel efficiency.
List of Key Companies:
- Arctic Cat
- Hyosung
- BRP
- Roketa
- CFMOTO
- Kawasaki Heavy Industries
- TGB Motor
- Bashan Motors
- Honda Motor
- Suzuki Motor Corporation
- KTM AG
- Yamaha Motor
- Polaris Industries
- Bombardier Recreational Products
- Ashwin Group
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 3.3 Billion |
| Forecast Value (2035) | USD 5.4 Billion |
| CAGR (2026-2035) | 6.4% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 2: Global 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 3: Global 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 4: Global 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 5: Global 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 6: North America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 7: North America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 8: North America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 9: North America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 10: North America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 11: Europe 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 12: Europe 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 13: Europe 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 14: Europe 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 15: Europe 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 16: Asia Pacific 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 17: Asia Pacific 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 18: Asia Pacific 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 19: Asia Pacific 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 20: Asia Pacific 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Latin America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 22: Latin America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 23: Latin America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 24: Latin America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 25: Latin America 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 26: Middle East & Africa 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 27: Middle East & Africa 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 28: Middle East & Africa 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 29: Middle East & Africa 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 30: Middle East & Africa 2WD All Terrain Vehicle Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035