|Status : Published||Published On : Jan, 2021||Report Code : VRAT4004||Industry : Automotive & Transportation||Available Format :||Page : 187|
The global light electric vehicle market is a high performing market that holds the potential to address environmental concerns with respect to the increasing pollution caused due to vehicles. The global light electric vehicles market revenue is predicted to increase at a CAGR of 10.4% during the forecast period. Light electric vehicles are either muscle or pure electric vehicles, generally weighing less than 100 kg. These electric vehicles could be two-wheeler, three-wheeler or four-wheeler such as e-bikes, e-motor-bikes, e-scooters, pedelecs, electric wheelchair, electric quads among others. The light electric vehicle industry is also driven by government initiatives and subsidies, increasing the affordability of light electric vehicles and the high demand for sustainable forms of automotive technology.
Insight by Product
The light electric vehicle market is segmented on the basis of product into two-wheelers, three-wheelers, and four-wheelers. The three-wheelers are expected to witness the fastest growth during the forecast period, owing to the rise in demand of affordable and sustainable alternative to conventional fuel vehicles. The two-wheelers light electric vehicles are further segmented into e-scooter, e-bikes, e-motorbikes, kick scooter, and mono wheel.
Of all these two-wheelers, electric bikes are observed to have the highest adoption rate in the light electric vehicle market. The cost efficiency and innovation in lithium ion (Li-on) batteries have led to the largest share of electric bikes. Three-wheeler light electric vehicles include e-rickshaw, e-auto and others whereas four-wheeler light electric vehicles include electric quad, golf carts and others.
Insight by Voltage
The light electric vehicle market based on voltage range is segmented into 24V, 36V, 48V, 60V, and 72V. The highest revenue generation in 2020 was from 48V light electric vehicles, majorly used in electric bikes and scooters. However, the rise in demand for use of 72V electric microcars as a substitute to cars and public vehicle among city-dwellers is expected to drive the fast growth of 72V battery pack light electric vehicles during the forecast period.
Insight by Application
Based on application, the light electric vehicles market is segmented into personal mobility, shared mobility/transportation, recreation, and sports, work assist/commercial uses and others. The demand for light electric vehicles especially three-wheelers is expected to witness huge demand for shared nobility/transportation during the forecast period.
The demand for light electric vehicles is mainly propelled by the stringent emission norms, government support for electric vehicles and rapid industrialization. Different governments across the globe are taking initiatives to replace the petroleum-based automotive fleet with electric powered vehicles. Countries such as India and Chine provide incentive to boost electric vehicles adoption. Similarly, in European Union, governments are undertaking key initiatives to opt for green energy-driven vehicles.
The deployment of light electric vehicles for daily use and lack of proper rules to adhere speed limits are the major challenges observed in the market. The adoption rate of these products is relatively slow in several international cities that hinder global market growth.
Globally industry players are leveraging market growth through geographic expansion and launching new products. Different players are investing in the development of new battery technology to lower the cost of light electric vehicles to compete against gasoline vehicles in terms of price and performance. In the coming years, industry leaders are anticipated to significantly lower the cost of these vehicles and enhance performance of these vehicles leading to adoption by masses.
APAC is registered as the largest light electric vehicle market as the region encompasses rapid urbanization demanding sustainable and affordable transport solution. Further, to curb the increase in the pollution level of the industrial economies including China and India, government initiatives and subsidies are also driving the growth of the regional market. Europe is also witnessing high demand of electric bikes contributing to the growth of the light electric vehicles market in the region.
Key players in the light electric vehicle market are acquiring other similar firms to strengthen their position in urban mobility. For instance, in July 2018, Accell Group announced the acquisition of Velosophy BV, a provider of electric cargo bike solutions. Some of the other players in the light electric vehicle market include Textron, Inc., BMW Motorrad, Auro Robotics, Ingersoll-Rand plc, Polaris Industries, Inc., Gogoro Inc., GOVECS GmbH, Lit Motors Inc., Mahindra GenZe, Piaggio & C. SpA, Terra Motors,Vmoto Limited, Yadea Technology Group, Zero Motorcycles Inc., AIMA Technology Group Co. Ltd., and Jiangsu Xinri E-Vehicle Co.,Ltd.