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The global micro electric vehicle market size was valued at USD 7.27 billion in 2022. The market is projected to grow from USD 8.10 billion in 2023 to USD 18.05 billion by 2030, exhibiting a CAGR of 12.14% during the forecast period.
Micro Electric Vehicles (EVs) are space-saving, mini-electric vehicles, which typically have a range of approximately 200 km, with their top speed touching 60-100 km/h. These vehicles use a low-powered drivetrain and have a low power output, running on a similar but compact battery system. Additionally, these mini EVs are designed using carbon products with biologically complex composite material bodies, making them lighter and smaller than the standard electric vehicles and highly suitable for urban locations.
Rapid urbanization and high population growth may propel the global demand for compact commuting vehicles in urban regions due to heavy traffic congestion and traffic hauls. Additionally, the growing demand for short range of cargo and transportation is well efficient by utilizing micro electric vehicles as they consume less energy and are highly effective as compared to fossil-fueled vehicles. These factors are creating a strong demand for micro EVs due to their versatile nature and high range of applications.
Market Witnesses Increase in Micro EV Orders Owing to Surge in Cargo Transportation
The pandemic-induced lockdowns across the world in early 2020 and resumption of production at a reduced capacity led to an unprecedented drop in global car sales. Electric car sales were predicted to be resilient, although a slight drop was expected as compared to the fossil-fueled car sales.
The electric mobility industry exceeded expectations in 2020. According to the International Energy Agency (IEA), over 3 million electric cars were sold in 2020, a growth of 40% year-on-year, and they accounted for over 4% of total car sales. In Europe, sales more than doubled in key markets, such as the U.K., Germany, France, and Italy in 2020 as compared to 2019. China witnessed a growth of 12% year-on-year in electric car sales. Despite the lack of federal measures to support EV uptake during the pandemic, sales increased by 4% in the U.S.
Major automotive players adopted different strategies to keep the revenue stream flowing post-pandemic. The OEMs introduced “as a service” business models, including software-defined services, transportation, and others. Moreover, one of the drastic changes observed was the rapid shift toward electrification and autonomous vehicle technologies during the post-pandemic period. The situation also worsened semiconductor shortage, increased vehicle prices, and slowed vehicle production, resulting in a slow recovery of the automotive industry post-pandemic.
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Rising Trend of Electrification of Golf Carts and Quadricycles to Fuel Market Growth
The trend of electrification in the automotive industry is fueled by many factors that directly and indirectly aid the adoption of electric vehicles across the globe. Electrification has also penetrated micro vehicles such as micro EVs, golf carts, and off-roading automobiles. The major players and consumers are recognizing the benefits of adopting EVs over fossil-fueled vehicles. Compared to traditional passenger cars, the entire carbon footprint of micro EVs and quadricycles is nearly 50% lower due to their reduced weight and size.
The development of newer electrification technologies, such as V2G and V2H, is driving the demand for enhanced infrastructure to support these new technologies and electric vehicles on the road. For instance, in December 2022, Toyota Industries announced a partnership between Oncor Electric Delivery and Toyota Motors to focus on the development and benefits of vehicle-to-grid applications. The program will focus on the benefits of V2G technology for both customers and the energy grid.
Favorable Government Regulations and Subsidies to Boost Market Growth
Governments and public institutions in various regions are implementing several subsidies and policies to promote the sales of electric and micro electric vehicles. They are also committed to formulating favorable regulatory plans, setting up electric vehicle charging infrastructure, and providing adequate financial support.
The rise of zero-emission vehicles and support from government policies have led to a decline in micro electric and electric vehicle prices. The improvement of charging stations and increasing focus on expanding the range of these vehicles have also driven the global demand for micro electric and electric vehicles.
Growing Focus on Developing V2G Applications and Suitable Charging Infrastructure to Augment Market Expansion
Vehicle-to-Grid (V2G) technology enables the stored energy in vehicles to be pushed back to the national electricity network or grid when there is a peak demand for energy supply. Bi-directional technology also allows the vehicle to store electricity that can be used as backup power during power outbreaks. Similarly, bi-directional charging can support Vehicle-to-Home (V2H) applications. Monetary rewards incentivize the owner to opt for the intelligent charging program.
Moreover, major EV manufacturers are focusing on deploying electric vehicles that support V2G technology to accelerate their adoption among people. This move is aimed at changing the approach toward energy utilization in the future. Thus, rapid developments in electrification technology will likely create greater awareness of the benefits of electric vehicles, indirectly propelling the micro electric vehicle market growth during the forecast period.
Range Anxiety and High Battery Expenses Might Hamper Market Growth
The most prevalent reason drivers avoid EVs is the fear that the battery will run out of power by the time they reach their destination. This phenomenon is popularly known as "range anxiety." The costs associated with the technology and infrastructure required to implement electric vehicles are high. Electric cars are more expensive than gasoline-powered cars. Batteries play a vital role in electric vehicles since they power them.
Furthermore, the cost of batteries, chargers, and installation increases the overall cost of electric vehicles. These factors make electric cars more expensive than the traditional ICE cars, thereby hampering the adoption of micro EVs.
Rising Demand for Golf Carts to Carry Luggage and Growing Number of Golf Courses in Developing Countries to Foster Market Growth
Based on type, the market is segmented into quadricycle and golf cart.
The golf cart segment is expected to dominate the market due to the growing adoption of electric golf carts as they are highly efficient and sustainable. These golf carts offer a compact solution for short-range transportation of cargo and materials. Additionally, these carts have a low-power engine, which lowers the overall cost of the vehicle. These factors are influencing the demand for golf carts globally.
The quadricycle segment is likely to experience a higher adoption rate and lead the market growth during the forecast period. These vehicles offer greater agility and mobility as compared to the traditional sized vehicles. Additionally, quadricycles have a lower price range as compared to traditional EVs. These aspects might aid the adoption of quadricycles in the coming years, thus expanding the market share.
Higher Efficiency of Lithium-ion Battery to Fuel Demand during the Forecast Period for Micro EVs
Based on battery type, the market is segmented into lead acid battery and lithium-ion battery.
The lithium-ion battery segment is expected to hold a dominant market share due to its growing adoption in electric vehicles and superior properties. Furthermore, these batteries have a longer lifecycle which helps the vehicle battery to last longer. Several major automotive players are integrating lithium-ion batteries to boost the lifecycle of their products. This has led to a greater demand for these batteries over lead-acid batteries in micro EVs.
The lead acid battery segment is likely to experience a slower adoption rate due to the lesser benefits offered as compared to lithium-ion batteries.
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Rising Demand for Short-range Cargo Transportation to Fuel Commercial Use Segment Growth
Based on application, the market is segmented into commercial use, personal use, and public utilities.
The commercial use segment is expected to hold the largest market share during the forecast period due to massive applications of these vehicles in commercial golf courts, transportation, and theme parks. The demand for micro electric commercial vehicles is growing, especially for cargo and industrial goods transportation.
The personal use segment is expected to grow exponentially due to consumers' rapid shift toward micro electric vehicles to commute through the cities' heavy traffic areas. This factor will offer growth opportunities for this segment.
The public utilities segment is anticipated to experience significant growth due to its increasing adoption in private companies to transport team members. Major micro EV makers are also introducing micro EV-based subscription services, further augmenting the market progress.
North America Micro Electric Vehicle Market Size, 2022 (USD Billion)
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During the forecast period, North America is predicted to dominate the micro electric vehicle market share, owing to higher usage of golf carts and rising number of golf courses in the region. The North America market was valued at USD 2.80 billion in 2022. The growing EV infrastructure in this region provides greater benefits for consumers for shifting toward clean energy mobility, leading to early adoption rates for new technological trends in the automotive industry.
Asia Pacific was the second largest market in 2022. This is due to the fact that Battery Electric Vehicles (BEVs) are cheaper in China. General Motors is targeting the China market, considering the high demand for the product in the country. The Europe market is also expected to grow at a significant pace during the forecast period due to greater awareness about micro EVs among the regional population.
The rest of the world will likely be an emerging market. However, lack of appropriate infrastructure and government policies can significantly hinder the market growth. Micro EVs offer cheaper alternatives for developing countries. Therefore, governments of such economies might consider offering subsidies/reducing taxes on these vehicles to improve their adoption in the coming years.
Technological Advancements and Demand for Micro Electric Vehicles to Boost Market Growth of Major Players
A few global players are leading the market. Yamaha Golf Cart Company is a Japanese electric vehicle manufacturer and a leading player in the competitive landscape. The company focuses on producing, researching, developing, and selling new energy vehicles such as electric golf carts. Its product is said to have an excellent appearance and technical performance, which can be used in many applications. The company is actively involved in the new technology of electric propulsions, including batteries and materials that will fulfill the current need and future demand for electric vehicles.
Club Car LLC is another company that makes zero-emission micro electric vehicles that create a small carbon footprint. The firm has established a strong customer network in major regions. It aims to expand its operations through growth strategies such as strategic acquisitions and business expansions in various regions.
An Infographic Representation of Micro Electric Vehicles (EV) Market
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The global micro electric vehicle market research report provides detailed market analysis and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.
CAGR of 12.14% from 2023 to 2030
Value (USD Billion) & Volume (Units)
By Battery Type
Fortune Business Insights says that the global market size was USD 7.27 billion in 2022 and is projected to reach USD 18.05 billion by 2030.
In 2022, the North America market stood at USD 2.81 billion.
The market is projected to record a CAGR of 12.14% during the forecast period of 2023-2030.
The commercial use segment is expected to be the leading segment during the forecast period.
Favorable government regulations and subsidies are driving the market growth.
Textron, Polar, and Renault are the leading players in the global market.
North America held the largest market share in 2022.
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