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The global micro electric vehicles (EV) market size was USD 3451.7 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with micro electric vehicles (EVs) witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the market exhibited a lower growth of -39.7% in 2020 as compared to the average year-on-year growth during 2017-2020. The market is projected to grow from USD 3122.0 million in 2021 to USD 8951.7 million in 2028 at a CAGR of 16.2% during the 2021-2028 period. The rise in CAGR is attributable to this market’s growth returning to pre-pandemic levels once the pandemic is over.
Micro-electric vehicles are a subset of micro-vehicles. These vehicles are designed to provide long-term resolutions to current and future urban traffic problems. This innovation comprises a small electric car with one or two seats, and unlike a large car, it runs on a similar but compact battery system. Besides, they are carbon products with biological complex composite material bodies, so most of these vehicles are small in structure. Therefore, micro-electric vehicles are smaller and lighter than standard electric vehicles, which marks them best for cities. This factor is probably going to build the ubiquity of this innovation.
Market Witnesses an Increase in Micro EV Orders Owing to the Surge in Online Demand for Food & Grocery Amid Lockdown
The spread of the new COVID-19 pandemic has disrupted multiple
supply chains. Due to economic uncertainty, car companies must take a cautious approach to reopen. Automobile manufacturers with worldwide distribution networks may see second tiers, especially the tertiary network, greatly affected by interference. The leader in micro electric vehicles operates an assembly plant in the North American market. However, many of the electric vehicle manufacturers rely on auto parts purchased from China, especially for the battery.
Still, the COVID flare-up has prompted a significant slump in the adoption of electric vehicles. With the rollback of specific endowments such as government subsidies, the market in China is required to be affected seriously throughout the following few years. Also, diminished interest in the advancement of charging networks and the withdrawal of certain producers from unbeneficial nations like India limit the market's development.
The demand in North America & Europe however witnessed a substantial recovery in Q3 in 2020, as the demand for micro EVs increased for food & grocery delivery. For instance, Austin, a Texas-based EV manufacturer received orders worth more than USD 584,000 for mobile food delivery vehicles. Micro EVs are expected to play a vital role as an essential vehicle in the upcoming few years.
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Development Of Ultra -Capacitors for Superfast Charging to Aid Growth
One of the main trends in the micro electric vehicles market is the development of ultra-capacitors for superfast charging. The time required for charging the batteries is expected to be the key factor challenging the growth of the market. Innovations and technological advancements in batteries are most likely to boost the integration of supercapacitors and ultracapacitors, which can store energy in the form of static electricity. Moreover, to store large amounts of energy, these capacitors have advantages such as resistance to shock and vibration and reduce costs of applications. This factor is likely to boost the global micro electric vehicles (EV) market growth during the forecast period.
Favorable Government Regulations and Subsidies to Boost Market Growth
Governments and public institutions in various regions are implementing several subsidies and policies to not only promote the sales of electric vehicles and micro-electric vehicles but are also committed to formulating favorable regulatory plans, electric vehicle charging infrastructure, and other financial support.
The rise of zero-emission vehicles and government policy support have led to a decline in the prices of micro-electric vehicles and electric vehicles. Additionally, factors such as the improvement of charging infrastructure and the increasing focus on improving the range of vehicles have driven the global demand for micro-electric vehicles and electric vehicles.
Increasing Environmental Pollution to Promote Growth
The increase in pollution rate caused by the emissions of conventional vehicles has led to a high threat of global warming and other environmental problems. Due to increasing concerns about the environment, the automotive industry has shifted its inclination towards sustainable energy in vehicles. However, electric vehicles are the most suitable alternative to traditional fuel vehicles, creating huge opportunities for the micro-electric vehicles and electric vehicle markets.
Strict emission regulation implemented by the government is driving the automakers to develop new and advanced electric vehicles. The rapid growth in the number of electric vehicles highlights the need for new rules and regulations to achieve a smooth transition. This is expected to favor the growth of the global micro EV market during the forecast period.
High Cost and Range Anxiety May Pose Challenges over Market Growth
The costs associated with technology and infrastructure in the implementation of electric vehicles are high. Electric cars are more expensive than gasoline-powered cars. The battery is considered the most important part of an electric vehicle as it powers the vehicle. The battery of an electric car needs to be charged frequently, which requires other equipment such as a charger. Therefore, the cost of batteries, chargers, and installation will increase the cost of micro EVs. All these factors make micro EVs more expensive than traditional ICE cars. These may impact the growth of the global market during the forecast period.
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Lead Acid Battery to Foster Growth
Based on type, the market is segmented into the lead acid battery and lithium-ion battery.
The lithium-ion battery segment of this market is expected to dominate the market owing to its growing adoption in electric vehicles due to its superior properties.
The lead-acid battery market segment is likely to experience significant growth in the market owing to the ease of availability across the globe.
Commercial Use Segment holds the Largest Market Share
Based on the 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 its massive micro electric vehicle applications in commercial golf courts and fun theme parks.
The personal use segment is expected to showcase exponential growth in the market due to its growing popularity.
The Public utilities segment is anticipated to experience significant growth in the market owing to its increasing adoption in private companies for employee transportation.
Asia Pacific Micro Electric Vehicles (EV) Market Size, 2020 (USD Million)
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Asia Pacific stood at USD 1124.5 million in 2020 and is expected to dominate the global micro electric vehicles (EV) market during the forecast period. This is due to the micro EVs being cheaper in countries such as China in the region. General Motors is targeting the Chinese market considering high demand in the country, the company has partnered with SAIC Motor Corp and Guangxi Automobile Group for sales of micro EVs in China. Together, these companies sold more than 16,000 vehicles in August 2020.
Europe is anticipated to show significant growth in the global market owing to the growing popularity and adoption of micro EVs in the region. Europe is the second-largest market for micro electric vehicles in terms of volume. North America is estimated to showcase considerable growth rate owing to increasing sports, leisure, and fun activities in the region.
The rest of the world is likely to be an emerging market for Micro EVs, However, the lack of appropriate infrastructure and government policies are hindering the market growth significantly. The micro EVs are very good vehicle alternatives for countries with low-income individuals, these are environment friendly as well, therefore, governments of such countries should consider offering subsidies/reducing taxes on such commercial vehicles for improving adoption.
Technological Advancements and Strategic Pricing are Boosting the Market Share for Baoya
Shandong Baoya New Energy Automobile Co., Ltd. is a Chinese electric vehicle manufacturer and a leading player in the competitive landscape. The company focuses on producing, research, developing, and selling new energy vehicles, with various new energy vehicles such as micro electric cars, electric minivans, electric bicycles, and electric motorcycles. Their product provides the excellent advanced appearance and technical performance, which can be used in many applications.
Polaris Inc. is another company focused on all-electric vehicles that ensure zero emissions and contribute to a small carbon footprint, which can meet the needs of various applications. Polaris Inc. is also a member of the non-profit association AASHE, promoting sustainable development plans for colleges and universities.
An Infographic Representation of Micro Electric Vehicles (EV) Market
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The market research report provides a detailed industry analysis and focuses on key aspects of the market 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 above, the report encompasses several factors that have contributed to the market's growth over recent years.
Value (USD Million) & Volume (Thousand Units)
Fortune Business Insights says that the global market size was USD 3451.7 million in 2020 and is projected to reach USD 8951.7 million by 2028.
In 2020, Asia Pacific market stood at USD 1,124.5 million.
The market is projected to grow at a CAGR of 16.2% and will exhibit steady growth during the forecast period (2021-2028).
The commercial use segment is expected to be the leading segment in this market during the forecast period.
Favorable government regulations and subsidies are driving the market growth
Extron Inc. and Baoya are the leading key players in the global market.
Asia Pacific dominated the market share in 2020.
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