Motorized Quadricycle Market Size, Share & COVID-19 Impact Analysis, By Type (Light Quadricycle (L6e) and Heavy Quadricycle (L7e)), By Application Type (Household and Commercial), By Propulsion Type (Internal Combustion Engine and Electric), By End-Use (Golf, Leisure, Industrial and Others) and Regional Forecast, 2021-2028

The global motorized quadricycle market size was USD 839.1 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with motorized quadricycles witnessing a negative impact on demand across key regions amid the pandemic. Based on our analysis, the market exhibited a decline of 14.86% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 901.5 million in 2021 to USD 1,869.6 million in 2028 at a CAGR of 12.1% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Motorized quadricycle is a new category of mini fuel-efficient vehicle which is majorly used in urban areas for local transportation amid high traffic congestions in developed cities. These vehicles are light in weight compared to conventional four-wheelers; hence emit low carbon in the environment. In view of the increasing level of vehicular emissions globally, several OEMs are focusing on developing battery-powered lightweight quadricycles that can deliver performance equivalent to conventional ones and increase savings on fuel costs. These vehicles are anticipated to replace conventional taxis in the near future and are an alternative to two-wheel riders, as they are exposed to extreme weather conditions.

Decreasing R&D Fundings by Companies amid COVID-19 Pandemic to Affect Growth Negatively

The shift of the outbreak’s epicenter to Europe and North America emphasizes the need for a measured approach from automotive companies. The current situation is particularly challenging for the L-category vehicle dealers and manufacturers as the pandemic has paralyzed the retail business activity. Also, it has caused a heavy impact on the development of new Euro 5 models. Manufacturers that are already struggling owing to the pre-existing lack of financial and technical resources are more likely to require additional time which further impacts the implementation of the Euro 5 standard across the region.

This crisis is placing dealerships under extreme financial pressure as most of them are small family-run operations. A prolonged downturn in demand, which is expected to continue even after operations resume is likely to impact the OEMs’ profitability. R&D funding by manufacturers for advanced technology initiatives is likely to decrease as a result. For instance, the current direction of electrification in L-category vehicles is unlikely to change. However, the speed of adoption among large-scale companies, such as Renault, Aixam, and Ligier is expected to decrease over the forecast period.

However, consumer confidence in public transportation is low as a result of the pandemic and there is an increased demand for cost-effective yet safer mobility alternatives, such as motorized quadricycles among first-time vehicle owners. For instance, sales of the Mini electric vehicle quadricycles have shown rapid growth since its launch in July 2020, in China.

Hence, manufacturers need to develop concrete measures to overcome disruptions while adapting operation policies to improve future resilience. It is important to integrate risk management protocols across the entire value chain which can enable a rapid switch to disruption response. Moreover, improving the flexibility of production, supply chain visibility, and reducing over-dependence on a single country while designing the supply chain are expected to be key areas of focus for the key players in the market.

LATEST TRENDS

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Self-driving Cars to Become a Positive Trend in the Market

OEMs have heavily invested in R&D to develop fully automated motorized quadricycles. Manufacturers aim to equip technologically advanced features and components that are fuel-efficient, environment friendly, and increase the passengers' safety. For example, in 2018, Tesla launched a feature called Navigate on Autopilot, which allows the car to change the lane, accelerate & decelerate, and navigate on its own. Manufacturers are also equipping cars with high-end cameras, LiDAR, RADAR, and sensors. These high-end sensors and RADARs can perform even in extreme weather conditions as the occupants' lives are of the utmost importance. 

DRIVING FACTORS

Increasing Demand for Lightweight Vehicles to Drive Motorized Quadricycle Market Growth

Manufacturers are developing lightweight motorized quadricycles that can improve the performance and curb the fuel emission of the vehicle. Key OEMs have heavily invested in R&D to manufacture lightweight components, which, in turn, would reduce the weight of the vehicle. As per the European Regulation Act, the weight of these vehicles should not exceed 750 kg. Hence, the majority of the manufacturers are installing lightweight components that have fewer linkages and, in turn, would lead to increased performance and reduced fuel emissions.

Rising Traffic Congestion Issues to Create Growth Opportunities For the Market

The increasing sales of vehicles globally due to consumers' growing inclination towards cost-efficient and environment-friendly cars would generate substantial revenue for the automobile sector. The rapid increase in vehicles' sales has resulted in traffic congestions and lack of parking space in developing cities. This has fueled the demand for compact and small-sized cars globally. In recent years, consumers are increasingly inclined towards these quadricycles. This is attributed to their compact size and excellent maneuverability, which would lead to reduced traffic congestions. Also, low cost, reduced stringency of regulations, and tax benefits offered by governments, especially on electric quadricycles, are likely to drive the growth of the market.

RESTRAINING FACTORS 

Lack of Passenger Safety to be a Major Challenge for the Market

According to the World Health Organization (WHO), approximately 1.35 million people lost their lives in road accidents in 2020.  As a result, an occupant’s safety has become the utmost priority across the globe. In recent years, crash tests conducted by Euro NCAP established that motorized quadricycles lacked passenger safety even at a speed of 50kmph. These tests included frontal and side crash tests, which exposed the passengers' safety in these vehicles. Thus, the lack of awareness of passenger safety in current models will restrain the growth of the market during the forecast period.

SEGMENTATION

By Type Analysis

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Lightweight Quadricycle (L6e) Segment is Expected to Dominate the Market

Based on type, the market is segmented into light quadricycle (L6e) and heavy quadricycle (L7e). The lightweight (L6e) segment is anticipated to dominate the market over the forecast period. Rising two-wheeler accidents and increasing cases of fatal injuries have fuelled the demand for the L6e quadricycle. These have a seating capacity of two people, are light in weight, and ensure the safety of passengers by sufficiently protecting occupants from extreme weather conditions. In recent years, manufacturers have installed Anti-lock Braking System (ABS) in these vehicles, which provides them with proper braking. Less emission and low cost of L6e vehicles are also expected to fuel the segment's dominance over the forecast period.

The heavyweight (L7e) segment is also anticipated to show good growth over the forecast period. The rising inclination of consumers to use these vehicles for the transportation of goods in heavy traffic areas is expected to ensure steady growth of the segment

By Application Type Analysis

The Commercial Segment Holds the Largest Share of the Market

Based on the application type, the market is segmented into household and commercial. The commercial segment holds the largest market share and is expected to maintain its dominance during the forecast period. Companies, such as Uber and Lyft are aiming to integrate more lightweight motorized quadricycles in their vehicle fleets as they are compact in shape and can move quickly even in heavy traffic conditions. This is gaining massive popularity among office commuters as quadricycles require less space to travel in traffic and are highly cost-effective compared to conventional taxis.

The household segment is also anticipated to show steady growth during the forecast period. The rising popularity of compact and lightweight electric quadricycles among young drivers is expected to fuel the demand over the forecast period.

By Propulsion Type Analysis

Internal Combustion Engine Segment to Hold the Largest Share Stoked by Low Carbon Footprint

Based on the propulsion type, the market is segmented into internal combustion engine and electric. The internal combustion engine segment is expected to dominate in terms of the market share over the forecast period. Low cost and compact IC engine-based quadricycles are gaining high importance globally as they lower the carbon footprint compared to conventional compact vehicles. The rising awareness among consumers regarding the increasing vehicular pollution is one of the significant factors that is fueling the growth of the environment-friendly quadricycle.

The electric segment is expected to show considerable growth in the market during the forecast period owing to the rapid advancements in fuel cell technology. Additionally, various tax benefits offered by governments worldwide will also be a  significant reason for fueling the growth of this segment during the forecast period. However, the lack of charging infrastructure and low range capacity of electric quadricycles may restrain the growth of this segment.

By End-Use Analysis

Leisure segment is dominating the market

On the basis of End-Use type, the market has been segemnted into Golf, Leisure, Industrial and Others. The Leisure segment dominated the market in 2020, growing demand for light weight vehicles for leisure activities is anticiapted to boost the market growth. The demand for these vehicles in Golf segment is moderate due to market saturation. Industrial quadricycles are gainining momentum as the usage of such vehicles for internal moment of small goods, materials, workers is growing expoenentially. Other segment shall witness medium growth over next few years mainly due to increasing adoption of these vehicles in European region.

REGIONAL INSIGHTS

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Europe held the largest share of the market in 2020. This is attributed to various initiatives taken by the European Union (EU) to encourage the use of environment-friendly and compact vehicles to curb traffic congestion on roads. Key manufacturing companies for these vehicles in this region have invested in R&D to develop highly autonomous quadricycles that will replace conventional taxis in the upcoming years.

In the Asia Pacific region, the market is dominated by China, where electric quadricycles are a long-term solution by the government to address the environmental and traffic problems. In recent years, there has been a substantial rise in the adoption of motorized quadricycles such as L6e and L7e vehicles in China, as the government offers various tax benefits to consumers who are purchasing these vehicles. Key manufacturers in Asia Pacific are working towards manufacturing vehicles as per the European Regulations, as the majority of the vehicles produced in this region are exported to the European market.

North America is expected to show good growth in this market over the forecast period. Ride-sharing companies in this region are looking forward to implementing highly autonomous self-driven taxis, which would replace conventional taxis in the near future.

KEY INDUSTRY PLAYERS

Growing Investments in R&D Activities Is Boosting the Market Share for Renault

Renault is a leading company that offers advanced quadricycles. Heavy investments made in R&D by the company are resulting in the development of technologically advanced electric quadricycles.  This is one of the prominent factors responsible for the dominance of the company in this market. The company has also aimed to reduce the weight and increase the power of the electric quadricycle battery. Additionally, the diverse portfolio of Renault would help to satisfy the demand for cost-effective L6e and L7e vehicles.

LIST OF KEY COMPANIES PROFILED:

• Renault (Paris, France)


• Ingersoll Rand (Milwaukee, U.S.)


• Yogomo (Shandong, China)


• Textron (Rhode Island, U.S.)


• Italcar Industrial S.r.l. (Turin, Italy)


• Polaris Inc. (Minnesota, U.S.)


• Yamaha Golf-Car Company (Georgia, U.S.)


• Bajaj Auto (Pune, India)

KEY INDUSTRY DEVELOPMENTS:

• February 2021 – Mahindra & Mahindra is aiming to launch the Atom in the first half of 2021 in India. The launch has initially been delayed (from Q2 2020) owing to the pandemic-induced lockdown. The Mahindra Atom will be the most affordable electric four-wheeler in India.


• February 2020 – Citroen launched the all-electric light quadricycle ‘Ami’ in the first half of 2020 with an affordable cost of 6000 euros. Ami can reach a top speed of 45km/h, same as e-bikes, and can be charged swiftly in just three hours using a standard household socket.

REPORT COVERAGE

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The global motorized quadricycle market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types, and leading applications of the product. Besides this, it 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 growth of the market over recent years.

Report Scope & Segmentation