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, 2022-2029

The global motorized quadricycle market was valued at USD 0.90 billion in 2021. The market is projected to grow from USD 0.97 billion in 2022 to USD 2.15 billion by 2029, exhibiting a CAGR of 11.9% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with motorized quadricycle experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 7.4% in 2020 as compared to 2019.

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, they 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.

COVID-19 IMPACT

Decreasing R&D Fundings amid COVID-19 Pandemic to Affect Short-Term Growth

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 possibly 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.

The crisis places 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. As a result, R&D funding by manufacturers for advanced technology initiatives is expected to decrease. For instance, the current direction of electrification in L-category vehicles is unlikely to change. Besides, 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 mini electric vehicle quadricycles have shown rapid growth since their 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 players in the market.

LATEST TRENDS

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Self-driving Cars to Become a Positive Trend in 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.

DRIVING FACTORS

Increasing Demand for Lightweight Vehicles to Drive Motorized Quadricycle Market Growth

Manufacturers are developing lightweight quadricycles that can improve performance and curb the fuel emission of the vehicle. The efforts to use lightweight materials for manufacturing is expected to reduce the weight of the vehicle significantly.

As per the European Regulation Act, the weight of these vehicles should not exceed 750 kg. Hence, 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 Key Players

The increasing sales of vehicles globally due to consumers’ growing inclination toward cost-efficient and environment-friendly cars would generate substantial revenue for the automobile sector. The rapid increase in vehicles sales 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 have been increasingly inclined toward motorized 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, especially on electric quadricycles, are likely to drive the growth of the market.

Fuel Efficiency and Need for Faster Commute Solutions to Drive Market Growth

Positive features driving the adoption of quadricycles are almost entirely from eco-friendly benefits that make these powered light vehicles (PLVs) a suitable option as an urban vehicle. Their diminutive dimensions make narrow access and parking considerably easier, proving useful when making light, multi-drop deliveries. Moreover, reduced speed of 45 kph or 28 mph (in the case of light quadricycles) is better adapted to urban driving. Hence, it provides a form of entry-level graduated driving that encourages better driver awareness.

Furthermore, quadricycles typically weigh less than 550 kg and provide continuous maximum power of less than 15kW. These factors are subsequently responsible for excellent fuel efficiency, which is expected to further drive their adoption amongst the urban population. Hence, greater eco-friendly operation compared to conventional passenger cars and increased popularity among the younger population as a means of daily commute are factors driving the market growth.

Favorable Government Regulations to Drive the Growth of Market

The European Union has implemented successive regulations to monitor the registrations and use of quadricycles. For instance, the third European Driving License Directive in the U.K. has established minimum driving requirements. According to the legislation, heavy quadricycle is presently a full category B license while light quadricycle is at present an AM category license, which can be issued to drivers as young as 14 years and older.

This legislation is also in force across the rest of the EU member states, which will help to increase the adoption of these vehicles over the forecast period. Similarly, in China, there are no requirements for a license to drive L6e vehicles, which have led to a high share of these vehicles in rural areas.

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, 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 50 kmph. These tests included frontal and side crash tests, which exposed passengers’ safety in these vehicles.

Thus, lack of awareness of passenger safety in current models will restrain the growth of the market during the forecast period.

SEGMENTATION

By Type Analysis

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

Based on type, this market is segmented into light quadricycle (L6e) and heavy quadricycle (L7e). The light quadricycle (L6e) segment is anticipated to dominate the market over the forecast period. Rising two-wheeler accidents and increasing cases of fatal injuries have fueled the demand for L6e. 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 heavy quadricycle (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

Commercial Segment Holds Largest Share of the Market

Based on application type, the market is segmented into household and commercial. The commercial segment holds the largest motorized quadricycle 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 quadricycles into their vehicle fleet 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 Fueled by Low Carbon Footprint

Based on 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 increasing vehicular pollution is one of the significant factors 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 rapid advancements in fuel cell technology. Additionally, tax benefits will also be a significant reason for fueling the growth of this segment during the forecast period. However, lack of charging infrastructure and low range capacity of electric quadricycles may restrain the growth of this segment.

By End-Use Analysis

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Leisure Segment is Dominating the Market

On the basis of end-use, the market is segmented into golf, leisure, industrial, and others. The leisure segment dominated the market in 2021. Growing demand for lightweight vehicles for leisure activities is anticipated to boost the market growth. The demand for quadricycles in the golf segment is moderate due to market saturation. Industrial quadricycles are gaining momentum as the usage of such vehicles for internal movement of small goods, materials, and workers is growing exponentially. Others segment will witness medium growth over the next few years mainly due to increasing adoption of these vehicles in Europe.

REGIONAL INSIGHTS

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Europe held the largest share of the market in 2021. 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 quadricycles in this region have invested in R&D to develop highly autonomous quadricycles that will replace conventional taxis in the coming years.

In Asia Pacific, the market is dominated by China, where electric quadricycles are a long-term solution to address 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 purchasing these vehicles. Key manufacturers in Asia Pacific are working toward manufacturing vehicles as per European Regulations, as most of the vehicles produced in this region are exported to the Europe market.

North America is expected to show good growth in the 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 to Boost 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 the market. The company has also aimed to reduce the weight and increase the power of electric quadricycle battery. Additionally, the diverse portfolio of Renault would help to satisfy the demand for cost-effective L6e and L7e quadricycles.

LIST OF KEY COMPANIES PROFILED:

• Renault (France)


• Ingersoll Rand (U.S.)


• Yogomo (China)


• Textron (U.S.)


• Italcar Industrial S.r.l. (Italy)


• Polaris Inc. (U.S.)


• Yamaha Golf-Car Company (U.S.)


• Bajaj Auto (India)

KEY INDUSTRY DEVELOPMENTS 

• January 2022 – Polaris Inc sold its low-speed vehicle manufacturing company GEM and Taylor-Dunn businesses to motor vehicle manufacturer Waev Inc.


• June 2021 – E-Z-GO, a specialized vehicle brand under Textron Inc., announced its new vehicle E-Z-GO Liberty, the industry’s first vehicle to offer four forward-facing seats in a compact, golf-car-sized footprint. The vehicle is powered by Samsung SDI lithium-ion battery system to offer a premium driving experience.

REPORT COVERAGE

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The global motorized quadricycle market research 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 market growth in recent years.

Report Scope & Segmentation