Electric Low-Speed Vehicle refers to simple four-wheel pure electric vehicles with speed lower than 70km/h. The general maximum speed is 70km/h, and the shape, structure, and performance are similar to those of fuel-powered vehicles. Electric Low-Speed Vehicle can cover electric bicycles, electric motorcycles, and electric tricycles. Low-speed electric four-wheeled vehicles are mostly developed based on golf carts. Electric Low-Speed Vehicle means low-speed driving, short driving range, low-level technical components such as batteries and motors, and three- and four-wheel electric motor vehicles used to carry passengers or cargo, including but not limited to old age scooters.
Global Electric Low-Speed Vehicle Market valued at USD 39.7 billion in 2017, which expected to reach USD 83.37 billion by 2027, growing at a CAGR of 7.12 % during 2020–2027. it is primarily attributed to factors such as increasing air pollution and rising oil prices, which are uplifting the trend for low-speed electric vehicles and further catalyze the Electric Low-Speed Vehicle market growth. To save and cut costs, major population inclination towards economic vehicles is giving market growth a huge upward push. Additionally, shifting trends followed by various end-use industries such as airports, golf courses, and hotels towards low running cost vehicles for commuting purposes is also facilitating the demand rise for the low-speed electric vehicle.
Furthermore, the growth of the market includes a reduction in greenhouse gas emissions since electric vehicles emit almost half the CO2 emissions, are a cost-effective mode of transportation, and highly efficient. The government initiatives to support electric vehicles are promoting the growth of the market. Additionally, rising preference toward electric vehicles will end in the higher deployment of different products, thus, creating revenue-generating opportunities for key stakeholders in the Electric Low-Speed Vehicle market across the globe. Also, the EV battery is one of the prime factors which determines the adoption of the low-speed electric vehicle. With battery prices on a decline, the use of electric vehicles for commercial applications projected to economically viable in the next five years, which will promulgate the demand for electric low-speed vehicle globally.
The rising threat of global warming and increasing pollution has accentuated the need to replace vehicles, which are petroleum fuelled and polluting the environment. Thus, the demand for electric vehicles is emerging across the globe. The efforts are rising with continuous support from many automotive OEMs, governments, and other private agencies that are promoting the sales of zero-emission vehicles but also taking steps towards charging infrastructure, favorable regulatory framework, and financial support.
The U.S. federal government has proposed a tax credit for plug-in electric vehicles (PEVs) purchased after December 31, 2009. The tax credit ranges from USD 2,500 to USD 7,500 for each vehicle based on its battery capacity and gross vehicle weight. Similarly, China has been adopting more aggressive actions to encourage EV purchases in the country. EVs were exempted from purchase taxes from 2014 to 2017, and the government has renewed the exemption through 2020.
The electric vehicle is cleaner than internal combustion engine cars over their lifetime; for example, the electric car produces half of the greenhouse gas emissions on an average passenger car. Furthermore, an electric car using average electricity is almost 30% cleaner over its life cycle in the market. The Plug-in hybrid vehicles have lifecycle emissions similar to battery electric vehicles coupled with the increasing adoption of Electric Low-Speed vehicles in the manufacturing Industry.
Gas prices will likely rise in the long-term. A rising world population, especially in developing countries, will push up demand for cars and thus of gas. Electricity prices, although subject to different market factors, may also increase. Since the price of fuel is a key advantage of electric vehicles, the comfortable prices of electric vehicles would overcome the demand for fuel and oil-based cars, buses, and utility vehicles.
Based on vehicle type, the global electric low-speed vehicle market classified into Two-Wheeler Vehicle (EV Scooter, EV Motorcycles, EV Bikes), Three-Wheeler Vehicle (E-Rickshaws), Four-Wheeler Vehicle (Utility Vehicle, Golf Cart, Electric Hotel Car, Low-Speed Heavy-Duty Vehicle, Electric Ambulance, and Others). The four-wheeler vehicle segment held maximum electric low-speed vehicle market share in 2019. It is attributable to the surge in oil prices and government policy for urging the use of electric vehicles will demand four-wheeler electric vehicles in the utility industry, golf courses, hotels & resorts and airports It includes utility vehicle, golf cart, electric hotel car, low-speed heavy-duty vehicle, electric ambulance, and others.
Two-Wheeler Vehicle will be the fastest-growing segment in the forecast period. It is owing to government incentive schemes, growing need to curb air pollution levels, and increasing affordability of electric two-wheelers being provided by leading automobile manufacturers.
Based on propulsion type, the global electric low-speed vehicle market segregated into Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), and Hybrid Electric Vehicle (HEV). The hybrid electric vehicle segment accounts for a higher revenue share in 2019 and projected to dominate the electric low-speed vehicle market by 2027. It is primarily attributed to the gasoline engines and electric motors. It provides many benefits such as improved fuel economy, increased power, or additional auxiliary power for electronic devices and power tools. It is majorly used in a three-wheeler and four-wheelers low-speed electric vehicle.
The plug-in hybrid electric vehicle will grow with a lucrative growth rate in the forecast period. It is due to the plug-in hybrid electric vehicle will hugely demand two-wheeler and three-wheeler low-speed electric vehicles.
Based on battery type, the global electric low-speed vehicle market classified into Lead Acid Battery, Lithium-ion Battery, and Others. The lithium-ion battery segment will hold higher market potential by 2027. It is owing to its low maintenance, high-energy-density, and charge retention capacity. These batteries are preferred substitutes due to better performance characteristics and longer lifecycle.
The lead-acid battery held a significant market share in 2019. It is due to the growing demand for stationary lead-acid batteries based on increasing adoption of vehicle electrification and in off-grid renewable energy generation. Lead-acid is one of the oldest energy storage devices, which is being used in numerous applications.
Based on geography, the global electric low-speed vehicle market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America accounts for a significant share by 2027 in the Electric Low-Speed Vehicle market. The growth across the region can be attributed to the presence of major players, technological advancement, and better infrastructure facilities for manufacturing, enhanced economic conditions, and rapid penetration and mass adoption of low-speed electric vehicles by the OEMs and customers.
The Asia Pacific is expected to provide significant growth opportunities due to rising disposable income of the population, which is allowing them to spend more on commuting vehicles such as electric LSV’s. Further, the growing hospitality industry due to the expansion of the tourism industry across the region leads to the rising number of resorts and hotels and encouraging the hotel industry to provide better services; thereby, the market has huge potential and demand generation from the hospitality industry.
Companies such as Terra Motors Corporation, Zero Motorcycles Inc., Changzhou Yufeng Vehicle Co. Ltd., Jiangsu Kingbon Vehicle Co. Ltd., Hero Electric Vehicles Pvt. Ltd., Jiangsu East Yonsland Vehicle Manufacturing Co. Ltd., AGT Electric Cars, Bintelli Electric Vehicles, Bradshaw Electric Vehicles, Ingersoll-Rand Plc, Ligier Group, Polaris Industries Inc., Speedways Electric, Yamaha Motor Co. Ltd., HDK Co., Ltd., and ZHIDOU Electric Vehicle Co. Ltd. are the key players in the Global Electric Low-Speed Vehicle Market.
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By Propulsion Type
By Battery Type
Global Electric Low-Speed Vehicle Market