PUBLISHER: Orion Market Research | PRODUCT CODE: 1350977
PUBLISHER: Orion Market Research | PRODUCT CODE: 1350977
Title: Global Microcars Market Size, Share & Trends Analysis Report by Type (Fuel Cars, Electric Cars, Hybrid Cars), by Application (Personal Cars, and Commercial Cars), by Technology (Automatic, Semi-automatic, and Manual), by Distribution Channel (Online, and Offline), and by Vehicle Size (Compact, and Sub-compact)Forecast Period (2023-2030).
The global microcars market is anticipated to grow at a considerable CAGR of 3.0% during the forecast period. The growth of the market is attributed to factors such as increasing urbanization, rising fuel costs, growing environmental concerns, and advancements in automotive technologies. Additionally, factors such as the demand for compact and economical vehicles in congested urban areas and government initiatives promoting electric and hybrid vehicles are anticipated to fuel the demand for microcars. For instance, in recent years, there has been a significant shift towards sustainable transportation solutions, which has boosted the adoption of microcars. Moreover, adoption of electric microcars are becoming increasingly popular owing to their eco-friendly nature and improved charging infrastructure, offering convenient and sustainable transportation options. Microcars are cheaper to charge than larger electric vehicles as they don't require as much energy. For instance, in November 2022, PMV Electric launched its first electric micro car in India called the EaS-E. The PMV EaS-E micro electric car is powered by a 10 kWh lithium iron phosphate battery that is coupled with a 15 kW (20 bhp) PMSM electric motor.
The global microcars market is segmented based on its types, application, technology, distribution channel, and vehicle size. Based on types, the market is segmented into fuel cars, electric cars, and hybrid cars. Based on applications, the market is categorized into personal cars and commercial cars. Based on technologies, the market is segmented into automatic, semi-automatic, and manual. Further, Based on vehicle type, the market is segmented into compact, and sub-compact. Among these segments, electric cars are anticipated to hold a prominent market share due to the increasing focus on electric mobility and the growing availability of charging infrastructure.
Among the vehicle size segment, the compact microcars are expected to register significant growth during the forecast period. Compact microcars are popular in urban areas due to their smaller footprint, ease of maneuverability, and ability to navigate through congested traffic. These vehicles offer a practical solution for daily commuting, especially in crowded cities with limited parking space. The compact size also contributes to fuel efficiency and lower emissions, aligning with the increasing environmental concerns and government regulations. For instance, in April 2023, MG Motor India launched the MG Comet EV microcar. The Comet EV is a compact three-door electric hatchback with a starting price of $9700 and is expected to have a range of around 200 km on a single charge. The MG Comet EV is loaded with features, including dual 10.25-inch screens, a two-spoke steering wheel, dual airbags, ABS with EBD, ESC, and more.
The global microcars market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these regions, the European market is anticipated to cater to prominent growth over the forecast period. The growth of the microcars market in Europe is driven by factors such as the presence of major microcar manufacturers, stringent emission regulations, and the focus on sustainable transportation solutions. However, the Asia-Pacific region is projected to experience considerable growth in the microcars market due to rapid urbanization, increasing disposable income, and government initiatives promoting electric and hybrid vehicles.
The North American region is anticipated to hold a significant share in the global microcars market. The growth of the market in the region is driven by factors such as a strong automotive industry, increasing urbanization, changing consumer preferences, rising fuel costs, environmental concerns, the growing demand for electric vehicles, and cater to urban and suburban transportation needs. These factors create a favorable environment for the adoption and growth of microcars in North America. For instance, in March 2023, Wink Motors, a New York City-based LSV maker, launched its first electric microcar. The microcar is street-legal and has bucket seats that look more like those found in a conventional sedan. The microcar's top speed has been limited to 25 mph, making it perfect for driving in cities, suburbs, or private communities.
The major companies serving the global microcars market include major automotive manufacturers such as Mercedes-Benz Group AG, BMW AG, Fiat Chrysler Automobiles N.V, RENAULT INDIA PVT. LTD., and Volkswagen Group of America, Inc., among others. These market players are significantly contributing to market growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. They focus on developing compact and efficient microcars that meet the evolving needs of urban mobility and sustainability. For instance, in November 2022, Fiat is bringing back the 500e electric version of its urban microcar to North America in 2024. The new version of the 500e revealed at the Los Angeles Auto Show in 2023. The electric 500e is currently made at its Mirafiori plant in Turin, Italy, and has been doing well in Europe.