PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1324303
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1324303
According to Stratistics MRC, the Global Light Electric Vehicles Market is accounted for $87.7 billion in 2023 and is expected to reach $190.7 billion by 2030 growing at a CAGR of 11.74% during the forecast period. The electric motorcycles, electric scooters, electric bicycles, and other similar modes of mobility is referred to as the "light electric vehicles" (LEVs). Typically, smaller and lighter than conventional cars, these vehicles are propelled by electric motors and rechargeable batteries. Some instances of EVs include surface and underwater watercraft, cars for the road and rail, electric aircraft, and electric spacecraft. In China, India, and other Asian countries that favor their conventional counterparts for last-mile connectivity and perceive them as an affordable mode of personal transportation, light electric vehicles will be at the core of electrification projects.
According to the Australian Bureau of Statistics, an independent statutory agency of the Australian Government, in Australia, registrations for electric motorcycles increased from 1,308 in 2020 to 2,706 in 2021.
A new practice that saves LEV users time involves switching out batteries at the LEV charging stations. Although level 3 EV charging and ultra-fast charging can fully charge an electric vehicle in 15 to 30 minutes, respectively, they are inconsistent with LEVs. So, battery changing is a terrific LEV alternative. By July 2021, businesses like NIO had set up over 300 battery switching stations, and by 2025, they want to have built about 4,000 more. With over 1,000 battery-swapping stations developed outside of China, its stations have been utilized nearly 2.9 million times worldwide.
Since the market for light electric vehicles is still in its infancy, OEMs find it challenging to develop standardized, interchangeable, and universally compatible systems and vehicles due to the intense competition and numerous patents for faster and better technologies related to motors, batteries, ecosystems, and other components. The National Institution for Transforming India (NITI) Ayog, a research and advisory body for the Indian government, drafted the Battery Swapping Policy in August 2022 to address this problem. This policy mentions the technical aspects of standardization that would promote interoperability throughout the battery swapping ecosystem, which leads to the hampering of the market growth.
Governments all across the world are promoting the use of vehicles that run on alternative fuels as environmental worries about conventional automobiles continue to rise. LEVs are being made a required component of operational fleets in developing nations like India and China for uses including geofenced passenger carrying, last-mile delivery, and other commercial objectives. By the end of 2025, developed nations like the Netherlands want to entirely employ electric vehicles with zero emissions for all commercial and governmental uses. Tax incentives are also offered by governments, such as Mexico's, at several EV deployment stages, including vehicle purchase, charging, and infrastructure construction.
Due to range restrictions, the market for light electric vehicles hasn't been able to expand. LEVs lack gasoline tanks for easy refueling and energy storage, in contrast to ICE vehicles. Compared to its ICE counterpart, a fully charged battery has a generally lower range. Consumers who need to go more than 100 miles per day are hesitant to buy LEVs because the majority of electric two-wheelers, such as e-scooters, e-motorcycles, and e-bikes, have a range of up to 100-120 miles. Industrial vehicles also experience short battery life and lengthy recharge times, which reduce their daily utilization.
The COVID-19 epidemic has accelerated the use of technology for digital transformation. Due to customer demand for environmentally friendly and secure modes of transportation, LEV demand has also surged. The epidemic has also hampered the worldwide supply chain, which has led to a scarcity of parts and slowed down the creation and delivery of LEVs. As a result, some models cost more, and shipments are now delayed. Additionally, the pandemic's impact on the economy has forced some consumers to put off buying decisions, which has hampered the market's expansion.
The 2-wheelers held the largest market share throughout the projection period, as they are more agile and maneuverable than three-wheelers and are therefore better suited for handling congested metropolitan areas. They appeal to consumers who are cost-conscious because they are also more affordable and environmentally friendly than conventional vehicles. Additionally, the key reason driving significant growth prospects is the rise in consumer demand for environmentally friendly transportation solutions, as their awareness of environmental issues grows and fuel prices rise.
Commercial segment is expected to have lucrative growth throughout the projection period. Urban regions where traditional delivery vehicles like vans and trucks are unfeasible owing to traffic congestion and parking restrictions are suited for commercial light electric vehicles. They provide a more effective and affordable substitute for conventional delivery vehicles. Moreover, they are also environmentally friendly, which is becoming more and more crucial for industries trying to reduce their carbon footprint.
During the extended period, North America held the largest share of the market, primarily due to the rising demand for environmentally friendly transportation options. The main contributors to market expansion in this region are the United States and Canada. It is also anticipated that rising government support for electric vehicles in the form of subsidies and tax incentives will propel market expansion. In this region, there is a growing need for electric bicycles and scooters as well, particularly in urban areas where traffic congestion is a major problem. Ford, General Motors, and other significant companies are anticipated to propel market expansion in this area.
As a result of the rising demand for inexpensive, sustainable modes of transport, Asia-Pacific is expected to have profitable growth during the forecast period. With a sizeable market share, China is the country in this region with the largest market for light electric vehicles. Market expansion in this area is being fueled by the growing amount of government support for electric vehicles in the form of subsidies and tax benefits. It is also anticipated that increased consumer disposable income and urbanization will fuel market expansion. This region has a very strong demand for electric scooters and bicycles, especially in congested urban areas with limited parking.
Some of the key players in Light Electric Vehicles market include: Borgwarner Inc., BMW AG, Balkancar Record, Auto Rennen India, Auro Robotics, Ari Motors, Alke, American Landmaster, Addax Motors, Aisin Corporation and Accelerated Systems Inc.
In June 2022, Club Car announced the acquisition of Melex, which Garia bought in 2021 to help it expand its utility business, and Garia A/S, a maker of electric street-legal low-speed cars with a focus on the utility, consumer, and golf industries. Based in Poland, Melex is a producer of light utility vehicles.
In April 2022, Sansera Engineering Limited revealed that it has received orders from BMW Motorrad for two packages of 26 aluminum forged and machined parts totaling about USD 37.5 million over a ten-year period. Sansera has built a cutting-edge facility for aluminum forging and machining, including solution heat treatment and anodizing, at one of its sites in Bengaluru, where these parts will be produced.
In March 2022, A subsidiary of Textron Inc., Textron Ground Support Equipment Inc., has announced that it will work with General Motors (GM) and Powertrain Control Solutions (PCS) to electrify its broad range of products. For Textron GSE products alone, GM and PCS have created an integrated driveline that makes use of GM's lithium-ion battery systems. Textron GSE will be able to benefit from GM's expertise in electric propulsion systems thanks to the driveline.
In February 2022, In the United States and Canada, Wallbox N.V. and Polaris Inc. announced a new collaboration. Polaris will sell the 40 Amp version of Wallbox's best-selling charger, the Pulsar Plus, in order to make it even faster for customers to charge their electric vehicles. This revelation comes in the wake of Polaris' recent unveiling of the 2023 RANGER XP Kinetic. Off-road vehicles are a particular fit for Pulsar Plus 40 Amp because to its NEMA connection, which offers greater versatility for agricultural and rural charging areas.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.