Low-speed electric vehicle market accounted for US$ 5,526.65 million in 2022 and is expected to record a CAGR of 5.5% from 2022 to 2030, to account for US$ 8,489.94 million by 2030.
Analyst Perspective:
China is expected to maintain its leadership position in this evolving landscape, with a forecasted 40% share of the global electric car market by 2030 under the STEPS framework. In the same timeframe, the US is set to double its market share, reaching a 20% share, driven mainly by recent policy developments that are stimulating consumer demand. Meanwhile, Europe is anticipated to sustain its robust 25% share of global electric car sales. In the US, the Inflation Reduction Act (IRA) has acted as a catalyst for global electromobility companies, triggering a rush to expand their manufacturing operations within the country. Between August 2022 and March 2023, these industry leaders collectively announced investments totaling an impressive US$ 52 billion in North American EV supply chains. These investments are strategically allocated, with 50% dedicated to battery manufacturing and ~20% each directed toward battery components and EV manufacturing. This convergence of factors presents a promising outlook for the Low-speed electric vehicle market, offering abundant growth prospects during the forecast period.
Market Overview:
Low-speed electric vehicles are powered by electric motor, which draws electricity from batteries. Low-speed electric vehicles are mainly categorized into passenger vehicles and utility vehicles. The growing environmental concern and rising pollution levels are boosting the demand for sustainable and eco-friendly options in the transportation sector which is driving the Low-speed electric vehicle market growth. The transportation sector is one of the major contributors to overall environmental pollution; thus, the growing utilization of electric vehicles is anticipated to reduce a substantial portion of carbon emissions in the air in the coming years. The growing focus on mitigating carbon emissions and attaining low to zero carbon emission targets in several countries also boosts the growth for Low-speed electric vehicle market in different end users such as residential and commercial premises, airports, hotels and resorts, and golf courses.
The growing government support towards electric vehicle charging infrastructure, battery swapping stations, and rebates related to new electric vehicle purchases are major factors driving the global market for low-speed electric vehicles. Governments of different countries also focus on manufacturing cost-effective electric vehicles by domestically producing batteries, which helps reduce overall electric vehicle prices and boosts the adoption of low-speed electric vehicles. Thus, the growing affordability of electric vehicles is a key driver for the low-speed electric vehicles market, as this factor makes it easy for consumers to adopt electric vehicles.
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Low-speed Electric Vehicle Market: Strategic Insights
Market Size Value in US$ 5,526.65 million in 2022 Market Size Value by US$ 8,489.94 million by 2030 Growth rate CAGR of 5.5% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Low-speed Electric Vehicle Market: Strategic Insights
| Market Size Value in | US$ 5,526.65 million in 2022 |
| Market Size Value by | US$ 8,489.94 million by 2030 |
| Growth rate | CAGR of 5.5% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Market Driver:
Growing Concerns Regarding Greenhouse Gas Emission Boosting the Low-speed electric vehicle market Growth
A key contributor of GHG (greenhouse gas) emissions that lead to climate change is fossil fuel-driven vehicles. Hence, the utilization of electric vehicles is increasing due to the rising need for vehicles that are sustainable and provide minimal/zero carbon emission, growing climate change concerns, and government initiatives toward mitigating the usage of fossil fuels across the globe. Governments of various nations realize the significance of switching to the electrification of devices and vehicles to meet the future low to zero carbon emission targets. For instance, the US government aims to reduce net GHG emissions by 50–52% compared to 2005 levels by 2030 and attain net zero emissions by 2050. Such market initiatives are expected to boost Low-speed electric vehicle market growth.
The rising use of electric vehicles can help control the air pollution caused by fossil fuels as they do not emit any carbon or other harmful emissions. For road transport, low-speed vehicles are utilized in airports, resorts, golf courses, or any other private premises, contributing substantially to environmental pollution. EVs help reduce pollution, thereby allowing countries to meet the net zero carbon emission targets. Thus, the growing concerns regarding greenhouse gas emissions and environmental pollution are boosting the demand for electric vehicles, which drives the global low-speed electric vehicles market.
Segmental Analysis:
Based on the product, the Low-speed electric vehicle market share is bifurcated into passenger and utility vehicles. Passenger low-speed electric vehicles (LSEVs) are compact and easy to park, making them suitable for crowded urban environments where parking space is limited. Their small footprint also aids in efficient space utilization. Many cities and regions have regulations that encourage or mandate the use of low-speed electric vehicles for specific purposes, such as inner-city transportation, last-mile deliveries, and shuttle services. Further, utility vehicles are driving the growth of the low-speed electric vehicles market by offering practical and cost-effective solutions for various applications. The vehicle’s adaptability, economic benefits, and alignment with sustainability goals make them attractive choices for businesses, organizations, and municipalities looking to optimize transportation within specific environments and tasks. All such factors are contributing to the growth of the Low-speed electric vehicle market.
Passenger vehicles, including compact cars and urban commuting vehicles, are commonly used for short-distance travel within cities and neighborhoods. As consumers increasingly seek more sustainable and energy-efficient transportation options, LSEVs provide an attractive solution for these short trips. LSEVs are commonly used for commuting on college campuses, business parks, and gated communities. They offer a convenient as well as efficient mode of transportation for daily activities within such areas. The increased usage of passenger vehicles, including electric compact cars and urban commuting vehicles, is the key factor driving the growth of the low-speed electric vehicles market.
Regional Analysis:
North America is one of the early adopters of electric vehicles, owing to higher technological adoption and the presence of key electric vehicle market players such as Tesla Inc., Ford Motor Company, The General Motors Company, and Lucid Group Inc. These players drive the Low-speed electric vehicle market growth through various strategic initiatives such as new product launches, new product development, partnerships, and collaborations. Though global automation production is witnessing a declining trend, the North American automotive market is showing a positive sign with the rising automotive production. According to the data published by Scotiabank, the annual production of light vehicles in North America was increased by 11% in 2022, which was valued at 17.6 million in 2021 and is expected to increase by 7% by the end of 2023. As the automotive industry is witnessing a rapid transition toward electrification, such data shows that North America is one of the lucrative market for the Low-speed electric vehicle market over the forecast period.
The growing awareness of environmental protection among consumers is one of the leading factors boosting the EVs adoption in the region. In such a scenario, low-speed electric vehicles are gaining traction owing to affordability. Various market players focus on attracting this customer base on low-cost points. In July 2023, Wink Motors announced the launch of its Mark 3, an environmentally friendly LSV. The company claims that it is one of the most affordable LSVs in the Low-speed electric vehicle market at US$ 13,995. Such commitments of key market players toward new product launches are anticipated to increase the Low-speed electric vehicle market share in North America.
Key Player Analysis:
Textron Inc, Yamaha Motor Co Ltd, Club Car, The Toro Co, Renault SA, Star EV, Waev Inc., Bradshaw Electric Vehicles, Clean Motion AB, and Navya SA are among the key Low-speed electric vehicle market players operating in the Low-speed electric vehicle market.
Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the global Low-speed electric vehicle market. A few recent developments by key the Low-speed electric vehicle market players are listed below:
Year | News |
2023 | Kinetic Green announced a dealership with Angad Enterprise. The dealership offers a brand new electric 3-wheeler passenger and a good carrier. |
2023 | Polaris had launched the all-new RANGER XD 1500. The new RANGER side-by-sides are engineered with the first-ever Prostar 1500cc 3-cylinder engine that offers an industry-leading 110 horsepower and over 70 new accessories for enhanced customization, highlighted by Polaris’ exclusive Lock & Ride MAX system. |
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product, and End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
North America is one of the early adopters of electric vehicles, owing to higher technological adoption and the presence of key electric vehicle market players such as Tesla Inc., Ford Motor Company, The General Motors Company, and Lucid Group Inc. These players drive the automotive industry's growth through various strategic initiatives such as new product launches, new product development, partnerships, and collaborations.
A key contributor of GHG (greenhouse gas) emissions that lead to climate change is fossil fuel-driven vehicles. Hence, the utilization of electric vehicles is increasing due to the rising need for vehicles that are sustainable and provide minimal/zero carbon emission, growing climate change concerns, and government initiatives toward mitigating the usage of fossil fuels across the globe.
The utility-scale application of electric vehicles in a few prime sectors such as mining, defense, and construction, is likely to offer new opportunities for the global low-speed electric vehicle market players in the coming years.
Sodium-ion technology has been gaining popularity across the globe, with few companies working towards commercializing it for electric vehicle applications. Thus, the advent of lithium-ion phosphate and sodium-ion batteries for electric vehicles is likely to fuel the low-speed electric vehicle market during the forecast period.
Textron Inc, Yamaha Motor Co Ltd, Club Car, The Toro Co, and Renault SA are the key market players operating in the global low-speed electric vehicle market.
The List of Companies - Low-speed Electric Vehicle Market
- Textron Inc
- Yamaha Motor Co Ltd
- Club Car
- The Toro Co
- Renault SA
- Star EV
- Waev Inc
- Bradshaw Electric Vehicles
- Clean Motion AB
- Navya SA
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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