Micro Electric Vehicle (EV) Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, Japan, UK, Germany - Size and Forecast 2023-2027

Micro Electric Vehicle (EV) Market Forecast 2023-2027

The global micro electric vehicle market is estimated to grow by 1,542.22 thousand units at a CAGR of 8.02% between 2022 and 2027. The growth of the market depends on several factors, including the dedicated consortium for the development of these all-new designs and vehicle platforms drive demand, the government subsidies to manufacturers of micro-electric vehicles are encouraging demand for micro electric vehicles designers, micromobility, plug-in, hybrid and the technological advances in manufacturing Li-ion battery and minimum maintenance costs. 

Additionally, the electric vehicle market has revolutionized the transportation industry with its Versatile nature and eco-friendly features. Compact commuting vehicles, such as micro EVs, offer a solution for navigating congested roads and providing ease of maneuverability in urban areas. These vehicles cater to a wide range of applications, from personal commuting to cargo transportation, addressing the surge in demand for sustainable transportation options. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Micro Electric Vehicle Market During the Forecast Period?

To learn more about this report, Download Report Sample

Market: Key Drivers, Trends, Challenges, and Customer Landscape

The technological advances in manufacturing Li-ion batteries and minimum maintenance costs which lead to more reliability are notably driving the market growth, although factors such as the power grids serving as a source to these are indirectly polluting the environment and may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Technological advances in lithium-ion battery type manufacturing and minimal maintenance costs leading to improved reliability are key factors driving the growth of the global market. The Li-ion battery is a type of rechargeable battery mainly used in consumer electronics. These batteries have been used in military, and aerospace applications. The energy density of Li-ion batteries is higher compared with lead-acid batteries and nickel-metal hydride batteries. Li-ion batteries have replaced the earlier versions of batteries used in golf carts and utility vehicles. They are compact, lightweight, and safer compared with lead-acid and nickel-metal hydride batteries.

As these batteries are slim and compact, the installation process is much simpler, which also makes the designing and planning of a vehicle body an easier process. Li-ion batteries are being used in various sectors, and so multiple R & D activities have been initiated to improve their performance and lifecycle. The use of advanced technologies, such as technical advances in cathodes, anodes, and electrolytes in Li-ion batteries, may boost the storage capacities of these batteries. Such factors are expected to propel the growth of the market in focus during the forecast period.

Significant Market Trends

The leading automakers and urban mobility solution providers working on the development for the mass market is the primary trend in the global market industry. The numerous advantages of these have seen major automakers entering the arena with their developments. The popularity of such vehicles is pushing automakers to meet the demand of customers in different geographic regions. Moreover, micro Mobility Systems, a Switzerland-based company, is dedicated to developing new urban mobility solutions and is working to re-launch the electric version of one of the most famous automotive creations of the 1950s, the BMW Isetta. The company is working on the prototype electric version of the small car, which would be called Microlino, in the market.

According to industry experts, it would be classified as an L7e motorized quadricycle that would be similar to Renault Twizy. The electric version of Isetta has already gained popularity among interested customers, and the company is expecting more reservations each passing day. It is reportedly stated that the car would have a top speed of more than 60 miles an hour with a driving range of more than 65 miles per charge. Such factors are expected to propel the growth of the market focus during the forecast period.

Major Market Challenge

Power grids serving as a source of electric vehicles are indirectly polluting the environment is a major challenge to the growth of the global micro EV market. The automotive industry is still concerned about the indirect effects of these on the natural environment and on human beings. According to some automotive experts and scientists, they do not pollute the environment directly. However, energy infrastructure such as power grids driven by coal leads to air pollution. The power grids powered by coal as a source of energy release large amounts of harmful gases, leading to low quality of air and health-related problems in human beings. It has also been found that the production of electric car batteries pollutes the natural environment.

In addition, though battery technology is continuously evolving both in terms of technology and the production process, concerns remain for the current power grids powered by coal and their negative impact on the environment. According to scientists, they cause almost equal levels of pollution (or more) compared with those generated by gasoline-powered vehicles. Hence, we expect such indirect harmful effects of these to hinder the growth of the global market during the forecast period.

Key Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Micro Electric Vehicle Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AYRO Inc: The company offers AYRO Vanish.  Also, the company offers  AYRO Vanish. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Alta Zero Emissions Solutions Inc.
• Bayerische Motoren Werke AG
• Bintelli Electric Vehicles
• BYD Electronic Co. Ltd.
• Electrameccanica Vehicles Corp.
• Elio Motors Inc.
• G H Varley Pty Ltd.
• Hyundai Motor Co.
• Italcar Industrial Srl
• Mahindra and Mahindra Ltd.
• Mercedes Benz Group AG
• Microlino AG
• PMV Electric Pvt. Ltd.
• Polaris Inc.
• Renault SAS

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market share growth by the golf and micro cars segment will be significant during the forecast period. A golf cart is a small vehicle designed to carry golfers and their accessories around the golf course. Golf courses are expansive parcels of land, and some golfers get tired walking a whole course. Such vehicles are designed to reduce the fatigue caused by walking. Advances in technology and growing interest in golf have boosted sales of golf carts over the past few years. In addition, different types of golf carts are available, powered by gasoline and electric technologies, which will drive segment growth during the forecast period.

Get a glance at the market contribution of various segments Request a PDF Sample

The golf and micro cars segment was valued at 2,127.62 thousand units in 2017 and continue to grow by 2021. The golf carts and micro cars segments dominate the global market, contributing 80% of the total market. This is because of the increased sales of club cars, such as golf carts and personal utility vehicles, in North America and Europe, along with micro cars having a maximum power rating of up to 15 kWh. Moreover, the golf and micro cars segment of the market is anticipated to grow at a CAGR of 6.98%, during the forecast period. This is because of the high demand for neighborhood and club cars, including golf carts and personal utility vehicles in developed regions like the US, Europe, and China, among others. In addition, the demand for golf carts is growing consistently with the growing popularity of golf worldwide, which is visible with the increasing volume of sales of golf carts. Such factors will increase the market growth during the forecast period

Which are the Key Regions for the Market?

For more insights on the market share of various regions Request PDF Sample now!

North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America accounts for the majority of the market in the region as it has a strong market presence. The market in North America receives the majority of its revenue from countries like the US and Canada, where there is strong demand for quadricycles, electric golf carts, and mobility vehicles for people with disabilities. In some states of the US, these were formerly known as neighborhood vehicles. The US government has the major task of reducing greenhouse gas emissions and the country's carbon footprint. To that end, it has introduced multiple subsidies and incentives to drive the market demand. In addition, the US government is undertaking many initiatives to support the automotive industry.  The statistics indicate that more than 50% of intercity drive lasts for less than 15 minutes, which represents volumes about the driving dynamics in the region. These (such as neighborhood vehicles) represent a suitable mode of transportation for such driving environments. These factors are contributing to a rise in demand in the region.

Market Analyst Overview

The market is witnessing a surge in demand driven by factors such as the need for compact commuting solutions, particularly in congested urban areas. Micro electric vehicles, with their low power output and environmentally friendly features like carbon products with biologically complex composite material bodies, offer a versatile solution for short-range transportation needs. Despite challenges like the semiconductor shortage affecting vehicle production,short range of cargo and transportation, expensive lead acid battery and prices, the market is propelled by initiatives such as the ebikes, electrification of golf carts and quadricycles and the adoption of V2G and V2H technologies. Government regulations and incentives further boost market growth, particularly in regions like the Asia-Pacific, where the demand for affordable and environmentally responsible alternatives is high.

Despite challenges like range anxiety and high battery expenses, the market for electric vehicles is experiencing significant growth globally, particularly in the Asia-Pacific region. Government incentives and initiatives, such as the Clean Vehicle Credit (CVC) rule and incentives offered by governments, further propel market growth and encourage the adoption of electric vehicles.

The electrification of the automotive industry has led to the phasing out of gasoline and diesel vehicles, with manufacturers and OEMs investing in electric propulsion power and developing innovative solutions like the Toyota C+Pod and Hong Guang MINI EV. With growing environmental awareness and the need for socially responsible transportation solutions, electric vehicles are expected to play a crucial role in shaping the future of mobility services and addressing transportation demand.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027. 

• Type Outlook (thousand units, 2017 - 2027)
  • Golf and micro cars
  • Quadricycle

• Application Outlook (thousand units, 2017 - 2027)
  • Commercial
  • Personal
  • Public utilities

• Region Outlook (thousand units, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is rapidly growing, driven by the need for ecologically sustainable solutions in urban areas facing heavy traffic congestion and traffic hauls. These vehicles offer a range of approximately 200 km and a top speed of 60-100 km/h, making them ideal for compact commuting in urban locations. With rapid urbanization and high population growth, there is a surge in demand for micro EVs, especially in developing countries.

Micro EVs are equipped with low-powered drivetrains and compact battery systems, making them versatile for a range of applications, including off-roading and cargo transportation in congested cities. The market has seen a surge in orders, particularly during the coronavirus pandemic, as people seek economical and effective alternatives to traditional fossil-fueled vehicles. However, challenges such as battery expenses and charging infrastructure remain, highlighting the need for supportive government policies and incentives for zero-emission vehicles.

Micro Electric Vehicle Market Scope
Report Coverage	Details
Page number	167
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.02%
Market growth 2023-2027	1,542.22 thousand units
Market structure	Fragmented
YoY growth 2022-2023(%)	6.76
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 47%
Key countries	US, Canada, Japan, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Alta Zero Emissions Solutions Inc., AYRO Inc., Bayerische Motoren Werke AG, Bintelli Electric Vehicles, BYD Electronic Co. Ltd., Electrameccanica Vehicles Corp., Elio Motors Inc., G H Varley Pty Ltd., Hyundai Motor Co., Italcar Industrial Srl, Mahindra and Mahindra Ltd., Mercedes Benz Group AG, Microlino AG, PMV Electric Pvt. Ltd., Polaris Inc., Renault SAS, Shandong Baoya, Shifeng Group Co. Ltd., Textron Inc., and Yamaha Motor Co. Ltd.
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market vendors

We can help! Our analysts can customize this report to meet your requirements. Get in touch