Electric Utility Vehicle Market Size, Share & Industry Analysis, By Vehicle Type (ATVs, Golf Cart, Commercial Utility Vehicle, and Shuttle Carts), By Application (Golf Courses, Industrial Facilities, Recreation, Hotels & Resort, and Others (Agriculture, Corporate & Medical, Airport etc.)), By Battery Type (Lithium-Ion and Lead-Acid), By Range (Above 120 Km and Below 120 Km), and Regional Forecast, 2024 – 2032

The global electric utility vehicle market size was valued at USD 20.11 billion in 2023 and is projected to grow from USD 21.95 billion in 2024 to USD 44.97 billion by 2032, exhibiting a CAGR of 9.4% during the forecast period. North America dominated the electric utility vehicle industry with market share of 44.50% in 2023.

The electric utility vehicle market refers to the sector involved in the development, production, distribution, and utilization of electric vehicles specifically designed for utility, recreational activity, and commercial purposes. These vehicles are primarily used for tasks that require transporting goods, providing services, or facilitating various industrial and municipal operations. They are powered by electric batteries, which can include high-capacity batteries, lithium-ion & lead acid batteries with quick charging systems, or battery swap systems. The market is projected to grow immensely, driven by growing demand for low-emission vehicles, advancements in battery technology, and supportive government regulations aimed at reducing vehicular emissions.

The COVID-19 pandemic had a massive impact on the Electric Utility Vehicle (EUV) market, influencing both demand and supply dynamics. The initial phase of the pandemic led to significant disruptions across the automotive industry. Lockdowns and mobility restrictions resulted in a sharp decline in vehicle sales globally. The pandemic prompted manufacturers to innovate their sales strategies. Traditional dealership models faced challenges due to social distancing measures, leading automakers to explore online sales channels.

Electric Utility Vehicle Market Trends

Advancements in Battery Technology and Increasing Charging Infrastructure to Fuel Market Growth

Innovations in battery technology and electric drivetrains are enhancing the performance and efficiency of electric utility vehicles. The cost of lithium-ion batteries has significantly decreased over the past decade, making electric vehicles more affordable. For instance, battery prices fell from approximately USD 1,150 per kWh in 2010 to around USD 139 per kWh by 2023, which is expected to drive the growth of the market further.

Increasing charging technologies, including charging stations and battery swap systems, is addressing range anxiety and making electric utility vehicles more viable for various applications. For instance, in June 2023, Polaris announced it had been selected to receive a USD 700,000 grant to develop and maintain an off-road trail charging network in Michigan's Upper Peninsula. Four electric vehicle charging stations are installed on state-designated ORV trails in the woods of Ontonagon County. The four chargers are deployed in Ontonagon, White Pine, Bergland, and Greenland. This development is poised to facilitate the market growth.

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Electric Utility Vehicle Market Growth Drivers

Rising E-commerce Growth to Propel Market Expansion

The rapid growth of urbanization and e-commerce are significant trends that are expected to fuel market growth during the forecast period. The surge in e-commerce has drastically increased the demand for efficient delivery services. With the exponential growth in online shopping, particularly post-pandemic, the need for reliable and eco-friendly delivery vehicles is increasing. E-commerce companies and consumers are focusing on electric vehicles. Retailers are adopting electric utility vehicles to enhance their sustainability efforts and meet customer demand for greener delivery solutions. However, manufacturers are focusing mainly on new vehicle launches for commercial use.

For instance, in March 2023, Club Car introduced its latest street-legal electric vehicle, the Club Car Urban LSV and XR. These vehicles are now available through companies' commercial distributor networks in North America. The new Urban platform expands Club Car’s leading electric vehicle portfolio, which has been prominent in commercial markets for decades. The new Club Car Urban brings a unique utility vehicle solution that addresses the needs of large campuses, last-mile delivery, municipalities, and hospitality spaces.

RESTRAINING FACTORS

High Initial Costs May Restrain Market Growth

High initial costs may restrain the electric utility vehicle market growth. Electric utility vehicles are generally more expensive than their internal combustion engine counterparts due to the high cost of batteries and advanced technologies. A crucial component of EUV’s cost is its battery. Lithium-ion batteries used in EVs are expensive due to the materials and technologies required for their production. EUVs often incorporate advanced technologies for efficiency, safety, and connectivity, such as electric drivetrain, regenerative braking systems, and smart sensors. These technologies add to the overall cost of the vehicle.

Electric Utility Vehicle Market Segmentation Analysis

By Vehicle Type Analysis

Increasing Adoption of EUVs by Delivery Services to Fuel Commercial Utility Vehicle Segment Growth

By vehicle type, the market is classified into ATVs, golf cart, commercial utility vehicle, and shuttle carts. The commercial utility vehicle segment depicts the highest electric utility vehicle market share and is slated to lead during the forecast period. The segment’s growth is attributed to the increasing adoption of EUVs by municipal services, delivery services, and utility services. EUVs are well suited for urban environments where they offer the advantage of regenerative braking and reduced emissions.

The ATVs segment holds the second-largest share of the market due to growing recreational activities such as off-roading, hunting, and adventure sports. For instance, in February 2024, Sand Sports Expo announced that the company would organize one of the world’s biggest ATV, UTV, sand rails dune, and dirt sports expos for three days in California. This development drives the market growth.

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By Application Analysis

Operational Efficiency and Cost-Saving Factor to Boost Industrial Facilities Segment Growth

Based on application, the market is classified into golf courses, industrial facilities, recreation, hotels & resort, and others (agriculture, corporate & medical, airport etc.). The industrial facilities segment holds the maximum market share. The segmental growth is attributed to its operational efficiency. EUVs are versatile and suitable for indoor and outdoor applications in industrial settings. This versatility makes them ideal for tasks such as material handling, transportation of goods, and personnel movement. Many EUVs are designed to be compact and highly maneuverable, making them perfect for navigating. Generally, they have lower operating costs compared to Internal Combustion Engine (ICE) vehicles due to cheaper fuel and lower maintenance costs.

The golf courses segment held a significant market share in 2023. The segment’s growth is attributed to the rising demand for golf activity and the increasing technological advancement by manufacturers to fulfill customers’ needs. In March 2023, Club Car revealed Club Car CRU, a street-legal lifestyle vehicle that will disrupt the Low-speed Vehicle (LSV) market for consumers. CRU develops Club Car’s leading electric vehicle portfolio into a new, innovative category of Neighborhood Electric Vehicles (NEV). NEVs are designed to meet the needs of consumers seeking a more fun and sustainable option for short trips.

By Battery Type Analysis

High Energy Density and Efficiency to Expedite Lithium-ion Segment Expansion

Based on battery type, the market is categorized into lithium-ion and lead-acid. The lithium-ion segment holds the maximum share of the market due to its high energy density and efficiency. Lithium-ion batteries are known for their high energy density, which allows them to store more energy in a smaller and lighter package compared to lead-acid batteries. This characteristic translates to longer operational times and greater ranges for electric utility vehicles on a single charge, making them particularly suitable for commercial applications where efficiency and productivity are paramount. 

The lead-acid segment holds the second-largest market share due to its affordability and availability. Lead-acid batteries are generally more affordable than lithium-ion batteries, making them an attractive option for cost-sensitive applications. Their lower initial purchase price allows businesses, particularly small and medium enterprises, to invest in EUVs without incurring significant upfront costs.

By Range Analysis

Advancements in Battery Technology to Impel Above 120 Km Segment Expansion

Based on range, the market is segmented into above 120 km and below 120 km. The above 120 km segment holds the maximum share of the market. The advancements in battery technology fuel the market growth. Improvements in battery technology have made it feasible for manufacturers to produce electric utility vehicles with higher ranges without significantly increasing the vehicle's weight, driving the market growth.

The below 120 km range segment holds the second largest market share. The segmental growth is attributed to its lower upfront cost. Vehicles with a range below 120 km are typically equipped with smaller batteries, which are less expensive. This makes these vehicles more affordable for businessmen and municipalities to minimize initial capital expenditure.

REGIONAL ANALYSIS OF ELECTRIC UTV MARKET

The market is analyzed across Europe, Asia Pacific, North America, and the rest of the world.

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The North America market stood at USD 8.95 billion, dominated in 2023. The region has seen a robust demand for electric utility All-terrain Vehicles (ATVs) and Utility Task Vehicles (UTVs), driven by their applications in industries such as agriculture, construction, and logistics. The increasing adoption of electric utility vehicles for both commercial and recreational purposes enhances the market share in North America.

Asia Pacific holds the second-largest share of the market. The rapid development of charging infrastructure across the region is facilitating the adoption of electric utility vehicles. As charging stations become more widely available, consumers and businesses are more likely to invest in electric vehicles, understanding that they will have access to the necessary facilities for recharging.

Europe holds the third largest market share. European countries have implemented various policies and regulations to promote the adoption of electric vehicles, including utility vehicles. These measures include emission reduction targets, tax incentives, and subsidies for EV purchases.

The rest of the world holds a significant market share. The market growth is attributed to companies focusing on reducing their carbon footprint, leading to higher adoption of electric fleets. This adoption drives the growth of the market.

COMPETITVE LANDSCAPE OF ELECTRIC UTV INDUSTRY

Companies Focus On Expansion of Sales Networks and Product Portfolio to Enhance Their Position

Key players in this market include Toro Company, CLUB CAR, and Polaris Inc. The product manufacturers focus on expanding their product portfolio, sales networks, and partnerships.

Polaris Inc. is one of the leading electric utility vehicle manufacturers. The company focuses on research and development activities to create high-quality new products with improved capabilities. It develops, manufactures, and distributes tool and equipment solutions across the globe.

List of Top Electric Utility Vehicle Companies: 

• Addax Motors (Belgium)


• Alke (Italy)


• American Landmaster (U.S.)


• CLUB CAR (U.S.)


• Columbia Vehicle Group Inc. (U.S.)


• HISUN Motors (China)


• Marshell Green Power (China)


• Star EV Corporation (U.S.)


• Textron Specialized Vehicles Inc. (Georgia)


• John Deere (U.S.)


• Yamaha Motors (Japan)


• Toro Company (U.S.)


• Hyster-Yale, Inc (U.S.)


• Polaris Inc (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Polaris launched an electric version of its heavy-duty Pro XD utility vehicle for applications in construction, equipment rental, and industry. The Pro XD Kinetic vehicle, a heavier-duty version of its Ranger electric utility truck, uses a 14.9kWh Lithium-Ion battery to provide 140lb-ft (190Nm) of instant torque and has the ability to tow up to 2,500lbs (1,133kg) and haul up to 1,250lbs (566kg). It has a range of up to 45 miles (72.4km) on a single charge.


• July 2023: Tesla introduced an electric ATV for children in China. It features a 500-watt motor and a 288 Wh battery, offers a top speed of 16 km/h (10 mph), and has a limited range. This miniature version of the Cyberquad provides young riders with a fun and safe off-road experience, mirroring the design of its larger counterpart.


• June 2023: E-Z GO introduced the new street-legal Liberty LSV and a newly updated model of its Freedom RXV, which couples a stylish new look with a comfortable ride. The Liberty LSV is the industry's ultimate luxury street-legal vehicle.


• May 2023: ICON launched a new product line, ICON ECO, providing economical golf carts for recreation and family adventures. The company will provide two models, which include a 4-seater lift and a 4-seater non-lifted.


• November 2022: Rohnel Motors introduced a lineup of electric ATVs in India, offering models such as Raven, Beast, Zeus, Ranger, and Patriot. These eco-friendly vehicles offer varying power outputs and cater to riders of all skill levels. They feature high power, low noise, and ease of operation and can be conveniently recharged at any standard electric outlet, ensuring a hassle-free riding experience.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading market participants, competitive landscape, and type. Besides this, it includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

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