Micro Electric Vehicle Market Size, Share & Industry Analysis, By Type (Quadricycle and Golf Carts), By Battery Type (Lead Acid Battery and Lithium-ion Battery), By Application (Commercial Use, Personal Use, and Public Utilities), and Regional Forecast, 2024-2032

The global micro electric vehicle market size was valued at USD 8.10 billion in 2023. The market is projected to grow from USD 9.03 billion in 2024 to USD 22.50 billion by 2032, exhibiting a CAGR of 12.1% during the forecast period. The micro electric vehicle market in the U.S. is projected to grow significantly, reaching an estimated value of USD 9654.8 million by 2032, driven by the high demand for lightweight vehicles and a cheaper mobility alternative is expected to serve the demand for micro EVs in the country. Moreover, the growing electrification trend is also expected to influence technological developments in upcoming micro EVs. For instance, in December 2022, Squad mobility announced the expansion of its electric Quadricycle product line to the U.S. The vehicle utilizes a solar panel on the car roof which stores the energy and allows the vehicle to function and move. 

Micro Electric Vehicles (EVs) are space-saving, mini-electric vehicles, which typically have a range of approximately 200 km, with their top speed touching 60-100 km/h. These vehicles use a low-powered drivetrain and have a low power output, running on a similar but compact battery system. Additionally, these mini EVs are designed using carbon products with biologically complex composite material bodies, making them lighter and smaller than the standard electric vehicles and highly suitable for urban locations.

Rapid urbanization and high population growth may propel the global demand for compact commuting vehicles in urban regions due to heavy traffic congestion and traffic hauls. Additionally, the growing demand for short range of cargo and transportation is well efficient by utilizing micro electric vehicles as they consume less energy and are highly effective as compared to fossil-fueled vehicles. These factors are creating a strong demand for micro EVs due to their versatile nature and high range of applications.

The electric mobility industry exceeded expectations in 2020. According to the International Energy Agency (IEA), over 3 million electric cars were sold in 2020, a growth of 40% year-on-year, and they accounted for over 4% of the total car sales. In Europe, sales more than doubled in key markets, such as the U.K., Germany, France, and Italy in 2020 compared to 2019. China witnessed a growth of 12% year-on-year in electric car sales. Despite the lack of federal measures to support EV uptake during the pandemic, sales increased by 4% in the U.S.

Micro Electric Vehicle Market Trends

Rising Trend of Electrification of Golf Carts and Quadricycles to Fuel Market Growth

The trend of electrification in the automotive industry is fueled by many factors that directly and indirectly aid the adoption of electric vehicles across the globe. Electrification has also penetrated micro vehicles such as micro EVs, golf carts, and off-roading automobiles. The major players and consumers are recognizing the benefits of adopting EVs over fossil-fueled vehicles. Compared to traditional passenger cars, the entire carbon footprint of micro EVs and quadricycles is nearly 50% lower due to their reduced weight and size.

The development of newer electrification technologies, such as V2G and V2H, is driving the demand for enhanced infrastructure to support these new technologies and electric vehicles on the road. For instance, in December 2022, Toyota Industries announced a partnership between Oncor Electric Delivery and Toyota Motors to focus on the development and benefits of vehicle-to-grid applications. The program will focus on the benefits of V2G technology for both customers and the energy grid.

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Micro Electric Vehicle Market Growth Factors

Favorable Government Regulations and Subsidies to Boost Market Growth

Governments and public institutions in various regions are implementing several subsidies and policies to promote the sales of electric and micro electric vehicles. They are also committed to formulating favorable regulatory plans, setting up electric vehicle charging infrastructure, and providing adequate financial support.

The rise of zero-emission vehicles and support from government policies have led to a decline in micro electric and electric vehicle prices. The improvement of charging stations and increasing focus on expanding the range of these vehicles have also driven the global demand for micro electric and electric vehicles.

Growing Focus on Developing V2G Applications and Suitable Charging Infrastructure to Augment Market Expansion

Vehicle-to-Grid (V2G) technology enables the stored energy in vehicles to be pushed back to the national electricity network or grid when there is a peak demand for energy supply. Bi-directional technology also allows the vehicle to store electricity that can be used as backup power during power outbreaks. Similarly, bi-directional charging can support Vehicle-to-Home (V2H) applications. Monetary rewards incentivize the owner to opt for the intelligent charging program. For instance, in October 2023, Siemens signed a contract for SICHARGE D electric vehicle (EV) fast chargers. The order, which comprises 200 EV fast chargers and digital services, was made by Astor Enerji, a manufacturer of transformer and switchgear products, to fulfil its plans to build charging stations throughout Turkey. The company intends to set up chargers every 200 kilometers along highways all over the country and at a number of shopping malls.

Moreover, major EV manufacturers are focusing on deploying electric vehicles that support V2G technology to accelerate their adoption among people. This move is aimed at changing the approach toward energy utilization in the future. Thus, rapid developments in electrification technology will likely create greater awareness of the benefits of electric vehicles, indirectly propelling the micro electric vehicle market growth during the forecast period.

RESTRAINING FACTORS

Range Anxiety and High Battery Expenses Might Hamper Market Growth

The most prevalent reason drivers avoid EVs is the fear that the battery will run out of power by the time they reach their destination. This phenomenon is popularly known as "range anxiety." The costs associated with the technology and infrastructure required to implement electric vehicles are high. Electric cars are more expensive than gasoline-powered cars. Batteries play a vital role in electric vehicles since they power them.

Furthermore, the cost of batteries, chargers, and installation increases the overall cost of electric vehicles. These factors make electric cars more expensive than the traditional ICE cars, thereby hampering the adoption of micro EVs.

Micro Electric Vehicle Market Segmentation Analysis

By Type Analysis

Rising Demand for Golf Carts to Carry Luggage and Growing Number of Golf Courses in Developing Countries to Foster Market Growth

Based on type, the market is segmented into quadricycle and golf cart.

The golf cart segment is expected to dominate the market due to the growing adoption of electric golf carts as they are highly efficient and sustainable. These golf carts offer a compact solution for short-range transportation of cargo and materials. Additionally, these carts have a low-power engine, which lowers the overall cost of the vehicle. These factors are influencing the demand for golf carts globally.

The quadricycle segment is likely to experience a higher adoption rate and lead the market growth during the forecast period. These vehicles offer greater agility and mobility as compared to the traditional sized vehicles. Additionally, quadricycles have a lower price range as compared to traditional EVs. These aspects might aid the adoption of quadricycles in the coming years, thus expanding the market share.

By Battery Type Analysis

Higher Efficiency of Lithium-ion Battery to Fuel Demand during the Forecast Period for Micro EVs

Based on battery type, the market is segmented into lead acid battery and lithium-ion battery.

The lithium-ion battery segment is expected to hold a dominant market share due to its growing adoption in electric vehicles and superior properties. Furthermore, these batteries have a longer lifecycle which helps the vehicle battery to last longer. Several major automotive players are integrating lithium-ion batteries to boost the lifecycle of their products. This has led to a greater demand for these batteries over lead-acid batteries in micro EVs.

The lead acid battery segment is likely to experience a slower adoption rate due to the lesser benefits offered as compared to lithium-ion batteries.

By Application Analysis

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Rising Demand for Short-range Cargo Transportation to Fuel Commercial Use Segment Growth

Based on application, the market is segmented into commercial use, personal use, and public utilities.

The commercial use segment is expected to hold the largest market share during the forecast period due to massive applications of these vehicles in commercial golf courts, transportation, and theme parks. The demand for micro electric commercial vehicles is growing, especially for cargo and industrial goods transportation.

The personal use segment is expected to grow exponentially due to consumers' rapid shift toward micro electric vehicles to commute through the cities' heavy traffic areas. This factor will offer growth opportunities for this segment.

The public utilities segment is anticipated to experience significant growth due to its increasing adoption in private companies to transport team members. Major micro EV makers are also introducing micro EV-based subscription services, further augmenting the market progress.

REGIONAL INSIGHTS

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During the forecast period, North America is predicted to dominate the micro electric vehicle market share, owing to higher usage of golf carts and rising number of golf courses in the region. The North America market was valued at USD 3.24 billion in 2023. The growing EV infrastructure in this region provides greater benefits for consumers for shifting toward clean energy mobility, leading to early adoption rates for new technological trends in the automotive industry.

Asia Pacific was the second largest market in 2023. This is due to the fact that Battery Electric Vehicles (BEVs) are cheaper in China. General Motors is targeting the China market, considering the high demand for the product in the country. The Europe market is also expected to grow at a significant pace during the forecast period due to greater awareness about micro EVs among the regional population.

The rest of the world will likely be an emerging market. However, lack of appropriate infrastructure and government policies can significantly hinder the market growth. Micro EVs offer cheaper alternatives for developing countries. Therefore, governments of such economies might consider offering subsidies/reducing taxes on these vehicles to improve their adoption in the coming years.

List of Key Companies in Micro Electric Vehicle Market

Technological Advancements and Demand for Micro Electric Vehicles to Boost Market Growth of Major Players

A few global players are leading the market. Yamaha Golf Cart Company is a Japanese electric vehicle manufacturer and a leading player in the competitive landscape. The company focuses on producing, researching, developing, and selling new energy vehicles such as electric golf carts. Its product is said to have an excellent appearance and technical performance, which can be used in many applications. The company is actively involved in the new technology of electric propulsions, including batteries and materials that will fulfill the current need and future demand for electric vehicles.

Club Car LLC is another company that makes zero-emission micro electric vehicles that create a small carbon footprint. The firm has established a strong customer network in major regions. It aims to expand its operations through growth strategies such as strategic acquisitions and business expansions in various regions.

LIST OF KEY COMPANIES PROFILED:

• Yamaha Golf Cart Company (U.S.)


• Club Car LLC (U.S.)


• Textron Inc. (U.S.)


• Renault Group (France)


• Toyota Motor Corporation (Japan)


• Italcar Industrial S.r.l. (Italy)


• PMV Electric Pvt. Ltd. (India)


• Alke (Italy)


• Polaris (U.S.)


• Suzhou Eagle Electric Vehicle Manufacturing Co., Ltd (China)

KEY INDUSTRY DEVELOPMENTS:

• January 2023 – Club Car, a global leader in golf, consumer & utility vehicles, became the Official Golf Car of the Professional Golfers Association (PGA) of America. This move will help the company expand its partnership with the golf industry.


• December 2022 - Squad Mobility announced the expansion of its electric quadricycle product line to the U.S. The vehicle utilizes a solar panel on the car’s roof, which stores the energy and allows the vehicle to function.


• November 2022- Stonarch demonstrated its new product line, SARIT (Safe, Affordable, Reliable Innovative Transport). The models were recently sent to the prototype phase. The vehicle is a mixture of hybrid and a smart car with compactness.


• November 2022- PMV Electric showcased its micro EV called PMV EaS-E with a range of 200km on a single charge. The vehicle is powered by a 10kWh lithium ion battery and has three variants. With the introduction of this micro EV, the company aims to further contribute to the electrification of vehicles in Indian markets.


• October 2022 – Renault launched mini-EVs in Europe through its Mobilize brand. The company also introduced a mini-EV called Duo, a two-seater micro electric vehicle. Renault offered two variants of this car - a 45 km/h version for 14 years and above, depending on the country, and an 80 km/h version, which requires a class B license. Duo measures 2.43 m in length, 1.30 m in width, and 1.46 cm in height, providing easy navigation through urban areas.

REPORT COVERAGE

The global micro electric vehicle market research report provides detailed market analysis and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.

An Infographic Representation of Micro Electric Vehicles (EV) Market

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