MARKET OVERVIEW- ELECTRIC UTILITY VEHICLE MARKET
Electric utility vehicles are designed with a combination of low-emission technology and high work capacity, and they are an alternative to traditional internal-engine utility vehicles. In addition, with the rapid establishment of charging stations across the world, the demand for electric utility and shuttle carts is expected to increase faster than other electric utility vehicles. In the past few years, industrial automotive such as trucks, buses, or vehicles used in the agricultural sector have been electrified, resulting in them being more environmentally friendly and sustainable. Electric utility vehicles drastically reduce carbon emissions, which helps to reduce greenhouse gas emission levels and reduce environmental issues. Regulatory bodies and various companies across the world are investing heavily in the development of robust electric vehicle charging infrastructure to drive electric vehicle adoption in the coming years. Moreover, factors such as growing demand for low emission commuting and governments supporting long range, zero emission vehicles through subsidies and tax rebates have compelled the manufacturers to provide electric vehicles around the world. For instance, the European Union has created a regulation to reduce the CO2 emissions of light and medium industrial by 15% by 2025. This has led to an increase in the demand for electric vehicles in the market.
MARKET DRIVERS
The growth of the global electric utility vehicle market is driven by the introduction of new and improved electric utility vehicles, stringent government rules and regulations regarding rising fuel costs, and vehicle emissions. A number of manufacturers are developing and launching new electric utility vehicles with the aim of reducing their carbon footprint. For instance, in May 2022, Alpha Motor Corporation unveiled an all-electric utility vehicle, namely the REX. The REX is built on the same platform that powers the WOLF Truck series. The REX is expected to feature a four-wheel drive system and independent suspension to handle rough terrain. It also has a feature, an 85kWh lithium-ion battery with a range of 275 miles. Governments provide subsidies either through direct investment in private charging stations in homes and workplaces or in public charging stations. Moreover, these subsidies promote production of electric vehicle as well, which is paving the way for electric utility vehicle market to grow further.
MARKET OPPORTUNITIES
The use of battery swapping in electric vehicles creates a great platform for the electric utility vehicle market to continue to grow at a significant pace. Changing batteries at charging stations for electric vehicles is a new trend that will save electric vehicle users time charging their batteries. Battery exchange stations are expected to attract more electric utility vehicle customers as they will not have to wait longer for charging. NIO has installed more than 600 battery exchange stations by July 2021 and plans to install around 4,000 more in China by 2025. This created a new opportunity for battery as a service in electric vehicle charging. Moreover, with increased use of IoT, growing demand for connected vehicles, it is also likely to create a great opportunity for the market for electric utility vehicles market to grow further.
MARKET RESTRAINTS
The high production cost of electric vehicles is hindering the growth of the electric utility vehicle market. The market for electric vehicles is better compared to traditional fuel, but the cost is higher than gasoline-powered vehicles. These vehicles have not yet achieved economies of scale because they are not produced on a mass scale. Additionally, the need for higher capacity batteries for long-haul trucks and the lack of robust electric battery charging infrastructure in developing and underdeveloped countries are the key factors expected to restrain the market’s growth to a great extent over the forecast period.
MARKET GROWTH CHALLENGES
The electric utility vehicle market is growing at a fast pace, but still the major reason that is hampering the market’s growth is technological advancement, such as increased need to produce batteries for electric vehicles on a mass scale in large volumes. Moreover, certain other factors such as chip shortage, reliance of rare earth materials, acceptance of electric vehicle by customers, etc. create a great challenge for the electric utility vehicle market to grow further.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global Electric utility vehicles market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. The increase in fuel prices, coupled with the penetration of electric vehicles owing to low emissions in electric vehicles in emerging countries, is expected to witness growth at a specific CAGR from 2022-2028.
ELECTRIC UTILITY VEHICLE MARKET SEGMENTAL OVERVIEW
The global Electric utility vehicles market consists of different market segments like Battery type, Vehicle type, application and geography.
ELECTRIC UTILITY VEHICLE MARKET BY BATTERY TYPE
By Battery Type, Electric utility vehicles is consisting of
On the basis of battery types, the lithium-ion battery type is expected to hold a significant share during the projection period. The lithium-ion type segment is expected to witness significant revenue growth over the forecast period, which can be attributed to the increasing use of lithium-ion batteries in electric utility vehicles due to their light weight, increased efficiency, and less charging time. Moreover, lithium-ion batteries can be recycled and are eco-friendly in nature. Additionally, Lithium-ion batteries can be easily recharged, which is helping the market to grow further.
ELECTRIC UTILITY VEHICLE MARKET BY VEHICLE TYPE
By Vehicle Type, Electric utility vehicles is consisting of
- Sport Utility Vehicle
- Multi Utility Vehicle
- Utility Terrain Vehicle
On the basis of vehicle type, the sport utility vehicle segment has emerged as an important segment over the foreseen period. The major factors affecting the growth of the market include high per capita income to afford sport utility vehicles in emerging countries, suitability of sport utility vehicles in metropolitan cities, and companies launching new products in the electric sport utility vehicle segment in developing countries as well. For instance, in May 2022, Epitome Automobiles Private Limited (Kia) launched its first product in India in the electric Sport Utility Vehicle. The frequent launches of electric sport utility have has been a major factor driving the market segment.
ELECTRIC UTILITY VEHICLE MARKET BY APPLICATION
The Electric utility vehicles market on the basis of application include:
- Passenger Commute
- Industrial
- Agricultural
- Sports
Based on application, the industrial segment is expected to hold the lion’s share in the global market owing to the growing use of electric utility vehicles in logistics, waste collection, municipal tasks, and others. Furthermore, the increasing popularity and preference of last-mile delivery and the growing use of electrified vehicles such as trucks and vans in manufacturing and construction are expected to support industrial application segment revenue growth in the forecasted period. Apart from that, passenger travel is also expected to hold an important space in the market, owing to increased fuel prices and growing environmental awareness.
ELECTRIC UTILITY VEHICLE MARKET BY GEOGRAPHY
The Global Electric utility vehicles market is studied for the following region:
- North America
- Europe
- Asia-Pacific
- Rest of the World (RoW)
For Electric Utility Vehicles, North America is expected to account for a significantly large revenue share in the global market due to rapid adoption of carbon emission reducing methods augmented by increasing investments in research. Europe is expected to witness rapid growth owing to development of electric mobility in the region, presence of key electric utility manufacturers in the region and various initiatives taken by regulatory bodies to promote electric vehicle.Asia-Pacific countries, including Japan, and India, have invested in electric utility vehicles through government initiatives, which makes this region a growing market for electric utility vehicles.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL ELECTRIC UTILITY VEHICLE MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors with regard to the Electric Utility Vehicles market. The report includes an exclusive study on COVID-19 impact analysis. In addition, the report also consists of a complete analysis of changes in the global electric utility vehicle market, expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemics on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. COVID-19 had a negative impact on the electric utility vehicles market, since various regulatory bodies across the globe inflicted lockdown to restrain the rapid spread of COVID-19 virus, due to which supply chain got adversely impacted and the demand for automotive also reduced which hampered the growth of the market. Moreover, various countries faced issues like labour shortage, shortage of raw-material, and many more, which led to reduced production in the automotive industry and impacted the growth of the electric utility vehicles market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Electric Utility Vehicles is majorly focused on expanding the global growth of Electric Utility Vehicles market with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in Electric Utility Vehicles market has led to the growing demand for the market.
The key players studied in the market are
- Tesla, Inc. (United states)
- Alkè (Italy)
- Tropos Motors (California)
- Columbia Vehicle Group Inc. (United states)
- Marshell Green Power (Chain)
- Polaris Inc. (United states)
- Club Car (United states)
- Star EV Corporation (United states)
- Neuron EV (India)
- Bollinger Motors (United states)
- Mahindra Electric Mobility Limited (India)
- Ford Motor Company (United states)
- The General Motors Company (United states)
- Toyota Motor Corporation (Japan)
- Hyundai Motor Company (South Korea)
RECENT DEVELOPMENT:
January 2022: Toyota Motor Corporation has launched its line of new electric utility vehicles suitable for industrial applications. The product portfolio consisted of 48V, 36V, and 24V capacity vehicles. The new launch of electric utility vehicles is expected to bring better revenues, and market capture over the period of time.
August 2022: Mahindra Electric Mobility Limited launches a sport utility electric vehicle named Zor Grand for cargo in India. The launch has gripped the company’s market capture in the electric utility vehicles segment in India.
May 2021: Star EV Corporation announced plans to expand its operations to the United Kingdom. The company will be focusing on electric utility vehicles used for sports. The expansion will capture the regional market with better distribution, and customer access.
