Micro electric vehicle market size to grow by 8.02%, Highlights on latest trends, Technavio

NEW YORK, March 14, 2024 /PRNewswire/ -- According to Technavio, the global micro electric vehicle market size is estimated to grow by 1,542.22 thousand units from 2022 to 2027. The market is expected to grow at a CAGR of 8.02% during the forecast period. Major players in the automotive industry are increasingly focusing on developing urban mobility solutions for the mass market, spurred by the growing demand. Notably, Micro Mobility Systems, a Swiss company, is spearheading the revival of the iconic BMW Isetta as an electric vehicle named Microlino. Anticipated to be classified as an L7e motorized quadricycle akin to the Renault Twizy, Microlino is garnering significant interest with its projected top speed exceeding 60 mph and a range of over 65 miles per charge. This innovation promises to drive market growth significantly, catering to diverse geographic demands.

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Segment overview
Technavio has segmented the market based on type (golf and micro cars and quadricycle) and application (commercial, personal, and public utilities). 

• The golf and micro cars segment will account for a significant share of the market's growth during the forecast period. A golf cart carries golfers and their accessories around a golf course. The sales of golf carts have increased over the last few years owing to advances in technology and growing interest in golf. The growth of the golf and micro cars segment is attributed to factors such as high demand for neighborhood electric vehicles and club cars, including golf carts and personal utility vehicles, in countries such as the US and China.

Geography overview
Based on geography, the global micro electric vehicle market is segmented into North America, APAC, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global micro electric vehicle market.

• North America is estimated to account for 47% of the growth of the global market during the forecast period. The US and Canada are the key revenue-generating countries for the market owing to the high demand for quadricycles, electric golf carts, and mobility vehicles. The US government has introduced subsidies and incentives to drive the demand for micro electric vehicles, which is driving the market's growth in the region.

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Key factor driving market growth

Technological advances in lithium-ion battery manufacturing and minimal maintenance costs leading to improved reliability are driving the growth of the global micro EV market. Li-ion batteries have higher energy density when compared to lead-acid batteries and nickel-metal hydride batteries. They are also more compact, lightweight, and safer. As Li-ion batteries are being used in various sectors, R&D activities are being undertaken to improve their performance and lifecycle. The use of advanced technologies, such as technical advances in cathodes, anodes, and electrolytes, may boost the storage capacities of Li-ion batteries. Such factors are expected to fuel the growth of the market during the forecast period.

• Power grids serving as a source of electric vehicles are indirectly polluting the environment, which is challenging the growth of the global micro EV market.

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Analyst Review

In the era of urbanization and heightened environmental consciousness, the Micro Electric Vehicle (EV) market has emerged as a pivotal solution for sustainable urban mobility. These diminutive yet potent vehicles epitomize the fusion of innovation and eco-friendliness, offering a compelling alternative to traditional modes of transportation. With their compact size and electric propulsion, Micro EVs address the pressing concerns of urban congestion, pollution, and resource depletion.

The global Micro EV market has witnessed exponential growth in recent years, fueled by escalating urbanization, stringent emission regulations, and burgeoning consumer demand for eco-friendly transportation options. This burgeoning market segment encompasses a diverse range of vehicles, including electric bicycles, scooters, and quadricycles, designed primarily for short-distance commuting and urban navigation.

Sustainability lies at the core of the Micro EV market's value proposition. By harnessing electric power, these vehicles significantly reduce greenhouse gas emissions and dependence on fossil fuels, thereby mitigating environmental degradation and combating climate change. Moreover, their diminutive size enables efficient space utilization, alleviating urban congestion and enhancing overall mobility in densely populated areas.

Innovations in battery technology have been instrumental in propelling the Micro EV market forward. The advent of advanced lithium-ion batteries has not only extended the range and performance of these vehicles but also enhanced their affordability and accessibility to a broader consumer base. Additionally, rapid advancements in electric drivetrain technology have led to improved efficiency and reliability, further augmenting the appeal of Micro EVs.

Government initiatives and incentives have played a pivotal role in fostering the proliferation of Micro EVs. Subsidies, tax incentives, and infrastructure development programs aimed at promoting electric mobility have incentivized consumers and manufacturers alike to embrace Micro EVs as a viable urban transportation solution. Furthermore, regulatory mandates imposing stringent emission standards have accelerated the transition towards electric mobility, driving market growth.

Urbanization trends are poised to bolster the demand for Micro EVs in the foreseeable future. As cities continue to expand and populations gravitate towards urban centers, the need for efficient, sustainable transportation solutions becomes increasingly paramount. Micro EVs, with their agility, affordability, and eco-friendliness, are poised to emerge as indispensable components of the urban mobility ecosystem.

In conclusion, the Micro EV market represents a paradigm shift in urban transportation, offering a compelling blend of sustainability, innovation, and efficiency. With continued technological advancements and supportive policy frameworks, Micro EVs are poised to revolutionize urban mobility, ushering in a cleaner, greener future for cities worldwide.

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Related Reports:

The electric vehicle market is estimated to grow at a CAGR of 37.45% between 2022 and 2027. The size of the market is forecasted to increase by USD 25,927.15 thousand units. This report extensively covers market segmentation by type (BEV and PHEV), charging (normal charging and supercharging), and geography (APAC, Europe, North America, South America, and Middle East and Africa).

The hybrid electric vehicle market is estimated to grow at a CAGR of 30.88% between 2022 and 2027. The size of the market is forecasted to increase by 17,098.51 thousand units. This report extensively covers market segmentation by propulsion (full HEVs, mild HEVs, and PHEVs), vehicle type (passenger cars and commercial vehicles), and geography (APAC, Europe, North America, South America, and Middle East and Africa).

Table of contents

1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

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Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio