The electric utility vehicles market is expected to reach a valuation of USD 38,550.2 million by 2033. The market is projected to grow at a sturdy CAGR of 15.4% during the period 2023 to 2033, and as of 2023, the market valuation stands at USD 9,203.8 million.
Some of the factors which might surge the market growth are:
Governments worldwide have started adopting a lot of measures to increase awareness regarding electric utility vehicles.
The major reason is the fact that the emissions associated with the adoption of electric utility vehicles are very low. That is because these run mainly on electrical energy. This is unlike conventional vehicles, which operate because of the combustion of petrol and diesel, which are known to release a lot of harmful gases.
The Environmental Protection Agency (EPA), finalized updated vehicle emission requirements through 2026, which would mainly target on surging the sales of electric utility vehicles. According to research conducted by EPA, the move would surge the usage of electric vehicles by 17% in the US alone by 2026. All these moves come at a time when the US transportation sector is the largest source of greenhouse emissions.
There has been a sharp reduction in the price of the batteries that are employed in electric utility vehicles. In 2010, the price of the batteries was close to USD 1150 per kWh, but as of 2022, the price has come down to nearly USD 100. This as well might increase the demand for electric utility vehicles during the forecast period.
There has also been an increase in the application of electric utility vehicles in the agricultural sector. This is because of the ability of these vehicles to ply smoothly in every kind of terrain.
The no emission of harmful gases by electric utility vehicles is one of the most sought-after benefits for farmers. This is owing to the fact that there have been cases of the crops getting affected because of vehicular emissions. This might increase the adoption of electric utility vehicles during the forecast period.
Talking from the manufacturer's point of view, the production of electric utility vehicles would help them achieve the criteria of cost-cutting. This can be attributed to the fact that electric utility vehicles make use of roughly 20 moving parts. However, if the same player would have been involved in ICE vehicles, he should invest in 2,000 moving components for the final production.
All the firms across sectors have been focusing on achieving sustainable development. This is probably the right time for the manufacturers who are operating mainly in the ICE vehicles segment to shift to the electric utility vehicles segment as this would certainly help them achieve sustainable development goals as well.
North America is expected to be the largest market for electric utility vehicles during the forecast period. There has been a surge in the number of recreational activities in the region, which is believed to be the main factor behind the market growth. Furthermore, a massive electronics market in the region opens up a plethora of opportunities for the market.
| Attributes | Value |
|---|---|
| Electric Utility Vehicles Market Value (2022) | USD 7,941.2 million |
| Electric Utility Vehicles Market Value (2023) | USD 9,203.8 million |
| Electric Utility Vehicles Market Forecast Value (2033) | USD 38,550.2 million |
| Electric Utility Vehicles Market Expected CAGR (2023 to 2033) | 15.4% |
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If we compare the historical CAGR with the anticipated CAGR, we would get an idea of the massive jump that the market is expected to go through. While the historical CAGR for the market was 8.9%, the anticipated CAGR during the forecast period is expected to be 15.4%.
Increasing awareness regarding the benefits of making use of electric utility vehicles is surging the market. Furthermore, increased usage of these vehicles across sectors is expected to surge the demand for electric utility vehicles.
High convenience
One of the major factors driving the market is the high convenience that is being offered by electric utility vehicles. These are easy to recharge, and we do not have to visit the fuel station repeatedly.
More savings
The cost associated with charging electric utility vehicles is much less as compared to spending on petrol and diesel. Thus, they offer a great way to save money.
Safe to drive
Electric utility vehicles are safe to drive as well. Owing to the low center of gravity associated with them, these are much more stable on the road if they meet with a collision.
High battery life and reduction in battery cost
A good quality battery that is used in electric utility vehicles should last effectively for a decade. Apart from that, with the application of better technologies, the cost of batteries is expected to come down in the future.
Principal Consultant
Lower distance range than the ICE vehicles
The distance covered by charging an electric utility vehicle is quite less as compared to the distance covered by an ICE vehicle which runs on fuel. Users generally prefer traveling longer distances without worrying much about charging. This might challenge market growth during the forecast period.
Lack of charging stations
The biggest hindrance to the growth of the market is the lack of charging stations. The users need to charge the electric utility vehicles in their houses. Once these start plying on the road, there would be hardly any charging stations on the way, which can be quite risky at times.
The E-commerce market heavily depends on logistics. The sector is looking for ways to either strike a deal with the key players in the market of electric utility vehicles or acquire them.
If we have a look at the E-commerce business model, we would observe that there is a customized vehicle architecture designed especially for the E-commerce sector. Apart from that, the sector has also been making use of IoT, which works perfectly in sync with electric utility vehicles, thereby making them autonomous in nature. This as well represents huge prospects for the market of electric utility vehicles.
Apart from that, the concept of battery swapping is also expected to represent a lot of prospects for the market. This is because the customers just need to replace their battery, instead of waiting for nearly an hour in order to get it charged. This might well lead to the development of what is called a Battery as a Service market.
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The USA is currently the largest market for electric utility vehicles. Based on the research conducted by FMI, the USA market has a share of 26.8%. A massive E-commerce market in the country, which operates on the basis of the hub and spoke model is the main driving factor of the market.
The fragmentation of the supply chain due to government policies is expected to assist the growth of the market during the forecast period.
Germany is one of the most crucial markets for electric utility vehicles. The country has a share of 13.7% in the market.
Based on the statistics released by Statista, the country is the fifth-largest producer of passenger cars as of 2021. This coupled with the presence of a majority of automobile manufacturers makes Germany one of the largest markets for smart utility vehicles.
Technologically advanced Japan is one of the largest markets for electric utility vehicles. Japan has a market share of 1.4%.
The key players operating in the electric utility vehicles market are investing huge amounts in Research and Development for upgrading the existing vehicles. Furthermore, owing to massive technological developments, the price of electric utility vehicles has come down in Japan, which might surge sales.
Australia holds a share of 0.6% in the electric utility vehicles market.
The market in Australia is mainly driven by rising fuel prices in Australia. Apart from that, incentives and subsidies being provided by the Australian government pertaining to the usage of electric utility vehicles are also expected to surge sales.
The NSW government removed stamp duty from electric vehicles under USD 78,000 in September 2021. This has certainly increased the demand for electric utility vehicles in Australia.
The China electric utility vehicles market is expected to grow at a massive CAGR of 18.5% through 2033. Based on the research conducted, China was the largest market for electric vehicles in 2021, occupying more than half of the global share.
The battery segment of electric utility vehicles is being heavily utilized in China. Possessing huge quantities of rare earth materials makes China one of the largest markets.
The presence of huge market players like Tesla, Hong Guang Mini, etc. also makes China a huge market.
The electric utility vehicles market in India is expected to grow at a robust CAGR of 14.5% during the forecast period.
The Indian automobile industry has been witnessing an exponential increase in fuel prices over the past few years.
Even the Indian government has been taking steps like the introduction of BS VI emission standards, which might surge the market growth during the forecast period. This is expected to surge the usage of electric utility vehicles in India.
The UK market is projected to grow at a CAGR of nearly 10.5% during the forecast period.
The Green Transport Innovation Program started by the Northern Transport Acceleration Council is expected to surge the demand for electric utility vehicles in the UK. Furthermore, the key players are also working on the development of charging stations, which is backed by £1.6 billion in funding. This might increase the adoption of electric utility vehicles in the UK during the forecast period.
Based on the battery type, the lithium-ion segment currently has the largest market share of a huge 73.4%. This is mainly owing to the fact that these are easy to use.
Apart from that, these weigh nearly 60% less than lead-acid batteries. The manufacturers are mainly counting upon the long battery life, which is nearly 12 times higher than the lead-acid battery.
Based on the application, the commercial segment currently has the largest market share. This is mainly because of the growing demand for shuttle carts in urban areas, and the increased usage of electric passenger vehicles.
The availability of a wide range of products with the manufacturers of electric utility vehicles is expected to further surge the market growth. A lot of them have been specifically designed for cargo services as well.
Based on the propulsion, the pure electric segment currently has the largest market share. Key players like Daimler, Toyota, John Deere, etc. have been investing mainly in the pure electric segment.
Apart from that, the application of a less complex engine structure in the pure electric segment as compared to the hybrid electric segment is expected to further surge the market growth.
The start-ups operating in the electric utility vehicles market are developing architectures that could satisfy the power output needs. Furthermore, they are also working on the durability aspects of heavy-duty applications.
Some of the start-ups are:
Sun Mobility: Sun Mobility has been an operator of swappable battery solutions for electric vehicles. It has been into offering lithium-ion batteries. It has also been offering mobile applications to find stations in its vicinity.
In 2021, Sun Mobility raised USD 50 million in a funding round that was led by Vitol. Through this funding, the company aims to set up 500 SWAP points in India by the end of 2022.
Altigreen: Altigreen was started in 2013. The start-up is a developer of electric utility vehicles. The company has developed different models of three-wheeled utility vehicles like neEV High Deck, neEV Flatbed, etc. with features like GPS-based diagnostics, 48 V LiFePO4 battery, etc.
In February 2022, the start-up raised INR 300 crore in a funding round led by Sixth Sense Ventures. Altigreen announced that the amount will be utilized mainly for boosting the manufacturing capacity and launching light commercial vehicles.
The key players operating in the electric utility vehicles market are mainly focusing on developing strategic partnerships with players from other niches. The key factor behind this happens to be accessing the capabilities offered by other niches.
Apart from that, there is also an increased focus on acquisitions. The dominant players operating in the market are acquiring small players in a bid to kill competition and expand their market.
Some of the recent developments in the electric utility vehicles market are:
Mahindra electric mobility is the pioneer of electric vehicle technology. The company has been offering a wide variety of electric vehicles, and also plans to increase the range in the future. The products offered by Mahindra electric mobility span personal and commercial segments, and are designed to support shared, electric, and connected mobility.
Mahindra electric’s vision of mobility aims to bring together the entire ecosystem to make India’s vision for 2030 closer to reality. With this in mind, the company has developed the NEMO platform to address the opportunities and challenges specific to E-mobility. NEMO is a cloud-based platform that enables a new generation of shared, connected, and electric services which would revolutionize urban mobility.
On 4th May’22, Mahindra Electric partnered with Terrago Logistics for pollution-free last-mile delivery.
General Motors Company’s goal is to deliver world-class customer experiences at every touchpoint with a foundation of trust and transparency. They are working on their vision of developing a world with zero crashes, zero emissions, and zero congestion.
The company has developed a new Ultium platform, which would help put everyone in an EV, bringing the world to an all-electric future. Research, technology, and advocacy are the basis of engineering safety at General Motors. The company is committed to becoming the most inclusive company in the world.
On 2nd November’22, General Motors and Microvast announced to development of a specialized EV battery separator.
Hyundai Motor Group has been successful in achieving sustainable growth while following a unique corporate spirit. The company has been relentlessly working on the philosophy of realizing the dream of mankind by creating a new future through ingenious thinking and challenging new frontiers.
Management has always been working on the philosophy of an unlimited sense of responsibility, the realization of possibilities, and respect for mankind.
The global electric utility vehicles market holds a valuation of USD 9,203.8 million as on 2023.
The electric utility vehicles market will grow at 15.4% CAGR from 2023 to 2033.
The global electric utility vehicles market is forecasted to surpass USD 38,550.2 million by the end of 2033.
North America is the largest electric utility vehicles market.
The main drivers are: being safe to drive and possessing high battery life.
1. Executive Summary | Electric Utility Vehicles Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 5.1. Sport Utility Vehicle 5.2. Multi-Utility Vehicle 5.3. Utility Terrain Vehicle 5.4. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Passenger Commute 6.2. Industrial 6.3. Agricultural 6.4. Sports 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Battery Type 7.1. Lead-acid 7.2. Lithium-ion 7.3. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. Middle East and Africa (MEA) 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Tesla Inc. 16.2. Alke 16.3. Tropos Motors 16.4. Columbia Vehicle Group Inc. 16.5. Marshell Green Power 16.6. Polaris Inc. 16.7. Club Car 16.8. Star Ev Corporation 16.9. Neuron EV 16.10. Bollinger Motors 16.11. Toyota Motor Corporation 16.12. Mahindra Electric Mobility Limited 17. Assumptions & Acronyms Used 18. Research Methodology
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Electric Utility Vehicles Market
