Light Electric Vehicle Market

Light Electric Vehicle Market Overview for 2024 to 2034

The light electric vehicle market is expected to rise at a CAGR of 10.6% during the projected period. The market value is projected to increase from USD 98.2 billion in 2024 to USD 268.0 billion by 2034.

Attributes	Details
Light Electric Vehicle Market Size, 2024	USD 98.2 billion
Projected Market Size, 2034	USD 268 billion
Value-based CAGR (2024 to 2034)	10.6%

Light Electric Vehicle Market Size, Analysis, and Insights

• The market is being driven by the rise in air pollution and the need for clean transportation options.
• LEVs are gaining popularity in various cities around the world, where air pollution is a severe problem. People are turning to LEVs as an eco-friendly and efficient alternative to traditional gasoline-powered vehicles.
• The increasing demand for last-mile connectivity is also contributing to the growth of the market.
• With the rise of eCommerce and online shopping, the need for quick and efficient delivery services has increased. LEVs, particularly electric bicycles and scooters, have emerged as a practical and cost-effective solution for last-mile delivery.
• The advancement of technology and innovation in the industry is expected to drive the growth of the industry.
• The development of more powerful and efficient electric motors, batteries, and charging infrastructure has made LEVs more practical and reliable for everyday use. With the introduction of smart features like GPS tracking, remote locking, and real-time monitoring, LEVs have become more user-friendly and convenient.
• Governments and regulatory bodies are promoting the adoption of LEVs by offering incentives and subsidies to consumers who purchase electric vehicles. The governmental urge to maintain sustainability standards is promoting the cause of these initiatives.
• The increasing interest of investors in the LEV market is contributing to its growth.
• Start-ups are emerging, offering innovative and affordable electric vehicles. The market is witnessing collaborations between established automobile manufacturers and start-ups to develop new electric vehicles and expand their market reach.

Key Opportunities for the Light Electric Vehicle Market

• The increasing demand for LEVs in urban areas is anticipated to create lucrative opportunities in industry. As cities become more crowded and traffic congestion worsens, consumers are looking for alternative transportation options that are faster, more affordable, and more environmentally friendly than cars.
• The growing trend towards e-commerce and home delivery services. As more consumers shop online and expect quick and convenient delivery, there is a need for efficient and cost-effective transportation solutions.
• The rise of the sharing economy presents a significant market opportunity for LEV manufacturers.
• Bike-sharing and scooter-sharing services have become increasingly popular in recent years, especially in urban areas.

Challenges in the Light Electric Vehicle Market

• The limited range of LEVs compared to traditional gasoline-powered vehicles is increasing the need to frequently recharge their LEVs, which can be a hassle and limit the distance they can travel.
• The high initial cost of LEVs makes them less accessible to price-sensitive consumers. Manufacturers are investing in research and development to bring down the cost of production, which can take time and money.
• The regulatory environment is another challenge for manufacturers in the LEV market. Governments worldwide are implementing policies to reduce emissions, which could favor LEVs. However, the policies are inconsistent across different regions, which can create uncertainty for manufacturers.
• Competition is intense in the LEV market, with several established players vying for market share. Manufacturers need to differentiate themselves by offering unique features or pricing strategies to attract customers.

Category-wise Insights

The 2-wheeler Segment Dominates the Market by Vehicle Category

Attributes	Details
Top Vehicle Category	2-wheeler
CAGR (2024 to 2034)	10.4%

• 2-wheelers are generally more affordable than other types of vehicles, making them a popular choice for budget-conscious consumers.
• 2-wheelers are versatile and can navigate through congested urban areas more easily than larger vehicles. Versatility makes them an ideal choice for commuters who need to get to work or school quickly and efficiently.
• 2-wheelers are generally more convenient than larger vehicles, especially in terms of parking. With limited parking space in urban areas, 2-wheelers can be parked in smaller spaces, making them a more practical option for those who live in cities.

The E-Scooter Segment Dominates the Market by Vehicle Type

Attributes	Details
Top Vehicle Type	E-Scooter
CAGR (2024 to 2034)	10.2%

• E-scooters are affordable and easy to use, making them an attractive option for consumers looking for a convenient and environmentally friendly way to get around.
• Changing consumer preferences. With an increasing focus on health and wellness, many consumers are looking for ways to incorporate exercise into their daily routines.
• The e-scooter segment has seen significant growth in urban areas, where high population densities and limited parking options make traditional modes of transport less attractive.

Country-wise insights

Countries	CAGR through 2024 to 2034
United States	10.8%
United Kingdom	11.5%
China	12.0%
Japan	11.9%
South Korea	12.3%

Growing Demand for Sustainable and Eco-Friendly Products in the United States

• There is an increasing concern for the environment and the need to reduce carbon emissions in the United States. As a result, many consumers are turning to electric vehicles as a more sustainable mode of transportation.
• The rising cost of gasoline and the desire to save money on fuel. Electric vehicles are generally cheaper to operate compared to traditional gas-powered cars, making them an attractive option for budget-conscious consumers in the United States.
• The government has been promoting the use of electric vehicles through various incentives and policies, which has helped to increase demand.
• The market for light electric vehicles in the United States is also being fueled by the entry of new players into the market. Many established car manufacturers are investing heavily in electric vehicles and are introducing new models to meet the growing demand.

Increasing Demand for Lightweight and High-Performance Materials across Various Industries in the United Kingdom

• The increasing awareness of the need to reduce carbon emissions and combat climate change in the United Kingdom. As people become more environmentally conscious, they are looking for ways to reduce their carbon footprint, and electric vehicles are seen as a cleaner and more sustainable alternative to traditional petrol or diesel-powered vehicles.
• The UK has a well-developed public transport system in many cities and people are more likely to use electric scooters or bicycles for short trips, rather than relying on their cars.

Rising Government's Massive Investments in Infrastructure Projects in China

• The Chinese government is actively promoting the use of electric vehicles to reduce pollution and combat climate change.
• The cost of owning and operating a light electric vehicle in China is much lower than that of a traditional gasoline vehicle.
• The rise of e-commerce and food delivery services in China has led to an increase in demand for light electric vehicles such as e-bikes and e-scooters.
• The market is highly fragmented, with many small and medium-sized players competing for market share in China.
• The industry is rapidly evolving, with new technologies and business models emerging all the time in China.

Need For Functional Composites in Manufacturing Industries in Japan

• Japan has been at the forefront of electric vehicle technology for several decades, and its commitment to sustainability and reducing greenhouse gas emissions has helped to fuel the growth of the light electric vehicle market.
• The Japanese government has implemented a range of incentives and subsidies to encourage the purchase and use of electric vehicles, including tax credits, subsidies for the installation of charging infrastructure, and exemptions from certain taxes and fees.
• The country's aging population. As Japan's population continues to age, there is a growing need for mobility solutions that are more accessible and easier to use.

Increasing Focus on Innovation and Sustainability in South Korea

• South Korea has been experiencing a significant increase in the demand for light electric vehicles (LEVs) in recent years.
• The rising cost of fuel in South Korea. With gasoline prices at an all-time high, consumers are looking for more cost-effective transportation alternatives. LEVs provide an affordable and eco-friendly solution to this problem, making them an attractive option for many consumers.
• The growing interest in personal mobility solutions has also played a significant role in the rise of the LEV market in South Korea. As more people move to cities and urban centers, there is a growing need for convenient and efficient transportation options.

Competitive Landscape

The light electric vehicle market is becoming increasingly competitive as more players enter the space. Companies have developed a unique approach to developing and marketing their electric vehicles, with some focusing on affordability, while others prioritize performance and luxury features.

Recent Development

• In 2022, Textron Ground Support Equipment Inc., a subsidiary of Textron Inc., has partnered with General Motors (GM) and Powertrain Control Solutions (PCS) to electrify its extensive range of products. GM and PCS have developed an integrated driveline utilizing GM's lithium-ion battery systems specifically for Textron GSE products. With the driveline, Textron GSE will be able to leverage GM's proficiency in electric propulsion systems.

Key Market Players

• AIMA Technology Group Co. Ltd.
• Terra Motors Corporation
• Jiangsu Xinri E-Vehicle Co. Ltd.
• Zhejiang Luyuan Electric Vehicle Co. Ltd.
• Yamaha Motor Co. Ltd.
• Mahindra Electric Mobility Limited
• BMW AG
• Terra Motors Corporation
• Zero Motorcycles Inc.
• Energica Motor Company S.p.A
• Tesla, Inc.
• BMW Group
• Columbia Vehicle Group Inc
• Godrej Group

Key Coverage in the Light Electric Vehicle Market Report

• Electric Skateboard Market Landscape
• Commuter electric vehicle Adoption Assessment
• Plug-in electric light vehicle sales Outlook
• Electric Motorcycle Innovations Analysis
• Electric bicycle Pricing Scenario

Key Market Segmentation

By Vehicle Category:

• 2-wheelers
• 3-wheelers
• 4-wheelers

By Vehicle Type:

• e-scooter
• e-ATV/UTV
• Neighborhood Electric Vehicle
• e-bike & Motorcycle
• e-lawn Mower
• Autonomous Forklifts
• Others

By Component Type:

• Battery Pack
• Electric Motor
• Motor Controller & Power Controller
• Inverters
• e-brake Booster & Power Electronics

By Application:

• Personal Mobility
• Shared Mobility
• Recreation & Sports
• Commercial

By Power Output:

• Less than 6 kW
• 6 to 9 kW
• 9 to 15 kW

By Region:

• North America
• Latin America
• East Asia
• South Asia
• Europe
• Oceania
• MEA

Frequently Asked Questions

How Big is the Light Electric Vehicle Market in 2024?

The electric vehicle market is currently valued at USD 98.2 billion in 2024.

What is China’s Market Outlook?

The market in China is expected to progress at a CAGR of 12.0% over the forecast period.

Which Vehicle Segment Contributes More to the Light Electric Vehicle Market?

Within the vehicle category, the 2-wheeler segment is expected to register a CAGR of 10.4% from 2024 to 2034.

What is the United States Market Outlook?

The United States market is expected to register a CAGR of 10.8% from 2024 to 2034.

What is the Projected Market Value by 2034?

The market is set to reach a valuation of around USD 268.0 billion by 2034.

What was the Historical CAGR for the Market?

The demand for electric vehicles increased at a 14.1% CAGR from 2019 to 2023.