Electric Tricycle and Microcar Market Expected to Reach $97.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Electric Tricycle and Microcar Market," The market was valued at $20.5 billion in 2022, and is estimated to reach $97.8 billion by 2032, growing at a CAGR of 17.6% from 2023 to 2032.

Electric tricycles and microcars are emerging as pivotal players in revolutionizing last-mile transportation solutions, and their significance is steadily growing. As cities develop rapidly and more people migrate to them, it is becoming even harder to make sure that the last part of the journey (last-mile) is both effective and good for the environment. Electric vehicles (EVs), especially small electric cars and three-wheelers, are stepping up to solve this issue by providing a fast and affordable way to connect the last leg of the journey.

In addition to transforming the last-mile passenger transportation sector, these EVs are making substantial developments in enhancing last-mile delivery services for businesses and commercial enterprises. It is anticipated to have a significant increase in EV sales in the upcoming years, with a notable contribution from last-mile logistics service providers.

This transition marks a substantial acceleration in the electric mobility revolution, driven by the compelling advantage of significantly lower operational costs compared to petrol and diesel alternatives. Electric tricycles and microcars are poised to cover the same distances as traditional internal combustion engine vehicles, making them a compelling and profitable proposition for businesses navigating the complex landscape of last-mile delivery services.

The electric tricycle and microcar market, like the broader electric vehicle industry, faces a significant restraint linked to environmental concerns. While electric vehicles are praised for their minimal direct emissions and reduced greenhouse gas impact, the production of key components, such as lithium batteries, poses a challenge. The extraction of lithium and other critical materials necessitates complex and environmentally taxing industrial processes, which contribute to harmful gas emissions. These factors are anticipated to hamper the electric tricycles and microcars market growth in the upcoming years.

The electric tricycle and microcar market stands to benefit significantly from the growing popularity of battery swapping as a game-changing opportunity. Battery swapping, particularly well-suited for smaller vehicles like electric two and three-wheelers with compact, easily exchangeable batteries, presents compelling advantages over conventional EV charging methods. Firstly, it offers a remarkable time-saving advantage, enabling a discharged battery to be swiftly replaced with a fully-charged one within just 2-4 minutes, as compared to the 45 minutes to 10 hours required for charging. Furthermore, this approach saves valuable space, with EV battery swapping stations occupying considerably less space than traditional charging stations.

Notably, it also delivers substantial cost savings. Establishing an electric vehicle battery swapping system proves to be a more cost-effective option compared to setting up EV charging infrastructure. In addition, the concept of 'battery-as-a-service' allows electric two and three-wheelers to be sold without the battery, effectively reducing the vehicle's cost by nearly 40%. With the potential for battery standardization, the cost-effectiveness of electric tricycles and microcars is poised to further improve, presenting a unique opportunity for affordability and convenience in the electric tricycle and microcar market.

The electric tricycles and microcars market share is segmented on the basis of application, driving range, battery type, and region. By application, it is classified into passenger transport and cargo delivery. By driving range, it is divided into less than 100 kms, between 100 to 200 kms, and above 200 kms. By battery type, it is classified into lithium-ion battery, lead–acid battery, nickel metal hydride battery, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the electric tricycles and microcars market report Mahindra Electric Mobility Limited, Piaggio & C.SpA, Terra Motors, Jiangsu Jinpeng Group Co., Ltd, Jiangsu Huaihai, New Energy Vehicle Co., Ltd., PT. SGMW Motor Indonesia., MG Motor, Chery, Shandong Shifeng (Group) Co., Ltd., and Luvly.

The report offers a comprehensive analysis of the global electric tricycles and microcars market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market.

Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the electric tricycle and microcar industry.

Key Findings of the Study

• Based on application, the passenger transport sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest-growing during the forecast period.
• Based on driving range, the between 100 and 200 kms sub-segment emerged as the global leader in 2022 and the above 200 kms sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on battery type, the lead-acid battery sub-segment emerged as the global leader in 2022 and the lithium-ion battery sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and is anticipated to generate the maximum revenue during the forecast period.