Three-Wheeler Market Expected to Reach $37.5 Billion by 2032—Allied Market Research

The global three-wheeler market was valued at $14,286.6 million in 2022, and is projected to reach $37,493.6 million by 2032, registering a CAGR of 11.0% from 2023 to 2032.

The global three-wheeler market has seen significant growth and change due to increase in demand for affordable commercial vehicle, rise in requirement of electric passenger as well as load carriers, and low maintenance & manufacturing cost drive the demand for three-wheeler. The escalating global carbon emissions resulting from fuel combustion have become an important concern for governments and environmentalists in recent years. This has increased the demand for electric three-wheelers globally, contributing to market expansion.  

Many companies in e-commerce, pharma, textiles, and retail, FMCG, and other utility segments such as dairy, poultry, and gas prefer three-wheelers as a last mile connectivity solution as they offer excellent maneuverability at an affordable price. For Instance, India-based company uses electric three-wheeler to provide first and last-mile delivery services to e-commerce and foodtech players such as Amazon, Swiggy, and Bigbasket. Furthermore, governments of many countries are very keen to convert their last-mile delivery fleet to electric due to their added benefits.

The growing adoption of electric vehicles is further reinforcing the demand for electric three-wheeler as they are efficient over conventional three-wheelers in terms of overall maintenance and operating cost. With effective integration of advance technology, design, and workflow, many leading players are trying to bring the upfront cost of electric three-wheelers, which further foresee the preference for three-wheeler as a last mile connectivity solution.

The global three-wheeler market is segmented on the basis of fuel type and vehicle type. By fuel type, the market is categorized into petrol/CNG, diesel, and electric. By vehicle type, it is categorized into passenger carrier and load carrier. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA regions.

In addition, the market is highly competitive, with several key players dominating the industry. Prominent manufacturers focus on innovation, product differentiation, and strategic partnerships to maintain their market positions. Market leaders include companies such as Fontaine Trailer, Great Dane, Lider Trailer, MAC Trailer Manufacturing, Polar Tank Trailer, Trail King Industries, Utility Trailer and others.

As emerging economies expand their infrastructure and industrial sectors, there is an upsurge in the need for the transportation of oversized cargo. Three-wheelers have become essential tools for efficiently moving cargo, thereby fostering economic growth and development. Furthermore, globalization and international trade have intensified the demand for three-wheelers. The integration of global supply chains has led to the need for transporting goods over long distances.

Shared mobility services reduce city congestion and decrease overall vehicle emissions. Therefore, digitally enabled car sharing, and ride-hailing manage travel needs in the smartest way and also provide a hassle-free and environmentally sound alternative to private car ownership. This sharing & ride hailing activity that includes the entire process from travel planning till payments can be handled by a single mobile app. In the coming years, ride hailing services are projected to play a major role in this space by reducing the manual tasks and minimizing the overall time & cost.

This trend is further foreseen to strengthen the growth of the three-wheeler market. The number of users relying on ride-sharing applications has increased in recent years. For instance, Uber launched its ride hailing services in 30 cities for expanding its business across the globe. The key players offer discounts, free ride, and coupon facilities to customers to create awareness and promote new services.

The shared transportation is taking a back seat amid the pandemic. However, the benefits of shared mobility such as reduced congestion, reduced emission, and low cost are anticipated to strengthen the demand for three-wheeler during the forecast period.

KEY FINDINGS OF THE STUDY

• By Fuel Type, the electric segment is anticipated to exhibit significant growth in the three-wheelers market in the near future.
• By Vehicle type, the passenger carrier segment is anticipated to exhibit significant growth in the three-wheeler market in the near future.
• By Region, Europe is anticipated to register the highest CAGR during the forecast period.

The key players analyzed in the three-wheeler market include Bajaj Auto Ltd, Piaggio & C. SpA, Atul Auto Limited, Baxy Limited, Terra Motors, Zuperia Auto Private Limited, Kinetic Green Energy & Power Solutions Ltd, Mahindra & Mahindra Ltd, Terra Motors Corporation and TVS Motor Company.