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The global low-speed electric vehicle (LSEV) market was valued at $35.2 billion in 2017, which is expected to reach $68.0 billion by 2025, growing at a CAGR of 8.7% during 2018–2025. The growth of the market is mainly driven by increasing government support toward the adoption of these vehicles, coupled with environmental concerns across the world.
APAC was the largest LSEV market, and held the highest share in 2017. China is the leading market for LSEVs in the region. The early introduction of LSEVs in the country and support from the government have made China the largest LSEV industry, both globally and in APAC.
Dynamics of LSEV Market
Shift from sealed lead acid (SLA) batteries to lithium-ion (Li-ion) batteries is a major trend witnessed in the LSEV market. Players in the industry are leaning toward the use of Li-ion batteries in LSEVs, overlooking the SLA batteries, which were being used in such types of vehicles until recently. As compared to Li-ion batteries, the SLA batteries have considerably lower initial cost and are still the preferred choice for consumers. But in the long run, the Li-ion batteries are better than SLA batteries. The Li-ion batteries are lighter in weight and smaller in size as compared to SLA batteries, making these the preferred choice for use in electric vehicles.
Key growth driver for the LSEV market is government support in the form of subsidies and grants, in addition to growing environmental concerns. Governments, especially in APAC, aim to completely electrify passenger vehicles in public transport system. In an effort toward this, they are providing support in the form of incentives to encourage the adoption of electric vehicles.
LSEV Market Segmentation Analysis
Based on product, the two-wheeler category held the largest share in the LSEV market in 2017 and the category witnessed the fastest growth during the historical period. This is majorly due to high use of these vehicles in personal transportation as well as in shared mobility services.
In terms of voltage, 48 V category held the largest revenue and volume share in the LSEV market in 2017, due to its popularity in electric scooters. Whereas, the fastest growth during the forecast period is expected from 72 V category, owing to increasing demand for high-speed microcars and electric scooters, as this is being preferred for these vehicles.
Global Scenario of LSEV Market
Globally, the APAC LSEV market, led by China, accounted for the largest revenue share in 2017. The size of the country, population, technological advancements, and government support in the form of subsidies and regulations have made China a big market for LSEVs in the region. China is also the largest exporter of LSEVs in APAC. Whereas, the fastest growth during the forecast period is expected from the Indian market in the region, owing to low penetration of LSEVs in the country.
Competitive Landscape of the LSEV Market
Some of the major players operating in the global LSEV market are Terra Motors Corporation, Zero Motorcycles Inc., Changzhou Yufeng Vehicle Co. Ltd., Jiangsu Kingbon Vehicle Co. Ltd., Hero Electric Vehicles Pvt. Ltd., Jiangsu East Yonsland Vehicle Manufacturing Co. Ltd., and ZHIDOU Electric Vehicle Co. Ltd.
Recent Strategic Developments of Major LSEV Market Players
In recent years, major players in the LSEV market have taken several strategic measures, such as product launches, mergers and acquisitions, and facility expansions, to gain a competitive edge in the industry. For instance, in May 2018, Hero Electric Vehicles Pvt. Ltd. launched new Li-ion battery-based electric scooter, City Speed NXY e5, in Chandigarh, India. Further, in October 2017, Yadea Technology Group Co. Ltd. globally launched a new electric two-wheeler, Yadea Z3S, at the China National Convention Center in Beijing, China.
Key Questions Addressed/Answered in the Report