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Low Speed Electric Vehicle (LSEV) Market

Low Speed Electric Vehicle (LSEV) Market by Product (Two-wheeler [Scooter, Motorcycle, Bikes, Kick Scooter, Mono Wheel], Three-wheeler, Four-wheeler), by Voltage (24V, 36V, 48V, 60V, 72V), by Geography (China, India, Japan, South Korea, Indonesia, Malaysia, Singapore, Philippines, Thailand) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2017–2025

Published: June 2018
Report Code: AT11485
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Low Speed Electric Vehicle Market Overview

The global low speed electric vehicle market attained a size of $22.1 billion in 2017 and is forecasted to reach $41 billion by 2025, registering a CAGR of 8.2% during 2018–2025. The major factors driving the market growth are increasing environmental awareness, initiatives and subsidies offered by the governments, and declining electric vehicle battery costs.

 

GLOBAL LOW SPEED ELECTRIC VEHICLE MARKET, BY PRODUCT, '000 UNITS (2017-2025)

LOW SPEED ELECTRIC VEHICLE MARKET

The electric vehicles considered in this study do not have an internal combustion engine, and solely use electric energy for propulsion. The electricity is stored on board within a rechargeable battery, which is used to drive one or more motors in tacked in the vehicle. These vehicles do not pollute the environment and generate very less noise. These environment sustainability attributes of these vehicles have impacted the dynamics of low speed electric vehicle market.

Based on product, the low speed electric vehicle market is categorized into two-wheelers, three-wheelers, and four-wheelers. Among these, two-wheelers was the largest category, accounting for more than 90% of market revenues in 2017. This can be attributed to their high use as personal transport vehicles. However, electric three-wheeler is expected to be the fastest growing category in the market during the forecast period.

By type of two-wheeler, the market is categorized into electric scooter, motorcycle, bikes, kick scooter, and mono wheel. Among these, electric bikes held the largest share in the low speed electric vehicle market revenues in 2017. Electric scooters can reach top-speeds of 25-50km/hr, and are comfortable for long distance commuting. These characteristics of electric scooters, coupled with their lower price when compared to electric motorcycles, would continue to drive their market growth during the forecast period.

On the basis of voltage, the low speed electric vehicle market is categorized into 24V, 36V, 48V, 60V, and 72V. Among these, the 48V category held the largest revenue share in the market, valued at more than 40% in 2017, due to its popularity in electric scooters. However, the fastest growth during the forecast period is expected from the 72V category, due to increasing demand for high-speed micro electric cars and electric scooters, which prefer this voltage.

Globally, Asia-Pacific is the largest low speed electric vehicle market, contributing the largest share in revenue sales, valued at more than 65%, in 2017. The low speed electric vehicle market in North America and Europe are small, due to low preference for scooters and motorcycles in these regions. China is the leading market for the sales of all LSEV types – two-wheelers, three-wheelers, and four-wheelers. The early introduction of LSEVs in the country and support from the government have made China the largest electric vehicle market, both globally and in Asia-Pacific.

Low Speed Electric Vehicle Market Dynamics

Trends

While most low speed electric vehicle are powered by lead acid batteries, the share of Li-ion batteries is expected to increase due to the latter’s declining prices and benefits over the lead acid ones. Majority of low speed electric vehicle sold have lead acid battery, and each of these batteries contains 10-20kgs of lead, which is a highly toxic substance. The Li-ion batteries have higher density than lead acid batteries, making them lighter and more efficient. Moreover, Li-ion batteries have greater life span (in terms of charge cycles) compared to lead acid batteries. The declining prices of li-ion batteries would continue to impact the supply-demand dynamics of low speed electric vehicle market, during the forecast period.

Drivers

Rising environmental awareness among the customers is driving the sales of the low speed electric vehicle market. According to a research study done by Health Effects Institute and Tsinghua University, pre-mature deaths in China due to particulate matter (PM2.5) could increase by 40% from 2013 levels, reaching around 1.3 million by 2030. Some of the factors increasing the global pollution levels include economic growth, increasing fossil fuel powered vehicles, population growth, and increasing output from the manufacturing sector.

Restraints

LSEVs have comparatively lesser support from the governments when compared to other electric vehicles such as electric passenger cars, hampering the growth of the low speed electric vehicle market. For instance, in 2016 and 2017, the Chinese government spent around $13 billion on subsidizing electric vehicles in the country. However, these subsidies were majorly focused on promoting electric passenger car market, which saw a considerable growth during this period.

Similarly, in India, the subsidy provided under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles scheme, for a typical 48V electric scooter is just $110.7 (INR 7,500). Considering the fact that electric scooters require a battery replacement after a few years, costing around $295.1 (INR 20,000), the above subsidy is not sufficient for electric scooters to compete with the conventional ones. Less support from the government in the form of incentives and subsidies is adversely affecting the low speed electric vehicle market.

Low Speed Electric Vehicle Market Competitive Landscape

Some of the major players operating in the LSEV industry are Yadea Technology Group, AIMA Technology Co. Ltd, Jiangsu Xinri E-Vehicle Co. Ltd, Zhejiang Luyuan Electric Vehicle Co. Ltd, Jiangsu Kingbon Vehicle Co. Ltd, Jiangsu East Vehicle Manufacturing Co. Ltd, Changzhou Yufeng Vehicle Co Ltd, Zhejiang Geely Holding Group, Zotye Holding Group, Hero Electric India Pvt. Ltd, Zero Motorcycles, and Tera Motors Corporation.

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