Small Electric Vehicle Market Growth, Size, Share, Trends, and Forecast 2030

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Electric vehicles make use of electric motors and motor controllers for propulsion, in place of the internal combustion engine (ICE). These vehicles are more environment-friendly and energy efficient as compared to vehicles operating on other fuels; in addition, they require very less maintenance. The different types of electric vehicles which are available in the market are a hybrid electric vehicle, plug-in hybrid electric vehicle, and battery electric vehicle. Electric vehicles use heavy batteries which increase their weight, so light electric vehicles were introduced in the market which is usually 2 or 3 wheelers and weighs less than 100kg. 

The rise in the price of the crude oil and increasing demand for low-emission, high-performance, and fuel-efficient vehicles are the key factors for the growth of the small electric vehicle market. Further, environmental safety has become a major concern which is forcing governments to introduce new stringent rules and regulation towards emissions. This resulted in the increase in demand for electric vehicles in the market. Apart from this, a reduction in the price of Li-ion batteries is another major factor driving the small electric vehicle market. However, the high manufacturing cost of the electric vehicles and low fuel economy along with the service availability issues are some of the factors restraining the adoption of small electric vehicles. In the forecast period, development of new and advanced technologies will help the companies to bring new innovation and improvements in terms of types of the vehicle and reliability which will increase the adoption of electric vehicles. There is a positive involvement by governments in the small electric vehicle market such as promotional activities and awareness among the people for eco-friendly vehicles.

The global small electric vehicle market is categorized on the basis of vehicle type, technology type, and regions. Small commercial vehicles, 2 or 3 wheelers, and passenger vehicles come under vehicle type segment of the small electric vehicle market. Further, based on technology, the small electric vehicle market is categorized into a plug-in hybrid electric vehicle, battery electric vehicle, and hybrid electric vehicle. On the basis of geographical region, the market is categorized into five regions namely North America, Latin America, Asia Pacific Europe, and the Middle East and Africa.

By geography, North America is the largest segment for the small electric vehicle market followed by Europe. Presently, both North America and Europe are dominating the small electric vehicle market globally as these regions have properly developed infrastructures such as public charging stations and government involvement for the electric vehicle market. In the forecast period, Asia Pacific is expected to emerge as a fastest growing regional segment for the small electric vehicle market as China is dominating the region for a maximum number of sales of light electric vehicles among the other countries.

Some of the key players in small electric vehicle market are Tesla, Inc., Mercedes-Benz, Volkswagen, Renault S.A., General Motors, Fisker Automotive, Nissan Motors Company, Ford Motor Company, Toyota Motor Corporation, BYD Company, Smith Electric Vehicles, and Mitsubishi iMiEV, among others.