Electric Three Wheeler Market Share & Growth | Forecast 2031

Report Description

The global electric three-wheeler market size was valued at USD 884.43 million in 2022 and is expected to surpass USD 1639.72 million by 2031, expanding at a CAGR of 7.1% during the forecast period, 2023–2031. The market growth is attributed to the rising inclination toward eco-friendly, sustainable electric vehicles over the convention ones that are powered by fossil fuel.

Nowadays, the electric vehicle is a trending topic. Launch of novel upcoming EV technologies, e-vehicles are likely to adopt by end-users. E-vehicles are eco-friendly and affordable. These vehicles include two-wheelers, three-wheelers, and four-wheelers. Globally, electric three-wheelers are mainly used for carrying passengers for commute and to transport consumer goods.

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Electric three-wheelers are called electric rickshaw or e-rickshaw. They comprise include electric motor, which are powered by rechargeable batteries. Electric three wheelers have long and durable batteries. These vehicles are equipped with durable batteries and torque motors. E-rickshaws are mainly used for passenger carrying. Electric three-wheeler often possesses two wheels in the back and one wheel in front. 

 COVID-19 Impact on Electric Three-wheeler Market

The market report finds that the COVID-19 pandemic impeded the global electric three-wheeler market. The global automotive industry had a major setback due to the pandemic due to temporary shutdown of production units, sudden disruption of supply chain, uncertainty among customers, and reduced global demand of vehicles, especially e-vehicles.

Moreover, the global electric three-wheeler market was impeded by the pandemic owing to lack of raw materials and electric vehicle batteries. China is a key manufacture of lithium-ion batteries. Contemporary Amperex Technology Co. Limited (CATL) is the world’s largest manufacturing company based in China. More than 70% lithium-ion batteries, used global, are manufactured in China.

Electric Three-wheeler Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global electric three-wheeler market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Major Drivers:

Rising preference for usage of efficient solution and eco-friendly e-vehicles

Nowadays, e-vehicles’ is an emerging industry. These vehicles are easy to access and are available at affordable prices. People are shifting toward e-vehicles due to rising issues about motor vehicle emission. Motor vehicle emission can cause noncancerous health issues such as respiratory, neurological, and cardiovascular system damage.

Motor vehicle emission contribute to air pollution by emitting air toxic pollutants such as carbon monoxide (CO), nitrogen oxide (NOx), hydrocarbon (HC), and other toxins which can cause some serious health issues. Increase in the usage of e-vehicles can be a solution on these toxic gases.

Most e-vehicle companies are launching new vehicles in at a competitive price range of motor vehicles. Electric three-wheelers are used for carrying passengers. Thus, people are switching toward sustainable transportation over conventional ones. 

Increasing initiatives such as government subsidies and promotion of e-vehicles

Governments are taking big initiatives to promote e-vehicles. They are launching offering subsidies and schemes for these vehicles to increase the purchase rate. Using subsidies and schemes, allowed the lower-class and middle-class people to buy e-vehicles and start a side income. These subsidies can help reduce the price of and make their buying easy. 

Rising demand for affordable vehicles

A large number of people are shifting toward e-vehicles due to the rising prices of petrol and diesel in Asia Pacific. E-vehicles are affordable and easy to access. Electric three-wheelers offer fast and cheap travel options. Rising prices of commercial vehicles can make is driving the demand for electric three-wheelers. Increasing demand for affordable vehicles among the middle-class and lower-class people is likely to boost the global e-vehicles market.

Existing Restraints: 

Lack of infrastructure for electric vehicles charging

The e-vehicle industry and technology are in the nascent stage. Manufacturers are launching variants of e-vehicles such as e-scooters, e-rickshaws, and e-cars. Lack of charging infrastructures and less presence of standardized charging station in developing countries, is hampering the e-vehicles market.

Emerging Opportunities:

Upcoming developments in e-vehicles technologies.

Manufacturers are launching smart batteries with fast charging technologies for e-vehicles. New technology advancements can produce lucrative opportunities in the e-vehicles. Fast charging batteries can save a lot of time and can be used for electric three-wheelers. Most companies are launching new electric three-wheelers with swappable batteries. Manufacturers are improving battery technologies and powertrain to make electric three-wheelers more efficient. 

Building standardized charging infrastructures in developing countries.

The electric vehicle industry is being developed and a large number of companies and governments are building charging infrastructure, which is a major factor creating opportunities in the electric three-wheeler market. Standardized charging stations can be useful for electric three-wheeler cargos and load carriers; therefore, they can travel long distances.

 Scope of Electric Three-wheeler Market Report 

Electric Three-wheeler Market Segment Insights

Lithium-ion segment to expand at a significant growth rate

Based on type, the global electric three-wheeler market is bifurcated into lithium-ion and lead-acid. The global lithium-ion battery segment size was valued at around USD 43.50 billion 2021. It is projected to reach USD 181.5 billion, expanding at a CAGR of 14.5% during the forecast period. The rapid expansion of the segment is attributed to the high efficiency and low maintenance required by these batteries.

Conversely, the lithium-ion segment is anticipated to hold a key share of the market during forecast period, as it requires less charging time and has increased energy density. Lithium-ion batteries are available in compact sizes as opposed to the lead-acid batteries. Lithium-ion is extensively used in e-vehicles batteries.

Rising petrol and diesel prices across the world, especially in Asia Pacific and North America, is increasing the demand for lithium-ion batteries in e-vehicles. The lead-acid battery segment was valued at about USD 57.5 billion in 2021. It is expected to reach USD 85.5 billion in 2030, expanding at a CAGR of 5.1% during the forecast period. Lead-acid batteries are less expensive than lithium-ion batteries.

Additionally, the demand for these batteries is rising in the global automotive industry due to their high sustainability. However, lead-acid cost more than lithium-ion batteries. Thus, restraining the segment. Lead-acid batteries hold low specific energy. Moreover, these batteries are bulky and less efficient.

 1000W to 1500W segment to register a considerable CAGR

Based on power type, the global electric three-wheeler market is segregated into up to 1000W, 1000W to 1500 W, and above 1500W. The 1000W to 1500W segment constituted a key share of the market in 2021. This segment is projected to register a considerable CAGR during the forecast period, as it is cost-effective. The 1000W to 1500W segment has low operational cost. 

On the other hand, the above 1500 W segment is anticipated to account for a major share of the market and is projected to expand at a 7.1% CAGR in the coming years due to rapid industrialization. Above 1500W batteries are used in vehicles employed for industrial purposes such as major loading and unloading. These can be used for construction purposes. Increase in electric motor power offers high acceleration and allows the vehicle to travel long distances.

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Passenger carrier segment held 56.23% share of the global market

In terms of end-users’ type, the market is split into load carrier and passenger carrier. Most of the manufacturers are launching passenger carrier electric three-wheelers. In 2021, the passenger carrier segment constituted 56.23% share of the market. The segment is expected to expand at a CAGR of 7.1% during forecast period due to the rise in the demand for electric three-wheelers, as an easy and sustainable public transport.

Manufacturers are launching electric three-wheeler that can host a large number of passenger’s and available in new designs to garner larger market share. Load carrier is another major component of end-user segment. Electric three-wheeler can be very useful for load carriers. Companies are making more efficient load carriers electric three-wheelers.

Major factor for electric three-wheeler load carrier is the storage and weighing capacity. Electric three-wheelers with more storage capacity can be a major driving factor for the load carrier segment. New start-ups are launching electric vehicles for carrying heave cargos with a large storage capacity and durable batteries that can travel long rages. 

Asia Pacific to dominate the market

In terms of regions, the global electric three-wheeler market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market size of Asia Pacific is expected to dominate the market during the projected period owing to rising demand for electric three-wheelers in this region. High population of middle-class and lower-class people in the region increases the demand for electric three-wheeler as a public transport vehicle.

Using electric three-wheelers as a public transport allows people to travel economically. However, the market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to the rising demand for infrastructures and rapid industrialization in the developing countries. China holds a major share of the global e-vehicles market. It is a key producer of e-vehicles.

Furthermore, the Government of India is promoting e-vehicles by launching schemes. In 2015, it launched Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) and Production Linked Incentive (PLI). Electric vehicles are covered under PLI scheme for Automobile and Auto Components. The government is taking initiatives to provide incentives and subsidies for electric three-wheelers. 

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