Light Electric Vehicles (LEVs) Market Size, Share, Trends [2022-2027]

The light electric vehicle (LEVs) market?size was valued at USD 78.5 billion in 2022 and is expected to reach USD 122.7 billion by 2027, registering a CAGR of 9.4%. This study mapped electric industrial vehicles, autonomous forklifts, delivery robots, electric bikes, electric scooters, electric motorcycles, neighbourhood electric vehicles, electric lawn mowers (robotic and manual), and automated guided vehicles.

Rapid electrification of neighbourhood vehicles, scooters, and motorcycles, usage of e-bikes for multiple roles in urban commute, recreation, and sports, and increased shift to use of battery-operated material handling vehicles (e.g., forklifts, aisle trucks, tow-tractors, and others) for indoor applications have all increased demand for low-emission alternatives to off-road vehicles (e.g., ATVs and UTVs), lawnmowers, and other household items. Additionally, the demand for e-scooters and e-motorcycles is anticipated to increase more quickly than that of other LEVS due to the rapid deployment of charging stations throughout nations and initiatives and actions taken by local governments to minimise emissions and traffic on roadways.

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Market Dynamics:

Driver: Government incentives and subsidies

The With increasing concerns raised over the environmental impact of conventional vehicles, governments around the world are encouraging the adoption of vehicles using alternative sources of fuel. In developing countries like India and China, LEVs are being made a compulsory part of operational fleets for purposes such as geofenced passenger hauling, last-mile delivery, and other commercial purposes. Developed countries like the Netherlands are aiming to use only electric vehicles with zero emissions for all commercial and governmental purposes by the end of 2025. Governments like Mexico are also providing tax incentives at various stages of EV deployment, like vehicle purchase, charging, and infrastructure developments.

Opportunity: Use of battery swapping for electric utility vehicles

Battery swapping at the LEV charging stations is a new trend that eliminates the time for charging batteries for LEV users. Although level 3 EV charging can charge an electric vehicle in 30–60 minutes and ultra-fast charging can charge in 15–30 minutes, they are not compatible with LEVs. Therefore, battery swapping is a great alternative for LEVs. Companies such as NIO have installed over 300 battery swapping stations by July 2021 and plan to install around 4,000 more by 2025 in China. Its swapping stations have been used about 2.9 million times globally, with approximately 1,000 battery-swapping stations designed outside China. Shell signed an agreement with NIO in November 2021 to develop such battery-swapping EV charging stations jointly. This has created a new opportunity for battery-as-a-service in LEV charging. The battery swapping stations are expected to attract more electric utility vehicle customers as they will not have to wait for more charging time. The swap stations will also reduce the upfront cost of the electric utility vehicles as the battery ownership will be replaced by battery leasing.

Adoption of the Electric Industrial Vehicle segment of LEVs estimated to be fastest during the forecast period

Electric Industrial Vehicles primarily use rechargeable batteries to power respective vehicles. Electric Industrial Vehicles have been gaining significant traction in recent years due to the low cost of operation and maintenance. Electric engines have the advantage of being eco-friendly and efficient and require negligible maintenance. Industrial vehicles with these engines are the best green machines for warehouse and industrial projects since they produce fewer pollutants. The majority of logistics companies worldwide are concentrating on lowering their carbon footprint. Industrial vehicle manufacturers have been concentrating on Electric Industrial Vehicles to reduce CO2 emissions as well as other exhaust gases. Energy efficiency benefits are built into electric industrial vehicles. When compared to propane fuel, these vehicles cost about 75% less to operate. About 70% of forklifts in use in Western Europe are electric. Additionally, there are fewer moving components to maintain and replace on electric industrial vehicles. On the other hand, ICE industrial vehicles need routine engine upkeep such oil changes, belt replacements, spark plug replacements, and inspections. Additionally, IC engines produce more maintenance-related disposal waste, such as engine oil and transmission fluid. The demand for electric industrial vehicles is anticipated to increase as a result of all the aforementioned considerations.

Battery pack segment to lead Light electric vehicle (LEVs) market during the forecast period

In the current scenario, lithium-ion batteries are the preferred choice for LEVs like e-ATVs/UTVs, e-scooters, e-motorcycles, e-bikes, etc. because of their higher energy density, longer life, and zero maintenance effect compared to lead-acid batteries. The only factor impacting the adoption of lithium-ion batteries is their high cost and availability of raw materials for their production. Invented in 1859, the lead-acid battery is still found in many electric utility vehicles. The lead-acid battery offers a limited capacity despite its significant bulk and weight; still, it has the advantage of being both inexpensive and easy to produce and recycle. However, due to growing environmental awareness, the hazardous nature of lead-acid batteries is now restraining their usage in LEVs.

Key Market Players:

The LEV market is primarily dominated by players like Textron Inc. (US), Polaris Inc. (US), John Deere (US), Yamaha Motor Co. Ltd., Club Car Inc. (US), and BMW AG (Germany) among others.

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