Light Electric Vehicles (LEVs) Market is projected to grow from $78.5 billion in 2022 to $122.7 billion by 2027, registering a CAGR of 9.4%, according to a new report by MarketsandMarkets.
Current research mapped E-ATVs/UTVs, E-Bike, E-Scooter, E-Motorcycle, Neighborhood Electric Vehicle, E-Lawn Mower (Robotic E-Lawn Mower and Manual E-Lawn Mower), Electric Industrial Vehicles, Autonomous Forklifts, Delivery Robots, and Automated Guided Vehicles. Growing demand for low-emission alternatives to off-road vehicles, lawnmowers, rapid electrification of neighborhood vehicles, scooters, and motorcycles, citing the low operating and maintenance costs, usage of e-bikes for multiple roles of urban commute, recreational and sports purposes, and increased shift to use of battery-operated material handling vehicles for indoor applications have increased the demand for LEVs worldwide. Furthermore, with the rapid setup of charging stations across nations and efforts and actions by local governments to reduce emissions and traffic on roads, the demand for e-scooters and e-motorcycles is expected to grow faster than other LEVs.
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 and when compared to propane fuel, these vehicles cost about 75% less to operate. Currently, about 70% of forklifts in use in Western Europe are electric and ultimately there are fewer moving components to maintain and replace on electric industrial vehicles.
Asia Pacific Region
The Asia Pacific is a high-growth market for LEVs. Several countries in the region witnessed a surge in demand for low-emission and fuel-efficient commercial and commuting alternatives due to stringent emission norms and increasing crude oil prices. Even though electricity generation capacity and access remain obstacles across the continent, many mineral surplus countries are exchanging their resources with countries like China and India to buy electricity generation technologies from renewable resources.
The Asia Pacific LEV industry is one of the most advanced LEV industries globally, contributing more than 50% of the global demand. The governments in the region are focused on manufacturing components and vehicles in their own countries. For instance, the domestic companies are getting a further boost in terms of incentives and tax reductions to compete with global players.