PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565732
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565732
Electric Three-Wheeler Market size was evaluated at USD 1,451.2 million in 2023, rising at a CAGR of 2.50% between 2024 and 2032.
Electric three-wheelers, often known as e-rickshaws or electric trikes, are three-wheeled electric vehicles (EVs). These vehicles are widely utilized for short-distance urban transportation, especially in densely populated Asian countries like India, China, and Southeast Asia. Electric three-wheelers move people and goods while being more environmentally friendly and energy efficient than gas or diesel-powered vehicles.
Electric Three-Wheeler Market- Market Dynamics
Government Incentives and Environmental Policy
Authorities in a number of nations are implementing efforts to minimize carbon emissions and encourage the use of sustainable transportation. Government financial assistance in the form of subsidies, tax breaks, and grants is lowering the cost and increasing the attraction of electric three-wheelers among both makers and purchasers. Emission rules are also encouraging traditional combustion engine three-wheeler manufacturers to switch to electric ones. They are also investing heavily in charging infrastructure and offering incentives to fleet operators to encourage the use of EVs. These actions not only lower the initial cost of electric three-wheelers, but they also boost consumer confidence and market adoption. On March 13, 2024, the Government of India introduced the Electric Mobility Promotion Scheme 2024, with a budget of INR 500 crore to provide subsidies to 372,215 electric two- and three-wheelers from April 1, 2024 to July 31, 2024. The initiative aims to accelerate the uptake of electric vehicles in certain categories.
Electric Three-Wheeler Market- Key Insights
Our research analyst predicts a 2.50% CAGR for the global market from 2024 to 2032.
In 2023, lithium-ion batteries will account for the majority of the market, according to Battery Type segmentation research.
In 2023, the 1000 W to 1500 W sector dominated the worldwide Electric Three-Wheelers market by Power segmentation.
According to region, Asia Pacific had the most revenue in 2023.
The global release liner market is divided into four groups: Battery Type, Power, End-Use, and geography.
The market is segmented into three divisions based on the Battery Type: Lead Acid, Lithium-ion, and Others. In 2023, lithium-ion batteries will dominate the market. Their advantages include increased battery life due to increased energy density, compact size, shorter charge times, and little maintenance. The growing number of electric, hybrid, and plug-in hybrid electric cars has boosted demand for lithium-ion batteries. Lithium costs have fallen over the past year as a result of widespread use, adding to a growth trajectory.
The market is classified into three segments depending on the Power: Up to 1000W, Above 1500 W, and 1000 W - 1500 W. The 1000 W to 1500 W segment will have the largest market share in 2023 due to its low running costs. The segment's expansion is also due to the market's demand for high-powered electric three-wheeler vehicles. The quick torque supplied by the 1000W to 1500W motor improves vehicle efficiency and acceleration from the outset, making them a favored choice among OEMs. Electric motors can achieve high speeds faster than ICE, allowing them to operate with a single gear while still reaching their maximum speed.Because of these mechanical advantages, 1000W to 1500W motors are appropriate for passenger carriers.
Electric Three-Wheeler Market- Geographical Insights
This market is geographically diversified across Europe, the Middle East, North America, Asia Pacific, and Africa, Latin America. The regions are further divided by the nations that bring commerce.
The Asia Pacific region held the largest market share in 2023. The regional domination is ascribed to factors such as increased public support for electric vehicles, strong demographic development, widespread usage of economical public transportation for the last mile, and everyday commuting in the region. China and India are key regional markets for three-wheelers, which are utilized as both passenger and goods transportation. Furthermore, the Indian government is campaigning for the promotion of electric three-wheelers and other electric vehicles through projects like FAME and PLI, which provide subsidies and incentives for E-3W.
The European region is also likely to see market expansion due to the presence of major automakers that are aggressively investing in developing an electric mobility portfolio. These manufacturers are also allocating resources to the research and development of novel technology for electric vehicle solutions. For insatnce, the European Union has developed the EU-LIVE R&D program, which is sponsored by Horizon 2020 and aims to develop mobility solutions and models for L-category cars. These measures are accelerating market expansion.
The market's leading players include Mahindra Electric Mobility Limited, E-Tuk Factory, Terra Motors, Piaggio Vehicle Pvt (Piaggio & C.SpA), and Bodo Vehicle Group Co. Ltd. The three-wheeler producers are focused on supplying technologically sophisticated electric three-wheelers to a wide range of vehicle customers worldwide. Mahindra Electric Mobility, Limited is a market leader and pioneer in the Indian E3V competitive scene. The company has developed a thorough plan for launching a viable electric car ecosystem, with a focus on inventing next-generation technology and globally recognized products to promote sustainable mobility. The company provides a diverse range of electric vehicles and plans to expand its offerings by creating new high-end electric powertrains, systems integration, motor controllers, and battery technologies. To enable innovative mobility options, next-generation EV models will have faster speeds, longer ranges, and cutting-edge connected car technologies.
In April, 2023, Omega Seiki Mobility (OSM) has partnered with cKers Finance to provide retail financing for electric three-wheelers.