Electric Utility Vehicle Market Report - Share & Forecasts 2030

[Research Report] The electric utility vehicle market is expected to grow from US$ 19.12 billion in 2022 to US$ 28.39 billion by 2031; it is estimated to grow at a CAGR of 5.1% from 2022 to 2031.

Analyst Perspective:

The electric utility vehicle market has witnessed noteworthy growth in recent years, driven by rising government spending on the development of the electric charging infrastructure and increasing government incentive scheme for the consumer who buys electric vehicles around the globe. EU countries’ government’s spending on providing incentives and subsidies for electric vehicles reached around US$ 30 billion in 2021 and is growing at a rapid pace. Also, an increasing number of countries' norms to phase out conventional internal combustion engine-based vehicles are driving the market growth. Meanwhile, automotive manufacturers have planned to electrify their existing fleets to meet government policies. Rising demand for electrification transportation around the globe is driving the market growth. In Europe, more than 180 Electric vehicle models were launched as of 2021. These vehicles are being provided with government incentives and funding to promote electric vehicle sales in the EU countries. Favorable government policies to reduce consumer barriers with growing awareness among individuals about clean transportation are expected to create ample opportunity in the future. Rising investment by the local and state authorities for the development of all-electric mobilities to adopt clean and zero-emission vehicles drives the electric utility vehicle market.

Market Overview:

The definition of an electric utility vehicle is a vehicle, generally motorized with electric batteries, designed to carry various specific tasks with more efficiency than passenger vehicles. The EUVs can have a high-capacity battery, a battery swap system, or a lithium battery with a quick charging system. The original utility vehicles had small gas engines, such as a four-stroke single-cylinder. The EUVs have high-capacity batteries with a battery swapping system and in-built lithium batteries with a quick charging system. The demand for electric utility vehicles has increased exponentially globally owing to the increasing demand for low-emission alternatives to off-road vehicles such as ATVs and UTVs with the rapid electrification of utility carts and shuttle carts. Increased use of battery-operated material handling vehicles such as forklifts and tow-tractors for indoor applications is driving the global electric utility vehicle market growth. The demand for electric utility and shuttle carts is also driven by the rapid installation of charging stations and significant investments by government bodies for charging infrastructure around the globe.

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Electric Utility Vehicle Market: Strategic Insights

Electric Utility Vehicle Market

• Market Size 2023
  US$ 20.10 Billion
• Market Size 2031
  US$ 29.92 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Battery Type

• Lithium-ion
• Lead Acid

Drive Type

• Two-Wheel Drive
• Four-Wheel Drive

Speed

• Up to 25 mph
• 26-45 mph
• Above 45 mph

Application

• Mining
• Building & Construction
• Sports
• Agriculture
• Golf Course
• Commercial

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Market Driver:

Increased Investment to Expand EV Infrastructure and Smart Grid Drives the Global Electric Utility Vehicle Market

Several country's governments are continuing to support EV sales and investing in building the charging infrastructure. The government authorities are supporting to build the charging stations for all communities. For instance, in March 2023, the US Department of Transportation planned to invest more than US$ 2.5 billion in the new charging and fueling infrastructure. Also, the Indian government launched the FAME-India Under phase-II Scheme with a budget of around US$ 120 million for the charging infrastructure development.  The Indian Ministry sanctioned more than 2,877 charging stations across 68 cities in 25 states in India to facilitate the charging of electric vehicles. At the same time, local authorities and private companies are also supporting the installation of charging infrastructure in the existing buildings.

Also, rising government plans and investment for grid expansion with the adoption of digital technologies for facilitating two-way communication between EVs and grids are projected to create significant opportunities for market growth. Global spending on electric cars reached US$ 280 billion in 2021, as per the International Energy Agency (IEA), and the size is increasing at a rapid pace with government support and initiative schemes. Government spending in Europe on providing subsidies for EV purchases and providing tax waivers reached around US$ 30 billion in 2021, as per the IEA. The government's share of the total spending for electric cars reached around 10% in 2021.

In China, consumer spending on e-mobility reached US$ 90 billion in 2021. However, government spending on the purchase of electric cars ranges between US$ 2,000 to USD 3,750 in developed countries such as the US, Germany, France and many others. In the United States, consumer and government spending increased by 15% in 2021.

Segmental Analysis:

Based on battery type, the global electric utility vehicle market is divided into lead-acid, lithium-ion, and others. The lithium-ion segment held the largest share of the market in 2022 and is growing at a rapid pace, registering the highest CAGR during the forecast period. The lithium-ion batteries have shown a significant share in 2022 owing to an increase in the battery manufacturing capacities & government funding with initiatives. For instance, in February 2022, the US Department of Energy planned to invest more than US$ 3.0 billion in strengthening the US Supply Chain for the development of the advanced battery requirement for vehicles and energy storage.

Regional Analysis:

North America is expected to dominate the electric utility vehicles owing to the rapid adoption of golf cars by the institutes for in-campus driving, delivery service providers and others. Also, increasing government initiatives and funding for the promotion of clean transportation with growing consumer awareness is driving the electric utility vehicle market at a rapid pace. Also, rising demand for golf cars and electric utility vehicles for traveling short distances is driving the market growth. According to the IEA, more than 300,000 electric, as well as gas-powered golf electric vehicles have been sold annually. Among this, North America’s share is expected to have more than 50% in the overall golf and electric utility vehicle market and is growing by 3% to 4% annually. Electric utility vehicles are used for a wide range of turf applications at manufacturing facilities, airports, college campuses and among others. They have a wide range of applications for the transport of people and material handling.

Further, in the Asia Pacific region, China is growing at the highest CAGR during the forecast period owing to the rapid adoption of EVs for passenger and goods transportation. According to the International Energy Agency, the electric car sale in China reached more than 3.3 million in 2021 and is growing at a rapid pace. In China, the electric cars sale accounted for around 16% of sales compared to conventional domestic cars in 2021. This growth is driven by government support and initiatives to accelerate the decarbonization plan by 2031. Also, China’s subnational have implemented certain regulations to promote the EVs sale, such as providing local subsidies, tax benefits, financial incentives and certain exemptions for the purchase of EVs.

In Europe, as per the IEA, the electric car sales reached 2.3 million units, increased by 65% compared to last year in 2021. European companies are developing and commercializing electric utility vehicles to fulfill the various products demand and to meet the consumer preferences of the vehicles. These manufacturers are investing a considerable amount in research and development to introduce advanced features and improve the vehicles designs. Additionally, the rising development of distribution networks through well-established retail stores in Europe has facilitated growth for the electric utility vehicle market for consumers. Also, these vehicles were made available to buy from various online e-commerce with the option to select a variety of electric utility vehicle models in Europe.

Key Player Analysis:

The electric utility vehicle market analysis consists of players such as BYD Co. Ltd., Club Car, Waev Inc., Polaris Inc., Toyota Industries, Ari Motors, John Deere, Alke, Textron, Tesla, Inc. and among others. These players are launching new advanced features based on electric utility vehicles to prove the diversified product portfolio for consumers.

Recent Developments: 

The strategies adopted by the key players include new product launching, mergers and acquisitions, partnerships and collaborations to remain competitive in the market. Some of the recent key market developments are listed below: 

• In June 2023, the E-Z-Go subsidiary brand of Textron, Inc. launched the Liberty low-speed vehicle named Freedom RXV with a stylish look and offers a comfortable ride. The Liberty LSV is designed with a top speed of 25 mph that meets all the National Highway Traffic Safety Administration standards.
• In June 2022, John Deere launched a TE 4x2 Electric AutoTrac steering system for Gator Electric Utility Vehicles. This vehicle is used to solve agriculture problems by offering precision farming for smaller areas.
• In May 2022, BYD Co. Ltd. launched a forklift model named ECB 70/80, which is equipped with a battery and charging system with 9 hours range on a single charge.

Electric Utility Vehicle Market Report Scope