Three Wheeler Market Size, Trends and Growth Analysis by 2027

In 2018, the global three-wheeler market was valued at approximately US$ 9.14 billion and is projected to experience a compound annual growth rate (CAGR) of 4.9% during the forecast period from 2019 to 2027, ultimately reaching around US$ 13.73 billion by 2027.

The Asia-Pacific (APAC) region, characterized by numerous developing economies, is witnessing significant investments from local regulatory bodies aimed at enhancing technological advancements. This presents a substantial opportunity for international automotive manufacturers to expand their operations and invest in these emerging markets, thereby driving the growth and acceptance of three-wheelers. Notably, India stands out as a key player in the burgeoning three-wheeler market within the APAC region, which encompasses countries such as South Korea, China, Japan, Australia, and others in the Rest of APAC. Additionally, North America and Latin America are anticipated to offer considerable growth prospects for three-wheelers, particularly in sectors like snowmobiles, touring motorcycles, and other utility vehicles, in the near future. The three-wheeler market is also expected to cater to the aging baby boomer population, who prioritize safety in their transportation choices. Countries in Northern Africa, ASEAN, and Latin America are significant importers of three-wheelers from Asian manufacturers.

The APAC region is at the forefront of the three-wheeler market, driven by the large populations of China and India, along with the increasing middle-class demographic and a thriving automotive sector in these nations. These countries serve as hubs for various local manufacturers focused on developing three-wheeler vehicles, commonly referred to as auto-rickshaws or tuk-tuks. China, being the largest global producer of passenger vehicles, along with India, Japan, and South Korea, are pivotal in the vehicle manufacturing landscape. The ongoing economic growth in both developed and developing nations, particularly India and China, combined with a high concentration of manufacturers in China and Japan, has significantly contributed to the rapid expansion of the automotive industry in this region. The APAC market is one of the fastest-growing passenger car markets, with Chinese brands accounting for an impressive 99% of electric vehicle (EV) production in the country as of 2018. China has already experienced remarkable growth in both the production and sales of electric vehicles, with local automakers increasingly focusing on the electric three-wheeler segment. Furthermore, the adoption rates of e-rickshaws and e-scooters in China are notably higher compared to other countries worldwide.

The segmentation of the three-wheeler market is categorized based on type, fuel type, and geographical location. In terms of type, the market is divided into passenger carriers and goods carriers. Regarding fuel type, the market includes diesel, petrol, compressed natural gas (CNG), liquefied petroleum gas (LPG), and electric options. Geographically, the three-wheeler market is divided into four main regions: North America, Europe, Asia-Pacific, and the Rest of the World.

Key players in the three-wheeler market include well-established companies such as ATUL Auto Limited, Bajaj Auto Ltd, J.S. Auto (P) Ltd., Mahindra & Mahindra Ltd., Piaggio & C. SpA, Scooters India Ltd, Speego Vehicles Co Pvt Limited, Terra Motors, TVS Auto, and Xianghe Qiangsheng Electric Tricycle Factory.

The overall size of the global three-wheeler market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the global three-wheeler market. This research also provides an overview and forecast for the three-wheeler market based on the various segments identified across global regions. Additionally, primary interviews are conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the three-wheeler sector.