Low-speed electric vehicles market accounted for US$ 5,526.65 million in the year 2022 and is expected to grow at a CAGR of 5.5 % during the period 2022 - 2030, to account for US$ 8,489.94 million in the year 2030.
Rising Affordability of Electric Vehicles Driving the Low-Speed Electric Vehicles Market Growth
The major cost of any electric vehicle primarily depends on the batteries. The high prices of battery packs simultaneously increase the overall electric vehicle prices. However, with the growing initiatives towards developing the electric vehicle infrastructure, the cost of procuring lithium-ion battery packs is reducing. The constant government initiative towards manufacturing battery packs domestically primarily reduces the dependency on foreign countries, reducing the cost of electric vehicle production. For instance, Ola Electric has signed a strategic agreement with the Government of Tamil Nadu to establish an EV hub. The project is anticipated to include electric vehicle battery and cell manufacturing facilities. North America also invested in developing domestic battery production hubs. In 2022, Northvolt received EUR 155.4 million (US$ 165.79 million) in funding from the German government to establish a large electric-vehicle battery-cell production factory in the country. Similarly, Envision AESC associated with BMW to establish a battery plant in South Carolina with an annual capacity of 30 GWh. Thus, the increasing availability of affordable battery packs makes electric vehicle prices cheaper, which drives the low-speed electric vehicles market growth.
With the growing proliferation of Low-speed electric vehicles, job opportunities also demonstrate a growth trend. The electric vehicles industry requires skilled labour and workforce. The development of the industry is opening many opportunities of job opportunities. In addition, increasing utilization of Low-speed electric vehicles for utility-scale applications in the mining, construction, defense, and agriculture sectors is boosting significant opportunities for the Low-speed electric vehicles market.
Asia Pacific is leading the Low-speed electric vehicles market share. In Asia Pacific, China is dominating the market for Low-speed electric vehicles. Technological advancement, cheap raw materials and labor availability, and economic viability are the key factors driving the Low-speed electric vehicles market in the country. North America and Europe also show a positive outlook regarding Low-speed electric vehicle sales. Government initiatives and supportive policies are boosting the adoption of Low-speed electric vehicles in North America and Europe.
The European Union has taken significant steps to address carbon emissions in the automotive sector. In March 2023, new CO2 standards were adopted for cars and vans, mandating a 55% reduction in emissions for new cars and a 50% reduction for new vans by 2030 compared to 2021 levels, with a target of achieving 100% reduction for both by 2035. Additionally, the European Union introduced the Net Zero Industry Act, which aims to have nearly 90% of the EU's annual battery demand met by EU battery manufacturers. This includes achieving a manufacturing capacity of at least 550 GWh by 2030. While Europe accounts for over one-quarter of global EV production, it has limited involvement in the EV supply chain, with the exception of cobalt processing at 20%. Despite this, the well-established EV market in Europe, coupled with these ambitious regulatory initiatives, is driving the growth of the Low-speed electric vehicles market share in the region.
Low-speed Electric Vehicles Market: Competitive Landscape and Key Developments
Textron Inc, Yamaha Motor Co Ltd, Club Car, The Toro Co, Renault SA, Star EV, Waev Inc., Bradshaw Electric Vehicles, Clean Motion AB, and Navya SA are among the key Low-speed electric vehicles market players profiled during this study. In addition, several other important Low-speed electric vehicles market players have been studied and analyzed during the study to get a holistic view of the Low-speed electric vehicles market and its ecosystem.