Electric Three Wheeler Market

According to Stratistics MRC, the Global Electric Three Wheeler Market is accounted for $0.77 billion in 2022 and is expected to reach $1.40 billion by 2028 growing at a CAGR of 9.0% during the forecast period. Electric three-wheelers are powered by electricity and have batteries with a longer lifespan and high torque motors. Tricycles are three-wheelers with a single front wheel and two rear wheels; a tadpole is a three-wheeler with two front wheels and one back wheel. Electric three-wheelers are used more often in a variety of industries, including passenger transportation within cities and the delivery of products and services.

According to the study of Crisil Research, 43% to 48% of new three-wheelers in India will be electric vehicles by the end of 2024.



Market Dynamics:

Driver:

Increasing demand for affordable commercial vehicle

The market for electric three-wheelers will expand as a result of rising consumer demand for reasonably priced commercial vehicles. Demand for inexpensive business automobiles has been sparked by the rising price of commercial vehicles in both developed and developing nations. Furthermore, significant developments including the rise in disposable income and rising urbanisation are propelling the market for electric three-wheelers. Due to growing consumer preferences for greener transportation options, the market for electric three-wheelers is expected to grow quickly throughout the projected period.

Restraint:

High cost of charging infrastructure

Owing to the high price of batteries, three-wheeler electric vehicles are much more expensive than three-wheelers fuelled by fossil fuels. As a result, customers in emerging nations' middle and lower middle classes are still more likely to favour conventional fuel automobiles. Thus, changing the batteries might push up their running costs even further, which is thus anticipated to limit market expansion in the short term. Additionally, the absence of infrastructure for charging and the scarcity of charging stations in underdeveloped nations are anticipated to impede market expansion.

Opportunity:

Rising preference for electric vehicles over fossil fuel vehicles

The demand for electric vehicles in society, especially for public transport, has been greatly influenced by the growing awareness of automobile emissions and related environmental consequences. The use of three-wheelers, which are often powered by IC engines, is common in many nations with sizable populations and low to intermediate income levels. However, a lot of these three-wheelers with IC engines are now outdated and inefficient and produce a lot of carbon dioxide and particulate matter. To strengthen their positions among the major participants in the market for electric three-wheelers, they have boosted their spending on R&D of E-three-wheelers.

Threat:

Dearth of electric vehicle charging standardization

The lack of standardised electric car charging, however, will further hamper industry expansion. Electric vehicles have no other means of charging. The development of the global market for electric three-wheelers is hampered by the dearth of charging facilities in many locations. Additionally, range anxiety and inadequate or uneven infrastructure may be problems for electric cars and harm passengers. However, the companies' lack of knowledge would hinder the market for electric three-wheeler's revenue growth.

Covid-19 Impact

The supply chain and production of electrical equipment, including the hardware components of electric three-wheelers, have been seriously impacted by the COVID-19 epidemic. The government's lifting of the different containment measures, which would aid in reviving the economies, is anticipated to be followed by a rapid uptick in the electronics equipment and automobile industries. From 2021 on, it is projected that the production of electronics goods would pick up speed, which is further anticipated to favourably impact the manufacture of electronics products and automotive products, including hardware components for electric three-wheelers.

The lithium-ion segment is expected to be the largest during the forecast period

The lithium-ion segment is estimated to have a lucrative growth. The energy density of these batteries is greater than that of lead-acid batteries. As a result, the battery size may be reduced while still having the same amount of storage. In addition, lead-acid batteries require an average of 10 hours to fully charge, compared to 3 to 4 hours for lithium-ion batteries. Additionally, lithium-ion batteries have the biggest market share among electric cars and will continue to be the top shareholder during the projection period.

The 1000 W to 1500 W segment is expected to have the highest CAGR during the forecast period

The 1000 W to 1500 W segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the reductions in operational costs. The creation of high-energy propelled cars by well-known manufacturers is credited with this expansion. Manufacturers are being forced to spend in R&D and boost vehicle power capacities in order to satisfy the ever-increasing demands due to the rising trend towards electrification of cars and the rising demand for E-3Ws, particularly in developing nations.

Region with highest share:

Asia Pacific is projected to hold the highest market share during the forecast period owing to the region's rapid demographic expansion, increased number of middle- and lower-class residents, and growing propensity for electrification of automobiles. Other than four-wheeled vehicles, transportation is also electrified. Since its debut, shared electric-assist bicycles, electric scooters, and E-three-wheelers have become widely available across this region.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the lower adoption of three-wheelers in this region than in other regions. However, a sizeable portion of E-3Ws are employed for commercial activities, such as the delivery of supplies and merchandise inside urban or industrial areas.



Key players in the market

Some of the key players profiled in the Electric Three Wheeler Market include Kinetic Green Energy & Power Solutions Ltd., Bodo Vehicle Group Co. Ltd, Mahindra Electric Mobility Limited, E-tuk, Omega Seiki Pvt. Ltd, Piaggio & C. SpA, Lohia Auto Industries, Terra Motors, Gayam Motor Works Pvt. Ltd, Atul Auto Limited, Terra Motors Corporation, Changzhou Yufeng Vehicle Co. Ltd., Xianghe Quiangsheng Electric Tricycle Factory, Groupe PSA, Adapt Motors Pvt. Ltd. and Electrode.

Key Developments:

In November 2020, Omega Seiki Announces the Launch of Smart Electric Three Wheeler Range Omega Seiki Mobility expands its E3W range by introducing a new range of smart EVs, including Stream (electric passenger rickshaw), Ride (e-rickshaw), and Sun Ri (E-3W cargo). These new products are 99% localized and are manufactured, claiming the vision of Make in India.

In October 2020, Mahindra Electric Mobility revealed its new electric 3-wheeler cargo model, Treo Zor. The Treo Zor is developed on the Treo platform and is available in 3 different structures: pickup, delivery van, and flatbed.

In December 2019, Piaggio Group Launches the Electric-3Ws, Ape E-City Piaggio Group, an Italian company, makes its foray into electric vehicles by unveiling its new Electric Three Wheeler ‘Ape E-City’ with battery swap technology for the Indian market.

Types Covered:
• Hybrid
• Battery Powered
• Other Types

Driving Ranges Covered:
• Less Than 50 Miles
• 50–100 Miles
• Above 100 Miles

Battery Types Covered:
• Lead Acid
• Lithium ion
• Nickel-Metal Hydride
• Other Battery Types

Power Types Covered:
• Up to 1000W
• 1000 W to 1500 W
• Above 1500 W

Battery Capacities Covered:
• Below 3kWh
• 3 - 6kWh
• Above 6kWh

Seat Capacities Covered:
• One
• Two
• Three
• Four
• Above Four

End Users Covered:
• Passenger Carrier
• Load Carrier

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances