Low Speed Electric Vehicle Market to Register 8.7% CAGR during 2018–2025

As the environmental concerns across the globe are rising, the adoption of electric vehicles is increasing as well. Since vehicles are among the major factors responsible for the deckling air quality, it is highly imperative that alternative solutions instead of conventional fuel-based vehicles are utilized more. The general public is becoming aware regarding these concerns and hence, people are now more inclined towards electric vehicles. Governments of several countries as well are offering support in the form of grants and subsidies to encourage the adoption of such vehicles. In Asia-Pacific (APAC) specifically, governments are aiming towards electrifying passenger vehicles in the public transport system.

Due to all these factors, the demand and adoption of low speed electric vehicles (LSEV) are growing at a rapid pace. The global LSEV market is projected to attain a value of $68.0 billion in 2025, increasing from $35.2 billion in 2017, and is expected to advance at an 8.7% CAGR during the forecast period (2018–2025), as per a report by P&S Intelligence. A LSEV is faster than an e-bike or a bicycle, is easy to park and charge, and is available at a low cost. These features make these vehicles optimum for short travelling distances, which is why they are increasingly becoming popular in the public transport fleet.

Geographically, the APAC region emerged as the largest low speed electric vehicle market in the past, with China leading the regional domain. This is because of the large population base, increased government support in the form of regulations and subsidies, and technological advancements in the country. The adoption of these vehicles is also predicted to grow significantly in India in the years to come.

Therefore, the demand for LSEVs is rising due to the surging environmental concerns across the globe.

Source: P&S Intelligence