Summary
– Electric utility vehicle market valued at $8.59 billion in 2021, projected to reach $24.98 billion by 2031 with a CAGR of 11.4%
– Asia-Pacific expected to lead the global market, driven by demand for power sports, government regulations, and rise in trend of non-fossil fuel-based vehicles
– Manufacturers utilizing lithium-ion batteries in electric utility vehicles due to advantages like light weight, high capacity, and declining prices
– Global electric utility vehicle market segmented into vehicle types such as sport utility vehicle, multi utility vehicle, and utility terrain vehicle
– Growth factors include new vehicle launches, government regulations on emissions, and increasing fuel costs, while challenges include lack of charging infrastructure and limited driving range due to COVID-19 pandemic disruptions
Article
The electric utility vehicle market is experiencing significant growth, with a valuation of $8.59 billion in 2021 expected to reach $24.98 billion by 2031 at a CAGR of 11.4%. The Asia-Pacific region is projected to dominate the market, driven by factors such as increased demand for power sports recreational activities, higher adoption rates of smart mobility services, and government regulations promoting non-fossil fuel-based vehicles. The region presents lucrative opportunities for market growth, especially in countries like India, China, and Indonesia where consumer perception and willingness to purchase vehicles with new technologies are high.
The popularity of lithium-ion batteries is on the rise due to their light weight, high capacity, and decreasing prices. Electric utility vehicle manufacturers are increasingly utilizing lithium-ion batteries in their products due to their advantages over lead-acid batteries. Manufacturers are also focusing on innovating lithium-ion batteries to provide fast charging in upcoming electric and utility vehicles. The global electric utility vehicle market is segmented into different vehicle types such as sport utility vehicles, multi utility vehicles, utility terrain vehicles, and others. Sport utility vehicles, in particular, are gaining traction due to their off-road capabilities and increased cargo storage.
The growth of the electric utility vehicle market is being driven by the launch of new and improved electric vehicles, stringent government regulations on vehicular emissions, and rising fuel costs. However, challenges such as the lack of charging infrastructure and limited driving range of electric vehicles are hampering market growth. Technological advancements and proactive government initiatives are expected to offer growth opportunities in the coming years. The impact of the COVID-19 pandemic also affected the market, resulting in supply chain disruptions, low sales of passenger cars, and temporary suspensions of vehicle production globally.
Despite the setbacks caused by the pandemic, it is predicted that the electric vehicle industry will bounce back with higher growth in the coming years. Rising fuel prices, concerns about environmental pollution, and government subsidies are expected to drive growth in the industry. Key findings of the market analysis include the significant growth anticipated in the lithium-ion battery segment, utility terrain vehicle segment, and agricultural application segment. The Asia-Pacific region is expected to register the highest CAGR during the forecast period. Leading market players in the electric utility vehicle industry include companies such as Alke, Bollinger Motors, Club Car, Ford Motor Company, Hyundai, General Motors Company, and Tesla.
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