Electric Utility Vehicle Market

Market Overview

The global electric utility vehicle market size was valued at USD 17 billion in 2021 and is projected to reach USD 26.60 billion by 2030 at a CAGR of 5.1% from 2022 to 2030.

Electric utility vehicles are primarily an alternative for utility terrain vehicles that are powered by internal combustion engines. Utility vehicles find application in wineries, parks, floriculture, large estates, farms, logistics, recreational activities, and last-mile deliveries, among others. Electric utility vehicle technology assists in attaining the goal of reducing carbon emission by contributing towards minimizing the impact of global warming.

According to the United States Environmental Protection Agency (EPA), a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year. Automobile manufacturers are relying on innovative technologies to reduce their carbon footprint and improve business efficiency and profitability. Transportation electrification presents greater opportunities for utilities to improve better customer engagement. Thus, the rising focus of automobile manufacturers towards curbing growing carbon emissions is projected to drive the demand for electric utility vehicles during the forecast period.

Intended Audience

1. Electric Utility Vehicle Manufacturers
2. Electric Utility Vehicle Service Providers
3. System Integrators
4. Potential Investors
5. Research Institutes

Regional Analysis

Geographically, the global electric utility vehicle market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East and Africa (LAMEA).

North America is expected to witness dynamic growth in the electric utility vehicle market on account of the early adoption of technological advancements such as modernization of transportation with advancements and innovation targeting a fuel-efficient economy and the adoption of electric vehicles over conventional vehicles for greener transportation. For instance, the Northwestern University in Evanston, Illinois is on a mission to reduce greenhouse gas emissions by 30% till 2030 with the use of a fleet of 10 Polaris GEM electric vehicles to traverse the university campus.

Europe is expected to witness significant growth in the electric utility vehicle market during the forecast period, backed by the widespread presence of established automobile manufacturers and their growing investments in innovation and electric mobility to attain a collective goal of green and fuel-efficient transportation. For instance, Volkswagen invested USD 10.31 billion in electric mobility to reduce the CO2 emission of its vehicle fleet to zero by 2050. Volvo, a leading automobile manufacturer based in Sweden, aims for 50% of its sales to be fully electric by 2025. Thus, established manufacturers have an opportunity to invest in electric utility vehicles for application in agriculture, tourism, industry & commerce, and the public sector, among others.

Asia Pacific is pegged to be the fastest-growing economy in the electric utility vehicle market with countries such as China, Japan, and India adopting incentive programs or actions to end ICE vehicle sales in the future. For instance, in September 2017, China announced plans to end the production and sales of ICE vehicles by 2040, whereas in the same year, the Indian government announced its ambitious goal of ensuring that all new vehicles after 2030 are electric, which will essentially translate to a ban on the sale of ICE vehicles post 2030. These factors are expected to drive the demand for electric utility vehicles in the region during the coming years.

Latin America is expected to witness healthy growth in the electric utility vehicle market with countries across the region striving to reduce carbon emissions in the transportation sector and improve environmental conditions. Infrastructure development has not only let industrial verticals grow and adapt to new technologies, but also lowered carbon emissions in the region. For instance, according to the European Union Institute for Security Studies (EUISS), Latin American countries account for nearly 9.5% of global GHG emissions with Brazil and Mexico as the region’s largest emitters. This scenario is expected to offer several untapped markets for electric utility vehicles in the region.

The MEA region is expected to witness substantial growth in the electric utility vehicle market with regional governments and agencies taking initiatives towards sustainable development. For instance, the UAE government has introduced national initiatives such as the National Climate Change Plan for 2017–2050 to ensure sustainable development while preserving the environment. Such measures are expected to accelerate the adoption of electric utility vehicles in the region.

Segmental Analysis

The global electric utility vehicle market can be segmented by type, application, and region.

By type, the global electric utility vehicle market can be segmented by battery acid lead, gel lead, and lithium. The lithium segment is expected to drive the global electric utility vehicle market as batteries using combinations of lithium-ion and its variations are gaining widespread acceptance due to their superior efficiency, reduced weight, lower charging time, better power output, longer lifetime, and reduced environmental implications from battery disposal.

By application, the global electric utility vehicle market can be segmented into the logistics & delivery industry, public sector, recreation & tourism, agriculture, and others. On account of the growth of supply chain logistics and last mile delivery services, the electric utility vehicle market is expected to witness significant growth in the logistics & delivery industry segment.