Quadricycle and Tricycle Market

Market Overview

The global quadricycle and tricycle market was valued at USD 5.8 billion in 2021. It is expected to reach USD 13.56 billion by 2030, growing at a CAGR of 9.9% during the forecast period (2022–2030).

A quadricycle, or microcar, has four wheels, whereas a tricycle has three wheels—two in the back and one up front. They frequently have rubber wheels, rubber buggy wheels, leather belts, chain drives, and iron handlebars. Quadricycles and tricycles are commonly used to transport cargo, for recreation, and for exercise within cities. They can be pedal-operated or powered by electricity, solar energy, or gasoline.

These cycles can help to lower the risks of contracting chronic diseases and improve the overall cost-effectiveness of short-distance travel. Quadricycles and tricycles take up very little space on the road, emit minimal pollution, and are considered safe transportation modes. Tricycles and quadricycles, used extensively for personal and professional purposes, offer more excellent stability and comfort than conventional bicycles.

Market Dynamics

Market Drivers

Alternative Fuel Powered Vehicles

The introduction of numerous solar-powered or electric models has increased demand for quadricycles and tricycles, becoming increasingly popular as a practical and affordable alternative to larger vehicles. Many new players are entering the market by releasing their electric models in addition to well-known manufacturers. The most significant barriers to market expansion are the lack of charging infrastructure and the outdated technology of other fuel-powered vehicles. However, growth will be fueled soon by technological advancements and rising government spending on improving the infrastructure for charging.

Market Restraints

Changing Government Regulations

Many nations have recently legalized quadricycles on public streets, with different driving ages. Despite quadricycles' small parking spaces and low initial investment cost, sales are less due to low customer demand and knowledge. Manufacturers may need to adapt as global quadricycle emission regulations change, which could impede vehicle development. Lack of charging infrastructure in many countries, except China, the US, and parts of Europe, may slow the electric quadricycle market growth. In developed countries, the use of tricycles for both transportation and recreation is on the rise. Due to poor logistics and economic development, developing countries have low tricycle sales globally.

Market Opportunities

Government Initiatives and Technological Advancements

Many governments worldwide permit using quadricycles in their nations under various government programs. For instance, the Chief Minister of Madhya Pradesh, a state in Madhya Pradesh, gave 100 disabled people motorized tricycles in January 2021. In addition, several startups and established players are developing the latest technology and alternative-powered fuel technology to lower carbon footprints and pollution levels globally. For example, The Dutch EV startup Squad-Mobility updated the design of the Solar City Car, a quadricycle that uses solar energy, in May 2020. With doors and air conditioning, the new Squad Solar City Car is a GBP 5,000 solar-powered electric quadricycle with a maximum range of 62 miles. However, because heavy-duty batteries and charging infrastructure are a significant concern in many parts of the world, alternative fuel vehicles are anticipated to dominate the market soon. As a result, infrastructure and technology must be updated.

Regional Analysis

Asia-Pacific Dominates the Global Market

By region, the global quadricycle and tricycle market is segmented into North America, Europe, Asia-Pacific, and the Rest of the world.

Asia-Pacific is the most significant shareholder in the global quadricycle and tricycle market and is expected to grow at a CAGR of 11.03% during the forecast period. China is a primary electric vehicle market. Numerous manufacturers, OEMs, and battery producers serve domestic and international markets. In November 2019, China produced 29,100 passengers and 141,300 freight tricycles. Several players are investing in cutting-edge products to increase their market share. For example, ADATA Technology released a 100-km electric tricycle in 2020, which can go to a top speed of 80kmph. Its intelligent system enables object delivery, route planning, management, and safe vehicle monitoring. Major players are releasing new models to expand in developing markets. Rising global demand will boost the country's quadricycle and tricycle market over the forecast period.

Europe is expected to grow at a CAGR of 11%, generating USD 3,413.49 million during the forecast period. Compared to 479 registrations in 2018, there were 490 electric quadricycles registered in Germany in 2019, which is anticipated to increase significantly in the future. Several significant players are investing in creating cutting-edge products to increase their market share in the nation. For example, DPD Germany announced in June 2018 that it would use eight electric tricycles to deliver packages in Berlin, Hamburg, and Cologne. The TRIPL is appropriate for parcel deliveries in pedestrian zones and other traffic-restricted areas due to its small size and locally emission-free electric drive. Additionally, the nation entered a strict state of lockdown because it had initially been one of the worst-hit nations worldwide. This lockdown impacted the sales of all vehicles during March and June. However, it is anticipated that the market will rebound during the expected time frame.

North America is expected to grow significantly over the forecast period. Several startups are creating the newest quadricycles and tricycles to capture the expanding market share. For illustration: according to US startup Aptera, most drivers won't need to charge their solar and electric vehicles because they have a range of up to 1,000 miles on a full battery. The three-wheeled Aptera vehicle, which is 4.4 meters long, 2.2 meters wide, and 1.4 meters high, can fit two adults and a pet. Numerous last-mile delivery services use tricycles because they are cost-effective and environmentally friendly, and their operating costs are much lower than those of traditional fuel vehicles.

Many of the nation's largest transportation and taxi companies are searching for alternative fuels to lower environmental pollution and cut costs. For example, Emergency Taxi, based in Gauteng, claims to be the first local ride-hailing service to roll out a fleet of gas-powered, environmentally friendly vehicles as of July 2019. In addition, a fleet of 16 Bajaj Qute vehicles made in India has recently been introduced to the local market thanks to a partnership between the ride-hailing service and Trans-Serv SA, a local provider of transport services. To reduce carbon footprints and draw in customers, startups across the nation are investing heavily in developing quadricycles and tricycles powered by environmentally friendly fuel. For example, the electric three-wheeler Mellow Vans, which targets the last-mile delivery market, underwent testing in November 2020 as part of several sophisticated large-scale proof-of-concept projects with retailers like DHL, Takealot, and Checkers in South Africa. The vans are anticipated to hit the market in the middle of 2021, which will fuel the market over the forecast period.

Segmental Analysis

The global quadricycle and tricycle market is segmented by power source type and application type.

Based on power source type, the global market is bifurcated into electric, gasoline, and solar.

The gasoline segment is the highest contributor to the market and is expected to grow at a CAGR of 10.89% during the forecast period. Quadricycles have gained popularity in Europe since 2013, and a new segment of the market known as "sub-A" models has emerged to fill the gap between heavy mini-cars and passenger cars. The smallest segment of passenger cars, the A category, is called "sub-A" cars. By 2013, all European OEMs and seven of the top ten global OEMs had begun introducing sub-A models in the European market. Typically, the mass of these vehicles was under 550 kg.

In contrast, the introduction of the gasoline quadricycle into the automotive market was recently witnessed in developing nations like India. Quadricycles, different from standard four-wheelers in that they weigh almost as little as entry-level small cars, have smaller and more economical engines, and are furnished with basic features, were given commercial sales approval in India in 2018.

Around 2,800 electric quadricycles were registered in the European Union in 2019. Italy had the most electric quadricycle registrations in 2019, with 623, while Ireland saw a 550 percent increase. The market is anticipated to increase significantly due to the development of fuel cell technology. Various tax benefits for governments worldwide will significantly fuel the growth of the electric vehicle segment during the anticipated period. Additionally, growing environmental consciousness is motivating consumers to purchase electric vehicles. OEMs are also releasing electric quadricycles and tricycles in the market as they consider the potential for the electric segment.

Based on the application, the global market is bifurcated into personal and commercial.

The commercial segment owns the highest market share and is expected to grow at a CAGR of 11.29% during the forecast period. As these electric bikes typically have detachable containers and the driver is not required to have a driver's license, the electric tricycle has several vital features for commercial applications. Many new-age startups choose electric tricycles because they are more economical and environmentally friendly. For instance, upstream ordered ten personalized CityQ e-bikes in December 2020 after testing its mobile car wash operation in the Baltics, the Nordics, and Poland.

In contrast to the first CityQ cargo ebike, which was delivered to the startup by early 2021, CityQ can be updated automatically through software updates. Additionally, global companies are expanding their presence and dominance in major markets. Major e-commerce companies pledge to use greener transportation and add electric tricycles to their fleet for last-mile deliveries.

New startups are revolutionizing the field of personnel mobility by introducing cutting-edge small vehicles for intracity travel. For instance, Micro Mobility Systems introduced the Microletta electric trike and the Microlino 2.0 electric microcar. The Microlino 2.0 started shipping in 2021 and has a 200km reported range. In addition, the Renault Mobilize brand's Twizy-inspired EZ-1 quadricycle, which is 2.3 meters long, and 50% recycled, has full glass doors to improve visibility and the option to extend its life by changing batteries when it was introduced in January 2021. At the end of the EZ-1's life, the manufacturer asserts that 95% of its components can be recycled.

Recent Developments

• October 2021- Citroen unveiled the electric quadricycle Ami Cargo in Europe. The mini-Ami electric LCV, which weighs less than 425 kg, has a commercial version called the Citroen Ami. It has an 8 BHP electric motor powered by a 5.5 kWh lithium-ion battery pack.
• October 2022- Tech Mahindra, a leading provider of digital transformation, consulting, and business re-engineering services and solutions, and SoftTech, a provider of cutting-edge digital solutions for the industry, partnered to transform the global construction and infrastructure industry digitally.