Market Overview

In 2024, the electric utility vehicle industry will generate a projected revenue of USD 20.7 billion, and it is expected to enlarge at a rate of 5.3% over the forecast period, attaining USD 28.3 billion by the end of the decade. This is primarily because of the growing need for zero-emission, or eco-friendly vehicles, for off-roading and goods transport.

With an improvement in the battery tech, the capacity of such power storage devices surges, thus providing e-utility vehicles a lengthier driving and work interval. This aids in resolving one of the key issues for consumers, which is the requirement for regular recharging. The constant improvement in battery technology results in enhancement in several operational parameters, like acceleration and payload capacity. This makes these vehicles cheaper with the older vehicles that run on diesel and gasoline.

As the number of transactions realized through the internet grows constantly, last-mile delivery transportation is also sought after. According to the UNCTAD estimations, B2B ecommerce transactions may increase more than USD 36 trillion by 2026. Electric utility vehicles are the most suitable in this respect because they do not emit any toxic fumes, require costs of operation and can carry lots of weight. Currently, electric cargo vans are already in use for delivery services by e-commerce multinational companies like Amazon and Flipkart.

Key Insights

·         In 2024, the UTVs category grips the largest industry share of 35%, propelled by applications in agriculture, landscaping, construction, and augmented off-road leisure activities.

·         The UTV category are also the fastest-developing category with an estimated CAGR of 5.7% over the projection period, because of improvements in transmission, battery, motor technology, and advanced features such as GPS navigation and safety.

·         In 2024, the lithium-ion batteries held the largest industry share of 40%, as they offer lengthier working times and are well-matched with numerous electric utility vehicles.

·         Lithium-ion batteries are the fastest-growing battery category with an expected CAGR of 5.6% during 2024–2030, driven by continuous R&D to improve efficiency.

·         Rear-wheel drive holds the largest market share in 2024 due to better weight distribution and cost-effectiveness, while four-wheel drive is the fastest-growing category with a CAGR of 5.9%, offering enhanced safety and control.

·         The two-seater category holds the largest market share at around 55% in 2024, valued for its versatility and flexibility in tight spaces, and it is also the fastest-growing category with a CAGR of 5.5%.

·         Battery electric vehicles hold the largest market share at 50% in 2024, driven by the focus on reducing air pollution, while fuel cell electric vehicles are the fastest-growing category, offering longer travel distances and shorter refueling times.

·         Vehicles with up to 500 kg load capacity hold the largest market share at 35% in 2024, suitable for small-scale shipments and areas with space limitations.

·         In 2024, the North American region held the largest industry share of 45%, propelled by the acceptance of recreational activities and an emphasis on decreasing carbon releases, while APAC is the fastest-rising industry with a CAGR of 6.0%, because of the requirement for last-mile transport and severe air quality problems.

Source: P&S Intelligence