Automotive and Transportation

Electric Utility Vehicle Market Report Cover

Electric Utility Vehicle Market

Electric Utility Vehicle Market Report Cover

Electric Utility Vehicle Market Size, Share, Growth & Industry Analysis, By Battery Type (Lithium-ion, Lead-acid, Others), By Drive Type (Front Wheel Drive, Rear Wheel Drive, All-Wheel Drive), By Vehicle Type (All-Terrain Vehicle, Multi Utility Vehicle, Electric Shuttle) and Regional Analysis, 2023-2030

Author : Antriksh P.


Pages : 120

Base Year : 2022

Release : January 2024

Report ID: KR332


Electric Utility Vehicle Market Size

The global Electric Utility Vehicle Market size was valued at USD 19.12 billion in 2022 and is projected to reach USD 27.87 billion by 2030, growing at a CAGR of 8.25% from 2023 to 2030. In the scope of work, the report includes products offered by companies such as Alke, Renault Group, Briggs & Stratton, Rivian, Textron Inc., Columbia Vehicle Group Inc., Marshell Green Power, Addax Motors, Deere & Company, American Landmaster, Polaris Inc., CLUB CAR, Star EV Corporation and others.

The market perspective for electric utility vehicle is exceptionally promising, driven by a convergence of factors that underscore the growing importance of sustainability and energy efficiency in transportation. Key drivers aiding industry growth include the increasing global awareness of climate change and environmental concerns, stringent emissions regulations, and the decreasing cost of battery technology. The pressing need to reduce greenhouse gas emissions and dependence on fossil fuels has incentivized governments and businesses alike to invest in electric utility vehicles.

Furthermore, the rapid development of charging infrastructure, coupled with advancements in battery technology, has extended the range and improved the performance of electric utility vehicles. This expansion has increased their applicability in various industries, ranging from logistics and construction to municipal services and agriculture.

There is a growing demand for electric utility vehicles in urban delivery services, waste management, and public transportation. Additionally, the integration of renewable energy sources with electric utility vehicles holds immense potential for energy storage and grid stabilization. Moreover, collaborations between automotive manufacturers and tech companies to enhance vehicle connectivity and autonomous features are likely to open up new avenues for innovation in the electric utility vehicle market.

Analyst’s Review 

In the electric utility vehicle market, key trends are poised to shape the landscape from 2023 to 2030. One of the prominent trends is the proliferation of electric light commercial vehicles (eLCVs) for last-mile delivery services in urban areas. The forecasted years will witness a surge in eLCVs, as logistics companies seek to meet strict emissions targets while maintaining efficient delivery operations.

Another major trend is the evolution of electric utility vehicles from traditional designs to purpose-built platforms. This shift is anticipated to lead to more versatile and specialized vehicles tailored to specific industry needs, such as electric vans designed for grocery deliveries or electric trucks optimized for construction tasks.

Furthermore, battery technology is expected to continue to improve, thereby extending the range of electric utility vehicles and reducing charging times. As a result, the electric utility vehicle market is projected to witness increased adoption, particularly in sectors such as public transportation, where longer routes are commonplace.

Market Definition

Electric utility vehicles (EUVs) are a category of electric vehicles (EVs) designed primarily for commercial and industrial purposes. They encompass a wide range of vehicles powered by electricity and are distinct from passenger EVs due to their focus on utility and specific applications. Examples of EUVs include electric trucks, vans, buses, and specialty vehicles such as forklifts and utility terrain vehicles (UTVs).

The applications of electric utility vehicles are diverse. They are commonly used in urban delivery services, where electric vans and trucks are well-suited to meet the growing demand for emissions-free last-mile deliveries. Electric buses are increasingly deployed in public transportation systems to reduce urban air pollution and improve energy efficiency. Electric forklifts find applications in warehouses and industrial facilities, providing a cleaner and quieter alternative to traditional internal combustion engine forklifts. Furthermore, electric utility terrain vehicles (UTVs) are used in agriculture, mining, and recreational activities due to their versatility and eco-friendliness.

From a regulatory perspective, the use of electric utility vehicles is often encouraged and supported through various incentives and regulations aimed at reducing emissions and promoting sustainable transportation. Governments in numerous regions offer subsidies and tax benefits to promote the adoption of electric utility vehicles and the development of charging infrastructure. Emission standards and environmental regulations are further driving the transition from conventional utility vehicles to electric ones, particularly in urban areas where air quality is a significant concern.

Market Dynamics

A significant driving factor in the electric utility vehicle market is the stringent emissions regulations imposed by governments worldwide. As countries seek to reduce greenhouse gas emissions and combat climate change, they are increasingly implementing stricter emissions standards for commercial vehicles. This regulatory pressure is compelling businesses to transition to electric utility vehicles to meet these standards and avoid hefty fines. Consequently, this regulatory push is driving the adoption of electric utility vehicles across various industries.

One notable market opportunity lies in the integration of renewable energy sources with electric utility vehicles. This involves using renewable energy, such as solar or wind power, to charge electric vehicle batteries. By harnessing clean energy sources, companies can not only reduce their carbon footprint but also achieve greater energy independence. This approach presents a significant opportunity for companies to contribute to sustainability goals while potentially reducing long-term operational costs.

One of the major restraints hindering the growth of the electric utility vehicle market is the upfront cost of electric vehicles compared to their conventional counterparts. Electric utility vehicles tend to have higher purchase prices due to the cost of advanced battery technology. While the total cost of ownership is often lower over the vehicle's lifetime, the initial investment can present a significant barrier for some businesses, especially small and medium-sized enterprises.

Segmentation Analysis

The global electric utility vehicle market is segmented based on battery type, drive type, vehicle type, application, and geography.

By Battery Type

Based on battery type, the electric utility vehicle market is bifurcated into lithium-ion, lead-acid, and others. The lithium-ion segment achieved the largest market revenue share in 2022. The increasing demand for lithium-ion batteries is directly correlated to the rise in popularity of electric utility vehicles. Lithium-ion batteries are highly favored due to their higher energy density, longer range, and efficient energy utilization, making them the preferred choice for electric utility vehicles. This increasing demand for lithium-ion batteries is driven by several factors, such as range anxiety, the need for battery efficiency, and the shift from lead-acid to lithium-ion batteries.

By Drive Type

Based on drive type, the electric utility vehicle market is divided into front wheel drive, rear wheel drive, and all-wheel drive. The rear wheel drive segment held the largest market share in 2022. The expansion of this segment can be attributed to the favorable characteristics of rear wheel drive, which include enhanced fuel efficiency and a well-balanced distribution of vehicle weight, leading to improved stability on difficult terrains. Additionally, rear wheel drive proves to be a cost-effective option for consumers, as it requires lower maintenance for drivetrains and enables the engine to provide additional mileage. These advantageous features are driving the segment growth.

By Vehicle Type

By vehicle application, the electric utility vehicle market is divided into commercial, industrial, agricultural, recreation, and others. The commercial segment accumulated the largest market share in 2022 due to the growing need for electric shuttles in urban areas for passenger commercial transport, as well as the rising demand for utility carts to facilitate slightly longer last-mile travel in both rural and urban settings.

Prominent manufacturers, such as Columbia Vehicle, CLUB CAR, Electric Last Mile Solutions, and Ari Motors, produce electric utility carts specifically designed for commercial transport requirements. These vehicles provide efficient and environmentally friendly mobility solutions for a wide range of applications in various locations.

  • For instance, in August 2023, Addax Motors strengthened its presence in the Scandinavian market by expanding its distribution network. Sandhaug AS is diversifying its offerings by incorporating Addax Motors' vehicle range into its existing product portfolio. This partnership in Norway is a direct outcome of Addax Motors' ambitious expansion strategy across Europe and other global markets.

Electric Utility Vehicle Market Regional Analysis

Based on region, the global electric utility vehicle market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America dominated the market in 2022. The region's leadership can be attributed to several factors. Firstly, North America has been at the forefront of electric vehicle adoption, with the United States being a significant contributor to this trend. American companies Tesla, Rivian, and traditional automakers have made substantial investments in electric utility vehicles, catering to both domestic and international markets.

Additionally, stringent emissions regulations at both the federal and state levels have incentivized businesses to transition to electric utility vehicles to comply with environmental standards. The demand for electric utility vehicles is particularly strong in North American cities, where urban logistics and last-mile delivery services are driving the need for emission-free transportation solutions. The well-developed charging infrastructure in many urban areas further supports the growth of the electric utility vehicle market in North America.

Competitive Landscape

The global electric utility vehicle market report will provide valuable insight with an emphasis on the fragmented nature of the sector. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by firms in this market. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

List of Key Companies in Electric Utility Vehicle Market

  • Alke
  • Renault Group
  • Briggs & Stratton
  • Rivian
  • Textron Inc.
  • Columbia Vehicle Group Inc.
  • Marshell Green Power
  • Addax Motors
  • Deere & Company
  • American Landmaster
  • Polaris Inc.
  • CLUB CAR
  • Star EV Corporation

Key Industry Developments 

  • September 2023 (Agreement): Addax Motors and Durso Srl announced their strategic partnership in Italy, aimed at jointly distributing electric light commercial utility vehicles to the agricultural and industry sectors.
  • July 2023 (Expansion): Polaris announced the expansion of its Ranger lineup with the introduction of the highly anticipated Ranger XD 1500. This groundbreaking addition represents a new class of extreme duty utility side-by-sides in the industry, boasting an impressive 1500cc 3-cylinder engine.
  • June 2023 (Collaboration): John Deere unveiled a strategic collaboration with EGO and its parent company Chervon. This partnership enables both brands to offer homeowners a range of EGO's innovative and efficient battery-powered lawn care solutions through John Deere's extensive network of dealers.

The Global Electric Utility Vehicle Market is Segmented as:

By Battery Type

  • Lithium-ion
  • Lead-acid
  • Others

By Drive Type

  • Front Wheel Drive
  • Rear Wheel Drive
  • All-Wheel Drive

By Vehicle Type

  • All-Terrain Vehicle (sports)
  • Multi Utility Vehicle (commercial)
  • Utility Terrain Vehicle (bigger version of ATV with larger capacity)
  • Electric Shuttle
  • Others

By Application

  • Commercial
  • Industrial
  • Agricultural
  • Recreation
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
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CUSTOMIZATION OFFERED
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global market is projected to reach USD 27.87 billion by 2030, growing at a CAGR of 8.25% from 2023 to 2030.
The global market was valued at USD 19.12 billion in 2022.
The rapid development of charging infrastructure, coupled with advancements in battery technology, has extended the range and improved the performance of electric utility vehicles.
Top manufacturers of electric utility vehicle are Alke, Renault Group, Briggs & Stratton, Rivian, Textron Inc., Columbia Vehicle Group Inc., Marshell Green Power, Addax Motors, Deere & Company, American Landmaster, Polaris Inc., CLUB CAR, Star EV Corporation, and others.
Asia Pacific is expected to be the fastest growing region in the electric utility vehicle market over the forecast period.
By battery type, lithium-ion will hold the maximum share in the electric utility vehicle market with the revenue value by 2030.
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