Market research firm Technavio has recently released a report stating the global electric three-wheeler market will grow to reach 306,000 units between 2021 and 2025. Based on the current market scenario, latest trends and drivers, and the overall market environment, Technavio predicts that the electric 3-wheeler market will witness a CAGR (Compound Annual Growth Rate) of almost 7 per cent. This is despite the expected decline in 2021, compared to 2020, as a result of challenges caused by the COVID-19 pandemic.
Having said that, the report also mentions that COVID-19 will have a low impact on the electric three-wheeler market. Technavio has also mentioned some of the top players in its report, which includes several Indian OEMs like - Kinetic Green Energy & Power Solutions, Lohia Auto Industries, Mahindra Electric Mobility, Goenka Electric Motor Vehicles, and Kerala Automobiles. While other global players in the list include - Bodo Vehicle Group, E-Tuk Factory BV, Omega Seiki, Piaggio & C. Spa, and Terra Motors.
Technavio's research has shown that the market is concentrated right now, and the degree of concentration will accelerate during the forecast period. Having said that, the lack of charging infrastructure and long charging durations are likely to pose a challenge for the market vendors. As for market segmentation, the electric three-wheeler market will be divided into passenger carriers or goods carriers. Also, geographically, most of the growth will be seen in the Asia-Pacific (APAC) region, with countries like - China, India, Sri Lanka, Bangladesh, Nepal and Thailand having the highest revenue share globally. In fact, the report states that 98 per cent of the market's growth will originate from APAC during the forecast period.
This study essentially identifies the push toward alternative energy vehicles globally as one of the prime reasons driving the electric three-wheeler market growth during the next few years.