The electric utility vehicle market is projected to grow from USD 18.9 billion in 2022 to USD 23.9 billion by 2027, registering a CAGR of 4.8%. Electric all-terrain vehicles (ATVs), utility task vehicles (UTVs), utility carts, shuttle carts, and industrial utility vehicles were mapped as part of this research. Growing demand for low-emission alternatives to off-road vehicles (e.g., ATVs and UTVs), rapid electrification of utility carts and shuttle carts, and increased shift to use of battery-operated material handling vehicles (e.g., forklifts and tow-tractors) for indoor applications have increased the demand for electric utility vehicles worldwide. Furthermore, with the rapid setup of charging stations across nations, the demand for electric utility and shuttle carts is expected to grow faster than other electric utility vehicles.
Growth in e-commerce and warehousing
The growing need to support the hub and spoke model in e-commerce, automotive component manufacturing, consumable goods, and electronics sectors is increasing the number of warehouses per country. The warehouse and fulfillment sector is expected to register double-digit growth over the next five years, increasing the demand for electric utility vehicles. The US e-commerce penetration rose from approximately 10% of all retail sales in 2019 to about 15% in 2020. As per the US Bureau of Labor Statistics, the number of warehouses in the US increased to 19,194 in 2020 from 15,255 in 2011. With global online e-commerce sales projected to double by 2027, nearly 28,500 warehouses will be added to the stock. The increased number of warehouses will likely lead to heightened demand for industrial electric utility vehicles. This, in turn, will augment revenues for the electric utility vehicle market in the industrial segment during the forecast period.
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Use of battery swapping for electric utility vehicles
Battery swapping at the electric vehicle (EV) charging stations is a new trend that eliminates the time for charging batteries for electric utility vehicle users. Although level 3 EV charging can charge an electric vehicle in 30–60 minutes and ultra-fast charging can charge in 15–30 minutes, they are not compatible with electric utility vehicles. Therefore, battery swapping is a great alternative for electric utility vehicles. Companies such as NIO have installed over 300 battery swapping stations by July 2021 and plan to install around 4,000 more by 2025 in China. Its swapping stations have been used about 2.9 million times globally, with approximately 1,000 battery swapping stations designed outside China. Shell signed an agreement with NIO in November 2021 to develop such battery-swapping EV charging stations jointly. This has created a new opportunity for battery-as-a-service in EV charging. The battery swapping stations are expected to attract more electric utility vehicle customers as they will not have to wait for more charging time. The swap stations will also reduce the upfront cost of the electric utility vehicles as the battery ownership will be replaced by battery leasing.
North America to be the largest market by value during the forecast period
The North American ATV/UTV industry is one of the most advanced ATV/UTV industries globally, contributing more than 50% of the global demand. The demand for electric ATVs/UTVs has surged significantly, owing to the rising recreational activities such as camping, hunting, forest rides, etc., during the pandemic. The region’s electric ATV/UTV sales are dominated by key players such as Polaris, Textron, and John Deere. These vehicles also have witnessed considerable growth in demand in agriculture, with the US government pushing farmers to shift to electric utility vehicles. For Instance, John Deere is working with the government to encourage the use of electric utility vehicles on farms in the US.
Key Market Players
The electric utility vehicle market is dominated by established players such as Polaris (US), Club Car (US), Toyota Industries Corporation (Japan), John Deere (US), and Textron (US), among others.
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