Light Electric Vehicles Market Report 2025

The light electric vehicles market size has grown strongly in recent years. It will grow from $84.38 billion in 2024 to $92.24 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to urbanization and congestion issues, environmental awareness and sustainability, government incentives and policies, rising fuel costs, last-mile connectivity solutions.

The light electric vehicles market size is expected to see rapid growth in the next few years. It will grow to $135.65 billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to technological innovations in battery technology, urban mobility solutions integration, e-commerce and delivery services growth, changing consumer lifestyles, government commitment to green transportation. Major trends in the forecast period include focus on lightweight and foldable designs, government incentives and regulations, advancements in battery technology, integration with smart city initiatives, expansion of electric micro-mobility options.

The growing demand for e-motorcycles is anticipated to boost the light electric vehicle market in the coming years. An e-motorcycle, or electric motorcycle, is powered by an electric motor rather than a traditional gasoline engine. As a type of light electric vehicle, e-motorcycles are recognized for their environmental benefits and greater efficiency compared to traditional motorcycles, as they produce no emissions and have lower energy consumption. Consequently, the rising demand for e-motorcycles is expected to drive growth in the light electric vehicle market. In December 2023, according to the Office of Energy Efficiency and Renewable Energy, a U.S.-based government agency, e-motorcycle sales in the United States grew from approximately 875,000 units in 2021 to 1.1 million units in 2022. Thus, the increased demand for e-motorcycles supports the expansion of the light electric vehicle market.

Growing government initiatives and subsidies are expected to fuel the light electric vehicle market's growth. Such government incentives and subsidies play a vital role in influencing sectors like energy and transportation, taking forms such as grants, tax credits, or direct financial support to encourage specific activities or technologies. By reducing the higher initial costs of electric vehicles (EVs), these subsidies make EVs more accessible to consumers. They may include tax credits, cash rebates, or reduced registration and licensing fees to make electric vehicles affordable to a broader market. For instance, in 2023, a report by the International Energy Agency (IEA) projected that the electric car market would grow significantly, with sales likely to surpass 14 million by the end of the year, marking a 35% year-over-year increase. The report emphasizes that strong policy measures remain critical to the growth of EV markets. Accordingly, the increase in government initiatives and subsidies continues to drive the light electric vehicle market forward.

Product innovation is a significant trend gaining traction in the light electric vehicles market. Leading companies in this sector are concentrating on developing cutting-edge products to enhance their market position. For example, in September 2024, Niu Technologies, a China-based electric scooter manufacturer, launched the KQi 100 series of electric scooters, which includes the KQi 100P and KQi 100F models. This series features a clear LCD dashboard and advanced app connectivity options, allowing users to set the minimum glide speed needed to activate the motor, establish a charging limit to mitigate battery aging, and configure various settings.

Major players in the light electric vehicle market are forming strategic partnerships to leverage each other's strengths and resources in pursuit of shared objectives, such as developing smart EV chargers. These chargers are equipped with advanced technology that offers features like remote monitoring, scheduling, and energy management, thereby enhancing efficiency and user control. A strategic partnership is a collaborative agreement among two or more organizations aimed at achieving mutually beneficial outcomes through resource sharing, expertise, and capabilities. For instance, in February 2022, Wallbox N.V., a Spain-based company specializing in smart charging systems for electric vehicles, and Polaris Inc. announced a collaboration in the United States and Canada. Polaris, a prominent manufacturer of off-road vehicles, agreed to sell the 40-amp version of Wallbox's popular Pulsar Plus charger directly to its off-road electric vehicle (EV) customers. During the launch of the Ranger XP Kinetic electric side-by-side, Polaris revealed its partnership with Wallbox to provide new 40-amp chargers.

In June 2022, Club Car Inc., a US-based company specializing in the production of electric and gas-powered golf carts and small utility vehicles for personal and commercial purposes, completed the acquisition of Garia A/S, including its Melex brand, for an undisclosed sum. This acquisition is poised to enhance the global presence of the combined brands. Garia A/S, based in Denmark, is renowned for manufacturing premium electric utility vehicles and golf cars.

Major companies operating in the light electric vehicles market include Stellantis N.V., General Motors Company, Bayerische Motoren Werke AG, Giant Manufacturing Co Ltd., Tesla, Inc., Nissan Motor Co Ltd., BYD Company Limited, AB Volvo, Toyota Industries Corporation, Yamaha Motor Co Ltd., Mahindra & Mahindra Limited, Textron Inc., Polaris Inc., NIO Inc., Jiangsu Xinri E-Vehicle Co Ltd., Yadea Technology Group Co Ltd., XPeng Inc., Rivian Automotive Inc., Accell Group NV, Merida Industry Co Ltd., Lucid Motors Inc., Club Car LLC, Gogoro Inc., Vmoto Limited, Columbia Vehicle Group Inc., Hero Electric Vehicles Pvt Ltd., Govecs AG.

Asia-Pacific was the largest region in the light electric vehicles market in 2024. North America is expected to be the fastest-growing region in the global light electric vehicles market during the forecast period. The regions covered in the light electric vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the light electric vehicles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A light electric vehicle (LEV) is a land vehicle equipped with two or three wheels, an electric motor, and an energy storage system, such as a battery or fuel cell. Typically, it weighs less than 100 kg. The majority of LEVs are e-bikes, which feature a throttle enabling power-on-demand operation.

The primary products within the realm of light electric vehicles consist of hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV). An electric all-terrain vehicle (ATV) is characterized as a motorized off-highway vehicle featuring a straddle-style seat, handlebars for steering, and four low-pressure or non-pneumatic tires. Its essential components encompass a battery pack, electric motor, motor controller, inverters, power controller, e-brakes controller, and power electronics, with power outputs categorized into less than 6 kW, 6-9 kW, and 9-15 kW. Diverse vehicles falling under this category include e-ATV, e-bikes, e-scooter, e-motorcycle, neighborhood electric vehicles, e-lawn mowers, electric industrial vehicles, autonomous forklifts, and automated guided vehicles. These vehicles serve various purposes, including personal mobility, shared mobility, recreation, sports, and commercial applications.

The light electric vehicles market research report is one of a series of new reports that provides light electric vehicles market statistics, including light electric vehicles industry global market size, regional shares, competitors with a light electric vehicles market share, detailed light electric vehicles market segments, market trends and opportunities, and any further data you may need to thrive in the light electric vehicles industry. This light electric vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The light electric vehicles market consists of sales of micro electric vehicles, e-moped, e-rickshaw, and electric quadricycles that are used for personal commute, shared public transport and to carry goods. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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