Global Electric Utility Vehicle Market Size, Share, Industry Trends and Forecast 2027

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%.

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The growing electrification of utility vehicles, increased charging density, flourishing logistics & warehousing industry, and rising commercial transport are expected to increase the demand for electric utility vehicles. Electric all-terrain vehicles (ATVs), utility task vehicles (UTVs), utility carts, shuttle carts, and industrial utility vehicles are gradually replacing their ICE counterparts. For instance, electric ATVs and UTVs are increasingly deployed in commercial transport, recreation, agriculture, forestry, defence, and hunting, owing to their silent operations and lower emissions than ICE variants. Likewise, the rapid setup of charging stations across semi-public places has increased the feasibility of electric shuttles and utility carts. Furthermore, due to increased use in e-commerce and logistics industries, the need for in-house material handling operations has also increased the demand for battery-operated industrial 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.

Factors such as a large e-commerce industry and an established ecosystem for industrial and manufacturing companies with their warehousing capabilities make North America an attractive market for industrial vehicle manufacturers. Moreover, an extensive 3PL network has led to the growth of the warehousing sector in North America. Exhibitions and trade shows such as ProMat and MODEX, held annually, also help material handling equipment manufacturers to look for prospective customers in the region, propelling the electric industrial utility vehicles market. Companies such as Hyster Yale (US), Caterpillar (US), Clark Material Handling Company (US), Crown Equipment Corporation (US), Noblelift (Canada), and Vallee (Canada), among others, develop electric industrial utility vehicles in this region.

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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