North America Micro Electric Vehicle (EV) Market: Industry Analysis and Forecast (2024-2030)

North America Micro Electric Vehicle (EV) Market Definition:

Micro Electric Vehicle (EV) is a self-propelling automobile that is used for transporting passengers, transportation of goods, and personal use. Self-charging equipment, such as turbochargers and regenerative braking systems that convert kinetic energy into electrical energy, or a large traction battery pack found at charging stations, are used to charge micro EVs. The most prevalent varieties of Micro EVs on the market are battery-electric cars (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). Electric vehicles (EVs) do not emit tailpipe pollutants, reduce oil dependency, and are more cost-effective to operate than traditional automobiles.

 

The North America Micro Electric Vehicles Market is segmented by Component, Vehicle Type, Charging Type, and Geography. On the basis of Component, the North America Micro Electric Vehicles Market is segmented under Battery Cells, On-Board Charger, and Fuel Stack. Based on the Vehicle Type, the North America Micro Electric Vehicles Market is segmented by Personal Use, Commercial Use, and Industrial Use. Based on the Charging Type, the North America Micro Electric Vehicles Market is segmented under the Slow-Charging and Fast-Charging. By Geography, the market covers the following regions: the US, Canada, Mexico, and the Rest of North America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

 

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North America Micro Electric Vehicle (EV) Market Dynamics:

Increasing Demand for the Fuel-Efficient are the Growth Factors:

The increasing demand for fuel-efficient automobiles across the North American region is one of the key factors driving the growth of the market and growing concerns about the negative environmental effects of greenhouse gas emissions, as well as the implementation of favorable government policies encouraging sustainable development, are the drivers driving market expansion. Various government privileges, such as tax exemptions, subsidies, cheap purchasing costs, and free charging facilities, are granted to major players and manufacturers who use micro EVs, so promoting their overall adoption rates.

 

Additionally, manufacturers are concentrating on the development of innovative technology in order to make zero- and low-emission vehicles that are more fuel-efficient and operate silently. In addition, improvements in micro EV charging infrastructure are resulting in increased investments from utilities, charging gear makers, and other power sector stakeholders. Other factors that are driving market expansion throughout the anticipated period include rapid urbanization, rising disposable incomes, and substantial research and development (R&D) activities.

 

Increasing Investment in the EV Infrastructure Influences the Market Opportunities:

The automotive industry of North America is rapidly shifting from fuel-based vehicles to electric vehicles, which are small in structure to avoid traffic concerns. Increasing investments and incorporation of innovative technologies by automotive OEMs in the micro EVs and the development of advanced charging systems and batteries are driving this market growth in North America. Several industries in the North American region are heavily investing to make strides in the decarbonization of transport and equipment and improve air quality in cities through greater investments in passenger trucks or cars in the industrial sector, light commercial vehicles, and e-scooters or e-taxis for private users.

 

Increasing adoption of micro electric vehicles to control pollution and carbon emissions along with increasing awareness regarding the use of Evs to reduce emissions and stringent government rules are driving the demand for EVs and contributing to the overall market growth. In May 2021, South Korean automotive company Hyundai Motor Group announced plans to invest USD 7.52 billion in the U.S. by 2025. The investments are aimed to produce micro electric vehicles, upgrade production facilities, and further its investment in smart mobility solutions. Hyundai's investment plan comes as U.S. President Joe Biden's administration prioritized a strict regulation for electric vehicles, aiming to replace the 660,000 vehicles in federal fleets with the U.S.-made electric vehicles.

 

Improvement in the Technology Industry Promote Micro EV Market:

Micro Electric vehicles are amongst the most prominent technologies that contribute to reducing air pollution. Thus, governments of the North American region have proposed tax rebate programs to promote the adoption of electric vehicles. For instance, in the U.S., under the Clean Vehicle Rebate Project (CVRP), qualified applicants would be provided a rebate from the State of California, effective for applicants received on or after April 2021. After meeting the eligibility requirements, the applicants would be eligible to receive cashback on a new micro electric vehicle based on the type selected. The applicant will receive a cashback of USD 2,100 on the purchase of a new battery micro electric vehicle and USD 1100 on the purchase of a new plug-in hybrid micro electric vehicle.

 

North America Micro Electric Vehicle (EV) Market Segment Analysis:

By Component, Battery Cells & Packs are the major segment of the micro electric vehicles in the North American region; the market is estimated to grow at the rate of 32.5% over the forecasted period. The factors attributing to the growth is battery pack have properties in which electrical energy storage device consisting of any number of individual battery modules which is used to propel electric or hybrid electric vehicles. They can hold more energy than liquid lithium-ion batteries, helping speed up a switch from gasoline vehicles to EVs because drivers would not need to stop as often to charge their cars.

 

By Vehicle Type, Commercial Vehicles are the most dominant segment, which holds a market size of more than 40%, and in terms of revenue, it captures a market growth of 20% and is estimated to have an annual growth of 1.65%. This segment majorly contributes their revenue of 25% to the development of the micro electric vehicle market. Passenger Cars and Light Trucks (PCLT) and commercial vehicles segment accounted for a dominant revenue share exceeding 65% in 2023 and is anticipated to continue its dominance over the forecast period. The segment includes passenger cars and light trucks. The light trucks segment is estimated to expand at a CAGR exceeding 37% through the forecast period as micro electric cars offer advanced features, affordability, comfort, and durability, among other advantages. Moreover, several prominent manufacturers are focused on launching electric vehicles in the light truck segment. BMW iX, Tesla Cybertruck, Audi Q4 e-tron, and GMC Hummer, among others, are some of the light trucks that will be available in the market in the coming years.

 

 

By Charging Type, Slow charging is the largest segment that holds a market share of more than 50% and is estimated to increase its market share by 1.5% in a year over the forecasted period. The factor contributing to the development of this segment is that slow charging is considered the most preferred and independent source of charging the EV battery. It provides the maximum battery life (cycle life) and is safer than fast charging, especially for NMC batteries. It is also the cheapest way of charging the EV battery since the EV owner only has to pay for the energy.

 

North America Micro Electric Vehicle (EV) Market Regional Insights:

The United States is estimated to hold the largest share as well as growth with the highest CAGR of 4.5% during the forecast period. Some of the major factors driving the growth in the country are growing environmental concerns, which, in turn, have resulted in the enactment of stringent emission and fuel economy norms and continuous government support in the form of subsidies. Along with that, the United States is one of the technologically advanced markets where there is always bottleneck competition between the market participants.

 

The government of the US signed a USD 3 trillion virus relief package in May 2020 to shore up businesses great and small - as well as workers and state and local governments - against the financial fallout. Previously a USD 2.2 trillion aid package was approved at the end of March to reduce the economic impact of the pandemic, and this impacted the commercial as well as industrial sectors, which automatically influenced the market of micro electric vehicles because of the government regulations.

 

Micro Electric vehicles have captured nearly a 1.25% share of the total United States EV fleet. With the active participation of industry players and government organizations towards BEV development, the growth of micro-hybrid adoption is expected to decrease in the future. Major players in the market are coming up with new plans for their upcoming new BEV models. In 2023, General Motors and Honda entered into an agreement to jointly develop electric vehicles for Honda; the vehicles will be based on GM’s EV platform powered by proprietary Ultium batteries.

 

Canada is expected to record the second-highest CAGR during the forecast period. The Canadian Micro EV market is primarily driven by the government's policies and incentives, increased driving range, along with affordable vehicle prices, thanks to increased spending of consumers on environment-friendly automobiles and developing infrastructure resulting in faster charging times. Canada's mission to eliminate transportation emissions in the coming years has enabled governments to introduce numerous policies and incentive programs that could increase EV adoption and reduce emissions.

 

For instance, in May 2020, the Government of Canada launched the Incentives for Zero-Emission Vehicles (iZEV) Program to encourage EV adoption. On the purchase or lease of Micro EV, the government provides iZEV Program incentives of up to USD 5,500. The authorities have set targets for enhancing the adoption of EVs in the country.

 

Competitive Landscape-

The manufacturers are strategically increasing their production capabilities and developing new and advanced micro-hybrid engines to gain an advantage in the market.

 

For instance, In 2020, Kubota launched its V3307 Micro-Hybrid prototype in North America. The company's micro-hybrid system contains an AC synchronous motor-generator, a DC/DC converter, and a 48V lithium-ion battery, along with the 55.4 kW V3307 diesel engine, which can provide an electrical power boost of up to 10kW.

 

In 2021, Toyota Motor Manufacturing West Virginia (TMMWV) manufactured its first hybrid transaxle in North America. The transaxles were built for the Toyota Sienna and Highlander hybrid vehicles. The company made an initial USD 113 million investment in late 2017 for the yearly production of 120,000 hybrid transaxles.

 

North America Micro Electric Vehicle (EV) Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the North America Micro Electric Vehicle (EV) Market to the stakeholders in the industry. The report provides trends that are most dominant in the North American Micro Electric Vehicle (EV) Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the North America Micro Electric Vehicle (EV) Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the North America Micro Electric Vehicle (EV) Market report is to help understand which market segments, and regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the North America Micro Electric Vehicle (EV) Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the North America Micro Electric Vehicle (EV) Market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the North America Micro Electric Vehicle (EV) Market. The report also analyses if the North America Micro Electric Vehicle (EV) Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, and if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the North America Micro Electric Vehicle (EV) Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the North America Micro Electric Vehicle (EV) Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the North American Micro Electric Vehicle (EV) Market is aided by legal factors.

 

North America Micro Electric Vehicle (EV) Market Scope:

North America Micro Electric Vehicle (EV) Market
Market Size in 2023	USD 8.91 Bn.
Market Size in 2030	USD 26.22 Bn.
CAGR (2024-2030)	16.67%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Components Battery Cells & Packs On-Board Charger Fuel Stack
	By Vehicle Type Personal Vehicle Commercial Vehicle Industrial Vehicle
	By Charging Type Slow Charging Fast Charging
Country Scope	United States Canada Mexico

 

North America Micro Electric Vehicle (EV) Market Key Players: 

• Textron (US)
• Polaris Inc. (US)
• CLUB Car (Georgia, US)
• Yamaha Golf-Car Company (US)
• Italcar Industrial S.R.L (Italy)
• AB Volvo (Sweden)
• Faraday & Future Inc. (US)
• Ford Motors Company (US)
• Zero Electric Vehicles Inc. (US)
• Volkswagen AG (Germany)