Electric Utility Vehicle Market Report 2025

The electric utility vehicle market size has grown strongly in recent years. It will grow from $14.83 billion in 2024 to $15.97 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to rising fuel costs and energy security, industry collaboration and investments, urbanization and congestion concerns, cost reduction in battery production, environmental awareness and sustainability.

The electric utility vehicle market size is expected to see strong growth in the next few years. It will grow to $22.37 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to charging infrastructure development, regulatory and policy changes, consumer demand and preferences, global market expansion, economic factors. Major trends in the forecast period include diverse vehicle offerings, range and battery technology improvements, rise of last-mile delivery solutions, fleet electrification initiatives, government and corporate sustainability goals.

The growth of e-commerce and warehousing is significantly driving the expansion of the electric utility vehicle market. E-commerce encompasses the exchange of products and services, as well as the transmission of money or data over an electronic network, while warehousing refers to the practice of storing items for later sale or distribution. Electric utility vehicles, such as forklifts, are widely utilized in e-commerce warehouses to achieve carbon-neutrality objectives. For example, in August 2024, the United States Census Bureau, a government agency, reported that U.S. retail e-commerce sales, adjusted for seasonal variations, reached $291.6 billion in Q2 2024, reflecting a 1.3% increase from Q1 2024. Total retail sales were estimated at $1.82 trillion, showing a 0.5% rise from the previous quarter. Year-over-year, e-commerce sales grew by 6.7%, while total retail sales increased by 2.1%. E-commerce accounted for 16% of total sales. On an unadjusted basis, e-commerce sales for Q2 2024 stood at $282.3 billion, representing 15.2% of total sales. Therefore, the growth of e-commerce and warehousing is propelling the growth of the electric utility vehicle market.

The upsurge in tourism is anticipated to fuel the growth of the electric utility vehicle market in the foreseeable future. Tourism involves individuals or groups traveling for various purposes outside their usual environment. This rise in tourism fosters a favorable environment for the electric utility vehicle market's expansion, primarily driven by the growing demand for sustainable transportation solutions, governmental incentives, and a broader shift towards eco-friendly practices within the tourism sector. Notably, a report from the United Nations World Tourism Organization revealed a robust rebound in international tourist arrivals, reaching 80% of pre-pandemic levels in the first quarter of 2023. This substantial increase, more than double that of the same period in 2022, signifies the tourism sector's resilience and recovery, driving the demand for electric utility vehicles to meet the evolving transportation needs of tourists.

Product innovation is emerging as a key trend in the electric utility vehicle market. Major companies in this sector are concentrating on introducing innovative products with advanced features to boost efficiency and enhance user experience. Such advancements enable leading players to secure a competitive advantage in the market. For example, in March 2023, Club Car, a U.S.-based manufacturer of gas and electric golf, utility, and personal transportation vehicles, launched the Club Car Urban LSV and XR. This new Urban platform expands Club Car’s extensive electric vehicle portfolio, which has been well-established in commercial markets for decades. With automotive styling, an ergonomic design, a top speed of 25 mph for road use, and customization options to meet specific needs, the new Club Car Urban offers a distinctive utility vehicle solution that addresses requirements for large campuses, last-mile delivery, municipalities, and hospitality spaces.

Prominent companies in the electric utility vehicle market are strategically developing innovative products, including street-legal utility vehicles, aiming to expand their customer base, boost sales, and drive revenue growth. Street-legal utility vehicles are designed for use on public roads, complying with legal requirements and safety standards mandated by transportation authorities. A notable instance occurred in March 2023 when Club Car, a US-based electric vehicle manufacturer, introduced the Club Car Urban LSV and XR. The Club Car Urban distinguishes itself through several advantages, particularly its significantly lower operational costs compared to conventional pickup trucks or vans. This cost-efficiency is attributed to its diverse lithium-ion battery options, facilitating swift and efficient charging processes that substantially reduce overall operational expenses. Setting high safety standards, the Club Car Urban incorporates automotive-grade features such as roll-over protection and 3-point safety belts, undergoing rigorous testing through Club Car's comprehensive processes.

In May 2022, Club Car, known for manufacturing electric and gas-powered golf carts and small utility vehicles, made an undisclosed acquisition of Garia A/S. This strategic acquisition extends Club Car's presence in Europe and enriches its portfolio by including luxury electric golf carts among its offerings. Garia A/S, a Denmark-based manufacturer specializing in electric low-speed vehicles for utility, consumer, and golf markets, represents a valuable addition to Club Car's product line, contributing to its diversification and expansion strategies.

Major companies operating in the electric utility vehicle market include Club Car LLC, Polaris Industries Inc., Ligier Professional, E-Z-GO, Alke' S.r.l., Marshell Inc., Taylor-Dunn, Deere & Company, STAR EV, Guangdong Lvtong Electric Vehicles Co. Ltd., Melex Group, Addax Motors, Esagono Energia SRL, PILOTCAR Otomotiv San. ve Tic. A.Ş, Tropos Technologies Inc., Proterra Inc., Rivian Automotive Inc., Arcimoto Inc., Canoo Inc., BYD Company Limited, SAIC Motor Corporation Limited.

North America was the largest region in the electric utility vehicle market in 2024. The regions covered in the electric utility vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric utility vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An electric utility vehicle is a battery-powered vehicle designed for various commercial activities. These vehicles are typically equipped with lithium batteries, featuring quick charging systems, high-capacity batteries, or battery swap systems.

The main types of electric utility vehicles include sports utility vehicles, multi-utility vehicles, utility terrain vehicles, and others. Electric sports utility vehicles, in particular, are robust, four-wheeled vehicles originally designed for off-road purposes, powered by batteries. The batteries used in these vehicles can be of various types, including lithium-ion, lead-acid, and others. Electric utility vehicles find applications in commercial, municipal, and other sectors.

The electric utility vehicles market research report is one of a series of new reports that provides electric utility vehicles market statistics, including electric utility vehicles industry global market size, regional shares, competitors with an electric utility vehicles market share, detailed electric utility vehicles market segments, market trends and opportunities, and any further data you may need to thrive in the electric utility vehicles industry. This electric utility vehicles 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 electric utility vehicles market consists of sales of electric utility vehicles such as ground vehicles, pure-electric vehicles, hybrid EVs, plug-in electric vehicles, range-extended electric vehicles, on- and off-road EVs, and rail borne EVs. 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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