Electric Utility Vehicle Market Opportunities and Strategies to 2033

This report describes and explains the electric utility vehicle market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global electric utility vehicle market reached a value of nearly $13.84 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.79% since 2018. The market is expected to grow from $13.84 billion in 2023 to $20.33 billion in 2028 at a rate of 8.00%. The market is then expected to grow at a CAGR of 8.50% from 2028 and reach $30.57 billion in 2033.

Growth in the historic period resulted from urbanization and infrastructure development, increase in fuel prices, government incentives and subsidies, fleet electrification in the public and private sectors and increasing concerns about air pollution. Factors that negatively affected growth in the historic period include infrastructure limitations.

Going forward, strict emission requirements, expansion of the e-commerce industry, rise in tourism and increasing investments in electric vehicle infrastructure will drive the market. Factors that could hinder the growth of the electric utility vehicle market in the future include increasing prices of lithium compounds.

The electric utility vehicle market is segmented by vehicle type into electric ATV, electric UTV, electric utility carts, electric shuttle and industrial electric utility. The electric UTV market was the largest segment of the electric utility vehicle market segmented by vehicle type, accounting for 29.52% or $4.08 billion of the total in 2023. Going forward, the electric UTV segment is expected to be the fastest growing segment in the electric utility vehicle market segmented by vehicle type, at a CAGR of 9.34% during 2023-2028.

The electric utility vehicle market is segmented by battery type into lithium-ion, lead-acid and other battery types. The lithium-ion market was the largest segment of the electric utility vehicle market segmented by battery type, accounting for 76.43% or $10.57 billion of the total in 2023. Going forward, the lithium-ion segment is expected to be the fastest growing segment in the electric utility vehicle market segmented by battery type, at a CAGR of 8.54% during 2023-2028.

The electric utility vehicle market is segmented by application into commercial use, municipal use and other applications. The commercial use market was the largest segment of the electric utility vehicle market segmented by application, accounting for 54.66% or $7.56 billion of the total in 2023. Going forward, the commercial use segment is expected to be the fastest growing segment in the electric utility vehicle market segmented by application, at a CAGR of 8.45% during 2023-2028.

North America was the largest region in the electric utility vehicle market, accounting for 32.46% or $4.49 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the electric utility vehicle market will be Asia-Pacific and Western Europe, where growth will be at CAGRs of 8.73% and 8.30% respectively. These will be followed by North America and South America, where the markets are expected to grow at CAGRs of 7.96% and 7.04% respectively.

The global electric utility vehicle market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up 15.5% of the total market in 2023. Polaris Industries Inc. was the largest competitor with a 4% share of the market, followed by Deere & Company with 2.7%, Textron Inc. with 2.2%, Zhejiang Chunfeng Power Co., Ltd. with 1.6%, The Toro Company with 1.3%, Marshell Green Power Co. Ltd. with 1.3%, Club Car LLC with 1.1%, Yamaha Motor Co. Ltd. with 0.8%, Columbia Vehicle Group Inc. with 0.3% and American Landmaster with 0.1%.

The top opportunities in the electric utility vehicle market segmented by vehicle type will arise in the electric UTV segment, which will gain $2.29 billion of global annual sales by 2028. The top opportunities in the electric utility vehicle market segmented by battery type will arise in the lithium-ion segment, which will gain $5.35 billion of global annual sales by 2028. The top opportunities in the electric utility vehicle market segmented by application will arise in the commercial use segment, which will gain $3.78 billion of global annual sales by 2028. The electric utility vehicle market size will gain the most in the USA at $1.65 billion.

Market-trend-based strategies for the electric utility vehicle market include focus on innovative developments in street-legal utility vehicles, revolutionizing the utility vehicle segment with new electric models, increased focus on clean mobility with hydrogen vehicles and advancements in electric delivery technology for urban markets.

Player-adopted strategies in the electric utility vehicle market include focus on enhancing business operations through new launches, expanding operational capabilities through strategic partnerships and collaborations and enhancing product portfolio.

To take advantage of the opportunities, the analyst recommends electric utility vehicle companies to focus on developing street-legal utility vehicles, focus on advancing electric utility vehicle models, focus on hydrogen fuel cell electric vehicles, focus on advancements in electric delivery technology, focus on electric UTV market growth, focus on lithium-ion battery development, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, continue to use B2C promotions, focus on commercial use electric utility vehicles and focus on urban population.