Neighborhood Electric Vehicle Market Size, Share, Growth, and Industry Analysis, By Type (into Lead-acid Battery EVs and Lithium-ion Battery EVs), By Application (Personal Use, Commercial Use, and Public Utilities), and Regional Forecast By 2031

Updated On: 15 April 2024

Neighbourhood Electric Vehicle Market Report Overview

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The global neighborhood electric vehicle market size was USD 3180.5 million in 2022, as per our research, the market is expected to reach USD 5471.5 million in 2031, exhibiting a CAGR of 6.3% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the neighborhood electric vehicle market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

A neighborhood electric vehicle (NEV) is a small electric vehicle designed to be used for short trips and transportation within a neighborhood or community. NEVs are also known as Low-Speed Vehicles (LSVs) and are classified as a subcategory of electric vehicles.

The NEV market has been growing in recent years and predicted to sprout out with an extensive CAGR during the forecast as more people are becoming interested in electric vehicles and environmentally-friendly transportation options. NEVs are particularly popular in retirement communities, university campuses, and other similar environments where short trips are common and speed limits are lower. Additionally, the market is segmented by type, by application, and regional expansion of the market. Lead-acid battery EVs and lithium-ion battery EVs are present in the market. As well as, personal use, commercial use, and public utilities are the most popular application segment to generate a spike in demand for neighborhood electric vehicles in the future.

COVID-19 Impact: Pandemic Reduces the Demand for Vehicles Including E-Vehicles 

During the initial stages of the COVID-19 pandemic, many countries-imposed lockdowns and travel restrictions, which led to a decline in demand for all types of vehicles, including neighborhood electric vehicles. Production and supply chains were also disrupted due to factory shutdowns and other measures to limit the spread of the virus. However, many analysts predict that the neighborhood electric vehicles market will continue to grow in the long term as governments and consumers alike prioritize sustainability and cleaner transportation options.

Latest Trends

"A Rising Trend of Increased Range & Customization in EV Inflate Market Space"

In the past few years, neighborhood electric vehicles have been gaining traction among the general population due to the variety of benefits of electric vehicles. Resulted, several trends and development are occurring in the market which is anticipated to boost the demand for the NEV. One of the major trends in the NEV market is the development of vehicles with longer ranges. Numerous NEVs were previously limited to short ranges, but improvements in battery technology and charging infrastructure have enabled the development of NEVs with ranges of 100 miles or more. In addition to this, neighborhood e-vehicles are often used for specific purposes, such as transportation within a gated community or on a university campus. As a result, there is a growing trend towards customization, with manufacturers offering a range of options for features such as seating capacity, cargo space, and body styles. Consequently, these trends are ascribed to accelerate the demand for neighborhood e-vehicles and it will contribute to elevating the neighborhood electric vehicle market growth over the forecast 2022-2028.

Neighbourhood Electric Vehicle Market Segmentation

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• By Type Analysis

According to type, the market can be bifurcated into Lead-acid Battery EVs and Lithium-ion Battery EVs.

• By Application Analysis

Based on application, the market can be divided into Personal Use, Commercial Use, and Public Utilities.

Driving Factors

"Growing Environmental Concerns Surge the Demand for Electric Vehicles"

Although, the market has a variety of key driving factors to boost market growth. However, environmental concerns are the primary aspect to enhance the demand for e-vehicles. As concerns about climate change and air pollution continue to grow, there is increasing demand for sustainable transportation options. Neighborhood electric vehicles produce zero emissions and have a smaller carbon footprint compared to traditional gasoline-powered vehicles which is making them an attractive option for environmentally-conscious consumers. Therefore, this is attributed to fuel the demand for electric vehicles in the coming years.

"Rising Fuel Costs Support the Growth of the Market"

Rising fuel costs are one of the other certain factors to augment the demand for neighborhood electric vehicles. The cost of traditional fossil fuels such as gasoline and diesel has been rising in recent years which is making traditional transport unaffordable. As a result, electric vehicles similar to NEVs are a more cost-effective option for some consumers which is contributing to expand the demand for e-vehicles and is expected to contribute to the growth of the market as well during the projection period. 

Restraining Factors

"Limited Infrastructure Can Restrain the Market Growth"

The growth of the neighborhood e-vehicle market can be restricted due to the lack of infrastructure. In some areas, the charging infrastructure for electric vehicles, including neighborhood e-vehicles, is still limited. This can make it difficult for consumers to charge their vehicles, particularly if they live in apartment buildings or other locations without access to charging stations which can confine the adoption of electric vehicles among general consumers.

Neighbourhood Electric Vehicle Market Regional Insights

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"North America Leads the Market with the Government’s Encouragement to the Adoption of E-Vehicles"

The neighborhood electric vehicle market is a global market, with growth and demand increasing in many regions around the world. However, North America is predicted to be the dominating region in the market. The regional neighborhood e-vehicle market has been growing rapidly in recent years, driven in part by government incentives and regulations that encourage the adoption of electric vehicles. Additionally, the U.S., in particular, has a large and growing market for NEVs, with a number of established manufacturers and a growing number of start-ups. Moreover, as the market continues to evolve and mature, it is likely that other regions will emerge as leaders in the space as well.

Key Industry Players

"Leading Companies Emphasis to Create More Sustainable and Accessible Future Transportation"

With regard to key players, notable companies in the neighborhood e-vehicle market play a critical role in stimulating growth and driving innovation in the industry. By investing in research and development, forming strategic partnerships, advocating for government support, and promoting their products, these companies are helping to create a more sustainable and accessible future for transportation. Furthermore, some of the leading companies such as Yogomo, Shifeng, Textron, Dojo, Byvin, Polaris, Lichi, Baoya, Tangjun, Yamaha, Fulu, Xinyuzhou, GreenWheel EV, Incalu, and others hold the majority of the neighborhood electric vehicle market shares worldwide. 

List of Market Players Profiled

• Yogomo
• Shifeng
• Textron
• Dojo
• Byvin
• Polaris
• Lichi
• Baoya
• Tangjun
• Yamaha
• Fulu
• Xinyuzhou
• GreenWheel EV
• Incalu
• Kandi
• Renault
• APACHE
• Garia
• Zheren
• Ingersoll Rand
• CitEcar Electric Vehicles
• Eagle
• Taiqi ing

Report Coverage

This report defines the neighborhood electric vehicle market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.