May 22, 2024

The E-Rickshaw Market Is Expected To Be Powered By Rapid Urbanization

The global e-rickshaw market consists of three-wheeled battery powered vehicles that are widely used for last-mile passenger transportation across several countries. E-rickshaws have emerged as a popular mode of intra-city transportation, particularly in dense urban areas due to their eco-friendly nature and low operating costs. Equipped with rechargeable lithium-ion batteries, e-rickshaws can carry 2-3 passengers and have a maximum speed of around 25-30 km/hr. They are commonly used for metropolitan commuting, airport and railway station transfers, parcel and cargo transportation as well as tourist tours in India, Bangladesh, Nepal, and Pakistan.

The global E-Rickshaw Market is estimated to be valued at Us$ 5.88 Bn in 2024 and is expected to exhibit a CAGR Of 2.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rapid urbanization has significantly increased traffic congestion and transportation requirements within city limits around the world. This growing urban population is expected to drive the demand for affordable public transportation solutions. E-rickshaws have emerged as a popular alternative to fossil fuel three-wheelers due to their lower operating costs and zero tailpipe emissions. Additionally, growing awareness regarding pollution levels and need for sustainable transportation is encouraging the adoption of e-mobility solutions like e-rickshaws. Several state governments are promoting the use of e-vehicles for public transport through subsidies and incentives for manufacturers. This is positively impacting the production volumes of e-rickshaws across key markets. However, inadequate charging infrastructure in some developing nations remains a major challenge for widespread adoption of e-rickshaws currently.

 

Segment Analysis

 

The e-rickshaw market is dominated by the passenger transportation segment which holds around 80% share. E-rickshaws are increasingly being used for passenger transportation in dense urban areas as well as rural areas. They provide an eco-friendly and affordable transportation option. The remaining 20% share is captured by the goods transportation segment. E-rickshaws are utilized for intra-city transportation of goods in small quantities.

PEST Analysis

 

Political: The governments of various countries are promoting electric vehicles to reduce vehicular pollution and curtail carbon emissions. Subsidies and tax rebates are being offered to encourage adoption of e-rickshaws.

Economic: Continued urbanization is leading to increased traffic congestion in cities. E-rickshaws help mitigate this issue and provide a inexpensive transportation alternative. They also generate employment.

Social: E-rickshaws help address the growing first and last mile connectivity problem in urban centers. They are also preferred for their low operating costs.

Technological: Advancements are being made in lithium-ion batteries to improve performance and reduce costs of e-rickshaws. Newer designs are improving passenger comfort and safety features.

Key Takeaways

 

The Global E-Rickshaw Market Demand is expected to witness high growth over the forecast period supported by government initiatives for popularizing electric vehicles. The global E-Rickshaw Market is estimated to be valued at US$ 5.88 Bn in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030.

 

Regional analysis

 

The Asia Pacific region accounts for over 70% share of the global e-rickshaw market led by India and China. In India, emergence of e-commerce has boosted demand for delivery of packages within cities using e-rickshaws. The Middle East and Africa region is also witnessing fast adoption of e-rickshaws for urban transportation due to growing infrastructure projects, increasing urban population and rising traffic congestion.

Key players

 

Key players operating in the e-rickshaw market are Global Calcium, Liaoyang Fuqiang Food Chemical, Shandong Xinhong Pharmaceutical, Triveni Chemicals, Dacon China, Reephos Chemical. Global Calcium and Liaoyang Fuqiang Food Chemical are amongst the largest manufacturers of calcium propionate globally.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it