IDTechEx's report "Micro EVs 2025-2045: Electric Two-Wheelers, Three-Wheelers, and Microcars" provides a deep and granular analysis of the fast-growing micro EV industry, detailing how micro EVs will become a US$90 billion market by 2045. IDTechEx has assembled a comprehensive database of electric mopeds, motorcycles, three-wheelers, and microcars in this report to reveal trends in market sizes and sales figures in key regions, as well as battery technologies, vehicle performance, and more. 20-year forecasts across all key global markets highlight the transformation that is coming to the industry.

What are micro EVs?

While there is no standardized definition of a micro EV, the term is used to describe small vehicles that can seamlessly navigate densely populated urban areas. IDTechEx defines micro EVs as including electric two-wheelers (mopeds, scooters, and motorcycles), three-wheelers, and microcars.

 

Micro EVs are designed for short trips in and around city centers, and travel at lower speeds of 80 km/h or less. All these factors coupled with their smaller size make two-wheelers, three-wheelers, and microcars ideal candidates for early electrification - requiring smaller batteries and motors at a lower cost. In this way, they are the 'low hanging fruit' of electrification in the mobility industry.

 

IDTechEx's "Micro EVs 2025-2045: Electric Two-Wheelers, Three-Wheelers, and Microcars" report finds that demand for micro EVs is now growing faster than ever before. In Asian markets like China and India, two- and three-wheelers are long established within the overall mobility culture as low-cost means of everyday transport. But as the world strives to meet its Paris Agreement targets and other sustainability goals, electrification is fast making its way into these segments.

 

In smaller markets like Europe and the US, the main driver for uptake is how well-suited micro EVs are for use in cities. They are less impacted by increasing traffic congestion and have reduced parking requirements, all while being cheaper than a typical passenger car. They also have considerable commercial applications for last mile delivery and logistics. With global cargo and e-commerce demand set to double before 2050, the opportunities for micro EVs in this area will grow rapidly as well.

 

IDTechEx's report forecasts the adoption of each type of micro EV in all of the above regions - further segmented by power class and battery technologies. It also details how increasing use in commercial applications could impact the micro EV market and how newer models could be designed with such applications in mind.

How is the micro EV landscape changing?

Micro EVs are already at a more advanced state of electrification than almost any other vehicle category. IDTechEx's new report finds that over a quarter of all small vehicles (two-wheelers, three-wheelers, and microcars) sold in 2023 were electric. Still, there are changes taking place today in and around the micro EV industry that will push this number even higher.

 

For one, governments are being more proactive in incentivizing micro EV sales. This isn't just limited to Asian economies where these small vehicles are already ubiquitous. Instead, almost every region globally has some purchase grant or subsidy for customers choosing an electric model over a combustion one - aiming to reduce the price difference between the two models and encourage greater sales. India has been especially successful here, with its grant programs often making electric scooters cheaper than petrol ones! Other government policies include funding for charging infrastructure or battery production, as well as greater standardization and certification.

 

IDTechEx's "Micro EVs 2025-2045: Electric Two-Wheelers, Three-Wheelers, and Microcars" also forecasts a major change coming in the batteries of micro EVs, with Li-ion set to play a key role in the industry's future. In today's micro EV market, lead-acid (Pb-acid) batteries still have a large presence and are used prominently in two- and three-wheelers - especially in Asian markets. Pb-acid drove the development of the micro EV industry prior to the maturation of Li-ion technology, and is still often used today for its low price and high availability.

 

Pb-acid does however come with drawbacks, not least of which is its harmful impact on the environment - where lead and acid waste can leach into the ground and into bodies of water if they are not disposed of or recycled properly. In response, governments have aimed to disincentivize their use, making micro EVs with Pb-acid batteries ineligible for grants and encouraging use of Li-ion batteries instead. At the same time, the performance of Pb-acid in terms of cycle life, energy density, and charging time is far inferior to that of Li-ion, so OEMs and customers should be willing to make the change as well. But despite all of this, the low cost of these batteries means they still continue to see use to this day.

 

However, the costs of Li-ion batteries are now falling quickly, which is shifting the dynamics of the micro EV industry. Li-ion driven micro EVs are become increasingly cost competitive every year, and more OEMs globally are looking to embrace the technology. IDTechEx's report finds that Li-ion will soon overtake Pb-acid as the dominant battery technology in micro EVs. The report breaks down the market shares that Pb-acid and Li-ion will hold of each vehicle type across different global regions.

"Micro EVs 2025-2045: Electric Two-Wheelers, Three-Wheelers, and Microcars" brings together all of the above trends and more, highlighting the transformation that lies in the near future for micro EVs and the wider mobility industry. IDTechEx's report considers critical regulations and sales trends across major global markets - China, India, Southeast Asia, Europe, the US, and the Rest of the World. Key players and models of each region are benchmarked, including analyses of battery technologies, motor power, and pricing. 20-year granular forecasts broken down by region, power class, and battery chemistry provide insights into the key contributors to growth of micro EVs.