LONDON--(EON: Enhanced Online News)--Technavio analysts forecast the global electric trike market to grow at an impressive CAGR of over 43% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global electric trike market for 2016-2020. To determine the market size, the study considers revenue generated from reverse trike and delta trike.
The reverse trikes occupy the majority share in this market with over 60% (2015 figures). These trikes are more stable because of proper weight distribution, which allows for more effective braking. Additionally, these trikes also have higher acceleration when compared to delta trikes. The first trike introduced to the market by Piaggio, which was an Mp3 hybrid model, was also based on the reverse concept. Additionally, features which allow reverse trikes to have reduced turning radius will ensure the quick growth of this market segment.
Geographically, Europe has the dominant position in the market with a share of over 50% (2015 figures). With the presence of key market vendors in this region and a high adoption of these vehicles by the younger generation, this market is expected to continue its dominance through the forecast period. Owing to intervention by the government to push for environmentally friendly vehicles, France, Germany, and Italy have emerged as the top adopters of this technology.
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Technavio analysts highlight the following three factors that are contributing to the growth of the global electric trike market:
- Trikes offer more stability and convenience compared to traditional motorcycles
- Rising urban traffic congestion pushing demand for trikes
- Government policies and electric mobility subsidies to drive electric trike adoption
Trikes offer more stability and convenience compared to traditional motorcycles
Trikes are three-wheeled vehicles with a low center of gravity, and considered a major competitor to traditional heavy-weight motorcycles. With the advent in reverse trike technology, original equipment manufacturers (OEMs) are shifting their focus on developing high-performance trikes. Trikes that have higher acceleration capabilities and capable of providing higher safety and stability are being introduced to the market, attracting a larger customer base. Owing to their extremely stable nature, people who never considered motorcycles as a transport option are finding trikes convenient and efficient. Such attractive qualities will pull in a large number of customers to this market.
“Tilting trikes with small turning radii and a high degree of stability have helped in reducing the gap between the traditional motorcycles and trikes. Additionally, the demand for a personal means of travel for daily commutes is increasing, and this is triggering the demand for one seater trike. For instance, Electra Meccanica and Toyota developed their electric trike versions that are based on SOLOseating concept,” says Siddharth Jaiswal, one of the lead analysts at Technavio for automotive manufacturing research.
Rising urban traffic congestion pushing demand for trikes
With more percent of the population residing in urban areas, there is an increasing demand for vehicles that can maneuver through congestions to beat the peak hour traffic. This increasing traffic congestion is bringing in more demand for smart travelling solutions like electric trikes. Trikes allow knees to rest and have some of the smallest turning radii, which makes them an excellent alternative to cars, which constitute one of the slowest moving segments of traffic.
Another important factor to be considered is the high number of road accidents associated with traditional motorcycles. In the US alone, 94% of all deaths due to automotive accidents came from the two-wheeler segment. This pushes people to opt for safer alternatives like the trike to meet their transportation demands. Analysts at Technavio expect individuals from Generation X and baby boomers to shift steadily toward trikes through the forecast, thus keeping a constant demand for the electric trike market.
Government policies and electric mobility subsidies to drive electric trike adoption
“Governments of many countries around the globe provide incentives to buyers of electric vehicles in the form of financial incentives. This has led to an increased adoption of the electric vehicles as the incentives helped bridge the gap between electric vehicles and internal combustion engines of similar performance. Such moves encourage more people to opt for environmentally friendly products like electric trikes, thus driving the market forward,” says Siddharth.
The US government provides a Federal tax credit of 10% on the purchase of any electric vehicles (EVs), with an upper cap of USD 2,500. Similarly, the German government has exempted owners of EVs from paying taxes for their vehicles for the first ten years from the date of registration. France gives buying incentives based on CO2 emission reduction of the motorcycle, with an upper cap of USD 7,260. Other countries and governments are also coming up with various incentives to promote the sale of EVs like electric trikes, thus driving the market forward.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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