Light Electric Vehicles (LEVs) Market Size, Share, Growth Opportunity Analysis Report by Vehicle Type (Electric Two-wheelers, E-Rickshaws, Electric L5 Vehicles (E-3W), L6e Vehicles, and L7e Vehicles), Vehicle Category, Motor Capacity, Battery Capacity, Max Speed, GVWR (KG), Range, Pricing (USD), End-use Application, and Geography (North America, Europe, Asia Pacific, Middle East, Africa, and South America) - Global Industry Data, Trends - Forecast 2025‒2035

According to the Pranav Dandekar, CEO and co-founder of Wings EV, India’s first electric microcar (L7 vehicles) manufacturer quoted:

“Wings EV, an Indore-based firm, will unveil Robin, a two-seater EV, in Bengaluru in April 2025 to boost “personal commuting with zero pollution, less congestion and less road space”.

Light Electric Vehicles (LEVs) Market Size, Share, and Growth

The rapid growth for LEVs is attributed to the expansion by key players in the new market and geography.

The LEVs saw substantial growth and this was attributed to the advancement in technology, promoting policies that ushered the world into a new level in sustainable transport. Reduced operating costs and zero emission levels are the main driving forces behind consumer demand for LEVs.

Following the current mobility trends, it is expected that, in the near future, automated vehicle technologies-heavily integrated with sensors-will be part of an LEV landscape. Industry organizations such as the Light Electric Vehicle Association (LEVA) and the International Transport Forum (ITF) have emphasized the role of LEVs in the reduction of urban congestion and improvement to air quality.

LEVA-EU is urging European Commission to speed up the EU regulation for Light Electric Vehicles, to break through legal bottlenecks holding back the growth of the LEV sector, emphasizing to cover all LEVs currently under Regulation (EU) 168/2013 and the Machinery Directive/Regulation, also to facilitate the harmonization of standards and provide legal certainty for companies, helping to drive innovation. Big growth is in store for the industry, especially with the construction of charging infrastructure and declining prices of batteries, paving way for LEVs to become a stronghold in the future of sustainable transport.

Light Electric Vehicles (LEVs) Market Dynamics and Trends

Driver: Advancements in Battery Technology Leading to Enhanced Performance and Affordability

• In the last decade, the continuous advancement in the energy density of EV cells measured by weight (Wh/kg, crucial factor for maximizing driving range) has forged an increase of about 30%, whereas battery packs improved by 60%.
• Researchers are actively working on improving energy density through advancements in battery chemistry, materials, and manufacturing processes, currently around 260-270 Wh/kg for lithium-ion batteries, with ongoing research aiming to push up to 350 Wh/kg or higher.
• In 2023, the distributed demand for battery was accounted for 750 GW for the electric vehicles globally, representing 40% growth from the previous year, concluding to a significant growth in the uptake of LEVs.
• IEA reported such advancement are necessary to meet the future the energy demand by the transportation sector. These developments not only enhance performance but also reducing costs of EVs to bring some affordability for the consumers, especially in 2W/3W sector where affordability is key factor.
• The World Economic Forum also believes that advancements such as solid-state batteries and fast charging will accelerate broad adoption. With rising price and performance, urban mobility will soon witness the impact of LEV mainstreaming, while also injecting global environmental efforts.

Restraint: High Initial Cost of LEVs Compared to Traditional Gasoline-Powered Vehicles

• Although LEVs offer long-term operational savings, the high initial cost acts as a major constraint to market growth, as price-sensitive consumers are hesitant to purchase them. For instance, electric two-wheelers may cost upwards of 30-50% more than gasoline two-wheelers, as per by the International Energy Agency.
• Similarly, U.S. Department of Energy also highlighting battery costs contributing up to 40% of LEV price and are still the main consideration! Infrastructure gaps also aggravate cost concerns, as consumers pay additional costs for home or public charging. Furthermore, industry organizations such as the Electric Drive Transportation Association note the slow rate of price parity, which would delay future adoption of LEVs despite increased government incentives.

Opportunity: Increasing Investments in Charging Infrastructure Development

• The growing investments in charging infrastructure are playing a pivotal role in furthering the LEVs market. In the U.S. alone, the number of public EV chargers has increased by more than twofold since the commencement of the Biden-Harris Administration, with more than 192,000 active chargers, adding nearly 1,000 new public chargers weekly.
• Likewise, in India, the government has been forwarding the growth of EVs with initiatives such as FAME II scheme offering investment of up to INR 1,000 crore to support the establishment of charging infrastructure with a view to electrifying 70% of commercial vehicles and 80% of two- and three-wheelers by 2030. Such strategic funding helps reinforce consumer confidence while enhancing private sector participation, thus creating the depending and growing ecosystem for LEV market growth.

Key Trend: Increasing Adoption of Subscription-Based and Leasing Models for LEVs

• The adoption of subscription and leasing models by manufacturers and dealers have scaled up the strategic innovations for presenting novel method to bring LEVs to a larger consumer base and to reduce the normally very extensive upfront financial burden of ownership.
• Microlino Lite, for example, has started placing an option for leasing, which further emphasizes the advantages of subscription model. Leasing vehicle starts at CHF149, which is about €156 or $169 per month. It broadens access for consumers when it becomes cheaper and easier to experience the microcars without all the long-term commitment of ownership.

This trend is indicative of a broader trend toward flexible, user-oriented mobility solutions intended for today's urban living.

Light Electric Vehicles (LEVs) Market Analysis and Segmental Data

The two-wheeler segment is expected to dominate the market over the forecast period, with an 82% market share in 2024.

• Two-wheelers are increasingly becoming popular means of transport in the Light Electric Vehicles market due to the low prices, the advancements in technology, and their suitability in urban region. The electric scooters (mopeds) and motorcycles provide affordable means of commuting through urban environments, corresponding to a wider consumer base that opt for cost-effective and greener alternatives.
• Exemplary instances of such progress in this niche include advances in battery technology and the introduction of battery-swapping systems, which have greatly improved performance and convenience while also providing solutions to some of consumers' most pressing concerns, such as range anxiety and charging infrastructure limitations.

• For instance, with India leading the global two-wheeler market at nearly 18 million units sold over 910,000 of which were electric, paired with China’s 16.6 million sales, the shift towards electric two-wheelers is gaining unstoppable momentum. Together, these giants contribute over half of the global 2W market, signaling a decisive tilt toward light electric vehicles (LEVs) as the future of urban mobility.

The less than 4 kW motor capacity segment is expected to dominate the market over the forecast period, with a 64% market share in 2024.

• Growing demand for less the 4 kW motor capacity especially in 2W/3W LEVs has been reshaping the urban mobility into greener, more compact future. With urban cities tackling congestion and pollution, these compact yet efficient vehicles offer a low-cost, low-maintenance solution ideal for both commuters and businesses especially in underdeveloped regions.
• The global e-commerce (B2C) surge has further fueled this trend, with last-mile delivery needs soaring. According to the World Economic Forum, last-mile deliveries are projected to rise by 78% by 2030, positioning small-capacity LEVs as the go-to choice for affordable, efficient urban logistics. Their agility, affordability, and eco-friendliness make them requisite to the gradually developing transportation sector, solidifying their role as the backbone of sustainable last-mile delivery and green city commuting.

Asia pacific dominates the market for Light Electric Vehicles (LEVs)

• The Asia-Pacific region has emerged as a leading market in the Light Electric Vehicles (LEVs), with a commanding 70% share in 2024 globally, primarily driven by China's unparalleled growth trajectory with market share of close to 50% in the Asia Pacific region.
• China’s electrification boom, where nearly 40% of global new car sales are electric, fuels this momentum. This growth is brought by strong government policy, heavy investment in electric mobility, and a booming domestic market. China’s aggressive innovation policies supporting start-ups and scale-up in EV manufacturing have also made Asia-Pacific the epicenter of LEV growth.

• On the contrary, Europe has steadily increased numbers of electric vehicles where in 2024 electric vehicle components make, or 16% of new sales of cars compared to less than 1% in 2019. This development indicates Europe's will to investing resources to commit to the sustainable transportation with the environment friendly development agenda.
• ​India is expected for significant growth in LEV market, as the world's third-largest automobile market, India's electric vehicle (EV) penetration reached 7.44% in 2024, reflecting a burgeoning shift towards sustainable mobility. Government initiatives, such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) sponsoring programs, would certainly help speed up the pace with which people adopt electric vehicles.

Light Electric Vehicles (LEVs) Market Ecosystem

Key players operating in the LEVs Market are Ari Motors, BMW Motorrad, Carver, Citroën, Crystalyte Motors, E.Go Mobile, Geely, Gogoro Limited, Jiangsu Xinri E-Vehicle Co. Ltd., Mahindra Last Mile Mobility, Micro Mobility System AG, Ola Electric, Piaggio & C. SpA, Polaris Industries, Silence Urban Ecomobility, Squad Mobility B.V., Terra Motors Corporation, Yamaha Motor Co. Ltd., Zhejiang Luyuan Electric Vehicle Co. Ltd., and Among Others.

In addition to these manufactures, the LEV ecosystem also consists of battery manufacturers, providers of charging infrastructure, and technology companies which specialize in electric drivetrains and energy storage solutions. Collaboration among all these stakeholders is necessary to drive technology improvements in LEVs and open up the markets for them.

The light electric vehicles (LEVs) market is thus moderately fragmented owing to the diversification of consumer preferences and differing regulatory environments in the industry.

Recent Development and Strategic Overview:

• In October 2024, Kinetic Green Energy and Power Solutions Limited, India's premier e2W and e3W manufacturer launched a limited edition of Safar Smart passenger vehicle available in both lead acid and lithium battery variants. Designed for customers who require dual functionality, it offers space for both passengers and cargo. It features a hard top roof with a dedicated carrier, allowing passengers to travel comfortably while securely storing their goods on top.

Frequently Asked Questions

How big was the global light electric vehicle (LEV) market in 2024?

The global Light electric vehicle (LEV) market was valued at USD 29.8 Bn in 2024.

How much growth is the light electric vehicle (LEV) market industry expecting during the forecast period?

The global Light electric vehicle (LEV) market industry is expected to grow at a CAGR of 8.4% from 2025 to 2035.

What are the key factors driving the demand for light electric vehicle (LEV) market?

Rising Demand for Miniaturization and High-Performance Electronic Devices in Consumer Electronics as well as Growing Demand for Power-Efficient and High-Density Semiconductor Solutions in Industrial and IoT Applications.

Which segment contributed to the largest share of the light electric vehicle (LEV) market business in 2024?

In terms of vehicle category, the two-wheeler segment accounted for the major share in 2024.

Which region is more attractive for light electric vehicle (LEV) market vendors?

Asia Pacific is a more attractive region for vendors.

Who are the prominent players in the light electric vehicle (LEV) market?

Ari Motors, BMW Motorrad, Carver, Citroën, Crystalyte Motors, E.Go Mobile, Geely, Gogoro Limited, Jiangsu Xinri E-Vehicle Co. Ltd., Mahindra Last Mile Mobility, Micro Mobility System AG, Ola Electric, Piaggio & C. SpA, Polaris Industries, Silence Urban Ecomobility, Squad Mobility B.V., Terra Motors Corporation, Yamaha Motor Co. Ltd., Zhejiang Luyuan Electric Vehicle Co. Ltd., and others.

Who is the leader in EV battery?

CATL (Contemporary Amperex Technology Limited) is the leading manufacturer of EV batteries globally, holding a significant market share.

Is hydrogen better than EV?

While a hydrogen fuel cell vehicle is more efficient than a car with an internal combustion engine, it's not as efficient as a battery electric vehicle.