February 25, 2024

The E-Rickshaw Market Is Expected To Driven By Growth Of Last Mile Connectivity Solutions

The e-rickshaw has emerged as one of the most viable solutions for last mile connectivity in congested urban areas. E-rickshaws provide an affordable, eco-friendly mode of transportation for short-distance commutes. They are commonly used for passenger transport and delivery of goods. E-rickshaws come equipped with rechargeable batteries that power a motor, providing assistance during acceleration and hills. This makes them an energy efficient alternative to gasoline auto-rickshaws. The increasing issues of traffic congestion and pollution have boosted the adoption of e-rickshaws in various cities across India, South East Asia, and parts of Africa.

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, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the e-rickshaw market is the increasing use of lithium-ion batteries. Lithium-ion batteries have higher energy density compared to lead-acid batteries, which allows e-rickshaws to cover longer distances on a single charge. Major e-rickshaw manufacturers are focusing on developing models that use lithium-ion batteries to improve performance. For example, EVerITas e-rickshaw model launched in 2021 comes equipped with a lithium-ion battery that provides a riding range of 80km on a single charge. The decreasing prices of lithium-ion batteries is also expected to boost their adoption in e-rickshaws going forward.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the e-rickshaw market is moderate. Establishing manufacturing facilities for e-rickshaws requires large capital investments and developing an extensive distribution network poses high costs.

Bargaining power of buyers: The bargaining power of buyers in the e-rickshaw market is high. Buyers can negotiate on prices as there are numerous manufacturers providing similar e-rickshaws.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key components such as batteries and motors have few substitutes and suppliers have some control over pricing. However, the threat of forward integration by manufacturers limits supplier power.

Threat of new substitutes: The threat of new substitutes is medium. Alternatives such as bicycles, auto rickshaws and petrol/diesel three-wheelers pose competition but e-rickshaws have environmental benefits.

Competitive rivalry: Competition in the market is high with the presence of numerous local and international players providing comparable e-rickshaws.

Key Takeaways

The Global E-Rickshaw Market Demand is expected to witness high growth over the forecast period supported by growing last-mile connectivity needs and push for eco-friendly mobility solutions. 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: Asia Pacific accounts for the largest share of the global e-rickshaw market currently. Within the region, India represents the biggest market attributed to massive population, growing urbanization and various government initiatives to promote green vehicles. China is another major Asian market for e-rickshaws.

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 Triveni Chemicals have significant market presence with their wide product portfolios for e-rickshaw manufacturing.

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