Three-wheeler Vehicle Market (Fuel Type: Petrol, Diesel, CNG, Electric, and Others; Usage: Passenger Carrier and Goods Carrier; Configuration: Two Front Wheels and Two Rear Wheels; Power Output: Less than 4 kw, 4.1 kw to 6 kw, 6.1 kw to 9 kw, and More than 9 kw; and Engine Location: Front Engine and Rear Engine) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2022-2030

The global Three-Wheeler Vehicle market gathered revenue around USD 10.8 billion in 2021 and market is set to grow USD 17.4 billion by the end of 2030 and is estimated to expand at a modest CAGR of 6.9% during the prediction period 2022 to 2030.

Since the coronavirus outbreak has spelled gloom for the global automotive industry, companies in the three-wheeler vehicle market are adopting innovative strategies to stay financially afloat. They are drawing analysis to understand their high-risk clients and customers where recovery of debt may be an issue. Manufacturers are rethinking supply chain networks to reduce their dependence on China and other countries for raw materials & other components.

Due to the COVID-19 pandemic, the three-wheeler vehicle market witnessed a reduced requirement for last-mile commute. Nevertheless, pandemic related restrictions are being minimized, and this is anticipated to increase revenue flow in the global economy. Opening up of schools, offices, and other public places in India is helping market stakeholders to leverage incremental opportunities in the region. As such, there is a need for funding in the market landscape.

Report Scope of the Three-Wheeler Vehicle Market

Growing Lightweight Requirements in Three-wheeler Vehicles Intensify Market Competition

The three-wheeler vehicle market is projected to reach the valuation of US$ 17.4 Bn by 2030. However, there is a growing need for reducing weight of three-wheeler vehicles. Thus, to achieve this, companies should follow methods such as glass to be replaced with transparent plastic material named polycarbonate and make use of LED (Light Emitting Diode) headlights & tail lamps.

The trend of retrofitting three-wheelers into electric vehicles (EVs) is translating into value-grab opportunities for automotive companies. In order to boost the number electric vehicles on Indian roads, the government has proposed a policy that can potentially eliminate personal vehicles during the upcoming decades. The growing awareness about shared mobility with the help of electric auto rickshaws is emerging as a promising strategy to reduce emissions. Three-wheeler tempos for goods transportation are also creating revenue opportunities for automotive giants.

Pollution-free Delivery of Essentials Grabbing Attention of Electric Vehicle Manufacturers

Even though the COVID-19 crisis has affected business activities in the three-wheeler vehicle market, the pandemic has sparked innovations that are paving the future of mobility. The market is projected to grow at a CAGR of 6.9% during the forecast period. Electric three-wheelers have the potential to be integrated with a refrigerated carriage in order to deliver pharmaceuticals and food items. These electric three-wheelers hold potentials for healthcare stakeholders to assist in the ongoing coronavirus vaccine drives for last mile delivery.

Companies in the three-wheeler vehicle market are boosting output capacities for battery-powered vehicles that can store vaccines for several hours in a stationary state at extremely low temperatures. Existing three-wheeler vehicles are being retrofitted with refrigerated carriages and other components to achieve mass inoculation of people living in India. The trend of pollution-free delivery of essentials is grabbing the attention of market stakeholders.

Three-wheeler Motorcycles Gain Prominence in Japan for Sea Freight

Asia Pacific holds lucrative revenue opportunities for three-wheeler vehicle market players. Apart from auto rickshaws, companies in Japan are increasing the availability of three-wheeler motorcycles. Customized logo and packaging are growing prominent in three-wheeler motorcycles that support sea freight. Companies are boosting R&D to develop three-wheeler motorcycles that can be used in flat, rugged, and uphill terrains.

Even as three-wheeler motorcycles are growing popular in Japan, China is one of the frontrunners in the manufacturing of vehicles. Such findings are creating value-grab opportunities for stakeholders in the three-wheeler vehicle market. Three-wheeler motorcycles run on gasoline and accommodate air-cooled & water-cooled engines. Manufacturers are tapping revenue opportunities through eCommerce to boost sales of three-wheeler motorcycles.

Drivers of Three-wheeler Vehicle Market

• Consistent rise in carbon emission globally due to combustion of fuel has been one of the foremost concerns for governments and environmentalists for the last few years. This drives the demand for electric three-wheeler across the globe, thereby boosting the market. Furthermore, owing to increase in fuel prices globally, growing pollution and traffic congestion, especially in urban areas, have further increased the acceptance of electric three-wheelers across the globe.
• Growing environmental concerns toward the increase in GHG emissions from gasoline- or diesel-powered three-wheelers have led to the emergence of their eco-friendly alternatives, including e-rickshaws. Additionally, the introduction of various government initiatives and awareness programs to promote the adoption of electric three-wheelers is also augmenting the market. Furthermore, rising modernization of several commercial infrastructure, such as shopping malls, educational institutes, metro rail, etc., has boosted the utilization of electric three-wheelers to provide local conveyance to customers.
• Use of three wheelers for public transport for short to medium distances anywhere in urban areas is a prominent factor boosting the three-wheeler vehicle market across the globe. Such a cost-effective mode of transportation is in demand for countries with moderate logistic infrastructure and population that has low disposable income.
• Moreover, rise in volume of goods being transported has fueled the adoption of compact three wheelers as a transportation medium where trucks and other four wheelers cannot access the destination or are not cost-effective. Moreover, an increase in oil prices is expected to provide advantage to small vehicles such as three-wheelers in the long term.

Challenges for Three-wheeler Vehicle Market

• Significant decline is anticipated in inland and export sales of a country due to replacement of three-wheelers by small four-wheeler mini trucks. Companies such as Mahindra & Mahindra and Tata Motors are focusing on expansion of their mini truck segment and introduce models that are affordable and possess enhanced loading capacities. Such development is likely to hamper the three-wheeler market during the forecast period.
• Recent outbreak of COVID-19 pandemic hampered majority of businesses across the globe owing to the forced lockdown and led to stay at home orders. The forced lockdown resulted in o a decline in vehicle sales; subsequently, contracting the global three-wheeler vehicle market. However, the global three-wheeler vehicle market is expected to expand from 2021, owing to economic measures taken by governments to recover from financial losses caused by forced shutdown of business activities during the COVID-19 pandemic in 2020.

Three-wheeler Vehicle Market Segmentation

• The global three-wheeler vehicle market has been segmented based on fuel type, usage, configuration, power output, engine location, and region
• Based on fuel type, the diesel segment accounted for a major share of the global three-wheeler vehicle market in 2020. The segment accounted for more than 45% share of the market in 2020, owing to the high power and load carrying capacity of diesel powered three-wheeler vehicles. Diesel powered three-wheelers are mostly utilized for transportation of cargo; however, their use for passenger transportation is also significant. Ongoing regulatory transformations related to vehicle emissions have led to a decline in production and sale of fossil fuel-based vehicles, and greener vehicles such as those powered by CNG or electricity are gaining traction. Consequently, CNG and electric segments are anticipated to expand significantly in the near future.
• Based on usage, the global three-wheeler vehicle market has been bifurcated into passenger carrier and goods carrier. In terms of revenue, the passenger carrier segment accounted for a major share of the global three-wheeler vehicle market in 2020. Three-wheelers are extensively employed for passenger transportation in numerous countries across Asia, such as India, Bangladesh, Thailand, and major countries in Africa. This has contributed toward the high share of the passenger carrier segment. However, the goods carrier segment is anticipated to expand at a notable growth rate in terms of value in the near future, owing to increase in adoption of three-wheeler vehicles in last-mile delivery services, postal services, and other applications.

Three-wheeler Vehicle Market: Regional Analysis

• Based on region, the global three-wheeler vehicle market has been segregated into Americas, Europe, Asia Pacific, Middle East, and Africa
• Asia Pacific held a prominent share of the global three-wheeler vehicle market in 2020. It is anticipated to maintain its dominance during the forecast period due to a rise in domestic sales and exports. Asia Pacific has strong presence of major three-wheeler manufacturers in countries, such as China and India, which drives the share held by the region in the global three-wheeler vehicle market.
• India is the largest market for three-wheeler vehicles, in terms of both sales and production, across the globe. Three-wheelers produced in India are also exported to countries in South Asia, Middle East & Africa, and Europe. Bajaj Auto Ltd is a leading player in the three-wheeler market in India. Bajaj exports three-wheeler vehicles to approximately 36 countries such as Sri Lanka, Bangladesh, Nepal, Egypt, Iran, Philippines, Uganda, South Sudan, Nigeria, Ethiopia, Congo, Kenya, Angola, Tanzania, Mexico, Peru and Colombia. Bajaj has three-wheelers in all fuel variants - diesel, CNG, LPG, and petrol.
• Three-wheelers are becoming the primary source of transportation of passengers as well as cargo in countries such as Kenya, South Africa, and Zimbabwe, which, in turn, is expected to propel the share held by Africa in the global three-wheeler vehicle market during the forecast period

Some of the prominent players in the Three-Wheeler Vehicle Market include:

• Bajaj Auto Limited.
• Mahindra & Mahindra Ltd.
• Piaggio & C. SpA
• Scooters India Ltd.
• TVS Motor Company
• Atul Auto Limited.
• Lohia Auto Industries
• Terra Motors Corporation
• Force Motors
• Mahindra Electric Mobility Limited

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

• Fuel Type
• Petrol
• Diesel
• CNG
• Electric
• Others
• Usage
• Passenger Carrier
• Goods Carrier
• Configuration
• Two Front Wheels
• Two Rear Wheels
• Power Output
• Less than 4 kW
• 4.1 kW to 6 kW
• 6.1 kW to 9 kW
• More than 9 kW
• Engine Location
• Front Engine
• Rear Engine

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Points Covered in Three-Wheeler Vehicle Market Study:

• Growth of Three-Wheeler Vehicle in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Three-Wheeler Vehicle and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Three-Wheeler Vehicle Consumption Analysis
•  Three-Wheeler Vehicle Production Analysis
•  Three-Wheeler Vehicle and Management