The light electric vehicles market size was estimated at USD 97.82 billion in 2024 and is projected to reach around USD 247.80 billion by 2034 with a CAGR of 9.74%.
The Role of AI in the Light Electric Vehicles (LEV) Market
Artificial Intelligence (AI) is playing a crucial role in the growth and advancement of the Light Electric Vehicles (LEV) market by improving efficiency, safety, and user experience. AI-driven innovations are transforming various aspects of LEVs, from battery management to autonomous navigation and predictive maintenance.
1. Smart Battery Management Systems (BMS)
AI enhances battery performance and longevity by optimizing charging cycles, detecting potential faults, and predicting battery degradation. AI-powered BMS can:
- Monitor battery health in real time
- Prevent overheating and overcharging
- Optimize power consumption for extended range
2. Predictive Maintenance
AI helps detect mechanical and electrical failures before they occur by analysing data from sensors embedded in LEVs. This reduces unexpected breakdowns and maintenance costs by:
- Identifying early signs of wear and tear
- Providing proactive alerts for servicing
- Minimizing downtime for fleet operators
3. Autonomous and Assisted Driving
Advanced AI-driven algorithms enable self-driving capabilities and driver assistance features in LEVs, enhancing safety and convenience. AI contributes to:
- Object recognition and obstacle detection
- Adaptive cruise control and collision avoidance
- Smart parking and lane-keeping assistance
4. AI-Based Route Optimization
For commercial and delivery services using LEVs, AI helps optimize routes based on traffic patterns, weather conditions, and battery levels. This ensures:
- Faster deliveries with reduced energy consumption
- Efficient use of charging infrastructure
- Cost savings for logistics and ride-sharing services
5. Enhanced User Experience
AI-driven infotainment and smart assistant systems provide personalized experiences for riders by:
- Offering voice-controlled navigation and vehicle diagnostics
- Customizing riding modes based on user behavior
- Integrating with mobile apps for real-time tracking and security
6. AI in Vehicle-to-Everything (V2X) Communication
AI enables LEVs to communicate with other vehicles, infrastructure, and smart grids. This improves:
- Traffic management and accident prevention
- Efficient energy distribution in smart cities
- Real-time data sharing for improved mobility solutions
7. AI in Manufacturing and Design
AI assists in the design and production of LEVs by analysing market trends, consumer preferences, and material efficiency. AI-driven automation leads to:
- Faster production times
- Cost-efficient manufacturing processes
- Sustainable material selection
Market Drivers
The Light Electric Vehicles (LEV) market is driven by growing environmental concerns, government incentives, and advancements in battery technology. As the world shifts toward sustainable transportation, LEVs are gaining popularity due to their lower carbon footprint and energy efficiency. Governments worldwide are implementing policies such as subsidies and tax benefits to encourage the adoption of electric mobility, further accelerating market growth.
Market Opportunities
Opportunities in the LEV market lie in expanding charging infrastructure and technological innovation. The development of fast-charging networks and battery-swapping stations will enhance convenience for users, boosting adoption rates. Additionally, integrating artificial intelligence (AI) for route optimization, predictive maintenance, and autonomous driving presents new growth avenues.
Market Challenges
Challenges in the LEV market include high initial costs, limited range, and inadequate charging infrastructure. Despite declining battery prices, electric vehicles remain more expensive than conventional fuel-based vehicles. Range anxiety and lack of widespread charging networks further hinder mass adoption. Manufacturers and policymakers must work together to address these limitations.
The Light Electric Vehicles (LEV) market has witnessed several noteworthy developments recently:
- Stellantis and Leapmotor’s Investment in Spain
Stellantis, in partnership with China’s Leapmotor, plans to invest $200 million in a Spanish facility to produce the B10 electric crossover for the European market, targeting mass production by early 2026. Zaragoza is the preferred location, chosen over previous considerations in Germany and Slovakia. This decision underscores Spain’s appeal due to its lower labor costs and government incentives for clean energy projects. - Challenges in the Australian EV Market
In Australia, Mitsubishi Motors Australia CEO Shaun Westcott highlighted concerns about car dealerships being stocked with electric vehicles (EVs) that consumers are hesitant to purchase. He cautioned that stringent vehicle emission standards, effective from January, could lead to increased prices for petrol vehicles.
Despite governmental efforts to promote EV adoption, consumer demand has declined, with EV sales dropping to 5.9% in February from 9.6% the previous year. Westcott emphasized the necessity for expanded EV charging infrastructure and a comprehensive review of energy policies to ensure grid reliability.
- Global Sales Trends in Electric Light-Duty Vehicles
In 2022, China led global sales of electric light commercial vehicles (LCVs), with over 130,000 units sold, accounting for nearly 15% of total LCV sales. This growth occurred even as subsidies for battery electric and fuel cell trucks decreased, indicating the rising commercial viability of electric trucks. South Korea also showed significant market share, with 27% of LCV sales being electric, although sales growth slowed in 2022. - Expansion of Charging Infrastructure in India
India has made strides in developing its public charging infrastructure, with funding facilitating the installation of 7,000 fast chargers nationwide in 2023. This effort addresses a critical barrier to EV adoption by enhancing accessibility and convenience for consumers.
Light Electric Vehicles Market Companies
- Accelerated Systems Inc.
- Addax Motors
- Aisin Corporation
- Alke, American Landmaster
- Ari Motors
- Auro Robotics
- Auto Rennen India
- Balkancar Record
- BMW AG
- Borgwarner Inc.
- Byd Auto Co. Ltd.
- Cfmoto, Club Car Inc.
- Columbia Vehicle Group Inc.
- Continental AG
- Crossfire Motorcycles
- Crystalyte Motors
Segments Covered in the Report
By Vehicle Category
- 2-wheelers
- 3-wheelers
- 4-wheelers
By Application
- Personal Mobility
- Shared Mobility
- Recreation & Sports
- Commercial
By Power Output
- Less than 6 kW
- 6–9 kW
- 9–15 kW
By Component
- Battery pack
- Electric motor (Propulsion Motor)
- Motor controller
- Inverters
- Power Controller
- E-brake booster
- Power Electronics
By Vehicle Type
- e-ATV/UTV
- e-bike
- e-scooter
- e-motorcycle
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
Source: https://www.precedenceresearch.com/
