According to Vision Research Reports, the global Microcars market is expected to reach US$ 12.1 Bn by 2027, expanding at a CAGR of 13% during the forecast period 2020 to 2027. Growing environmental concerns, increasing fuel prices, and traffic congestion globally have laid emphasis on improving transportation facilities. Thus, vehicle manufacturers are focusing on the development of comfortable, affordable, and fuel-efficient small vehicles. This is likely to boost the microcars market during the forecast period.
Rapid increase in vehicle penetration in developing countries and rise in investment in research & development activities are key factors that are estimated to drive the global microcars market during the forecast period. The microcars market is likely to perform well soon due to the rise in the demand for hybrid cars in Asia Pacific, owing to their affordability as well as low maintenance, along with the decrease in the micro electric vehicle’s battery cost, which is likely to propel microcars market in Asia Pacific.
Rise in government initiatives for the development of microcars as well as vehicle manufacturers are integrating advance technology, including advance drive assist (ADAS) and connected vehicle, which is likely to enhance the microcars market across the globe. Moreover, in the U.K., the government offers several tax benefits to people who use microcars. Increase in smart car culture among the young population, rise in export opportunities for microcar manufacturers, and a surge in disposable income are anticipated to boost the microcars market across the globe.
The study has considered the base year as 2019, which estimates the market size of market and the forecast period is 2020 to 2027. The report analyzes and forecasts the market size, in terms of volume (thousand units) and value (USD million), for the market. The report provides a detailed analysis of various forces acting in the market (drivers, restraints, opportunities, and challenges). The report covers key players and comprehensively analyzes their market shares and core competencies. It also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product launches, expansions, and other activities carried out by key industry participants.
Based on drive, the AWD segment dominated the global microcars market, as AWD helps increase fuel efficiency, enhance traction, and control of the vehicle. Rise in demand for small and lightweight passenger vehicles in order to increase the fuel-efficiency of the vehicle is projected to boost the microcars market across the globe.
Based on fuel type, the electric segment dominated the market, as the demand for electric vehicles has been rising across the globe due to enactment of stringent rules and regulations regarding vehicle emission.
Asia Pacific and Europe are projected to be highly lucrative markets during the forecast period. This is primarily due to the presence of a prominent automotive industry in the U.S., China, Japan, and India. Consistent rise in vehicle production across Asia Pacific and Europe is anticipated to propel the microcars market during the forecast period.
Key players operating in the global microcars market include