The global electric utility vehicle (EUV) market is set for remarkable growth, rising from $8.59 billion in 2021 to a projected $24.98 billion by 2031, according to a new report by Allied Market Research. This reflects a strong CAGR of 11.4% from 2022 to 2031, fueled by growing demand for eco-friendly transport, government regulations, and breakthroughs in battery technology.
Asia-Pacific Leads the Charge
Asia-Pacific emerged as the dominant region in 2021 and is expected to maintain its lead due to:
- Rising interest in power sports and recreational activities in China, Australia, and India.
- Government incentives and fuel cost inflation accelerating EV adoption.
- Increased consumer openness to smart mobility and clean-energy vehicles.
Developing nations like India, Indonesia, and China are key hotspots, driven by environmental concerns and expanding infrastructure for electric mobility.
Lithium-Ion Batteries Driving Innovation
Lithium-ion batteries are rapidly replacing lead-acid counterparts due to their:
- Lightweight design
- High energy capacity
- Faster charging capability
- Declining cost
Manufacturers are focused on enhancing lithium-ion technology to offer better range, faster charging, and longer life — ideal for electric SUVs, utility terrain vehicles, and more.
Spotlight on Electric SUVs
The report highlights electric SUVs (e-SUVs) as a rapidly growing segment. Known for their rugged build, off-road capability, and spacious cargo support, e-SUVs are seeing strong demand from rural and industrial regions. Their appeal includes low maintenance, driver-assistance features, and enhanced driving range, making them a top choice among both urban commuters and remote operators.
Key Growth Drivers:
- New launches and design innovations in electric utility vehicles
- Rising fuel costs and stringent emission regulations
- Growing preference for multi-purpose electric vehicles
- Government support for EV infrastructure and subsidies
Roadblocks and Opportunities
Despite strong momentum, challenges such as insufficient charging infrastructure and limited range for some models may slow adoption. However, with proactive government efforts and technological advancements, the industry is poised for a strong comeback.
COVID-19 Impact and Recovery
The COVID-19 pandemic temporarily slowed the market due to supply chain disruptions and production halts. Major automakers like Hyundai and Nissan faced shutdowns and component shortages. However, as economies reopened and EV subsidies strengthened, sales began to rebound, with long-term forecasts now showing stronger growth than pre-pandemic levels.
The global electric utility vehicle market is entering a high-growth phase, led by Asia-Pacific’s demand, lithium-ion battery advancements, and regulatory support for clean mobility. With environmental consciousness rising and automakers doubling down on innovation, the next decade could mark a pivotal shift toward electrified utility transport across industries and geographies.
