ELECTRIC SCOOTER MARKET ANALYSIS

Electric Scooter Market Size and Trends

The electric scooter market is estimated to be valued at US$ 24.92 billion in 2024 and is expected to reach US$ 45.82 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 9.1% from 2024 to 2031.

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The demand for electric scooters has increased significantly over the past few years. Factors such as rising fuel prices, growing concerns about environmental pollution, and increasing traffic congestion in urban areas have encouraged commuters to shift from conventional vehicles to environment-friendly electric scooters. Moreover, various government initiatives to promote emission-free electric vehicles and develop charging infrastructure have also boosted the adoption of electric scooters across major cities. However, high purchase costs and limited battery ranges remain key challenges for the widespread acceptance of electric scooters.

Environment Friendly Commuting

The growing environment consciousness among people coupled with increasing traffic congestion in urban areas has propelled the demand for environment friendly modes of commuting. Electric scooters provide a viable alternative to gasoline powered vehicles and public transport as they are more eco-friendly and help reduce the carbon footprint. While making short commutes within cities, electric scooters allow traveling distances of up to 30 kilometers on a single charge without emitting any harmful gases. As people are becoming increasingly aware about the detrimental impact of vehicular emissions on the environment, they are drawn towards electric scooters as a means for daily short-distance rides. The zero-emission attribute is a big selling point for electric scooters in developed markets where citizens are vociferous about reducing air pollution. Moreover, state policies in various cities that encourage the adoption of electric vehicles through provision of tax rebates and dedicated lanes for environment friendly modes of transportation has galvanized the sales of electric scooters. Consumers view electric scooters as a fun, affordable and environmentally responsible option for making short trips within the city limits.

For instance, in October 2023, automaker, LML, acquired land in Haryana, India for a new EV industrial park focused on e-scooters. This park aims to revolutionize EV manufacturing by combining technology, innovation, and sustainability. LML's partnership with Saera Electric Auto will enable the production of its electric two-wheelers.

Market Concentration and Competitive Landscape

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Affordable Urban Transportation

Rising fuel costs and expensive public transportation fares are exerting pressure on the household budgets of urban residents. At the same time, owning and maintaining a private automobile is proving to be a costly affair in metropolitan areas due to high parking charges, road taxes, and inflated real estate prices. Electric scooters have emerged as a wallet-friendly alternative for daily commuting needs of people. They offer a personal mode of transport at a fraction of cost compared to cars. While the upfront cost of an electric scooter may be moderately higher than conventional gasoline variants, their running and maintenance expenses are significantly lower as electricity is inexpensive. Moreover, no road tax or parking fees is levied on electric scooters in many cities and countries. Urban dwellers are actively considering electric scooters for their affordable pricing and lower total cost of ownership. The pay-as-you-go rental models for electric scooters have further enhanced their accessibility. Young working professionals and students in particular are enthusiastic about embracing electric scooters as an economical option to travel short distances daily amidst escalating urban living expenses.

For instance, in December 2023, Kinetic Green, a India based EV company, introduced its high-speed e-scooter, Zulu, which includes a battery subscription plan. This model reduces the acquisition cost by over 35% and offers significant savings on running costs.

Key Takeaways of Analyst:

The electric scooter market is poised to experience significant growth in the coming years. Rising environmental concerns are one of the key drivers as consumers increasingly look for eco-friendly transportation options to commute. Moreover, advancements in battery technology have enhanced the driving range of electric scooters, making them viable alternatives to short-distance travel. Several major cities are also promoting the adoption of electric vehicles through incentives and subsidies.

However, high purchase cost remains a challenge, restricting the widespread adoption of electric scooters. Additional development is required to make them more affordable for mass market consumers. Safety concerns associated with riding electric scooters also act as a restraint. Regulatory authorities need to define laws around their usage to assure users.

Key players have opportunity to drive demand by launching low-cost entry-level models. Partnerships with shared mobility companies provide another avenue for consumer exposure. Asia Pacific currently dominates due to high urbanization and government support in countries like China and India. However, Europe is expected to see faster growth in electric scooter sales led by growing consumer awareness about environmental issues.

Market Challenges: Infrastructure and Safety Concerns

The electric scooter market faces significant growth challenges due to inadequate infrastructure. The absence of proper roads, lanes, and parking spaces impedes the widespread adoption of electric scooters. Additionally, safety concerns, such as battery fires and accidents, further deter potential users, raising serious questions about the reliability and security of these vehicles.

Market Opportunities: Rising Demand for Environment-Friendly Mobility

As more individuals adopt shared and eco-friendly transportation options, the demand for green mobility solutions is surging. Government incentives, including subsidies and tax benefits, are playing a crucial role in accelerating the adoption of these sustainable transport modes. These measures make green transportation more accessible and attractive to the public, fostering a shift towards environmentally responsible mobility choices.

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Insights, By Battery Type - Convenience and Performance Drive Li-ion Adoption

In terms of battery type, Li-ion is expected to contribute the highest share of 66.3% in 2024, owing to its convenient recharging abilities and superior performance qualities. Li-ion batteries hold their charge for long periods, providing scooter riders with increased range between charges compared to lead-acid or NiMH alternatives. The lack of maintenance associated with sealed Li-ion batteries also makes them more convenient, as riders do not need to worry about battery water levels or perform other tasks required by other chemistries.

From a performance standpoint, Li-ion batteries excel by providing scooters with quick acceleration and higher top speeds. The energy density of Li-ion allows for powerful yet compact motorization. This delivers a thrilling ride that draws in many new electric scooter customers. Manufacturers have also been developing new cell chemistries within Li-ion that boost energy capacity even further. Solid-state batteries on the horizon promise to take Li-ion performance and convenience to the next level.

With most electric scooters averaging between 12-20 miles per charge currently, many riders find the range of Li-ion meets their daily needs whether for commuting to work or riding around town running errands. But as battery technology continues enhancing, ranges will extend to conquer even more use cases. Already some high-end e-scooters offer over 30 miles per charge with Li-ion. Such improving versatility solidifies Li-ion's position at the forefront of the electric scooter battery market.

Insights, By Product Type - Standard Design Meets Core Commuting Needs

In terms of product type, the Standard segment is expected to contribute the highest share of 71.6% in 2024, due to its simplistic yet effective design focused on the essentials of commute-oriented transportation. The Standard model retains a traditional kick-scooter form factor with its small 10-inch wheels and foldable pole-like steering column.

This simple layout has various advantages. It keeps costs low through accessible construction and lack of unnecessary extras. Standardization also means reliable operation and familiar handling for any rider. With just get-on-and-go convenience, the Standard type remains a comfortable option for last mile trips even carrying briefcases or bags in a hurry.

Plus, its compact foldability allows Standard scooters practical portability. Owners easily pick them up to board a bus or train or tuck them under desks at the office. Such straightforward mobility fits the daily usage perfected by the leading Standard segment of the electric scooter marketplace. No frills are needed for effective commute speeds around 15 mph suited to most reasonable urban and suburban travel needs.

Insights, By Voltage - 48-59V Establishes A Mainstream Standard

In terms of voltage, the 48-59V electric segment is expected to capture the highest share of 41.7% in 2024, due to appropriately balancing performance with value. This voltage range delivers sufficient acceleration and hill-climbing ability without going overboard and adding undue costs. Components and battery packs rated for 48-59V have become standardized by major manufacturers.

Riders generally see voltage as a proxy for speed potential, where higher is better. But for most daily last-mile commutes, reliable cruising speeds around 15-18 mph are sufficient without needing to push legal limits. The 48-59V voltage establishes a "good enough" standard experience for mainstream users. It focuses more on affordability than record-breaking speeds, which draws greater appeal.

With experience, many consumers learn higher voltages do not necessarily translate to better value propositions or safety. More than a few riders switch down from higher-end 72V or 96V models citing issues like loose battery connections or marginal realistic speed increases for much higher costs. The proven 48-59V level hits the sweet spot consumers have agreed upon as an ideal balance. This mass-market appeal cements its position at the top of the electric scooter voltage segmentation.

Regional Insights

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In 2024, the Asia Pacific region is projected to dominate the electric scooter market, holding the largest market share of 74.9%. This significant share underscores the region's leading role in the adoption and proliferation of electric scooters, driven by a combination of favorable government policies, rising environmental awareness, and increasing urbanization. Major economies such as China, India, and Japan are at the forefront of this growth, investing heavily in electric mobility infrastructure and incentivizing consumers through subsidies and tax benefits.

Moreover, the Asia Pacific region is expected to exhibit the highest Compound Annual Growth Rate (CAGR) of 11.6% in 2024, outpacing all other regions. This impressive growth rate is fueled by continuous advancements in battery technology, which address concerns regarding range and cost, making electric scooters more accessible and appealing to a broader audience. Additionally, the region's focus on developing robust charging infrastructure and enhancing safety standards further supports the mainstream adoption of electric scooters. These factors collectively position the Asia Pacific region as the epicenter of the electric scooter market, driving innovation and setting the pace for global trends in sustainable urban transportation.

Market Report Scope

Electric Scooter Industry News

• In September 2023, Bird, a major player in the electric micro-mobility market, acquired Spin, an electric scooter and e-bike rental company, for USD 19 million. This acquisition reduces competition for Bird and helps maintain its market dominance.
• In August 2023, India based electric scooter manufacturer, Avera AI Mobility Pvt. Ltd. (AAMPL), announced an investment of USD 1 billion to increase production from 25,000 to 100,000 units per annum. This expansion aims to meet the demand in emerging markets such as Australia, Vietnam, and Sri Lanka, with plans to enter additional countries later.
• In March 2023, Yadea Technology Group Co., Ltd. a developer and manufacturer electric two-wheel, launched its YADEA Fierider, YADEA VoltGuard Scooter, and YADEA Keeness Electric Motorcycle in Vietnam. These products offer premium quality and an exceptional riding experience, giving the company a competitive edge.

*Definition: The electric scooter market consists of companies that manufacture and sell battery-powered scooters. Electric scooters are becoming increasingly popular for short-distance urban transportation. They are lightweight, energy-efficient and produce zero direct emissions, making them an environmentally-friendly alternative to transportation methods like cars, motorcycles or public transit. The growing demand for sustainable mobility solutions is fueling the demand for electric scooters in many countries around the world.

Market Segmentation

• Battery Type Insights (Revenue, US$ Bn, 2019 - 2031)
  • Lead-based
  • Li-ion
  • NiMH
•  Product Type Insights (Revenue, US$ Bn, 2019 - 2031)
  • Standard
  • Folding
  • Self-Balancing
  • Maxi
  • Three wheeled
•  Voltage Insights (Revenue, US$ Bn, 2019 - 2031)
  • 48-59V
  • 60-72V
  • 73-96V
  • Above 96V
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • South Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • AIMA Technology Co., Ltd.
  • Ampere Vehicles Pvt. Ltd.
  • Aprilia
  • Ather Energy Pvt. Ltd.
  • BMW AG
  • Gogoro Inc.
  • Harley-Davidson, Inc.
  • Hero Electric Vehicles Pvt Ltd
  • Honda Motor Co., Ltd.
  • Lightning Motorcycles Inc.
  • Niu Technologies Inc.
  • Ola Electric Mobility Pvt. Ltd.
  • Piaggio Group
  • Super Soco
  • Suzuki Motor Corporation
  • Vectrix GmbH
  • Vespa
  • Yadea Technology Group Co., Ltd.
  • Yamaha Motor Co., Ltd.
  • Zhejiang Luyun Electric Vehicle Co., Ltd.