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.

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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.