The global compact e-scooter market size is projected to reach USD 659.8 million in 2024. It is anticipated to surge at a CAGR of 2.6% during the forecast period and is estimated to attain a value of USD 852.9 million by 2034.
Compact e-scooters, also known as portable e-scooters, are personal electric vehicles designed especially for short-distance travel. They are equipped with a battery-powered motor and two wheels, providing an alternative mode of transportation to conventional fossil fuel-powered vehicles.
The e-scooters have gained traction as a sustainable and efficient option for last-mile commutes. They are often used in conjunction with other forms of public transportation.
| Attributes | Description |
|---|---|
| Estimated Global Compact E-scooter Market Size (2024E) | USD 659.8 million |
| Projected Global Compact E-scooter Market Value (2034F) | USD 852.9 million |
| Value-based CAGR (2024 to 2034) | 2.6% |
Rising awareness regarding environmental concerns has resulted in the increased adoption of eco-friendly transportation options, thereby driving demand for compact e-scooters. These e-scooters produce zero emissions during operation, thereby aligning perfectly with the global efforts to reduce carbon footprint and combat climate change.
The convenience and affordability of these e-scooters are attracting a broad consumer base, including students, tourists, commuters, and delivery service providers. Governments of several countries are promoting the use of these e-scooters by providing incentives for the adoption of electric vehicles. They are implementing electric mobility schemes to accelerate adoption.
The rise of e-scooter rental services presents several opportunities for growth. This is because people are increasingly opting for shared mobility solutions to save time. These e-scooters are ideal for shared mobility owing to their ease of use, user-friendliness, and favorable cost structure.
Cities are becoming densely populated due to urbanization, leading to traffic congestion. Growth in urban population poses a requirement for efficient and space-saving transportation. The small size of these compact e-scooters facilitates easy maneuverability and parking, making them an attractive option for commuters.
Ongoing innovations in technology are aimed at enhancing battery efficiency and connectivity features. These are likely to make the e-scooters practical and efficient. Long-lasting battery life and quick charging times have increased the appeal of these vehicles to consumers.
The table below presents the estimated CAGR for the global compact e-scooter industry over semi-annual periods spanning from 2023 to 2024. The examination provides businesses with a better understanding of the growth rate over the year by showcasing crucial shifts in performance and growth patterns. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Figures shown in the table below present the growth rate for each half between 2023 and 2024. The industry was anticipated to rise at a CAGR of 2.4% in the first half (H1) of 2023. The second half of the same year showcases a slight increase in the growth rate with a CAGR of 2.5%.
| Particular | Value CAGR |
|---|---|
| H1 | 2.4% (2023 to 2033) |
| H2 | 2.5% (2023 to 2033) |
| H1 | 2.5% (2024 to 2034) |
| H2 | 2.6% (2024 to 2034) |
Preceding into the following period, from H1 2024 to H2 2034, the CAGR is likely to remain steady at 2.5% in the first half (H1) and then increase to 2.6% in the second half (H2).
Smartphone Connectivity Feature Makes Compact E-scooters Extra Accessible to Users
Several cutting-edge compact e-scooters allow users to connect their smartphones. This connection enables the user to monitor their battery life, speed, and distance traveled directly from their mobile device. Integrated smartphone applications provide real-time information about nearby charging stations and traffic conditions, improving the overall commuting experience.
A few e-scooters also incorporate GPS tracking and anti-theft systems that can be easily managed through apps, ensuring high security. Smartphone connectivity facilitates easier unlocking and operation of compact e-scooters, thereby making these extra accessible to riders in urban areas.
Cellular connectivity effortlessly supports fleet management for rental services by providing telematics data that helps monitor usage patterns and maintenance requirements.
Increasing Demand for Green Mobility Solutions is Spiking Sales
The adoption of compact e-scooters is transforming urban mobility, especially in densely populated countries like India. This shift toward green mobility is prominently driven by their economic advantages, environmental benefits, and improvements in urban living conditions.
Compact e-scooters are recognized for their positive impact in reducing air pollution. These produce zero tailpipe emissions, helping to improve air quality in urban areas. This aligns with the global climate goals, thereby driving adoption.
Compact e-scooters assist in mitigating noise pollution as they operate quietly compared to traditional vehicles, thereby enhancing the urban living experience. They also assist in reducing commuting costs by 90% compared to conventional scooters, prominently owing to their lower fuel and maintenance costs. This makes them an attractive option for price-sensitive consumers.
The high demand for compact e-scooters is set to create millions of jobs across the globe in manufacturing, maintenance, and support services, contributing to economic growth. By providing an effective solution for last-mile connectivity, these e-scooters assist in bridging the gap between public transportation and final destinations, making urban commutes efficient and reliable.
Lack of Proper Charging Infrastructure to Hinder Demand
The lack of charging infrastructure worldwide is restraining growth in the market. Governments worldwide are implementing plans to expand the current charging infrastructure for e-scooters. The current pace of development, however, is not on par with the growing fleet of electric vehicles.
The geographical diversity of countries often complicates the establishment of uniform charging infrastructure. This is because different terrains require customized solutions. Firms are often hesitant to invest in charging systems because of their high capital costs.
It leads to a scattered network of charging points, especially in rural and less developed areas. Despite gaining a significant share in e-scooters, the lack of charging facilities has led to the suspension of plans for the development of electric cars, indicating the urgent requirement for comprehensive charging solutions.
The global compact e-scooter industry was valued at USD 593.8 million in 2019. It grew at a CAGR of 1.6% through the historical period ranging from 2019 to 2023 and reached USD 643.1 million by 2023.
Rising demand for eco-friendly transportation solutions during the historical period played a crucial role in accelerating growth. Increasing awareness of environmental issues resulted in consumers seeking sustainable alternatives to conventional fossil fuel-powered electric scooters. This led to an increased demand for compact e-scooters as they offer a practical mobility solution and assist in reducing greenhouse gas emissions.
The COVID-19 pandemic had a mixed impact on the compact e-scooter market. It initially caused disruptions in manufacturing processes and supply chains but as lockdown restrictions eased, the industry registered a surging demand for personal, efficient, and sustainable mobility solutions. This is because consumers sought alternatives to crowded public transportation, resulting in an increased adoption of e-scooters for short-distance travel.
The industry is estimated to reach a value of USD 659.8 million in 2024 and is further anticipated to surge at a CAGR of 2.6%. The overall market value is projected to be worth USD 852.9 million by 2034.
Compact e-scooters are favored for their high convenience and low operational costs. They also require minimal maintenance and are more cost-effective compared to petroleum-based scooters. The lightweight and portable nature of compact e-scooters enhances their appeal for short-distance travel and commutes. Innovations in technologies are set to make these e-scooters practical for everyday use, further boosting their adoption rates.
Prominent characteristics that distinguish Tier 1 companies are their brand awareness and stability. These companies comprise a significant portion of the global industry. They utilize modern technologies in their manufacturing processes to boost production. These organizations have an extensive product portfolio and production facilities spread across several locations. Well-known businesses in Tier 1 are Xiaomi, Ninebot, Segway, Unagi, and Razor.
A massive portion of Tier 2 consists of businesses operating in specific regions. These enterprises are well known on the global stage. They have a substantial impact on the regional economy. These businesses also possess a wide industry knowledge. Renowned companies in Tier 2 include Glion Dolly, Turboant, and Inokim.
A huge portion of Tier 2 is made up of medium-to small-sized businesses with regional headquarters. Compared to the industry leaders in Tier 1 and Tier 2, Tier 3 companies are less structured and formalized. Their limited geographic reach results in less competition among several companies. Organizations in Tier 3 consist of Swagtron, GoTrax, Levy Electric, Hiboy, and Macwheel.
The section provides businesses with an overview of the industry. It comprises of a detailed analysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination of the dynamics is set to help organizations understand the complex nature of the business.
The examination contains key factors, potential challenges, and forecasts influencing the demand, production, and consumption of the product within each country. It further aims to assist companies make informed decisions and develop effective strategies customized to individual countries.
India is estimated to emerge as a dominating country during the forecast period with an estimated CAGR of 3.9%. China, Spain, and France are projected to follow closely behind to become the key countries with anticipated CAGRs of 2.9%, 2%, and 1.8%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 3.9% |
| China | 2.9% |
| Spain | 2% |
| France | 1.8% |
| Italy | 1.7% |
India is set to register a CAGR of 3.9% during the forecast period. This growth is attributed to the rising demand for energy-efficient commutes in the country. The government of the country has introduced several initiatives promoting the adoption of electric mobility solutions, such as the Smart Cities Mission.
Compact electric scooters offer significant cost savings compared to conventional scooters, making these an attractive option for price-sensitive consumers in the country. India is a developing country and is therefore undergoing rapid urbanization, leading to traffic congestion. This makes compact electric scooters a practical solution for urban commuting.
India is a prominent producer of two-wheeled vehicles, manufacturing around 20 million scooters and motorcycles on an annual basis. This manufacturing prowess of the country positions it well to capitalize on the increasing demand for electric scooters. Leading e-scooter manufacturers like TVS Motor Company, Ather Energy, and Ola Electric are heavily investing in the local market and expanding their product line-ups to cater to several segments.
Increasing vehicular pollution is encouraging consumers in China to shift toward electric mobility solutions, especially amid the rising awareness regarding sustainability. Fast-paced urbanization in the country is creating an increased demand for efficient and convenient transportation solutions. Compact e-scooters are well suited for short-distance travel, especially in congested urban areas, thereby offering a practical solution to traffic challenges.
The Government of China is increasingly implementing various initiatives aimed at promoting green transportation in the country. This includes subsidies and regulations favoring electric mobility, further enhancing the growth potential of the market. The rise of e-commerce and delivery services in the country has bolstered the demand for compact e-scooters as they favor last-mile deliveries.
As businesses keep adopting compact e-scooters for their logistics and transportation requirements, the country is likely to continue expanding at a steady rate. The presence of several local manufacturers in the country, including Yadea and Aima, providing affordable models is anticipated to boost demand.
Spain is projected to witness a CAGR of 2% in the compact e-scooter market. This growth is prominently attributed to the surging demand for shared mobility solutions in the country. Shared mobility is becoming essential for urban commuters seeking convenient and sustainable transport options.
Portable e-scooter is viewed as a viable alternative to conventional gasoline-powered vehicles, especially in the urban areas of the country. This is because it enables easier navigation through crowded streets. The tourism industry in Spain has a substantial demand for efficient, fast, and sustainable transport alternatives. This demand, in turn, increases sales of portable e-scooters in the country.
The section provides businesses with insightful data and analysis of the two leading segments of the target market. Segmentation of these categories assists organizations in understanding the dynamics and investing in the beneficial zones.
Examination of the growth allows companies to gain a thorough understanding of the trends, opportunities, and challenges of each segment. This analysis is likely to help organizations in navigating the complex business environment and make informed decisions.
In terms of battery type, lithium-ion battery is likely to lead the segment with a value share of 57% in 2024. Above 30 years is emerging as the dominating age group with a value share of 60% in the same year.
| Segment | Non-foldable (Product Type) |
|---|---|
| Value Share (2024) | 71.5% |
Non-foldable two-wheel compact e-scooters dominate the market for several reasons. Firstly, their robust design typically offers better stability and handling compared to foldable models, making them more suitable for urban commuting and varied terrains. For instance, companies like Xiaomi and Segway have focused on enhancing the durability of their non-foldable models, appealing to consumers seeking reliability.
Secondly, non-foldable e-scooters often have larger batteries, leading to longer ranges and faster speeds, which is a crucial factor for commuters. For example, the Segway Ninebot MAX can travel up to 40 miles on a single charge, attracting users who prioritize distance over portability.
Additionally, non-foldable models usually require less maintenance due to fewer moving parts, making them more appealing to cost-conscious consumers. Lastly, brand loyalty and established reputations of non-foldable scooters, coupled with their superior performance, reinforce their dominance in the compact e-scooter market..
| Segment | Above 30 Years (User Age Group) |
|---|---|
| Value Share (2024) | 60% |
The above 30 years age group is estimated to dominate the user age group segment with a value share of 60% in 2024. Expansion of urban areas is leading to population shifts from rural areas to urban settings. This transition is particularly prominent among adults aged 30 years and above as they usually have established careers and families. This leads to increased commuting requirements.
The United States Census Bureau projects a significant rise in the urban population by 2030, leading to an increase in traffic congestion as people travel to work and engage in daily activities. Adults over the age of 30 years are typically engaged in full-time employment which necessitates regular commuting.
A huge portion of workplaces are located in central business districts. This poses the need to travel long distances from residential areas. Separation of living and working adds up to increased vehicle miles traveled (VMT). This is a strong predictor of congestion levels. The correlation between economic performance and VMT indicates that the growth in the economy increases demand, particularly among the age group of above 30 years.
The infrastructure in several urban areas is not updated in terms of the growing population and vehicle ownership. This hampers the ability to accommodate the increasing number of vehicles on the road, directly affecting adults relying on personal vehicles for commute.
Increasing congestion is fostering the demand for efficient mobility solutions tailored to adults. Adults above the age group of 30 years who often balance professional and personal responsibilities are likely to adopt compact e-scooters as they enhance their commuting efficiency and reduce the time spent in traffic.
Key players in the industry include Xiaomi Corporation, Pride Mobility Products Corp, Segway, Megawheel, GOTRAX, and Shenzhen Lezway Technologies. Manufacturers are progressively investing in research and development activities to enhance the performance and battery life of compact e-scooters.
Companies are also focusing on product innovation amid the rising demand for e-scooters. Shifts in consumer preferences, imposition of various mandates by governments, and innovations in technology play a crucial role in shaping the dynamics of the market.
The emergence of ride-sharing services has further intensified competition in the industry. To address this challenge, businesses can start collaborating with ride-hailing companies to expand their reach and provide an integrated transportation experience.
Compact e-scooters can be easily integrated with smart city initiatives implemented by government authorities worldwide. They align well with the goal of providing a seamless and sustainable transportation experience while reducing their overall carbon footprint.
Manufacturers in the industry are consistently upgrading their product line-ups and integrating unique technologies in their e-scooters to stay ahead in the competitive landscape.
Key players are collaborating with urban mobility platforms and partnering with government authorities to drive innovation in their product portfolio and promote their products to a wide audience. Businesses are aligning their production processes with sustainability requirements, thereby positioning themselves as the prominent players in the industry.
Industry Updates
By product type, the market is segmented into foldable (unicycle, two wheel, and three wheel), non-foldable (two wheel, and three wheel).
By age, the industry is divided into below 20 years, 20 to 30 years, and above 30 years.
Based on speed variants, the industry is segmented into low-speed (under 25 km/h), and high-speed (25+ km/h).
By power type, low-power (below 250w), mid-power (250w - 500w), and high-power (above 500w).
Based on sales channel, the industry is segmented into direct sales, and indirect sales (distributor/retailer, and online).
Information about key countries of North America, Latin America, Western Europe, South Asia and Pacific, East Asia, and the Middle East and Africa is given.
The market is estimated to reach USD 659.8 million in 2024.
The market is projected to reach USD 852.9 million by 2034.
Xiaomi Corporation, Pride Mobility Products Corp, Segway, Megawheel, GOTRAX, and Shenzhen Lezway Technologies are the key players.
The Arma scooter, certified by TFCO is the most compact foldable e-scooter and can fold down to the size of a laptop.
The industry is anticipated to rise at a CAGR of 2.6% through 2034.
India is set to dominate with a CAGR of 3.9% throughout the forecast period.
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