Electric Scooters Market

Electric Scooters Market Outlook (2022 to 2032)

[345 Pages Report] The electric scooter market is expected to increase significantly, expanding at a CAGR of 9% from 2022 to 2032. According to the research, sales of electric scooters are predicted to increase from US$ 9.59 billion in 2022 to US$ 22.7 billion by 2032. The following variables contribute to market growth:

• The adoption of electric scooters is influenced by rising fuel prices.
• Low noise levels, simple integration of regenerative braking, high mechanical efficiency, and reasonably affordable maintenance costs.
• Rising demand for fuel-efficient cars and growing concerns over carbon and greenhouse gas emissions.
• Government agencies have strict emission regulations, such as the BS-VI in India and China and the United States Environmental Protection Agency's (EPA's) emission limits for greenhouse gas (GHG) emissions.
• Increasing expenditures in lightweight vehicles to increase control and reduce storage space requirements.
• In emerging nations, there is rapid urbanization along with an increase in the purchasing power of the middle class.
• In countries like Spain, the United States, Germany, and France, the use of electric scooter-sharing services is steadily increasing.
• The requirement for contemporary transportation infrastructure and sustainable urban mobility.
• Young individuals are increasingly using electric scooters.
• For both short- and long-distance commutes, electric scooters are more convenient and cut down on overall travel time.
• A rise in demand for electric scooter adoption is a result of growing awareness of social distance.
• Other benefits that these vehicles provide are their agility and simplicity of movement in regions with significant traffic congestion.

Despite the robust growth that is anticipated for the electric scooter market, FMI's expert analysts have disclosed that certain factors may restrain the market's expansion between 2022 and 2032. These factors, which are the main ones now affecting the market, are listed as follows:

• Insufficient infrastructure for charging.
• Difficulties with inadequate power output.
• Complicated rules governing vehicle speed.
• Consumers prioritize performance above fuel efficiency.
• Electric scooter maintenance facilities are insufficient in developing economies like Africa.

Sharing electric scooters is steadily growing in popularity as a mode of transportation in several nations. The industry has grown rapidly as a result of rising environmental awareness and the demand for efficient, affordable transportation. Let's examine some potential developments and trends in the global e-scooter market:

• Increased Research and Development spending on upgraded rechargeable batteries in addition to growing technological advancements in the e-scooter sector.
• E-scooters are becoming more popular as individuals learn about their advantages. The scooters can also be used by individuals who don't even own them owing to e-scooter sharing businesses. As a consequence of this, more individuals than ever are utilizing electric scooters - some to protect the environment, some to reserve money.
• Types of electric scooters vary widely, and development is still being done to enhance their performance.
• Investors are likely to be interested in new ridesharing and e-scooter startups as long as the e-scooter industry is profitable. This implies that new competitors with creative e-scooter-sharing ideas are likely to emerge on the scene.
• For their staff and students, several businesses and universities with large campuses are implementing e-scooter services. It makes it possible for people to travel shorter distances more quickly and without difficulty.
• In order to provide their customers with additional mileage, a number of manufacturers in the global market for electric scooters are concentrating on delivering swappable battery solutions.

Comparative Analysis of the Historical and Forecasted Market Scenario

According to data gathered by Future Market Insights, the global electric scooter market has experienced an entirely unexpected boom in recent years. The market vendors are keeping up with the growing demand for electric scooters. Market value increased gradually from US$ 5.72 billion from 2017 to 2021 to US$ 22.7 billion from 2022 to 2032.

The shift in customer choice to use scooters in a smarter way is largely responsible for this market's significant rise. In the beginning, the electric scooter wasn't very appealing. A sizable niche market was created by what was initially an expensive novelty tech item. To generate interest and transform the pricey product into a workable emission-free transportation option, an inexpensive shared electric scooter model has to be introduced. In 2018, the boom and revolution of electric scooters began.

Price reductions on batteries and GPS trackers made it the ideal time. The population and expansion of this sector have been influenced by a number of important variables. The development of the underlying technology was what propelled the market to the next level. The cost of the high-tech bike's components decreased as they advanced, making them more accessible.

There are currently hundreds of e-scooter manufacturers that are continually inventing, creating additional practical features, and raising the bar for what is deemed appropriate. Supply exists when there is demand. There are a variety of factors that contribute to why so many people choose electric stand-up scooters over gas-powered ones.

From US$1200 per kilowatt in 2010 to just US$137 in 2020, the cost of lithium-ion batteries decreased by over 90% over that period of time. Electric scooters today are often powered by lithium batteries. It implies that it is now more affordable than ever to make smaller, more powerful batteries, opening the way for lighter, more portable, longer-range electric scooters

Comparative Analysis of Adjacent Markets

Electric Scooter Market:

Electric Kick Scooter Market:

Electric Cargo Bike Market:

Nikhil Kaitwade

Principal Consultant

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Category-wise Insights

Dominating Segments in Conjunction with Consumer Preference

Maxi Electric Scooters - By Product Type

The electric scooter market is divided into Standard, Folding, Self-balancing, Maxi, and Three-wheeled categories based on product type. During the forecast period, the maxi electric scooters are anticipated to have the greatest market share.

This speedy movement of this segment is triggered by:

• These are the most popular due to their stability, luxury style, and other similarities to motorbikes.
• The trend toward environmentally friendly automobiles for short-distance travel is attributed to the creation of the maxi segment.

Lead-based Electric Scooters - By Battery Type

The electric scooter industry is divided into lead-based, NiMH, and lithium-ion batteries based on battery type. The market is most likely to be dominated by Li-Ion batteries.

The following are the main factors that drove the development of this segment:

• The demand for Li-Ion batteries has increased as a result of rising eco-friendly battery adoption and their superior performance over lead-based and NiMH batteries.
• The ability of Li-Ion to deliver long charge cycles and simplify high energy compactness.
• These batteries are quite robust and have a rapid charging capability.

Demand for Electric Scooters Spikes in the United States because of the Presence of Charging Infrastructure

The North American electric scooters and motorcycles market was valued at US$ 257.76 million in 2020, and it is expected to reach US$ 2419.81 million in 2032. This is expected to increase at a CAGR of 25.1% during the forecast period.

This region's rapid growth has been driven by the rapid adoption of electric vehicles as a viable alternative to traditional gasoline-powered vehicles.

As a result of increasing carbon footprints, the United States has been using more electrical vehicles. Due to the high per capita income in this country, people can also afford to buy electric scooters. This is partly due to the strict standards set by regulatory bodies. There are also likely to be a significant number of players who will influence the adoption trends for electric scooters in this nation.

The increased investments made in this state to provide electric car charging infrastructure are responsible for this development. Research assistance for cutting-edge high-density batteries and increased investments in charging infrastructure for electric cars is expected to contribute to regional growth.

Another significant growth determinant is government support in the form of R&D initiatives. The Corporate Average Fuel Economy (CAFÉ) standards promote the adoption of energy-efficient vehicles in the United States by setting rules to expand the use of alternative fuel vehicles and reduce fossil fuel consumption.

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As European Governments Invest more in Developing E.V. Charging Infrastructure, Electric Scooter Sales are Rising in Europe

The market size for electric scooters in Europe is expected to reach US$ 24.53 billion in 2022. This is at a CAGR of 43.1%. By volume, the market is forecast to reach 8.73 million units in 2022 at a CAGR of 19.7%. Electric scooters accounted for the largest share of the European market in 2022 due to investments made by major key players in the country.

However, Sweden is expected to register the highest CAGR during the forecast period. It is expected that this market in Sweden may grow as a result of increasing consumer interest in electric vehicles over traditional vehicles, the increasing number of projects undertaken by companies operating in the electric mobility industry, and government support for increasing sales of EVs.

Increasing use of electric motorcycles and e-bikes for short commutes increased deployment of electric scooters for ride-sharing services in Europe, and stricter emission regulations all contribute to the growth of this market.

In this market, lucrative growth opportunities are available due to the growing health awareness of millennials. However, the growth of this market is expected to be limited to a certain degree by the high prices of electric two-wheelers, e-scooters, and bikes and the short lifespan of batteries. Additionally, there are no regulations in the electric two-wheeler and micro-mobility markets, which hinders their growth.

Growing Acceptance of Electric Scooter-sharing Services in Japan is Driving Electric Scooter Demand

It is estimated that the Japanese electrical scooter market may grow at a considerable CAGR during the forecast period. The market has opportunities across multiple segments, such as retro, standing, and folding scooters. Also, Japanese markets are driven by growing consumer awareness of environmentally friendly transportation and rising e-scooter sharing service acceptance.

Several key factors are contributing significantly to the growth of the electric scooter market in the country, including the declining price of lithium-ion batteries, the rapid adoption of electric vehicles (EVs), and the growth of the renewable energy sector. EV30@30 is a campaign launched by Japan to accelerate the deployment of electric scooters.

PLDVs (Passenger Light-duty Vehicles) are expected to reach 15-20% E.V. sales in 2022 and 20-30% by 2032, supporting the development of the electric scooters market in the country.

As consumer awareness of eco-friendly transportation grows, stringent environmental regulations, government incentives, and subsidies increase, and e-scooter-sharing services become more popular, the market for electric scooters is expected to grow.

The adoption of e-scooter sharing and the development of lightweight lithium batteries for E-scooters are emerging trends that have a direct impact on industry dynamics.

Japan’s electric scooter market is being driven by companies such as Fujikom Corp., Ltd., Okinawa Autotech Pvt. Ltd., Panasonic Corp., Terra Motors Corp., and others. The market players are contributing significantly to the market growth by adopting various growth strategies, such as new product innovations, mergers and acquisitions, joint ventures, and so on, to stay competitive. To sell around 200 units of the scooter in the Japanese market each year, Honda announced that it would begin selling its electric scooter Benly e in Japan in April 2020.

Electric Scooter Sales are Surging in Korea as the Government Provides Subsidies for the Purchase of Electric Vehicles

To reduce fine dust, the Korean government supports the supply of electric vehicles and electric scooters. One-time subsidies have been provided by the Ministry of Environment and local governments for electric vehicle purchases. Before these subsidies, electric scooters did not attract much attention because of their higher price than conventional motorcycles. There has been an increase in sales due to the recent introduction of models at various price points.

Regional Insights

China is Home to the Bulk of Companies Producing Electric Scooters

The market share for electric scooters is expected to be dominated by the Asia Pacific region. During the forecast period, it is expected that this region will have a market share of close to 80%. The expansion in the region is attributed to the existence of an increase in e-scooter producers as well as increased infrastructure investments in nations like China and India for vehicle charging.

The electric scooter market in China, which is presently the largest market, is anticipated to develop at the highest rate throughout the forecast period. China is the largest market in the world for electric scooters because of its low labor costs, efficient manufacturing processes, and widespread adoption. Additionally, Chinese manufacturers are using lead-based batteries more frequently, which is helping the industry to expand. In order to reduce vehicle emissions, consumers are growing increasingly concerned about using sustainable energy vehicles. The market for electric scooters in this nation is also driven by an economic factor related to e-vehicles. Furthermore, it is anticipated that the presence of top manufacturers in China would boost sales throughout the forecast period.

The rising cost of fuel in India is one of the primary causes for the quick growth in the use of electric scooters. Additionally, the use of electric scooters is being driven by the state's fast urbanization. Besides, according to statistics, the demand for electric scooters increased by 220% in this country's Tier 1 cities. Governmental efforts to promote the use of electric cars are anticipated to fuel market expansion in India throughout the forecast period. For instance, the FAME 2 (Faster Adoption and Manufacturing of Electric Cars) scheme, which the Indian federal government established in 2015, offers incentives to purchasers of electric vehicles Public transportation vehicles, two-wheelers, and commercial electric vehicles are all eligible for this incentive.

The United States is the Epicenter of Electronic Scooter

North America, which now has a substantial market share, is anticipated to expand at a CAGR of around 13% over the course of the forecast period. The rapid adoption of electric vehicles as a viable replacement for traditional fuel transportation in the United States is responsible for the growth of this region.

In response to increasing carbon footprints, there has been a rise in the use of electric vehicles in the United States This is partially due to the strict standards established by the regulatory bodies. People in this country can also afford to buy electric scooters due to the high per capita income. A significant number of players are also anticipated to influence the adoption trends for electric scooters in this nation. The increased investments made in the state to provide efficient electric car charging infrastructure are responsible for this development. It is anticipated that increasing investments in infrastructure for electric car charging and research assistance for cutting-edge high-density batteries would help regional growth overall.

Governmental support in the form of Research and Development initiatives is another significant growth determinant. By establishing rules for expanding the use of alternative fuel vehicles and reducing the consumption of fossil fuels, the Corporate Average Fuel Economy (CAFÉ) standards are promoting the adoption of energy-efficient vehicles in the United States. A similar plan is being developed by the Canadian government to lower greenhouse gas emissions and increase the number of zero-emission automobiles on the road.

Start-up Ecosystem

New Players to Promote Innovation in the Global Market

For new startups and entrepreneurs, the e-scooter sector offers a wealth of opportunities. The industry is still in its infancy, but there are many improvements and breakthroughs coming. The start-ups in the electric scooter business are doing everything they can to produce the finest scooters. Startups are making electric scooters with LCD screens for utilizing Google Maps. These scooters can even take phone calls on a mobile device.

Leading Startups to Keep an Eye on

Competitive Landscape

Manufacturers provide a wider range of electric scooters that have been carefully picked to meet as many requirements as feasible. These next-generation e-scooters ought to be able to handle individual requirements, whether it's for a lightweight last-mile transportation scooter or a powerful off-road monster. As a result, manufacturers are always making investments to increase their service capacity.

Additionally, in order to enhance user experience, attention is being paid to by the manufacturers to building bigger battery packs and RAM. It is anticipated that by lowering the internal cost structures, the output would be able to increase by a factor of ten. Several industry participants in the global electric scooter market are also concentrating on providing their customers with interchangeable battery technologies for a longer range.

Enduring Businesses with Significant Dominance

• Bajaj Auto

"The world's favorite Indian" is, in fact, Bajaj Auto. Over 70 nations have witnessed the sale of 18 million motorbikes. The company, which is located in India and is the country's top exporter of motorcycles, has sent two out of every three bikes with a Bajaj logo abroad. The biggest three-wheeler manufacturer in the world is Bajaj, as well. The firm has maintained its reputation as the most valuable two- and three-wheeler company in the world by being the first in the globe to attain a valuation of INR 1 trillion.

• Evoke Motorcycles

Another significant manufacturer in the market for electric scooters is Evoke Motorcycles. Evoke is a company that creates, produces, and pioneers advancements in smart mobility and its applications. Additionally, it supports the creation of powertrains that are sustainable, quick to charge, and ecologically benign. Evoke bikes have lowered the learning curve for riders and removed high maintenance expenses by streamlining the mechanics of riding. The development of an elegant brand, elegant electric bikes, and elegant riding experiences are the main priorities.

• Piaggio Group

The Piaggio Group is one of the top manufacturers of motorcycles and scooters in the world and the biggest in Europe. In addition to making high-quality electric vehicles, the business is intended to provide all of its employees the attention they deserve at work. With a certification of "AA" for the sixth year running in 2020, Piaggio Group was one of the world's sustainability leaders. The Piaggio Group has always emphasized technical innovation, distinctive design, and a focus on quality and safety in order to expand the boundaries of its brand and goods.

Recent Developments

• In August 2022, a brand-new freight electric three-wheeler called the Zor Grand was introduced by Mahindra Electric Mobility Limited, a subsidiary of the Mahindra Group. The NEMO-linked vehicle platform is included with the highly developed Zor Grand for greater fleet management and operational efficiency.
• In May 2022, Ather Energy, a Bengaluru-based manufacturer of electric two-wheelers, secured $128 million in its most recent round of investment, which was headed by Hero MotoCorp and sovereign wealth fund National Infrastructure Investment Fund (NIIF).
• In November 2021, in order to start a new racing league, Helbiz introduced new standing electric scooters.
• In December 2021, with an investment of Rs 300 crore, Bajaj Auto Ltd. revealed that it will establish an electric vehicle production facility in Akurdi, Pune. The factory, on which work has already started, will be able to produce 5,000 EVs annually and will serve both domestic and international markets.
• In August 2021, in India, Ola introduced the Ola S1 series, the company's first e-scooter. The Ola S1 and Ola S1 Pro models of the electric scooter were released.
• In August 2020, with a top speed of 25 km/h, Okinawa Autotech unveiled the R30, a new electric scooter that falls into the low-speed category.

Some of the other key companies identified are:

• Alta Motors
• Ather Energy
• BMW Motorrad International
• Cezeta
• Energica Motor Company
• Hero Eco
• Johammer e-mobility GmbH
• KTM AG
• Mahindra GenZe
• Ninebot Limited
• Okinawa Autotech Pvt. Ltd
• ReVolt Electric Motorbikes
• Xiaomi
• Yamaha Motor Company Limited.

Key Segments in the Electric Scooter Market

By Product Type:

• Standard
• Folding
• Self-Balancing
• Maxi
• Three-Wheeled

By Battery Type:

• Li-Ion
• NiMH
• Lead-Based

By Technology:

• Plug-In
• Battery

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)