Electric Scooters Market

Electric Scooters Market

New York, January 2024: According to a new research study by Global Insight Services (GIS), the Electric Scooters Market is expected to grow rapidly over the next 10 years to reach a value of more than USD 88.7 billion by 2033, at a CAGR of 10.2% during the forecast period.

An electric scooter is a two-wheeled, battery-powered personal transportation device designed for short-distance urban commuting. Characterized by its compact size and electric motor, these scooters are environmentally friendly and contribute to reduced emissions in urban areas. Typically featuring a handlebar for steering and a platform for the rider’s feet, electric scooters are gaining popularity as an efficient and convenient mode of transportation, offering an alternative to traditional gasoline-powered vehicles for short trips and last-mile connectivity.

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Global Electric Scooters Market: Market Drivers and Trends

The global electric scooters market is witnessing significant growth, driven by the increasing demand for fuel-efficient vehicles and a growing awareness of Greenhouse Gas (GHG) emissions. Stringent emission norms set by government agencies worldwide, such as the U.S. Environmental Protection Agency (EPA) and BS-VI in India and China, are fostering the adoption of electric scooters. E-scooters, known for their high mechanical efficiency and low maintenance requirements, are gaining popularity, especially as they become part of shared mobility ecosystems. Despite initial challenges during the COVID-19 pandemic, the industry is experiencing a resurgence post-pandemic, fueled by government initiatives, tax rebates, and policy changes. Companies like Razor, Lime, and Bird, involved in e-scooter sharing services, are contributing to this growth, along with incentives for battery-operated two-wheelers. The focus on sustainable urban mobility, smart transportation infrastructure, and global government subsidies further support the positive growth of the electric scooters market.

Moreover, as global awareness of greenhouse gas emissions and environmental concerns rises, governments worldwide are actively offering subsidies to encourage the adoption of electric vehicles, including electric scooters. For instance, Austria is planning to provide subsidies ranging from 700 to 800 euros for class L1e electric two-wheelers and from 1,000 to 1,200 euros for class L3e electric two-wheelers, encompassing e-mopeds, e-motorbikes, e-bikes, and e-cargo bikes. Moreover, various states have implemented financial incentives such as rebates, tax credits, and registration fee reductions to promote the widespread adoption of electric vehicles, contributing to the increasing demand for electric scooters. The growing awareness among consumers about the benefits of electric bikes is anticipated to further bolster market growth in the years to come.

Global Electric Scooters Market: Market Restraints and Challenges

A key challenges for the electric scooter market is regulatory uncertainty. Governments worldwide are struggling to establish clear and straightforward rules for the use of electric scooters on public roads. This lack of clarity has created confusion for both users and manufacturers, impeding market growth in certain regions.

Moreover, the widespread adoption of electric scooters is contingent upon the development of a robust charging infrastructure and clear regulatory frameworks that address issues such as safety standards, parking regulations, and traffic management. The absence of a standardized infrastructure and evolving regulations pose obstacles to seamless integration into urban mobility systems. Additionally, concerns regarding battery technology limitations, including range anxiety and charging times, impact consumer confidence.

Furthermore, competition from alternative modes of transportation. Despite being convenient and environmentally friendly, electric scooters face tough competition from bicycles, electric cars, and public transport. To stay competitive, manufacturers of electric scooters must consistently innovate and enhance their products.

Global Electric Scooters Market Report Findings

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The Hub Motors segment is likely to hold the major share of the market in 2023

Based on Drive Type, market is sub-categorised into Belt Drive, Chain Drive, and Hub Motors. In 2023, the hub motor segment accounted for the significaant share of the overall revenue. The segment growth driven by the increasing demand for efficient and reliable electric mobility solutions. Hub drive systems, characterized by their integrated motor within the wheel hub, offer a seamless and compact design, enhancing the overall performance of electric scooters. This drive type contributes to improved maneuverability and reduced maintenance requirements, making it an attractive choice for consumers. As urban mobility continues to evolve towards sustainable alternatives, the hub drive segment is poised to play a pivotal role in shaping the future of electric scooters, providing a compelling combination of innovation and practicality.

Moreover, efficiency of hub drive systems, providing seamless power transmission, quieter operations, and minimal repair and maintenance requirements compared to alternative motor types. Notably, the favorable characteristics of hub drive systems have encouraged industry leaders such as Yadea Technology Group Co. Ltd., NIU International, and Yamaha Motor Corp. to introduce a diverse range of e-scooters featuring this technology. This trend highlights the. superior performance and advantages offered by hub drive technology, indicating a transition towards their extensive adoption in the electric scooter industry.

The Li-ion segment is likely to hold the major share of the market in 2023

Based on battery technology, market is sub-segmented into Lead Acid, Li-ion, and Others. Among these, in 2023, Li-ion segment dominated the global market. This is attributed to the widespread adoption of Lithium-ion (Li-ion) batteries. Li-ion batteries have become the preferred power source for electric scooters due to their higher energy density, longer lifespan, and lighter weight compared to traditional battery technologies. Moreover, the rising demand for environmentally friendly batteries and the increasing requirement for high-performance alternatives, like Li-ion and NiMH, are propelling the popularity of battery-operated e-scooters. These batteries are sought after due to their advantages, including superior charging-discharging efficiency, elevated charge density, and reduced weight. This shift has not only enhanced the overall performance of electric scooters but also contributed to increased consumer confidence in terms of range, charging efficiency, and durability.

Furthermore, the lithium carbon battery, a cutting-edge technology developed by MAHLE Powertrain and Allotrope Energy, has the potential to revolutionize EV charging. Combining the strengths of traditional lithium-ion batteries and supercapacitors, this innovation enables ultra-fast recharging with excellent power density, comparable to refueling times for internal combustion vehicles. Notably, lithium carbon cells are fully recyclable, devoid of rare-earth metals, and resistant to runaway reactions, offering an environmentally friendly alternative. These advancements in battery technology, including the lithium carbon battery, are expected to drive the growth of the electric scooter market. To meet the escalating demand for electric scooters, manufacturers must continue to pioneer new and innovative technologies aligned with evolving market trends.

The Above 96V management segment is likely to hold the major share of the market in 2023

On the basis of voltage type, market is divided into 48-59V, 60-70V, 73-96V, and Above 96V. Out of these, above 96V segment is expected to witness the fastest growth rate during the forecast period. This surge can be attributed to the heightened demand for electric scooters with enhanced power capabilities, catering to the evolving needs of consumers seeking higher performance and extended range. The above-96V segment signifies a pivotal shift towards more powerful and technologically advanced electric scooters, reflecting the the increasing expectations of eco-conscious riders. As innovation continues to drive the market, manufacturers are strategically focusing on this voltage category to deliver cutting-edge solutions that redefine the standards of electric mobility.

Furthermore, higher voltage translates into increased power and torque, delivering superior acceleration and performance on various terrains. This elevated voltage not only extends the scooter’s range but also contributes to faster charging times, enhancing overall efficiency and convenience for riders. With above-96V electric scooters, manufacturers are able to meet the rising demand for high-performance and technologically advanced solutions, offering riders an exhilarating and eco-friendly commuting experience.

The personal segment is likely to hold the major share of the market in 2023

Based on end-user, industry is segmented into Personal, and Commercial. Among these, personal segment dominating in 2023, holding the majority share of revenue. E-scooters are transforming personal transportation due to their eco-friendliness, affordability, lightweight design, low maintenance, and easy maneuverability, making them a popular choice, especially among millennials and those with lower incomes. Manufacturers are incorporating connected vehicle technology for an enhanced driving experience. E-scooter adoption is expected to rise further with manufacturers focusing on private charging stations. The commercial segment is anticipated to show the fastest growth, offering an economical option for last-mile delivery in various settings such as factories, universities, warehouses, and large industrial sites. Additonally, increasing adoption of electric scooters for various business purposes. Businesses across diverse industries, such as last-mile delivery, ride-sharing services, and corporate fleets, are increasingly recognizing the economic and environmental benefits of electric scooters. The versatility, cost-effectiveness, and eco-friendly nature of electric scooters make them a preferred choice for commercial applications. This trend is expected to continue as businesses seek sustainable and efficient mobility solutions, contributing to the continued expansion of the electric scooter market within the commercial segment.

The Asia Pacific region is accounted for the majority of market share in 2023

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. In 2023, Asia Pacific dominated the global electric scooter industry, contributing over three-fourths of the total revenue. Key e-scooter manufacturers, predominantly from China, Taiwan, and Japan, hold the majority of the market share worldwide. China, in particular, not only stands out as a leading consumer but also as a major producer and exporter of electric scooters, with companies like Yadea, Jiangsu Xinri Electric Vehicle Co., Ltd., Zhejiang Luyuan, AIMA Group, and Niu International playing active roles. The region’s growth is propelled by factors such as rapid urbanization, the increasing affordability of e-scooters, and rising awareness among consumers about eco-friendly transportation to combat vehicle emissions. Additionally, ongoing research and development activities are poised to further boost the market in the coming years. Meanwhile, Japanese giants like Honda, Yamaha, Suzuki, and Kawasaki have entered the e-scooter market, intensifying competition in Asia.

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Competitive Landscape

The key players studied in the global Electric Scooters Market are  Hero Electric (India), Yadea Technology Group (China), NIU International (China), Mahindra GenZe (U.S), Ather Energy Pvt. Ltd. (India), Gogoro Inc. (Taiwan), Terra Motors Corporation (Japan), Okinawa Autotech (India), Vmoto Limited (Australia), and Torrot Group (Spain), among others.

Global Electric Scooters Market: Recent Developments

  • In July 2023, BMW’s New eParkourer and Gogoro’s Sustainability Initiatives. BMW Motorrad launched the BMW CE 02, an ‘eParkourer,’ with two performance variants reaching top speeds of 95 kmph and 45 kmph. Featuring a TFT display, USB-C charging, and a companion app, it offers a tech-savvy riding experience. Simultaneously, Gogoro partnered with MUJI for the “Recycling for Good” initiative, creating a ‘Smartscooter’ from recycled polypropylene. This sustainable venture aims to empower consumers and build a greener future.
  • In April 2023, Gogoro Expands to the Philippines. Gogoro, in collaboration with Globe Group and Ayala Corporation, introduced Smartscooters and battery-swapping technology in the Philippines. Addressing daily issues and promoting sustainable transportation, this move marks Gogoro’s entry into the country, further expanding its presence beyond Taiwan, China, India, Indonesia, Korea, Japan, and Israel.
  • In February 2023, Xiaomi unveiled a range of AIoT products, including the Xiaomi Electric Scooter 4 Ultra. Boasting a dual suspension system, self-sealing DuraGel Tires, and a top speed of 25 kmph, the scooter enhances rider experience. With a driving range of 70 kms and IP55 certification, Xiaomi continues to innovate in the electric scooter market.
  • In April 2022, Terra Motors announced a strategic partnership with Sun Motors in India. The collaboration aims to integrate Terra Motors’ 3-wheeler and 2-wheeler offerings with SUN Mobility’s swappable battery-based energy solution, facilitating deployment in northern and eastern Indian cities through SUN Mobility’s SWAP POINTS.
  • In March 2022, Yamaha Motor Co., Ltd. released the 2.5 kW class NEO’S electric scooter in Europe in March 2022. Leveraging the Yamaha Integrated Power Unit II, the scooter offers a 37 km driving range on a fully-charged battery. With low-loss tires for energy efficiency, Yamaha taps into the growing demand for 2-wheeler electric alternatives in the European market.

Global Electric Scooters Market Report Coverage

  • The report offers a comprehensive quantitative as well as qualitative analysis of the current global Electric Scooters Market outlook and estimations from 2022 to 2032, which helps to recognize the prevalent opportunities.
  • A thorough analysis of market trends and restraints is provided.
  • Region-wise, as well as country-wise conditions, are broadly evaluated in this report.
  • The forecasts in this report are made by examining the recent trends along with future global Electric Scooters Market potential from 2022 to 2032 in terms of revenue ($ Million).
  • Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the global Electric Scooters Market are also analyzed.
  • Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the global Electric Scooters Market industry.

Electric Scooter Market Segmentation:

By Drive Type

  • Belt Drive
  • Chain Drive
  • Hub Motors

By Battery Technology

  • Lead Acid
  • Li-ion
  • Others

By Voltage Type

  • 48-59V
  • 60-70V
  • 73-96V
  • Above 96V

By End-user

  • Personal
  • Commercial

By Region:

  • North America
    • The U.S.
    • Canada
    •  Mexico
  • Europe
    • The U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Netherlands
    • Sweden
    • Switzerland
    • Denmark
    • Finland
    • Russia
    • Rest of Europe
  • The Asia-Pacific
    • China
    • India
    • Japan
    •  South Korea
    • Australia
    •  Singapore
    •  Indonesia
    • Taiwan
    • Malaysia
    •  Rest of Asia-Pacific
  • Rest of the World
    •  Latin America
    •  The Middle East
    • Africa

Key Players: