Electric Scooter Market to Reach Valuation of USD 29.9 Billion by 2028 - Increased adoption of electric motorcycles and E-bikes for short commutes will drive the growth of the Global Electric Scooter Market

Vantage Market Research

Apr 28, 2022

From the period 2022 to 2028, the Global Electric Scooter Market is expected to reach USD 29.9 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 7.3%.

The increasing adoption of electric two-wheelers and e-bikes for short commutes, rising environmental concerns, and increased investments by ride-hailing companies in the micro-mobility space are all contributing to the market's growth. OEMs' increased efforts to produce lightweight bikes, as well as the growing trend toward connected e-Bikes, provide significant growth opportunities for market players. Rising demand for fuel-efficient automobiles, combined with growing concerns about greenhouse gas and carbon emissions, is expected to drive the Electric Scooter Market forward. Electric scooters are becoming more popular among the young population, and rising middle-class spending power in developing countries, as well as rapid urbanization, are expected to drive the Electric Scooter Market forward. Governments all over the world have enacted policies to encourage the use of electric scooters by providing subsidies to both customers and manufacturers. Support in the form of R&D activities is also an important component of growth. As a result, favorable government policies are expected to drive the growth of the Electric Scooter Market. The increased efforts of OEMs to produce lightweight bikes, as well as the growing trend toward connected e-Bikes, present significant potential opportunities for industry competitors.

Key Highlights from the Report

  • The market is divided into three categories based on battery type: sealed lead acid, NiMH, and Li-Ion. The lithium-ion sector is expected to be the fastest-growing segment in the Electric Scooter and motorcycle market during the forecast period. Manufacturers are working on electric scooters and motorcycles with improved lithium-ion batteries. The limited longevity and usable capacity of lead-acid batteries are expected to shift attention to lithium-ion batteries during the projection period, driving the Electric Scooter and motorcycle industry. Another advantage of a lithium-ion battery is its lightweight, which improves the energy-to-weight ratio of the vehicle. The cost of lithium-ion batteries is still high, but it has dropped dramatically in recent years and is expected to fall further.

  • On the basis of Voltage, the market is segmented into 24V, 36V, 48V, and Greater than 48V. In 2020, the 36V category accounted for the highest revenue. These batteries have a high level of compatibility with e-scooters and have higher power output, which is expected to drive category expansion. Consumers want scooters with a long battery range to avoid the hassle of charging the battery on a regular basis, so demand for 48V batteries is increasing. The greater than 48V market is expected to see significant growth in the next years. As a result of ongoing Research and Development (R&D) efforts to improve the overall range and speed of e-scooters, e-scooters with 60V and 70V batteries are expected to see significant growth.

  • Asia Pacific is the fastest regional segment in terms of growth. The Asia Pacific Electric Scooter Market is predicted to be driven by large sales production and volumes in China, increased demand for affordable electric scooters for short-distance commuting, and governments pushing electric two-wheelers throughout the forecast period. The spread of modern technologies to increase electricity in China is being fueled by the country's fast-developing economy.

Some of the key players in the Electric Scooter Market include AllCell Technologies LLC, BMW Motorrad, BOXX Corp., Gogoro Inc., Green Energy Motors Corp., Greenwit Technologies Inc., Honda Motor Company Ltd., Jiangsu Xinri E-Vehicle Company Ltd., KTM AG, Mahindra GenZe, Peugeot Scooters, Suzuki Motor Corporation, Terra Motors Corporation, Vmoto Limited, Yadea Technology Group Company Ltd., Yamaha Motor Company Ltd., Xiaomi, Ninebot Limited, Bird, Lime and others.

Market Dynamics:

The growing popularity of electric motorcycles and E-bikes for short commutes will propel the Electric Scooter Market.

Commuters are searching for convenient, time-efficient, and affordable modes of transportation to reach their destination as traffic congestion worsens, resulting in longer commutes. Electric lightweight vehicles, such as electric motorcycles, electric bicycles, and e-kicks, provide an extremely convenient solution to the specific needs of urban mobility. As the popularity of micro-mobility has grown, industry players have developed vehicle-sharing alternatives that allow people to avoid purchasing their micro-mobility vehicles. Commuters can now rent a car via mobile applications. Furthermore, the use of electric motorcycles is increasing in emerging economies. One of the most important factors driving the Electric Scooter and motorcycle market is the rising price of petroleum products. Consumers in developing countries are already feeling the effects of rising gasoline prices. The use of electric two-wheelers will undoubtedly reduce these vehicles' operating costs.

Government agencies are promoting electric two-wheelers

The Electric Scooter Market is expected to grow over time, with increasing support from government bodies in various countries. Many countries have recognized the need to go electric in order to reduce the rising pollution from automobiles, with the United States and China leading the way. India recently announced that it may discontinue the production of ICE two-wheelers in the 150cc segment by 2025. In the future, many countries will enact similar regulations and policies in favor of electric two-wheelers. Manufacturers would also receive appropriate tax and import-export exemptions, resulting in the expansion of the electric market.

North America is expected to grow at the fastest rate during the forecast period. Increased investment in electric vehicle charging infrastructure and research assistance for novel high-density batteries are expected to support overall regional growth. Furthermore, with the influx of international Electric Scooter makers, vendors in the region are focusing on producing a variety of Electric Scooter models to appeal to the region's young population. Companies operating in the region are likely to use such techniques to boost the regional market's overall growth.