Surpassing revenues of U.S. $8.6 Bn in 2018, the global electric scooter market is projected for steady growth through the end of 2029. Electric scooters are well-positioned as an eco-friendly alternative to commercial and public transportation and light weight logistics. Against rising concerns over carbon footprint and greenhouse gas emissions, stringent anti-pollution policies are creating a seismic shift in global automotive market.
Governments of major economies are introducing favorable manufacturing regulations and tax policies for electric scooter manufacturers. For instance, the Indian government aims to convert 1/3rd of its existing vehicle fleet to electric vehicles (EV) by 2030. The ‘Make in India’ think tank is currently devising policies that aid cohesive transmission from traditional vehicle fleet to electrically powered vehicles.
Key Takeaways of Electric Scooter Market Study
- Asia Pacific, accounting for more than 3/4th market share, will exhibit share-wide and growth-wise dominance over the forecast period.
- Lithium-ion batteries are garnering increased consumer traction. Growth in this segment is attributable to enhanced product features such as low self-discharge and higher mileage per charge.
- Standard electric scooters will continue to lead on the back of increasing consumer demand for longer charge cycles, faster charging and enhanced miles per charge capacity.
- Folding electric scooter will extend remunerative growth opportunities owing to their space and cost efficiency.
- Increasing cost of traditional fuels such as petrol, and diesel will work in favor of the electric scooters market.
Manufacturers of electric scooters stand to gain from prevailing consumer trends and government policies. Developing economies present lucrative growth opportunities for manufacturers owing to subsidies and tax breaks. The market, although fragmented, exhibits strong chances of consolidation as major organizations look to invest in acquiring front-runner start-ups in electric scooter industry.
APAC Promises Incremental Growth, Europe & North America Follow
Early adopters such as North America and Europe lead research and development of electric scooters. Growing demand for eco-friendly means of transportation and emerging ride sharing trends among millennial consumers will thrust demand in these regions. This trend is particularly prominent in the U.S., Germany and the UK.
Asia Pacific, on the other hand, offers the most gainful growth prospects with developing economies such as India, and China, investing heavily in developing support infrastructure (charge stations) for electric vehicles. Another fact that propels the demand in Asia Pacific is the prevalence of two-wheeler automobiles. Significant demand for electric scooters can be traced to Asia Pacific countries.
Last-mile E-scooter Rental Impels Competitive Landscape
Prominent market players can be seen forging strategic partnerships with stakeholders to expand their global footprint. For instance, the strategy of last-mile rental services in electric scooters is gaining multiplying consumer traction in both developed and developing economies. Millennial consumers are environment- conscious and prefer eco-friendly alternatives.
Market players that influence growth trends are Bajaj Auto, BMW Motorrad International, Cezeta, Energica Motor Company, Evoke Motorcycles, Hero Eco, Johammer e-mobility GmbH, KTM AG, Mahindra GenZe, Ninebot Limited, Okinawa Autotech Pvt. Ltd. and Piaggio & C. SpA.
These insights are based on a report on Electric Scooters Market by Future Market Insights.
