Electric Scooter Market Size, Share & Industry Analysis, By Battery Type (Lead Acid, Li-ion), By Voltage Type (48-59V, 60-72V, 73-96V, Above 96V), and Regional Forecasts, 2021-2028

The global electric scooter market size was valued at USD 14.28 billion in 2020 and is projected to grow at a 10.7% CAGR from USD 15.22 billion in 2021 to USD 31.04 billion in 2028. Asia-Pacific holds the largest market share, contributing USD 12.39 billion in 2020.

The global impact of COVID-19 has been unprecedented and staggering, with electric scooter witnessing a negative impact on demand across all regions amid the pandemic. The rapid increase in CAGR is due to the demand and growth of this market, which will return to pre-pandemic levels once the pandemic is over. Based on our analysis, the global market exhibited a substantial decline of -18.80% in 2020 as compared to the average year-on-year growth during 2017-2019. 

E-scooter is a motorized scooter powered by electric motor. Conventional scooters require gas or fuel to operate, whereas the EV does not require fuel. The motor and battery are linked in e-scooters, and the battery is charged by plugging into an electric charging station or a power source. The charged battery generates the motion to push the two-wheeler forward. These scooters are environment-friendly, fuel-efficient, battery-powered, and simple to use. The shift from conventional to an electric mode of transportation is driven by the growing need for sustainable urban mobility and modernized transportation infrastructure. This type of scooter is anticipated to improve energy security and also air quality. The rising demand for fuel-efficient vehicles coupled with increasing concerns over greenhouse gas and carbon emissions is expected to increase the adoption of e-mopeds.

Decrease in New Vehicles Sales amid COVID-19 to Hamper Market Growth

The COVID-19 pandemic resulted in a global economic slowdown. Lockdowns imposed in several parts of the world to prevent the spread of the virus led to supply chains disruptions and temporary closure of many production facilities.

The pandemic of COVID-19 had a severe impact on this market. Attributed to the global lockdown restriction, production and sales of new vehicles, including these scooters, have been halted. The raw materials required to produce various parts were also unavailable due to the supply chain disruption, creating production delays. As a result, the industry’s economy suffered a fast downturn. However, with a growing global inclination toward cleaner transportation, the industry expects a revenue recovery post the COVID-19 pandemic.

NIU International has seen a significant decline of around 40% in its revenue in the first quarter of 2020 due to the thirty-day production halt in February 2020. Hero Electric and Okinawa had to halt their manufacturing plants for a few days due to India’s nationwide lockdown.

The introduction of COVID-19 vaccines in early 2021 is predicted to benefit the automotive industry, although the pandemic’s duration is difficult to predict.

LATEST TRENDS 

Government Initiatives for Electrification and Increase in Adoption of E-Scooters to Boost the Market Growth

OEMs will be able to expand their revenue stream and geographical presence as governments across the globe increasing their investments in charging infrastructure and offer incentives to consumers. For instance, the Indian government launched the FAME scheme (Faster Adoption and Manufacturing of Hybrid and EV) in 2019 with a budget outlay of USD 100 billion to support 7,000 e-buses, 500,000 e-three wheelers, 55,000 e-passenger vehicles, and a million e-two wheelers. As of now, about 124,415 vehicles have benefited under the scheme.

Additionally, as customers move toward the adoption of EVs, fluctuating fuel prices have decreased sales of gasoline-powered vehicles. Consumers are abandoning the gasoline-powered vehicle segment due to the rising fuel prices, which coincides with significant growth in sales of these scooters, primarily in India, Hong Kong, and the Netherlands. Norway is expected to phase out the sale of all fossil-fuel-powered vehicles over the next few years to meet its 2025 target of 100% renewable energy.

DRIVING FACTORS

Low Maintenance Cost and Rising Demand for EVs to Set Positive Trend for Market Growth

The increasing price of petroleum products is one of the most important factors driving the electric scooter market growth. The increasing cost of gasoline is already affecting consumers in emerging markets. Electric two-wheelers will significantly lower the running costs of these vehicles due to being more fuel-efficient than conventional two-wheelers. This scooter with a longer range than the present generation of e-two wheelers is expected to be developed by manufacturers. Maintenance will not be an issue as there are fewer moving parts than on traditional two-wheelers. The most expensive thing of maintenance is changing the battery, which is not done very often.

The increasing adoption of these scooters across the globe is boosting the market growth, owing to benefits such as low noise levels, low maintenance costs, and high mechanical efficiency. Governments are also offering monetary and non-monetary incentives, which resulted in significant growth of the market. Consumers are becoming more aware of the environmental impact of conventional modes of transportation and are shifting to EVs.

RESTRAINING FACTORS

Lack of Charging Infrastructure May Hamper Market Growth

Lack of charging infrastructure will be the largest obstacle to the expansion of the e-scooter sector. The most important consideration for any user before purchasing an electric two-wheeler is the ease with which that vehicle can be charged anywhere and at any time. Most emerging countries, unlike developed countries, lack the required charge stations. As a preliminary solution, the manufacturers are developing their charging infrastructure network, especially in the developing countries; however, participation of government as well as private investors is also equally necessary to boost the adoption of such vehicles across the world. To expand the e-two-wheeler industry, users will need an extensive charging infrastructure network that allows them to travel long distances without worrying about finding a charging station.

SEGMENTATION

By Battery Type Analysis

Lead-Acid Battery Type Dominates Market

Based on Battery type, the market is bifurcated into Lead Acid batteries, Li-ion batteries.

The Lead-Acid battery segment dominated the market with a revenue share of more than 60% in 2020 due to the benefits of the Lead-Acid battery, such as durability, damage tolerance, and low cost. However, the adoption of SLA batteries is expected to decline in the coming years as they are large and drain quickly, even not carrying significant loads.

The lithium-ion battery segment witnessed low demand in 2020; however, it is expected to gain momentum and grow at the fastest CAGR over the forecast period. In 2020, the Lithium-ion Battery segment accounted for 40% of the market. Due to better performance, high charging-discharging efficiency, high charge density, and lightweight performance.

By Voltage Type Analysis

48-59 V Segment Dominates the Market

Based on voltage type, the market is divided into 48-59 V, 60-72 V, 73-96V, and above 96V.

The 48-59 V segment holds the largest share globally in the global market. It is expected to dominate the forecast period because these batteries have a high level of connectivity with e-scooters and have higher power output, which is expected to drive market expansion. These scooters are generally preferred for short distances commutes.

The 60-72 V segment has high growth and high penetration in 2020. The 60-72 V segment accounted for 24.09 % market share in 2020. The segment will grow during the forecast period to avoid the hassle of regular battery charging; consumers prefer scooters with a long battery range.

The 73-96 V segment is also predicted to show positive growth in the market. The 73-96 V segment accounted for 20.80% market share in 2020. The segment will grow during the forecast period at a CAGR of 19.2%. Consumer preference for high voltage e-scooters for long-range distance and to avoid frequent battery charging will boost the growth of this segment.

The above 96 V segment had low penetration in 2020; however, it is anticipated to gain momentum and grow at a CAGR of 20.9% during the forecast period owing to high demand in developed countries.

REGIONAL INSIGHTS

The Asia Pacific market accounted for USD 12.39 billion in 2020 and is projected to reach USD 23.74 billion by 2028, at a CAGR of 8.9% over the forecast period. The region is expected to dominate the global electric scooter market share as an automotive hub, with large sales and production in China. This growth is accountable because the increasing preference for personal mobility in the post-COVID period will boost automobiles. The increasing demands for economical e-scooters for short-distance transportation and governments initiatives to promote this type of scooter adoption are expected to drive the APAC market during the forecast period. The country’s rapidly growing economy drives the expansion of advanced technologies to improve electrification in China. China has invested approximately USD 2.4 billion in improving the charging infrastructure in the country till 2020. The Indian government has promoted electric two-wheelers through schemes, such as FAME-II, which provide customers with incentives and tax benefits.

North America is expected to grow at a CAGR of 17.1 % during the projected period. Increasing government and private market players' initiatives to expand regional electric two-wheeler charging station network. Furthermore, promoting research & development activities directed towards the development of high-density batteries is expected to boost the regional market growth in the upcoming few years. For instance, Revel entered the U.S. market with a USD 27.6 million investment and rolled out 68 MUVI e-scooters from Torrot, a Spanish business.

Europe held a small portion of the total market in 2020. According to the European Motorcycle Manufacturers Association (ACEM), only 58,569 units were registered in 2020, 12.5% as compared to the previous year. The region is expected to witness the highest CAGR of 37.9% during the forecast period due to consumer adoption of EVs and autonomous vehicles; shared mobility is likely to fuel market expansion.

In the global market, the rest of the world contributes 7.50% due to fewer automotive OEMs, low adoption of technology, and less presence of all typed vehicles. However, it is expected to grow in the future at a CAGR of 10.7%.

KEY INDUSTRY PLAYERS

Strong Portfolio and Advanced Features Have Propelled Yadea Technology Group Co. Ltd, Niu Technologies to Lead Market

The market is consolidated because of its strong product portfolio and noteworthy distribution network of major companies in developed and developing countries.

The key market players are concentrating on R&D efforts and product-level strategies. For instance, Gogoro’s swappable battery e-scooter bike has revolutionized the market in Taiwan. Many Asian vendors are collaborating with the company to integrate the swappable battery technology into their models. This type of scooters from major Japanese companies, such as Honda, Yamaha, Suzuki, and Kawasaki, have been launched, increasing the competition in the Asian market.

LIST OF KEY COMPANIES PROFILED:

• Yadea Technology Group Co. Ltd (China)


• Zhejiang Luyuan Electric Vehicle Co Ltd (China)


• Niu Technologies (China)


• Mahendra GenZe (U.S.)


• Hero Electric (India)


• Vmoto Limited (Australia)


• Amper Vehicles (India)


• Govecs Group (Germany)


• BMW Motorrad International (Germany)


• Gogoro Inc. (Taiwan)

KEY INDUSTRY DEVELOPMENTS:

• December 2020 – Ola Electric has confirmed that the world’s largest e-scooter plant will be constructed in India. It may be recalled that Ola acquired Etergo, an electric company based in Amsterdam, in May 2020, with plans to launch its e-scooters in India in 2021.


• May 2020- NIU Technologies, provider of smart urban mobility solutions, announced that on May 25, 2020, it would launch a new product G0, a new entry-level e-bicycle model under the Gova series, via an e-commerce platform in China. In addition, the company provided an update on the status of its international retail outlet expansion.


• June 2020- Mahindra & Mahindra, an Indian conglomerate, has decided that a wholly-owned subsidiary, GenZe, will be shut down. GenZe is an electric vehicle (EV) brand based in California that sells a wide range of e-bikes (E- bicycles) and e-scooters exclusively in the United States.


• In about six months, GenZe will be completely shut down. The intellectual property rights of GenZe would be used for Mahindra Electric and many other Mahindra & Mahindra projects when it is discontinued.


• June 2020 - Hero Electric, India’s largest e-two-wheeler manufacturer, has announced a new online scheme called “Clean Air Mission 2020” to increase faster adoption of its models. The company is offering a wide variety of attractive deals through its online initiative.

REPORT COVERAGE

The global electric scooter market research report provides a detailed analysis and focuses on crucial aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the market’s growth over recent years.

Report Scope &Segmentation: