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The Global E-scooter Market size is estimated to grow by 4,261.82 thousand units at a Compound annual growth rate (CAGR) of 9.38% between 2022 and 2027. The growth of the market depends on several factors, including declining prices of Li-ion batteries, the increasing popularity of e-scooters-sharing services, and increasing incentives and subsidies by governments.
Increasing incentives and subsidies by governments is a primary factor driving the growth of the market. Global efforts to reduce emissions and combat climate change have led to the implementation of regulations in various countries to control vehicle emissions. Electric Vehicles (EVs) are increasingly seen as a long-term solution to replace traditional vehicles and reduce pollution. Governments are supporting EV adoption through incentives like tax credits, with the United States offering up to 10% of the purchase price for electric two-wheelers and a 30% tax credit for charging equipment. These initiatives are expected to drive the growth of the scooter market.
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This market growth analysis report extensively covers market segmentation by battery type (sealed lead acid batteries and lithium-ion batteries), product (retro, standing/self-balancing, and folding), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The market share growth of the sealed lead acid batteries segment will be significant during the forecast period. In lead-acid batteries, the electrical energy is stored as chemical energy. As and when required, the chemical energy is converted into electrical energy. This conversion of chemical energy into electrical energy is referred to as the discharging of the battery. The conversion of electrical energy into chemical energy with an external electrical source is referred to as the charging of the battery. The key advantage of SLA batteries is their ability to combine hydrogen and oxygen to produce water and prevent water loss.
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The sealed lead acid batteries segment was valued at 4,083 thousand units in 2017 and continued to grow until 2021. The market mainly caters to price-sensitive customer segments. Sealed lead-acid battery scooters are likely to continue to lead the market despite the declining overall market share because of a rise in the adoption of Li-ion battery e-scooters.
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APAC is estimated to contribute 81% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Owing to concerns about pollution and urbanization that have increased traffic congestion in the country. Increasing environmental concerns and the growing focus on reducing vehicular emissions are leading to a rise in the adoption of e-scooters in the country. The Chinese government is supporting the adoption of e-scooters by laying down a clear distinction between e-scooters and e-scooters.
The e-scooters revolution is not only limited to China. The adoption of e-scooters in India, Indonesia, Thailand, Vietnam, and other Asian markets is growing. Manufacturers in the region are launching e-scooters with advanced features, such as a smartphone connectivity suite. In addition, there has been strong support from governments through subsidies and incentives for the purchase of e-scooters. These factors are expected to further drive down the demand for e-scooters in APAC during the forecast period.
The electric scooter market is witnessing rapid growth due to its role in combating greenhouse gas and carbon emissions. With emission standards like BS-VI and China VI driving the demand for fuel-efficient vehicles, electric scooters have emerged as a sustainable alternative. Companies like Razor, Lime, Bird, and Xiaomi are leading the charge in providing battery-powered two-wheelers. These electric scooters are reshaping shared mobility and sustainable urban mobility in countries like Spain, Germany, and France. Supported by smart transportation infrastructure and zero-emissions standards set by governments, electric scooters are becoming integral to the global push towards environmentally friendly transportation solutions.
The declining prices of Li-ion batteries are notably driving the market growth, although factors such as the high costs and maintenance complexities associated with e-scooters may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market experiences significant growth due to the decreasing prices of Li-ion batteries. Li-ion batteries play a crucial role in powering electric scooters, and their declining manufacturing costs positively impact market demand. Over the past decade, manufacturing costs for Li-ion batteries have rapidly decreased, driving their adoption in the e-scooter segment. As production scales up and manufacturing processes become more efficient, Li-ion battery costs are expected to decrease further, potentially by 35% by the forecast period's end. This reduction in cost facilitates the widespread adoption of Li-ion batteries in electric two-wheelers, even in cost-sensitive markets like APAC. The trend is expected to continue, driven by falling prices of battery-grade lithium carbonate and lithium hydroxide.
The development of high-performance e-scooters is one of the key market trends. The major driving factors for the growth of the high-performance electric two-wheeler market are the decline in battery prices, low operating and maintenance costs, subsidies and incentives offered by governments of different countries, and increasing awareness about the need to curb vehicular emissions.
Two-wheeler manufacturers have started investing in high-performance electric motorcycles. Mentioned below are a few initiatives undertaken by motorcycle manufacturers to develop high-performance electric motorcycles. The growing demand for e-motorcycles has propelled the above-mentioned manufacturers to invest in high-performance e-scooters.
The high costs and maintenance complexities of e-scooters will be a major challenge impacting the market growth. The main challenge is the maintenance complexity of e-scooters. Most e-scooters have in-wheel motors where the motor is fitted to the hub of the wheel. As a result, the motor, braking components, and wheel are clubbed into a single unit. This design makes wheel replacement and repair challenging as the motor has to be removed completely while replacing the wheel or tire.
Although the design of in-wheel motors is not complex still there is a high probability of potential damage to the in-wheel motors while replacing the tire. In addition, the number of service centers and skilled technicians for electric two-wheelers is limited compared with that of conventional IC engine-based two-wheelers. Hence, maintenance complexities limit the adoption of electric two-wheelers with in-wheel motors; this will be a challenge for the growth of the global e-scooter market during the forecast period.
The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Niu Technologies - The company offers various electric scooters such as Nqi GT, NQi-SERIES, MQi-SERIES, and UQi-SERIES.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market is experiencing rapid growth, driven by the increasing demand for fuel-efficient vehicles and the imperative to reduce greenhouse gas emissions. Electric scooters (e-scooters) play a crucial role in addressing emission standards such as BS-VI and China VI, offering superior mechanical efficiency compared to their conventional counterparts. The proliferation of electric scooter fleets, coupled with the rise of shared mobility and vehicle renting ecosystems, has led to the emergence of electric scooter sharing services by companies like Lime, Bird, and Spin. With advancements in battery technology and the support of government policies promoting sustainable urban mobility, the e-scooter market continues to innovate, offering environmentally friendly transportation solutions for consumers worldwide.
Countries are embracing electric scooters as part of their commitment to reducing environmental impact. Major players such as Razor, Jump, Xiaomi, Gogoro Inc. are leading the charge in providing battery-powered two-wheelers. These developments align with the growing emphasis on smart transportation infrastructure and zero-emissions standards worldwide. As battery charging becomes more accessible through renewable energy stations and updated technologies, governments are incentivizing the adoption of electric scooters to curb fossil fuel consumption. With innovations in advanced batteries and easy-to-operate features, electric scooters are becoming increasingly popular among end-users as a lightweight commuter option.
The market forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
E-Scooter Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.38% |
Market growth 2023-2027 |
4,261.82 thousand units |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.34 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 81% |
Key countries |
US, China, Japan, Taiwan, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ather Energy Pvt. Ltd., Bajaj Auto Ltd., BMW AG, Bodo Vehicle Group Co. Ltd., Electrotherm Ltd, GOVECS AG, Greaves Cotton Ltd., Hero Electric Vehicles Pvt. Ltd, Honda Motor Co. Ltd, KWANG YANG MOTOR Co. Ltd., Mahindra and Mahindra Ltd., Niu Technologies, Okinawa Autotech Pvt. Ltd., Piaggio and C. Spa, Songguo New Energy Automobile Co Ltd, TVS Motor Co. Ltd., Vmoto Ltd., Yadea Group Holdings Ltd, Z Electric Vehicle Corp, and Zhejiang Luyuan Electric Vehicle Co Ltd |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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