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Press Release: Electric Scooter Market to Surpass US$ 35.07 Billion by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Electric scooters are plug-in electric vehicles that use electric power or combination of electric battery and power from an internal combustion engine to propel the vehicle. Moreover, electric scooters are preferred compared to traditional scooters due to their fuel efficiency and less greenhouse gas emission.
The global electric scooter market is expected to reach US$ 35.07 Billion by 2027. The market growth is majorly attributed to lesser impact of electric scooters on the environment. Conventional scooters which run on petrol emit hazardous compounds such as carbon dioxide, carbon monoxide, benzene, which are mainly responsible for causing life-threatening diseases such as heart disease, and cancer. For instance, according to the United States Environmental Protection Agency, 10,180 grams of is emitted on burning a gallon of diesel. It also emits methane and nitrous oxide and these emission cause global warming. On the contrary, electric scooters are efficient than a conventional scooter. Furthermore, electric scooter emits approximately 250 grams of pollutants for a one kilometer ride, which is expected to boost the adoption of electric scooters during the forecast period.
Inadequate charging infrastructure for electric scooters in many countries is expected to hamper the growth of the electric scooter market. Developed countries such as the U.S., Canada, and many European countries have taken initiatives and installed charging stations at public places such as supermarkets, cinema halls, and restaurants. However, economies of Africa do not have enough facilities for maintaining electric scooters which is hampering the adoption of electric scooters in the region.
Figure 1. Global Electric Scooter Market Share (%), by Region (2020)
The Asia Pacific holds the maximum market share in the global electric scooter market in 2020 and is expected to retain its dominance during the forecast period. The growth in the Asia Pacific market is attributed to the presence of large, and many electric scooter manufacturers in countries such as China, Japan, such as Yadea, AIMA Group, Ninebot. The growing demand for affordable electric vehicles for short-distance traveling, and initiatives taken by governments for boosting the adoption of electric vehicles are expected to drive the market growth in Asia Pacific during the forecast period. For instance, in 2015, the Indian government implemented the FAME 2 (Faster Adoption and Manufacturing of Electric vehicles) scheme, under this the Indian central government is offering subsidies to buyers of electric vehicles. This subsidy is applicable to electric commercial vehicles, public transport vehicles, and two-wheelers.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 19.30 Bn |
| Historical Data for: | 2017 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 8.10% | 2027 Value Projection: | US$ 35.07 Bn |
| Geographies covered: |
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| Companies covered: |
Amego Electric Vehicles Inc., Ampere Vehicles Pvt. Ltd, BMW Motorrad, ECCITY Motocycles, GenZe, Gogoro Inc., GOVECS GmbH, Hero Eco (Hero Electric), Honda Motor Co. Ltd., Jiangsu Xinri E-Vehicle Co., Ltd., Kumpan Electric, Piaggio & C. SpA, Sanyang Motor Co. Ltd., Silence Urban Ecomobility, Terra Motors Corp., TORROT ELECTRIC EUROPA S.A, TVS Motor Company, Vmoto Limited, and Yadea Group Holdings Ltd. |
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Global Electric Scooter Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 pandemic has negatively impacted growth of the electric scooter industry. Many manufacturers of electric scooters have laid-off their employees during the lockdown. For instance, a U.S. based electric scooter manufacturer, Bird Rides, Inc., has laid off 30% of its employees due to the coronavirus crisis.
Moreover, the COVID-19 pandemic is expected to majorly impact sales of electric scooters across the globe. For instance, according to a research by Coherent Market Insights, Electric two-wheeler sales are expected to decrease by around 15.3% to 17% in financial year 2021 in India, which, in turn, is expected to impact revenue of manufacturers of electric scooters.
Among battery type segment, the Li-ion sub-segment is expected to dominate the market during the forecast period owing to the its extended range as compared to lead based batteries
Based on battery type, the Li-ion segment is expected to exhibit the highest growth rate during the forecast period. Lithium-ion batteries have lighter weight compared to lead-acid batteries, which helps to maintain the weight-to-energy ratio, and it increases the driving range of the electric vehicle. Lithium-ion batteries can store more energy per kilogram of weight. Moreover, several manufacturers of electric scooters are focusing on the development of electric scooters and motorcycles equipped with advanced lithium-ion batteries. For instance, in June 2019, electric scooter manufacturer, Li-ions Elektrik Solutions, launched the Spock electric scooter. This electric scooter is powered by the latest 72V 40AH lithium-ion batteries. This battery has a range of 30 to 150kms on a single charge.
Some of the key players operating in the global electric scooter market are Amego Electric Vehicles Inc., Ampere Vehicles Pvt. Ltd, BMW Motorrad, ECCITY Motocycles, GenZe, Gogoro Inc., GOVECS GmbH, Hero Eco (Hero Electric), Honda Motor Co. Ltd., Jiangsu Xinri E-Vehicle Co., Ltd., Kumpan Electric, Piaggio & C. SpA, Sanyang Motor Co. Ltd., Silence Urban Ecomobility, Terra Motors Corp., TORROT ELECTRIC EUROPA S.A, TVS Motor Company, Vmoto Limited, Yadea Group Holdings Ltd, and others.
Figure 2: Global Electric Scooter Market Value (US$ Mn), 2017 - 2027
The global electric scooters market was valued at US$ 19.30 Bn in 2019 and is expected to reach US$ 35.07 Bn by 2027 at a CAGR of 8.10% between 2020 and 2027.
Electric scooters are plug-in electric vehicles with two or three wheels. In electric scooters, power is stored in rechargeable batteries, which drives one or more electric motors of the scooters. Electric scooters work on lithium-ion or lead-acid batteries. Electric scooters has a driving range of round 50 km, per charge.
Market Dynamics
Increasing investments by governments of many emerging as well as developed economies for the development of charging infrastructure and incentives offered to buyers of electric vehicles is expected to create lucrative opportunities for the electric scooters manufacturers. According to the Indian Brand Equity Foundation (IBEF), in the Electric Vehicle Policy finalized by the Kerala State government with an aim to buy 6,000 electric buses by 2025 for State Road Transport Corporation.
Additionally, many private players are investing in electric scooter market, and setting up electric scooter manufacturing factories in many factories across the globe. For instance, in December 2020, Ola, an Indian ride sharing company, signed a Memorandum of Understanding (MoU) with the Tamil Nadu State government to set up the world’s largest e-scooter manufacturing facility in the state. This manufacturing facility will have an initial scooter manufacturing capacity of 2 Billion scooters per year.
In addition, the performance of electric scooters gets decreased over the time with usage, while, conventional scooters shows consistent performance with high torque, and high speed, which is expected to hamper the growth of electric scooter over the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
*Browse 60 market data tables and 40 figures on "Electric Scooter Market - Global forecast to 2027”.
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