PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1536763
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1536763
Global electric scooter market is estimated to witness a CAGR of 11.83% in the forecast period 2024-2031, rising from USD 15.23 billion in 2023 to USD 37.25 billion in 2031. The electric scooter market has experienced growth in recent years and is expected to maintain an expansion in the forecast years owing to the rising adaptability of electric scooters in developing countries, the rapid expansion of EV charging infrastructure, and growing awareness about sustainability and lightweight components. Governments in emerging countries are introducing different rules and regulations concerning eco-friendly surroundings and zero carbon emissions, promoting the adoption rate of electric vehicles, including two-wheelers. In the global electric scooter market, the introduction of advanced and innovative electric scooters comprises efficient integration of regenerative braking, lightweight raw materials, adoption of smart manufacturing practices, and IoT-equipped electric scooters, propelling the global market demand for electric scooters. In emerging countries, governments are offering subsidies and incentives to surge the demand and supply of electric two- and three-wheelers. For instance, in March 2024, the Government of India started a new scheme to promote the sale of electric two and three-wheelers. Minister of Heavy Industries, Mahendra Nath Pandey, declared that USD 60 million is being allocated to the Electric Mobility Promotion Scheme 2024. The scheme will be in effect for four months, starting from 1st April 2024.
In addition, companies in the global electric scooter market are launching advanced electric scooters to address the growing requirement for electric scooters and expand their product portfolio. Furthermore, companies are funding to improve the EV charging infrastructure at remote places to be dominant and foster the adoption of electric scooters globally.
For instance, in August 2023, seven major automakers such as General Motors, BMW AG, Honda Motor Co., Ltd., Hyundai Motor Company, Mercedes-Benz AG, Kia Corporation, and STELLANTIS N.V. announced a joint funding of USD 1 billion for establishing EV charging stations. This combined funding focuses on establishing 30,000 EV charging stations across North America by 2030 and introducing an EV charging network across Canada and the United States.
Establishment of EV Charging Infrastructure Surges the Market Demand
Companies in the global electric scooter market are effectively planning to set up the charging infrastructure, surging the demand for electric scooters. The growing number of electric scooter producers aiming to establish private charging stations or a distant spot to charge the electric scooter is projected to surge the adoption of e-scooters among customers. The significant increase in investment in EV charging infrastructure, coupled with the relentless research and development activities for advanced high-density batteries, is estimated to contribute to the overall global electric scooter market growth in the forecast period. In addition, governments across the globe are planning to invest in expanding the charging network on highways and other distant places, further fueling this optimistic outlook for the market.
For instance, in March 2024, the Canadian government announced a federal investment of nearly USD 5 million to install more than 500 new EV chargers, comprising 40 fast chargers in Toronto.
Rapid Launch of Electric Scooters Pushes the Market Growth
An increase in government policies concerning zero carbon emissions, growing penetration for electric scooters, rising awareness concerning the eco-friendly environment, and customer shift towards zero-emission vehicles will drive the global electric scooter market growth in the forecast period. Governments globally have formed rules and policies to increase the adoption rate of electric scooters globally. The government is offering several benefits to consumers along with automakers in the form of incentives and subsidies.
For instance, in June 2022, the UK Government planned to continue subsidizing electric motorcycles and scooters, even after ending its grant scheme for four-wheelers. The Department for Transport has unveiled that the plug-in subsidy scheme, which offered approximately USD 1,950 for four-wheelers, is being stopped instantly. Also, they will redirect nearly USD 390 million towards incentives for electric motorcycles, taxis, scooters, trucks, and vans.
Government Rules and Regulations Push Market Growth
The sales of electric scooters are projected to rise steadily, propelled by growing support from domestic as well as international governments. Countries including Germany and France have identified that adopting electric vehicles is important for reducing vehicle emissions. For instance, in March 2024, the Union Government of India approved a policy to encourage India as an EV manufacturing hub. This policy compels EV producers including Tesla, Inc., and BYD Company Ltd. to manufacture locally and offer Indian consumers EVs with access to the latest technology. Other countries, including emerging ones, are also adopting strategies and policies to promote the adoption of electric two-wheelers. These emerging countries are presenting their commitment by presenting new laws and amending existing ones, making everyone part of a global movement to support electric two-wheelers. Different countries across the globe have set up laws and organizations to achieve net-zero emissions and accelerate the electric scooter market growth globally.
For instance, in December 2023, the United Nations Climate Change Conference of the Parties and the White House Council on Environmental Quality announced that 11 new countries are joining the Net-Zero Government Initiative, putting their national government functions on the path to achieving net zero emissions by 2050.
Lithium-ion Batteries Dominate with the Largest Market Share
Lithium-ion batteries register the largest market share in the global market as they foster electric scooter lifespans and are a choice for electric vehicles due to their lightweight and high energy density. Companies in the global market plan to invest in different research and development activities to confirm optimal performance, environmental e-mobility, and durability. The demand for lithium-ion batteries is significantly rising as these batteries offer significant benefits, including charger effectiveness, enhanced discharge, longer endurance, and the competence to deep cycle while preserving energy. In addition, key participants are planning to fund the establishment of lithium-ion battery manufacturing facilities to meet the rising requirement for electric scooters.
For instance, in March 2022, STELLANTIS N.V. and LG Energy Solution Ltd. announced over USD 4.1 billion in funding to introduce the first large-scale lithium-ion battery production plant across Canada.
Asia-Pacific Holds the Largest Market Size
Asia-Pacific registers the largest market size in the global market owing to a growing demand for electric vehicles, rising introduction of electric vehicles across emerging countries, and growing concern about a sustainable environment. In Asia-Pacific, the market is observing a significant increase due to rising development of electric scooters and the rising requirement for energy-efficient mobility across Asia-Pacific. In addition, companies are increasing their investment in different research and development activities to advance the features of electric vehicles and address the rising demand for electric vehicles. Furthermore, key participants in the global market are planning to launch new electric scooters to attract the young population and contribute to the overall Asia-Pacific electric scooter market growth in the forecast period.
For instance, in November 2023, Electrum.co, Indonesia's leading company, announced its first e-scooter model, swap stations, and battery packs to build an EV ecosystem.
Future Market Scenario (2024-2031F)
Advancements in electric scooter technology, rising preference for electric two-wheelers, and growing awareness concerning environmental sustainability are driving the global electric scooter market's growth.
Global market growth is accredited to the presence of giant market players and the implementation of support policies by the government to promote the adoption of electric vehicles.
The effective rise in environmental concerns, government subsidies, and incentives, coupled with battery technology innovations, will propel the global market's growth in the forecast period.
The functioning of leading market players and rising investment in different research and development activities to improve the range of electric scooters are contributing to the rising demand for electric two-wheelers.
Key Players Landscape and Outlook
Key participants in the electric scooter market are efficiently investing in different research and development activities to advance the functioning and performance of electric scooters. Companies in the global market are increasing the production of electric scooters as per rising demand for electric two-wheelers. Companies are adopting different market growth strategies, including joint ventures, new product launches, mergers and acquisitions, partnerships, collaborations, and others, to expand their market presence and product portfolio.
In January 2024, Hero MotoCorp Ltd. announced the launch of three electric scooters to address the rising demand and expand its product portfolio.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.