Electric Scooter Market by Voltage (36V, 48V, 60V, and 72V), Battery Type (Sealed Lead Acid, Lithium-ion, and Others), Speed (Low Speed and High Speed), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

Global Electric Scooter Market Analysis

The electric scooter market size is estimated to be $10,317.4 million in the 2021-2028 timeframe, growing from $5686.0 million in 2020, at a healthy CAGR of 7.9%.

Market Synopsis

The growing emphasis on energy efficient and environment friendly vehicles is expected to be the major driving factor for growth of the electric scooter market share.

However, the high initial investment required in the electric scooter industry is predicted to restrict the market growth.

According to the regional analysis of the market, the Asia-Pacific electric scooter market share is anticipated to grow at a CAGR of 8.4%, by generating a revenue of $3,794.7 million during the electric scooter market forecast period.

Electric Scooter Overview

Electric two-wheelers which include electric scooters are becoming increasingly popular and important form of urban transportation. The increasing awareness on environmental pollution with need of transition from traditional gasoline operated vehicles to electricity operated vehicles is aiding in the development of the electric scooter market. The low maintenance of electric scooters and longer operational life are expected to aid the market growth.                     

COVID-19 Impact on Electric Scooter Market

The Covid-19 impact on electric scooter market has been moderate. The global reduction in automotive sales in 2020 due to the lockdowns and restrictions during the pandemic has drastically impacted the sales of electric scooters globally. During the pandemic, the disturbance in international supply chains for transportation of essential components that are utilized in electric scooter such as semiconductors has also impacted the global electric scooter market size.

During this pandemic period, the businesses across the world are experiencing the need for digital management of their operations. The need for implementation of technologies such as industrial internet of things (IIOT) that will enable real-time monitoring of manufacturing process of electronics devices such as automotive switches and virtual control of production, is anticipated to have a positive impact on the market growth as well as desirable impact on the electric scooter market share in the COVID-19 pandemic period.

Growing Demand in the Utilization OF Environment Friendly Passenger Vehicles is Anticipated to be a Major Driving Factor or the Growth of this Market

The increasing emphasis on the utilization of fuel-efficient vehicles is aiding the growth of this market.  The conventional fuels on which the vehicles operate such as gasoline and diesel emit harmful gas such as NO2, sulphur dioxide, carbon monoxide, and others and pollute the environment. These gases are harmful for not only the environment as they deplete the ozone layer, but also adversely affect the human health. These factors are expected to aid in the utilization of electric scooters in the two wheelers category and aid the growth of the market in the forecast period. As per the Bloomberg, "Electric Vehicle Outlook" 2021, an annual long-term publication looking at how electrification, shared mobility, and autonomous driving will impact road transport, there are over 260 million electric two and three wheelers in the world today, this shows the increasing acceptability of electric vehicles globally, representing the market growth. These factors are anticipated to aid the growth of electric scooter market share in the forecast period.

To know more about global electric scooter market research and drivers, get in touch with our analysts here.

The Capital-intensive Nature of Electric Scooter Technology to Restrain the Market Growth.

The lack of public charging infrastructure required in the effective operations of electric scooters for the convenience of charging the vehicle anywhere and anytime is expected to hamper the growth of electric scooter market demand market in the forecast period.  Unlike developed countries, the undeveloped countries such as African nation and emerging countries such as India, Indonesia, and others lack the necessary charging infrastructure. These factors are expected to hamper the demand of global electric scooter market.

The Increasing Adoption of Artificial Intelligence is Expected to Create Opportunities for Electric Scooter Market

Government support programs and financial incentives have been provided to promote electric vehicles which is expected to open new scope of opportunities for this market in the forecast period. In addition, fossil fuel depletion is a crucial problem that might be solved by creating a self-sufficient electric vehicle sector. In many countries where electric two wheelers are popular, new incentive systems for scooters are being developed. For example, in February 2021, the Government of India announced plans to support the electric vehicles through Faster Adoption and Manufacturing of Electric Vehicles scheme (FAME). The government is subsidizing buyers through the Electric Vehicle Accelerated Introductory Manufacturing (FAME) program, which invests a total of Rs 100 billion in the market. The increasing trend in electric scooters in India is an example of government and corporate efforts. These are the positive electric scooter market trends that are expected to act as facilitators during the electric scooter market forecast period.

To know more about global electric scooter market trends, get in touch with our analysts here.

Source: Research Dive Analysis

The 48V sub-segment is predicted to have a dominating share in the global market and register a revenue of $3,295.7 million in 2028, growing from $1,803.3 million in 2020 during the forecast period.
The increasing demand for high driving range with reduced charging periods and high load capacities is expected to aid the growth of this sub-segment. The 48V battery is used in conventional and self-balanced electric scooters and shows excellent performance with high compatibility. It is managed by a battery management system. The demand for high-speed electric scooters with lighter batteries and high capacity has the potential to drive the sub-segment growth during the forecast period. 

The 72V sub-segment is anticipated to have the fastest market growth and generate a revenue of $2,521.5 million by 2028, growing from $1,357.9 million in 2020, at a healthy CAGR of 8.2% in the forecast period. The utilization of 72 V volt battery has advantages such as it can be customized, installed easily, has high over-discharge resistance and charge retention, has low maintenance and requires no acid or water for maintenance in usage, has large capability and long life for all high-power output speeds, and others. These factors are expected to boost the growth of the 72 V sub-segment. 

Source: Research Dive Analysis

The sealed lead acid sub-segment is estimated to have a dominating market share in the global market and register a revenue of $4,873.9 in year 2028, with a healthy CAGR of 7.9% during the forecast period. 
Lead-acid batteries are commonly used around the world because they are relatively inexpensive to manufacture. The advantages of lead acid batteries are these batteries are reliable and can withstand harsh conditions with low maintenance. In recent developments, for instance, in March 2021, Ninebot Inc., a Beijing, China headquartered company, launched N70C electric scooter, it is equipped with a 60V lead-acid. The scooter has a range of 70km. The electric scooter also uses a high-output direct-drive hub motor with a maximum power of 1500W and enhanced efficiency. These factors are to aid the growth of this sub-segment.

The lithium-ion sub-segment is estimated to have the fastest growth in the global market and register a revenue of $3,291.8 in year 2028, with a healthy CAGR of 8.3% during the forecast period.
Electric vehicle manufacturing companies are trying to develop electric scooters and motorcycles that use advanced lithium-ion batteries. The advantages of utilization of lithium-ion batteries are their light weight, which helps maintain the energy-to-weight ratio of the vehicle. Its electrodes are made of lithium and carbon. It can store more energy per kilogram of weight than lead-acid batteries and in addition to this, lithium-ion batteries are much safer for the environment. These factors are expected to aid the growth of this sub-segment

Source: Research Dive Analysis

The low-speed sub-segment is anticipated to have a dominating share in the global market and surpass $5,605.3 million by 2028, with an increase from $2,953.4 million in 2020. The low-speed electric scooters having a speed up to 40 km/hr. are a good alternative to the conventional scooters for low distance travel and are more cost effective than the traditional gasoline-based scooters in a longer period of time. The growing awareness about air quality and environmental issues regarding reduction of environmental pollution is aiding the growth of this sub-segment. The low-speed scooters were launched first from automakers and are the front runners in the two wheelers electric scoters category. These factors are expected to aid the growth of this sub-segment.

The high-speed sub-segment of the global electric scooter market is projected to have the fastest growth and register a revenue of $4,712.1 million in 2028 during the analysis timeframe, growing at a healthy CAGR of 7.2%. Government initiatives for increasing utilization of electric vehicles are expected to aid the growth the growth of this sub-segment. For instance, government of India and many companies have launched high-speed (>40km/h) electric scooters such as (Ather and Okinawa). They are successfully manufacturing their products under the FAME II scheme and thereby unlocking subsidies. These factors are expected to aid the growth of this sub-segment.

Source: Research Dive Analysis

The Market for Electric Scooter in Asia-Pacific to be the Most Dominating as Well as Fastest Growing

The Asia-Pacific electric scooter market generated $2,027.1 million in 2020 and is projected to register a revenue of $3,794.7 million by 2028. The rapid urbanization and increasing demand for ecofriendly mobility solutions in the developing markets such as India and China are aiding the growth of this electric scooter market in Asia-pacific region. The surge in urban population in the cities with increasing per capita income of the increased population are acting as catalysts in the development of the electric scooter market. These factors are expected to aid the growth of electric scooter market in the Asia- Pacific region in the forecast period. In addition to this, as per ‘International Organization of Motor Vehicle Manufacturers’ in 2019, around 35 million vehicles were produced in the region, making Asia-Pacific the highest automobile producing continent in the world. This shows the large-scale development in the automobiles, aiding the growth of electric scooter market in the Asia- Pacific market in the forecast period.

Competitive Scenario in the Global Electric Scooter Market

Agreement and acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading electric scooter market players are Alta Motors, GOVECS AG, Gogoro Inc., Vmoto Limited, Greenwit Technologies Inc, Terra Motors Corporation, Boxx Corp., PIAGGIO & C. SPA, HONDA MOTOR CO., LTD., and Johammer e-mobility GmbH.            

Porter’s Five Forces Analysis for the Global Electric Scooter Market:

• Bargaining Power of Suppliers: The suppliers in the electric scooter market are moderate in number. Several companies are working on new methodologies such as fast charging electric scooter to gain the major market share. Thus, there is moderate threat from the suppliers. 
  Thus, the bargaining power of suppliers is moderate.
• Bargaining Power of Buyers: Buyers have high power; they demand services at a cost-effective manner. This increases the pressure on the electric scooter providers to offer the best service in a cost-effective way. Thus, buyers can have alternatives and choose the convenient service that best fits their preference. 
  Thus, the bargaining power of buyers is high.
• Threat of New Entrants: Companies entering the electric scooter market face high competition since all new players strive to adopt technological innovations such as fast charging technology, electric moped, ninebot scooter, segway scooter, motorized scooter, and customized products such as electric scooter with seat for attracting clients.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There are alternative product for electric scooters like electric bikes.
  Thus, the threat of substitutes is moderate. 
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Terra Motors Corporation and Boxx Corp. Companies in the electric scooter market do acquisitions to gain major market share. 
  Therefore, competitive rivalry in the market is high.