Electric Scooter Market Zooms Ahead: 9.9% Growth Forecast to 2031
The electric scooter market, already valued at £24.1 billion in 2022, is set to accelerate, reaching £56.4 billion by 2031, according to a new forecast from Skyquest Technology. This represents a compound annual growth rate (CAGR) of 9.9% over the forecast period.
The surge in demand for fuel-efficient vehicles, coupled with increasing environmental concerns, is driving the adoption of electric scooters (e-scooters). Their popularity for short commutes, rising environmental consciousness, and substantial investment from ride-hailing companies in the micro-mobility sector are further fuelling the market's growth.
The rise of micromobility has spurred industry players to develop vehicle-sharing solutions, offering an alternative to personal ownership. As public transport vehicles like buses and taxis contribute to greenhouse gas emissions, individuals are increasingly opting for rechargeable vehicles, contributing to the market's projected expansion.
Key Players Steering the Electric Scooter Market:
The market is dominated by major players with extensive product portfolios and distribution networks in both developed and emerging markets. Leading companies are prioritising research and development (R&D) efforts and strategically advancing their product offerings.
Notable players shaping the electric scooter market include:
YADEA Technology Group Co., Ltd. (China)
OLA Electric (India)
TVS Motor Company (India)
Ather Energy (India)
Hero Electric (India)
Gogoro (Taiwan)
VMOTO Limited (Australia)
NIU International (China)
Silence Urban Ecomobility (Spain)
Jiangsu Xinri E-Vehicle Co., Ltd. (China)
Askoll EVA S.p.A. (Italy)
Revolt Intellicorp Private Limited (Revolt Motors) (India)
CAKE (Sweden)
Piaggio Group (Italy)
KTM AG (Austria)
Harley Davidson (USA)
BMW Group (Germany)
AIMA Technology Group Co., Ltd. (China)
Honda Motor Co., Ltd. (Japan)
Bajaj Auto Ltd. (India)
Battery Prices: A Key Driver of Affordability:
A pricing study reveals that batteries constitute a significant portion (60-70%) of the total cost of electric two-wheelers. Furthermore, battery replacement is typically required after 4-5 years of use. This underscores the importance of battery cost in determining the overall affordability of electric scooters and motorcycles, both in terms of initial purchase price and maintenance.
The ongoing decline in lithium battery prices is a positive development, making electric scooters and motorcycles more accessible to a wider audience. Notably, most Original Equipment Manufacturers (OEMs) are using lithium-ion batteries in their electric two-wheelers, benefiting from the substantial reduction in battery costs, from £547 in 2013 to £105 in 2021.
Gogoro and Asian Vendors Shape Industry Landscape:
Gogoro's innovative e-scooter featuring a swappable, reusable battery has revolutionised the Taiwanese market. Several Asian manufacturers are collaborating with Gogoro to incorporate this swappable model into their offerings. Major Japanese brands like Honda, Yamaha, Suzuki, and Kawasaki are also competing in the Asian market with these scooters.
The Rise of Electric Scooter Rental Services:
The growing popularity of electric scooter sharing and rental services in countries such as the US, France, Spain, and Germany is further driving global demand. Leading players in the electric scooter rental space include Lime, Jump, Razor, Spin, and Bird. The increasing number of incentives, both monetary and non-monetary, encouraging the adoption of electric two-wheelers is also propelling global electric scooter sales.
Market Segmentation:
The electric scooter market is segmented based on various factors, including:
Battery Technology: Sealed Lead Acid, Lithium-ion, Nickel Metal Hydride and Sodium-ion
Distance Covered: Below 75 miles, 75 - 100 miles and Above 100 miles
Voltage: 24V, 36V, 60V, 72V and Above 72V
Technology: Plug-in and Battery
Vehicle Class: Economy and Luxury
Vehicle Type: E-Scooter/Moped and E-Motorcycles
Usage: Private and Commercial
Motor Type: Mid Drive Motors, Hub Motors and Others
Motor Power: Less than 1.5 KW, 1.5-3 KW and Above 3 KW
Key Market Developments:
Recent developments in the electric scooter market demonstrate its dynamism and growth:
May 2024: Greaves Electric Mobility Private Limited (GEMPL) launched its high-performance family electric scooter, the Ampere Nexus, priced at INR 1,09,900 (approximately £1,100).
May 2024: TVS Motor expanded its popular electric scooter range, the TVS iQube, with new models starting at an introductory price of Rs 94,999 (approximately £950).
April 2024: Lectrix EV, the electric mobility unit of the SAR Group, introduced the E2W at Rs 49,999 (approximately £500). Notably, Lectrix EV is the first Indian Original Equipment Manufacturer (OEM) to innovate by offering battery separation from the vehicle, allowing clients to purchase it as a separate service.
Conclusion:
The electric scooter market is experiencing a period of robust growth driven by factors such as environmental concerns, increasing affordability, and the emergence of new technologies. As major players continue to invest in R&D and expand their product portfolios, the market is poised for further expansion in the coming years.
