The Electric Scooter Market is expected to reach a value of $644.5 billion by 2028, at a CAGR of 29.4% during the forecast period 2021-2028. By volume, this market is expected to grow at a CAGR of 21.2% from 2021 to reach 209.0 million units by 2028. Increasing adoption of electric motorcycles and e-bikes for short commutes, rising environmental concerns, and increasing investments by ride-hailing companies in the micromobility space are the major factors supporting the growth of the market. Increasing efforts by OEMs to produce lightweight bikes and increasing trend towards connected e-Bikes provide significant growth opportunities for market players.
Electric Scooter Market Report Scope and Segmentation
|UNIT||Value (USD Million/Billion)|
|BY REGION||North America, Europe, Asia Pacific, Latin America, Middle East and Africa|
The Impact of COVID-19 on the Electric Scooter Market
The COVID-19 pandemic has adversely hit many economies around the globe. To control the spread of this disease and avoid the related consequences, governments across the globe have announced partial or complete lockdowns, majorly impacting many manufacturing and service industries, including electric motorcysles and e-bikes.
The COVID-19 pandemic has an overall positive impact on the electric motorcycles and E-bikes market worldwide. With governments worldwide encouraging people to avoid crowded public transportation systems wherever possible, people have started taking their bikes for short-distance commuting. Governments in European countries invested in widescale cycling infrastructure. According to European Cyclists’ Federation, the sales of E-bikes in Europe during the COVID-19 pandemic grew by 47%. Sales of electric bicycles in the U.S. grew by 145% during the pandemic.
- COVID-19 Impact on the North American market: E-bikes and scooters have shown strong growth in the U.S. post-pandemic. These vehicles provide the ability to get around while remaining socially distanced from other people. The public e-bike sharing systems, such as those in Chicago and New York, have seen increased ridership promoting faster E-bikes sales in the U.S. New York is revamping the cycling infrastructure for cyclists, and micromobility users, to support the sudden shift to small individual transport modes. Such initiatives are expected to support the growth of the electric scooter market in North America during the forecast period.
- COVID-19 Impact on the European market: In 2020, the European electric scooter market grew by 22% as the COVID-19 pandemic boosted the individual mobility demand. Moreover, government initiatives to encourage people to switch to green mobility is driving the growth in the electric two-wheelers market in Europe. For instance, in 2020, the government of the U.K. announced a GBP 2 billion (USD 2.83 billion) package for developing “pop-up bike lanes” and the widening of pavements for pedestrians, and legalize the use of rental e-scooters on public roads. Although the COVID-19 pandemic has negatively affected many industries, its effect on electric scooter is positive.
- COVID-19 Impact on the Asia-Pacific market: The electric scooter market in Asia-Pacific was moderately affected in the first half of 2020 due to the COVID-19 pandemic. Major factors responsible for the decrease in sales of electric scooter in the Asia-Pacific region are low consumer demands for personal mobility due to lockdowns. However, major companies in the electric scooter market have increased investments to set up manufacturing facilities. For instance, in 2020, ANI Technologies Pvt. Ltd. (Ola Cabs), through its subsidiary Ola Electric Mobility Pvt. Ltd., invested INR 2,400 crores (USD 330 Million) to set up an electric motorcycle manufacturing facility in India.
Increasing adoption of electric motorcycles and E-bikes for short commutes to drive the electric scooter market
The ever-increasing traffic congestion leading to long commutes is paving the way for commuters to look for convenient, time-efficient, and affordable modes of transportation to reach their destination. Electric lightweight vehicles, such as electric motorcycles, electric bicycles, and e-kicks, offer a very convenient solution to the specific requirements of urban mobility. As micro-mobility has been picking up, players in the industry have come up with vehicle-sharing alternatives enabling people to avoid buying their micro-mobility vehicles. Commuters can now rent a vehicle through mobile applications.
Additionally, the adoption of electric motorcycles is on the rise in emerging economies. The sales of electric motorcycles in India increased by 16.5% in 2019-20. The government of India has introduced favorable tax schemes for increasing the adoption of electric motorcycles. GST on electric motorcycles has been reduced to 5% from 12%, and an additional tax benefit of INR 1.5 lakh (USD 2,000) is given on the interest paid on loans taken to purchase electric motorcycles. Such initiatives are supporting the adoption of electric motorcycles and E-bikes for the short urban commute.
Key Findings in the Electric Scooter Market Study:
The e-scooters & bikes segment is projected to grow at the highest CAGR during the forecast period
Based on vehicle type, the electric motorcycles segment is expected to account for the largest share of the electric scooter market in 2021 by value. However, the e-scooters & bikes segment is expected to grow at the highest CAGR by value during the forecast period. Major factors attributed to the high growth of this segment are e-scooters & bikes are increasingly used for courier and e-commerce delivery applications, increasing government subsidies and support to promote electric mobility across the globe, growing demand for energy-efficient commuting, and increasing investments by government authorities in the development of EV charging infrastructure.
The 3.6kW to 7.2kW segment is projected to grow at the highest CAGR during the forecast period
Based on power output, the less than 3.6kW segment is expected to account for the largest share of the electric scooter market in 2021. However, the 3.6kW to 7.2kW segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to the increasing adoption of electric motorcycles in emerging economies, high growth of the electric two-wheelers market in Europe during the pandemic, favorable incentives and tax benefits, and increasing private investments in the electric two-wheeler segment.
The lithium-ion polymer segment to grow at a significant pace during the forecast period
Based on battery technology, the lithium-ion segment is expected to account for the largest share of the electric scooter market in 2021. However, the lithium-ion polymer segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to low-cost manufacturing, simple cell construction, high energy density, lightweight batteries, high resistance to physical damage, and lower chances of leaking electrolytes.
The geared hub motor segment is projected to grow at the highest CAGR during the forecast period
Based on motor type, the hub motors segment is expected to account for the largest share of the electric scooter market in 2021. The geared hub motors segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to better durability and speed control of geared hub motor, smaller size, and lightweight; lesser mechanical losses since heavy transmission, driveline, differential, and axles are not needed; offers higher flexibility, generates high torque at lower RPMs, and can be additionally used as brakes.
The business organizations segment is projected to grow at the highest CAGR during the forecast period
Based on end user, the business organizations segment is expected to account for the largest share of the electric scooter market in 2021. The large share of this segment is mainly attributed to the increasing government subsidies and support to promote electric mobility across the globe, increasing use of e-scooters & bikes by courier and e-commerce delivery personnel, and the growing implementation of mobility-as-a-service. Moreover, this segment is expected to grow at the highest CAGR during the forecast period.
North America to be the fastest-growing regional market by value and volume
The Asia-Pacific region is expected to account for the largest share of the electric scooter market by value as well as volume in 2021, followed by Europe, North America, the Middle East & Africa, and Latin America. However, North America is expected to witness the fastest growth by value and volume during the forecast period. The factors attributed to the high growth of this region are high growth in sales of electric bicycles in the U.S. during the pandemic, increasing investments by shared mobility players in electric scooter companies, decreasing prices of batteries in the U.S., and increasing initiatives by large two-wheeler companies in the U.S. to launch electric motorcycles.
The report includes a competitive landscape based on an extensive assessment of the key strategies adopted by the leading market participants in the electric scooter market over the last four years. The key players profiled in the electric scooter market are Fuji-Ta Bicycle Co., Ltd. (China), Trek Bicycle Corporation (U.S.), Yamaha Motor Co., Ltd. (Japan), Yadea Group Holdings Ltd. (China), Riese & Müller GmbH (Germany), Leon Cycles (Germany), Niu Technologies (China), Walberg Urban Electrics GmbH (Germany), myStromer AG (Switzerland), Magnum Bikes Inc. (U.S.), Pedego Inc. (U.S.), Aventon Bikes (U.S.), Govecs AG (Germany), Zhejiang Minimotors Bike Co Ltd (China), Zero Motorcycles Inc. (U.S.), Gogoro Inc. (Taiwan), Ather Energy Pvt. Ltd. (India), Energica Motor Company (Italy), Revolt Motors (India), Hero MotoCorp Ltd. (India), and Rad Power Bikes Inc. (U.S.).
Scope of the Report
Electric Scooter Market, by Vehicle Type
- Electric Motorcycles
- E-scooters & Bikes
Electric Scooter Market, by Power Output
- Less Than 3.6kW
- 6kW to 7.2kW
- 20kW to 100 kW
Electric Scooter Market, by Battery Technology
- Sealed Lead Acid
- Lithium-ion Polymer
Electric Scooter Market, by Motor Type
- Hub Motors
- Geared Hub Motors
- Gearless Hub Motors
- Mid-drive Motors
Electric Scooter Market, by Charging Type
- Wireless Charging
Electric Scooter Market, by End User
- Government Intuitions
- Academic institutes/Universities
- Business Organizations
- Micromobility Service Providers
- Other End-users
Electric Scooter Market, by Geography
- Asia-Pacific (APAC)
- South Korea
- Rest of Asia-Pacific (RoAPAC)
- Rest of Europe (RoE)
- North America
- Latin America
- Middle East & Africa