The global electric scooter market size is expected to reach USD 28.56 billion by 2025 at a 7.3% CAGR during the forecast period, according to a study conducted by Grand View Research, Inc. Growing demand for fuel-efficient vehicles over shorter distances, rising carbon and greenhouse gas emissions, and government initiatives encouraging adoption of green vehicles are expected to drive the electric scooters market. Favorable demographic conditions and ease of transportation have also fueled demand for electric scooters across the globe.
Increasing fuel prices are the most impactful factor driving consumers to find alternative modes of transport. This, combined with the announcement of The Organization of the Petroleum Exporting Countries (OPEC) to curb oil output, has favored the adoption of green transportation. According to the International Energy Agency (IEA), escalating fuel and oil prices are underpinning economic conditions for alternatives such as electric vehicles and biofuels. Moreover, electric scooter sales are supported by government subsidies in European and Asian regions. These policies are expected to become more resilient with soaring fuel prices.
Asia Pacific is expected to dominate the market over the forecast period owing to increasing investments in vehicle charging infrastructure. Moreover, countries such as China and Taiwan are emerging as manufacturing hubs for electric scooters. In 2017, China accounted for around 87% share in the Asia Pacific electric scooter market.
North America is expected to exhibit the highest CAGR over the forecast period. The goal of reaching 1.5 million zero emission vehicles by the governor of California by 2025 is contributing to regional demand. The market for electric scooters is however, witnessing some challenges owing to new traffic laws being framed by regulatory bodies in lieu of public safety.
Further Key findings from the study suggest:
- By product, the retro segment is expected to dominate the market owing to significant demand among youth and elderly population for electric scooters fitted with seats
- Based on battery, the sealed lead acid segment dominated the market. However, stringent laws to reduce lead released into the environment are compelling manufacturers to incorporate NiMH and Li-Ion batteries
- Asia Pacific is expected to be the largest regional market over the forecast period due to massive investments in vehicle charging infrastructure
- Prominent industry participants include Gogoro, Inc.; Terra Motors Corporation; Mahindra GenZe; Vmoto Limited; Xinri Electric Vehicle Co. Ltd.; and BMW Motorrad International.