Electric Scooter Market to Grow at a Staggering CAGR of 23% until 2028
Increasing focus on carbon emissions and sustainability are driving the global electric scooter market. Additionally, favorable government initiatives and private-public investments in strengthening charging infrastructure is expected to positively influence the market?
A recent study conducted by strategic consulting and market research firm BlueWeave Consulting revealed that the global electric scooter market is estimated to grow at a CAGR of 23% during 2022-2028. Anticipated growth in the market can be attributed to the increasing focus on carbon emissions and sustainability, which is prompting citizens to shift towards electric mobility. Additionally, favorable government initiatives and private-public investments in the establishment of new charging points at frequent locations are anticipated to present lucrative growth opportunities to the electric scooter market in the forecast period.
Launch of New and Innovative Products Driving the Electric Scooter Market
With the increasing demand for electric scooters and rising competitiveness among market players, the companies are constantly launching new products to attract buyers. They are also significantly investing in R&D activities to innovate electric scooters and gain a competitive edge in the market. For instance, Honda recently revealed its ultra-affordable electric scooter called the ’U-Go’ for the Chinese market and is marketed towards urban riding. It has a range of 65 kms, and with the addition of a second battery, its range can be extended to 130 kms.
Favorable Government Initiatives Propelling the Growth of the Global Electric Scooter Market
The governments of various countries are taking several initiatives to boost the adoption of electric scooters among the masses. These initiatives and incentives include purchase rebates, tax exemptions, and tax credits, along with additional perks, such as access to bus lanes, etc. Moreover, initiatives such as the pledge towards Net Zero Emission by the next few decades by several countries, including Sweden, France, Denmark, New Zealand, etc., are also projected to influence the growth of the global electric scooter market during the forecast period.
Global Electric Scooter Market - By Product Type
Based on product types, the global electric scooter market is segmented into retro, standing/self-balancing, and folding. The retro segment holds the largest market share as they are considered most suitable for commuting shorter distances. In addition, the low procurement and maintenance costs involved with retro electric scooters are attracting a large number of young and working adults, which is expected to spur the market growth in the forecast period. On the other hand, the folding electric scooter is also growing at a substantial rate and will likely dominate the market during the forecast period.
Global Electric Scooter Market - Regional Insights
Geographically, the global electric scooter market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these, Europe dominates the global electric scooter market, followed by North America. However, the Asia-Pacific region is projected to witness the highest CAGR during the forecast period. Certain emerging economies, such as China, India, Japan, etc., are among the most potential markets for electric scooters. Furthermore, various leading companies, such as Xiaomi are entering the global electric scooter market by launching their exclusive products. Other players, such as Ather Energy, Hero Electric Optima of India are also constantly launching their products at competitive prices, which is anticipated to boost the overall market growth in the forecast period.
Impact of COVID-19 on the Global Electric Scooter Market
The unprecedented COVID-19 pandemic tremendously halted the growth of the global electric scooter market. Non-essential economic activities, including automotive production and manufacturing activities were suspended due to the coronavirus-induced lockdown. The electric scooter OEMs also had to temporarily pause their production. Furthermore, the restriction on the global distribution and supply chains, as well as mobility to prevent virus spread directly impacted the sales of the electric scooter, incurring huge losses to the market. Despite the slow recovery, the electric scooter market is expected to grow during the forecast period due to a shortage of components in the market.
The leading players in the electric scooter market are Ather Energy Pvt. Ltd., Hero Electric Optima, Bird, Neutron Holdings, Inc., AllCell Technologies LLC, BMW Motorrad International, BOXX Corp., Gogoro, Inc., Green Energy Motors Corp. Greenwit Technologies Inc., Honda Motor Co. Ltd., Jiangsu Xinri E-Vehicle Co., Ltd., KTM AG, Mahindra GenZe, Peugeot Scooters, Suzuki Motor Corporation, Terra Motors Corporation, Vmoto Limited, Yamaha Motor Company Ltd., and other prominent players.
The market is highly fragmented with the presence of several multinational corporations as well as micro-mobility startups. The regional startups are also giving tough competition to the established players in terms of their offerings. Furthermore, the companies are focusing on expanding their target market and moving beyond geographical boundaries, because of which they are launching their products in different countries. Last but not least, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global electric scooter market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global electric scooter market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.