E-Scooters Market

Rising demand for fuel-efficient e-scooters and electric motorcycles will boost market growth

According to market dynamics, two key factors anticipated to significantly influence the expansion of the e-scooters business over the next few years are the increasing demand for fuel-efficient e-scooters ly and the growing concern over the alarming rise in  pollution. Governments in many places have imposed strict emission limitations to slow the rate at which carbon levels are rising in the atmosphere. For example, the USA's Environmental Protection Agency (EPA) produced a rule to update the current national GHG emission regulations for light trucks and passenger cars.

The IEA (International Energy Agency) report published in 2020 mentioned that, since its introduction in 2017, electric micromobility choices had grown quickly. Shared electric scooters, electric-assist bikes, and electric mopeds are now accessible in more than 600 cities in more than 50 countries. Due to the prohibitions on two-wheelers with internal combustion engines in many Chinese cities, an estimated 350 million electric two- and three-wheelers, most of which are in China, account for 25% of all two- and three-wheelers now in use.

According to market research, there are currently about 380,000 light commercial electric cars on the road, many of which are part of fleets owned by businesses or government agencies.

Furthermore, the huge increase in demand for electric scooter in these regions is mostly due to increasing urbanization and increased population density, particularly in emerging countries. Additionally, it is a cost-effective and environmentally friendly means of transportation, which drives the e-scooters industry expansion during the anticipated period.

Figure 1: Reducing cost of electric scooters and motorcycles in India

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

In recent years, many urban mobility fads have gained popularity, including shared bikes, e-scooters, and dockless bikes. E-Scooters Market are more feasible for short- and long-distance commutes and reduces overall travel time. As a result, the demand for e-scooters will increase more swiftly than that for electric cars in the next few years.

However, to cater to the demand, there have been significant advances in e-scooters, which reduce the cost of e-scooters and motorcycles. This is another factor driving the growth of the industry revenue during the forecast period.

Rising fuel prices are significantly impacting the Global Electric Scooters Market Industry. As gasoline and diesel prices continue to escalate, consumers are increasingly seeking cost-effective alternatives for their daily commutes. Electric scooters offer a more economical solution, with lower operational costs compared to traditional vehicles. This shift in consumer behavior is likely to drive demand for electric scooters, as individuals look to mitigate the financial burden of rising fuel expenses. The market's growth trajectory, with an expected value of 56.6 USD Billion by 2035, indicates that economic factors are playing a vital role in shaping the future of transportation.

The Global Electric Scooters Market Industry is experiencing a surge due to increasing urbanization. As more people migrate to urban areas, the demand for efficient and eco-friendly transportation options rises. Urban centers are often congested, making electric scooters an attractive alternative for short-distance travel. In 2024, the market is projected to reach 28.5 USD Billion, reflecting a growing preference for sustainable mobility solutions. Cities worldwide are implementing infrastructure improvements to accommodate electric scooters, which further stimulates market growth. This trend suggests that urbanization is not merely a demographic shift but a catalyst for the adoption of electric scooters.

Government incentives are a crucial driver for the Global Electric Scooters Market Industry. Many countries are implementing policies to promote electric mobility, including subsidies, tax breaks, and infrastructure investments. Such initiatives not only lower the initial cost of electric scooters but also encourage consumers to adopt this mode of transport. For instance, several European nations have introduced grants for electric vehicle purchases, which extend to scooters. This supportive regulatory environment is expected to propel market growth, contributing to the projected market value of 28.5 USD Billion in 2024. The role of government incentives cannot be overstated in fostering a favorable landscape for electric scooters.

The Global Electric Scooters Market Industry is significantly influenced by rising environmental awareness among consumers. As climate change becomes a pressing global issue, individuals and governments are seeking greener transportation alternatives. Electric scooters produce zero emissions during operation, making them an appealing choice for eco-conscious consumers. This shift towards sustainable transportation is supported by various government initiatives aimed at reducing carbon footprints. The market is expected to grow substantially, with projections indicating a value of 56.6 USD Billion by 2035. This trend underscores the importance of environmental considerations in shaping consumer preferences and driving the electric scooter market.

Technological advancements play a pivotal role in the Global Electric Scooters Market Industry. Innovations in battery technology, such as lithium-ion batteries, have enhanced the performance and range of electric scooters, making them more appealing to consumers. Additionally, the integration of smart technologies, including GPS and mobile applications, has improved user experience and safety. As these technologies continue to evolve, they are likely to attract a broader audience. The anticipated compound annual growth rate of 6.44% from 2025 to 2035 suggests that ongoing technological improvements will be instrumental in sustaining market momentum and expanding the consumer base.

By region, the study provides electric scooters market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific e-scooters market accounted for USD 10.15 billion in 2021 and is expected to exhibit a 43.20% market CAGR during the study period. According to the Electric Scooters market report, this is attributed to the growing demand for e-scooters and motorcycles in the Asia-Pacific countries, including China, India, Japan, and others, as well as a supportive government initiative across the region.

Further, the major countries studied in the Electric Scooters market report are The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: E-Scooters Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

In 2021, the Asia-Pacific electric scooters market had the highest revenue. The bulk of electric scooter manufacturers are from China, Japan, and Taiwan, making up the largest percentage. The largest e-scooters importer, manufacturer, and exporter in the world right now is China. Major China e-scooters market participants, including AIMA Group, Yadea, Jiangsu Xinri Electric Vehicle Co., Ltd., Zhejiang Luyuan, and Niu International, are all based in China. Further, the China e-scooters market held the largest share, and the India e-scooters market was the fastest-growing market in the European region

North America Electric Scooters market is expected to have a significant CAGR during the forecast period. It is anticipated that increasing investments in infrastructure for electric scooter charging and research assistance for cutting-edge high-density batteries would help regional growth overall. For instance, Revel introduced 68 MUVI electric scooter made by the Spanish business Torrot when it entered the U.S. market with a USD 27.6 million investment. Further, the United States e-scooters market held the largest share, and the Canada e-scooters market was the fastest-growing Electric Scooters market in the North American region.

The Electric Scooters Market players are spending a lot of money on R&D to increase their product lines, which will support market growth. They are also taking various strategic initiatives to grow their  footprint, with key market developments such as contractual agreements, new product launches, increased investments, mergers and acquisitions, and collaboration with other companies. According to Electric Scooters market competitive landscape, players must offer cost-effective products to expand and generate more revenue in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the  e-scooters industry to benefit customers and expand the Electric Scooters market sector is manufacturing locally to reduce operating costs. In recent years, e-scooters industry has provided cost-effective electric scooters and motorcycles with some of the most significant benefits. The Electric Scooters market major players such as Gogoro Inc. (Taiwan), Vmoto Limited (Australia), Terra Motors Corporation (Japan), Jiangsu Xinri Electric Vehicle Co. Ltd. (China), and Ather Energy (India), and others are working on expanding the Electric Scooters market demand by investing in R&D activities.

Gogoro Inc. (Taiwan) is engaged in the manufacturing, distribution, and development of electric vehicles and their parts. A battery-swapping refueling platform for urban electric two-wheel scooters, mopeds, and motorbikes was created by the Taiwanese company Gogoro. Along with creating its line of electric scooters, it collaborates with partners in the automotive industry like Hero, Yamaha, Aeonmotor, PGO, eReady, and eMOVING to offer its vehicle innovations. For instance, in November 2022, Zypp Electric and Gogoro Inc. announced a strategic B2B initiative.

The businesses are concentrated on utilizing battery switching to hasten the conversion of logistics fleets and last-mile deliveries to electric in urban areas.

Also, with its headquarters in Bangalore, Ather Energy is an Indian manufacturer of electric vehicles. Tarun Mehta and Swapnil Jain started it in 2013. The Ather 450X and the Ather 450 Plus are the electric scooters it produces. Ather Grid, a countrywide network of electric vehicle charging stations, has also been established. For instance, in January 2023, the upgraded 450X electric scooter was introduced by Ather Energy. It has four new colors, including Cosmic Black, Lunar Grey, Salt Green, and Ravishing Red, along with new seat and software improvements.