Electric Scooter and Motorcycle Market - Growth, Trends, Covid-19 Impact, and Forecast (2023 - 2028) - .
Currently, the Electric Scooter and Motorcycle Market is valued at USD 7571 million, and it is expected to reach USD 28991 million, registering a CAGR of 25.08% over the next five years.
The COVID-19 pandemic had a negative impact on the electric scooter and motorcycle market. The global lockdown restrictions halted the production and sales of new vehicles, including electric scooters and motorcycles.
Also, due to disruptions in the supply chain, the raw materials required to produce different parts of the scooters and motorcycles were unavailable, causing production delays. However, with the growing inclination toward cleaner mobility worldwide, the market is looking forward to an economic revival post the COVID-19 pandemic. Furthermore, the fall in automotive production and lack of labor significantly impacted the market. As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. In addition, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.
Over the long term, the market growth is primarily due to the growing need for sustainable transportation. Increasing environmental concerns and favorable government initiatives are some of the major factors driving the market's growth. Rising energy costs and competition among emerging energy-efficient technologies are also expected to fuel the market's growth.
The Asia-Pacific region is expected to dominate the market owing to growing awareness about the environmental benefits of electric vehicles and increasing petrol and diesel prices across the region. Moreover, government initiatives related to e-mobility are expected to further increase regional demand during the forecast period.
The market is also anticipated to be driven by capacity expansions by key players and startup fundraising. For instance
Key HighlightsE-scooters witness higher sales than e-motorcycles due to lower upfront costs and the availability of more models in the market, which provide ample options for buyers. The allure of the e-scooter, both as a toy and as a potential vehicle for commuting, is driving its adoption. Thus, several startups are beginning to flood major metropolitan areas with hundreds of ‘rent by minute’ scooters.
Several pilot programs have been initiated to introduce e-scooters in a phased manner to reduce vehicle emissions in cities. The popularity of e-scooters is also encouraging conventional two-wheeler manufacturers to enter the market. India is emerging as a lucrative market for e-scooters. Hence, several Indian two-wheeler manufacturers are gearing up to launch their models in the segment. For instance,
The market for electric scooters is also being driven by the investments announced by many micromobility companies and E-commerce giants who prefer electric vehicles for their last-mile deliveries to reduce their carbon footprint. For instance
The announcements by the governments of EU member states, India, and China to ban the sales of IC engine two-wheelers by 2035 and 2040, respectively, contribute to the growing sales of electric scooters in these geographies.
Thus the confluence of the above-mentioned factors is projected to ensure the dominance of electric scooters in the electric scooter and motorcycle market over the next five years.
Asia-Pacific Region Expected to Lead the Market During the Forecast PeriodAsia-Pacific is anticipated to lead the market over the forecast period. China, India, South Korea, and Japan are the major economies in the regional market, which are expected to influence the overall market. These countries are witnessing the entry of an increasing number of startups and well-established and conventional manufacturers in the market.
In 2021, Taiwan began subsidizing up to USD 900-1000 for purchasing new electric motorcycles/scooters. Owing to the implementation of such plans, in 2021, 94000 units of scooters out of the total 809000 scooters sold in the country were electric. Electric scooters commanded 11.9% of the total scooter market in Taiwan in 2021. In 2021 Gogoro Inc. sold about 79000 electric scooters in Taiwan. The Government of Taiwan aims to have 70% of new scooter sales in Taiwan to be electric by 2035.
In October 2022, Indonesia also announced it will put 2 million electric two-wheelers on the road by 2025.
India, one of the largest two-wheeler markets, is witnessing the entry of many new startups, which are marking their presence by launching new models and expanding current models and existing infrastructure. For instance,
Several electric motorcycle and scooter companies are launching the latest products and entering strategic partnerships with global players to attract more customers and gain market share. For instance,
With the aforementioned trends and developments, the market is expected to grow at a healthy rate during the forecast period.
Competitive LandscapeThe electric scooter and motorcycle market is highly fragmented and has several local players, with many new startups entering the market. Some of the major players in the market are Zhejiang Luyuan Electric Vehicle Co. Ltd, Hero Electric Ltd, Zhejiang Yadea Motorcycle Co. Ltd, and NIU Tecnologies Inc. Conventional companies are expanding their presence in this new market, which startups earlier dominated. Conventional companies are entering the market by introducing new products. For instance,
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