Molly Ayala
The electric scooter industry is a rapidly evolving segment of the automotive industry, with a global market size valued at USD 20.87 billion in 2021 and expected to reach USD 78.65 billion by 2030, registering a CAGR of 9.9% from 2023 to 2030. The Asia-Pacific region, particularly China, dominates the market, accounting for over 74% of the overall revenue in 2022. The industry is driven by increasing consumer demand for eco-friendly, cost-effective, and convenient transportation options, advancements in battery technology, and supportive government policies promoting electric vehicles. The COVID-19 pandemic and supply chain disruptions have impacted the industry, but the post-pandemic period has seen a spike in demand, especially in China and India.
| Characteristics | Values |
|---|---|
| Market Size in 2021 | USD 20.87 million |
| Market Size in 2022 | USD 33.19 billion |
| Market Size in 2023 | USD 37.07 billion |
| Market Size in 2030 | USD 78.65 billion (projected) |
| CAGR | 9.9% |
| Market Size in 2030 (Alternate) | USD 389 billion (projected) |
| CAGR (Alternate) | 25.3% |
| Market Size in 2024 | USD 4.3 billion |
| Market Size in 2030 (Alternate 2) | USD 12.4 billion (projected) |
| CAGR (Alternate 2) | 18.9% |
| Largest Market | Asia Pacific |
| Largest Market in Asia Pacific | China |
| Number of Electric Scooters in China | 350 million |
| Number of Units Sold in India in 2022 | 652,643 |
| Percentage of Total Two-Wheeler Industry in India | 4.5% |
| Dominant Battery Type in 2021 | Sealed Lead Acid |
| Dominant Battery Type in 2022 | Lithium-ion |
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What You'll Learn
- The electric scooter market is projected to reach USD 78.65 billion by 2030
- The Asia Pacific region is the largest market for electric scooters
- China is the biggest market for electric scooters within the Asia Pacific region
- The electric scooter market is growing due to increased environmental consciousness
- The COVID-19 pandemic negatively impacted the growth of the electric scooter industry
The electric scooter market is projected to reach USD 78.65 billion by 2030
The Asia Pacific region is expected to be the largest and fastest-growing market for electric scooters during the forecast period. This growth is driven by significant investments in vehicle charging infrastructure and government subsidies for battery-powered scooters. The region already held the largest market share in 2021, with most electric scooter manufacturers emerging from China, Taiwan, and Japan. The North America electric scooter market is also projected to witness significant growth, reaching USD 13.07 billion by 2030, driven by the increasing adoption of electric motorcycles and e-bikes for short commutes.
The personal end-use segment is expected to register the fastest growth rate from 2023 to 2030 due to the significant demand for e-scooters. The lithium-ion battery segment is also expected to grow, with the price of lithium-ion batteries projected to decline by more than 70% by 2030, making electric scooters more affordable. The demand for retro electric scooters is also expected to increase due to rising fuel and maintenance costs.
Key players in the electric scooter market, such as Gogoro, Inc., KYMCO, GenZe by Mahindra, and YAMAHA Motor Pvt. Ltd., are focusing on expanding their reach and launching new products to capture the untapped market potential. They are also investing in installing charging systems and offering swappable battery systems to enhance the customer experience and encourage the adoption of electric scooters. The electric scooter market is expected to continue to grow and play a significant role in the transition to sustainable urban mobility and contemporary transportation infrastructure.
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The Asia Pacific region is the largest market for electric scooters
The Asia Pacific region has witnessed significant investments in vehicle charging infrastructure and government subsidies for battery-powered scooters, making it the fastest-growing regional market. Governments in the region, especially in China and India, have implemented initiatives such as exempting import duties and providing subsidies to reduce the cost of lithium-ion batteries, making electric scooters more affordable for consumers. The integration of telematics, improved battery range, and the growing popularity of electric two-wheelers among millennials further drive the market growth.
The Asia Pacific electric scooter market is also characterized by the presence of key players such as Yamaha Motor Co., Ltd. (Japan), Yadea Group Holdings Ltd. (China), and Gogoro Inc. (Taiwan). These companies have been introducing innovative products with improved range and performance, catering to the rising demand in the region. Additionally, the expansion of charging infrastructure and the decreasing cost of batteries have made electric scooters more accessible to a broader consumer base.
The belt-drive scooter segment is expected to gain popularity in the Asia Pacific region due to its advantages, including low maintenance, longevity, and lightweight construction. The personal end-use segment accounts for the largest market share of 68% in 2022 in the region, with consumers opting for individual transit options over public transport. The commercial segment is also expected to grow, driven by the deployment of electric scooters for last-mile deliveries and the growing need for quick commute solutions to avoid traffic congestion.
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China is the biggest market for electric scooters within the Asia Pacific region
The electric scooter industry is expected to grow significantly, with the global market size projected to reach USD 78.65 billion by 2030, registering a compound annual growth rate (CAGR) of 9.9% from 2023 to 2030. The Asia Pacific region has dominated the global industry, accounting for the largest share of more than 74.85% of the overall revenue in 2022. Within this region, China stands out as the biggest market for electric scooters.
China's rapidly growing economy and increasing environmental concerns are driving the adoption of electric two-wheelers, which will help reduce pollution from internal combustion engine vehicles. The country's dynamic economic growth fuels the demand for energy-efficient and eco-friendly transportation solutions, making electric scooters an attractive option. Additionally, China's role as a manufacturing hub for electric scooters contributes significantly to its dominance in the Asia Pacific market.
The Asia Pacific region, including China, has witnessed rapid year-on-year growth in the electric scooter market. This growth is attributed to several factors, including the region's fast-developing economies, increasing environmental awareness, and supportive government policies. China, as a key player in this region, benefits from initiatives to promote electric mobility and reduce pollution.
Government subsidies and tax rebate policies for purchasing electric vehicles, including scooters, further enhance China's position as the biggest market within the Asia Pacific region. The country's efforts to encourage local production of lithium-ion cells used in electric vehicle batteries, such as eliminating customs duties, have also contributed to the growing sales of electric scooters. Additionally, the integration of connected vehicle solutions, leveraging smartphone-to-vehicle connectivity, makes electric scooters even more appealing to tech-savvy consumers in China.
The presence of prominent manufacturers in China, such as Yadea Technology Group Co., Ltd., Niu International, and Jiangsu Xinri E-Vehicle Co., Ltd., solidifies the country's leadership in the Asia Pacific market. These companies offer a diverse range of electric scooters with advanced connectivity features, catering to both domestic and overseas demand. China's commitment to addressing environmental issues and promoting sustainable mobility positions it as a key driver of the electric scooter industry within the Asia Pacific region.
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The electric scooter market is growing due to increased environmental consciousness
The electric scooter market is projected to witness significant expansion, with the global market size anticipated to reach USD 197.1 billion by 2033, up from USD 35.8 billion in 2023, representing a compound annual growth rate (CAGR) of 18.6%. This growth can be attributed to increased environmental consciousness, technological advancements, and supportive government policies.
The rising environmental awareness among consumers is driving the demand for eco-friendly and sustainable transportation options. Electric scooters offer a cost-effective, efficient, and environmentally friendly alternative to traditional fuel-based automobiles, which have contributed to the increasing carbon emission levels. This shift towards eco-friendliness is particularly prominent in urban centers, where local governments are actively seeking alternatives to reduce carbon footprints and combat air pollution.
Government initiatives and policies play a crucial role in promoting the adoption of electric scooters. Stringent emission norms and regulations by government agencies worldwide aim to reduce the environmental impact of greenhouse gases and improve air quality. For example, the U.S. Environmental Protection Agency (EPA) has implemented emission standards for greenhouse gas (GHG) emissions, while countries like India and China have introduced similar norms. Additionally, governments are offering various incentives, subsidies, and regulations to increase the penetration of electric scooters in the market.
Technological advancements in battery technology, such as innovations in lithium-ion batteries and the development of solid-state batteries, are also contributing to the growth of the electric scooter market. These advancements enhance the performance, safety, and robustness of electric scooters, making them more attractive to consumers. The declining trend in the price of lithium-ion batteries is expected to further decrease the costs of electric scooters, making them more accessible and affordable.
The electric scooter market is also influenced by the increasing demand for fuel-efficient vehicles and the growing trend of micro-mobility. The rise in traffic congestion and long travel distances encourage consumers to opt for time-efficient and cost-effective modes of transportation. The inclusion of electric scooters in shared mobility services and vehicle-sharing alternatives further propels the demand for electric scooters, providing consumers with flexible and eco-friendly transportation options.
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The COVID-19 pandemic negatively impacted the growth of the electric scooter industry
The COVID-19 pandemic significantly affected the manufacturing and supply chain operations of the electric scooter industry. Lockdown measures and travel restrictions implemented worldwide hindered the mobility of goods and people, disrupting production and distribution processes. The closure of factories and the unavailability of a stable workforce during lockdowns adversely impacted the industry's output.
Moreover, the pandemic altered consumer behaviour and spending patterns. Individuals became more cautious with their finances, reducing unnecessary expenditures. The decline in disposable income and the priority to save resources during the pandemic's economic downturn negatively impacted the sales of electric scooters. Consumers were more inclined to cut down on discretionary purchases, and the relatively higher cost of electric scooters compared to traditional fuel-based scooters made them less appealing during this period.
The electric scooter market also faced competition from alternative transportation options. With restrictions on travel and tourism, the demand for personal mobility solutions, such as electric scooters, decreased. Commuters who typically relied on public transportation before the pandemic were now avoiding shared mobility options due to health and safety concerns. This shift in behaviour led to a preference for individual transit options, such as personal motor vehicles, over electric scooters, which are often used for short commutes and shared mobility services.
The negative impact of the COVID-19 pandemic on the electric scooter industry was further exacerbated by the initial reliance on supply chains originating from China, the epicentre of the outbreak. The disruption in parts supply from China affected the production and assembly of electric scooters, contributing to the overall slump in demand for automotive products during the pandemic.
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Frequently asked questions
The global electric scooter market size was valued at USD 20.87 million in 2021 and is projected to grow at a CAGR of 11.2% during the forecast period. In 2022, the market size was estimated at USD 33.19 billion and is expected to reach USD 37.07 billion in 2023. By 2030, the market is predicted to reach USD 78.66 billion.
The Asia Pacific region dominated the global electric scooter industry in 2022, accounting for more than 74% of overall revenue. China, Taiwan, and Japan are the leading manufacturers and exporters of electric scooters, with China also being the leading consumer.
The electric scooter industry is experiencing robust growth due to various factors, including:
- Advancements in battery technology, such as the development of lighter and cheaper lithium-ion batteries.
- Increasing environmental awareness and a shift towards sustainable transportation options.
- Supportive government policies and incentives promoting the use of electric vehicles.
- The trend of shared mobility and the growing popularity of scooter-sharing services.
- Rapid urbanization and the need for efficient and affordable transportation in congested cities.
