Electric scooters have been gaining global market recognition since 2000. Due to the growing concern for the excessive use of greenhouse gases, most countries are adopting methods to reduce carbon emission. Electric scooters and all e-automobiles seem to be the final solution to this green environment issue.
As the awareness of eco-friendly environment grows, more countries around the globe are beginning to adopt the use of electric scooters and other e-automobiles. Some other factors that influence the adoption of electric scooters are its durability, agility, ease of use in population-dense areas with high traffic congestion.
According to market research, more than 100 cities around the globe have adopted the use of electric scooters. Consequently, governments of developing and developed countries are formulating policies to encourage the funding of the production of electric scooters. With an expected estimate of $22.1 billion by 2025 and a compound annual growth rate (CAGR) of 6.5% from 2020 to 2025, the electronic scooter market is showing a promising rise.
The Future of the Electric Scooter Market
An electric scooter is a stand up mini automobile, which runs on an electric motor. It is an affordable means of transportation, compared to other saturated means of transportation.
Electric scooters are usually characterized by two to four wheels variants with variant modifications that have hit the market differently. These scooters permit human propulsion and can run an average distance of 5 to 50km (3 to 31 mi) and a maximum speed of 30km/h (19mph).
Electric scooters are gaining recognition for different reasons and modifications. The electric scooter market is favouring electric scooters based on these different insights or parameters. With consumers needs at the forefront of producers’ objectives, the various modifications are causing a great deal of competition in the market.
Electric Scooters Market Insight Based on Battery Type
Based on battery type, electric scooters are available in Sealed Lead Acid Battery and Lithium-ion Battery.
Sealed Lead-acid batteries
This is the most common type of battery used in electric scooters, due to its early penetration into the electric scooter market. Electric scooters generally use four 12-volt batteries.
Depending on cost, the batteries combine ampere-hour rating. The more expensive batteries with higher AH rating travel longer distances per charge. The charging cycle is about 400 charge cycles. It reaches full charge in 7-8 hours.
Unfortunately, the predicted decline in use happened in 2019, due to their bulky size and rapid discharge.
In place of lead-acid batteries, most newer models of electric scooters now come with lithium-ion batteries. With an estimated CAGR of 10.4 %, the global electric scooter market welcomed this modification because of its life span.
With a life span of 1,000-30,000 charging cycles, 1-2 hours charging time and 3-5 years, and its lightweight feature, this model has flooded the electric scooter market. As a result, the demand for Lithium-ion powered electric scooters is witnessing significant growth.
However, in the coming years, the price of lithium-ion batteries is expected to decline by 70%. Invariably, this should decrease the cost of lithium-ion electric scooters in subsequent years.
Electric Scooter Market Insights Based on Voltage
Electric scooters are available in 24V, 36V, 48V and the higher voltage. Due to its low range, the 24V scooters did not flourish in the market and soon declined. The 36V makes up about 62.4% of the overall electric scooter revenue in 2018-2019 and is expected to increase.
The demand for 48V is also rising due to consumers’ requirement for long battery range and lesser charging time. Already registering a CAGR of 11.5%, batteries with over 48V is predicted to gain recognition over the coming years.
Electric Scooter Market Insights Based on Global Distribution
At the top of the list, the Asia Pacific has dominated the global electronic scooter market and is expected to rise with time. Valued at $13.9 billion, most electronic scooters are produced in China, Japan and Taiwan.
China especially has become the biggest producer and consumer of electric scooters. North America also ranks next with a predicted CAGR of 13.1% by 2024. America is also focusing on attracting the younger population by introducing variants and stylish segments of electric scooters as seen on AutoinfoHQ.
This is expected to skyrocket the electric scooter market in North America.
Electric Scooter Market Insights Based on Product Type
The different types of electric scooters include retro, folding and standing scooter. As at 2019, the retro electric scooter was the fastest-growing scooter on the market. However, the foldable electric scooter is predicted to top the market in the coming years.
Due to the demand for lightweight and modified electric scooters, the foldable electric scooter is expected to have a CAGR of 10.1% by 2030.
However, the standing electronic scooter has satisfied the need for ease of use and user control. Its use for daily activities is expected to skyrocket its demand from 2020 to 2030.
Prominent Companies and Market Projections
Many companies around the world like Ninebot-Segway, Honda, Yamaha, Suzuki, Gotrax, Xiaomi, Razor, XPRITI and many others are the big players in the electric scooter market. Other companies like Bird Rides, Govecs AG and Lime are adopting rental services technique to expand their footprints in the market.
In Asian countries, different companies have delved deep into research and modification activities to expand the market. Gogoro’s swappable batteries are also gaining recognition and many other Asian companies are gradually subscribing to different variants and modification of electric scooters.
In conclusion, it is expected that the global electric scooter market will rise drastically due to the current demand for better products and easier modifications. The global electric scooter market is a large and profiting market predicted to garner enough consumer interest by 2025.
The competition is tight and the profit is large. Private investors all over the world have recognized this as a gold mine and are looking forward to furthering research and production of electronic scooters.