Global Electric Scooter and Motorcycles Market Grows Tremendously at a CAGR of 25.20%

Introduction

In major cities worldwide, rising traffic noise and gas emissions are to blame for high pollution levels. The consistent increase in demand for powerful vehicles and renewable energy sources drives the global market for electric scooters and motorbikes. Due to the rise of shared micro-mobility services, particularly in developing countries like China and India, electric scooters are becoming more common in metropolitan areas. The demand for electric scooters is rising daily due to the accessibility of affordable and app-based services.

Market Dynamics

Rising Demand for Energy-Efficient, Lightweight, and Technologically Suited Vehicles Drives the Global Market

The increase in car emissions has led to strict laws and regulations being implemented by governments worldwide. Automobile and automotive component manufacturers focus more on reducing the vehicle's weight to improve fuel efficiency. Utilizing electric vehicles is a key step in many emerging economies toward lowering pollution. Governments are promoting the use of electric vehicles by providing incentives like tax breaks and subsidies. In India, tax reductions and incentives are available through the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative. A subsidy of INR 10,000 per kWh of battery capacity is available to customers who buy electric 2-wheelers through the FAME program, and INR 2000 crores have been put aside to support the sale of about 1 million electric 2-wheelers by March 2022. The improvement in safety features, such as traction and throttle control, as well as a substantially better power distribution technique, are to blame for the increased demand for electric motorcycles and scooters. These developments in battery technology include the introduction of lightweight cells.

Evolving Emission Regulations Creates Tremendous Opportunities

The role of electric vehicles (EVs) has grown due to progressively higher fuel economy and CO2 emissions limits. Governments and municipalities have put incentives and regulations to speed up the shift to sustainable mobility. Regulators are, as a result establishing more stringent emissions goals at both the national and global levels. As a result, the European Union (EU) revealed its "Fit for 55" program, which intends to combine policies relating to the environment, energy, transportation, and land use to reduce net greenhouse gas emissions by at least 55% by 2030. The U.S. Department of Transportation has established a 50% electric vehicle target for 2030. In addition, the UN Environment's Electric Mobility Program encourages using electric vehicles in developing and post-industrial countries. As part of this, national and regional electric mobility roadmaps are developed, laws are created, best practices are shared, technology options are piloted, EV adoption is tracked, emissions and economic benefits are estimated, and more.

Regional Analysis 

Asia-Pacific is the highest revenue contributor and is anticipated to expand at a CAGR of 23.65% over the projection period. OLA stated in December 2020 that it would spend INR 2,400 crore (about USD 327 million) to construct Tamil Nadu's most renowned electric scooter manufacturer. With an initial yearly manufacturing capacity of 2 million electric vehicles, the plant will produce Ola's planned line of two-wheeler products, starting with its electric scooter. Okinawa Autotech announced its intent to invest 150 crore Indian rupees in the country in July 2020. The company's new production facility in Rajasthan will be constructed with the help of this additional investment. According to the corporate management, the new facility's initial annual capacity would be 5–6 lakh units, with the potential to rise to 10 lakh units.

Europe is anticipated to grow at a CAGR of 21.60% during the forecast period. As environmental concerns and petrol prices rise, there is a growing desire for electric vehicles nationwide. However, when it comes to daily commuting, e-bikes are the most often used option in the nation. Several national motorcycle and scooter manufacturers are launching the newest models in the electric two-wheeler market to capitalize on the growing sector and grow their market share. For instance, Black Tea Motorbikes introduced the Bonfire, the company's first electric motorcycle model, in July 2021. The Bonfire has a top speed of 75 kmph, a maximum stated range of 75 km in Eco mode, and a dual detachable battery architecture. The bike has three riding modes, each with a distinct range.

Key Highlights

• The global electric scooter and motorcycles market was valued at USD 10,324.10 million in 2022. It is projected to reach USD 78,035.31 million by 2031, growing at a CAGR of 25.20% during the forecast period (2023-2031).
• Based on vehicle type, the global electric scooter and motorcycles market is bifurcated into E- Scooters and E- Motorcycles. The E- Scooters segment is the highest contributor to the market and is estimated to grow at a CAGR of 25.60% during the forecast period.
• Based on battery type, the global electric scooter and motorcycle market is bifurcated into lithium-ion, sealed lead acid. The lithium-ion segment is the highest contributor to the market and is estimated to grow at a CAGR of 25.70% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 23.65% during the forecast period.

Competitive Players

Competitive Players

The global electric scooter and motorcycles companies are Zero Motorcycles Inc., and Hero Electric Vehicles Pvt. Ltd, Vmoto Limited, AIMA Technology Group Co. Ltd, Dongguan Tailing Electric Vehicle Co. Ltd, Piaggio and C. SpA, Ather Energy Pvt. Ltd, Energica Motor Company, Honda Motor Co. Ltd, Gogoro Inc., and NIU International

Recent Developments

Market News

• In February 2023, River Indie e-scooter launched at Rs 1.25 lakh and has a 200kg load capacity.
• In January 2023, Hero MotoCorp launched a new Xoom, eyes a higher market share in the entry-level scooter market.

Segmentation

Global Electric Scooter and Motorcycles Market: Segmentation

By Vehicle Type

• E- Scooters
• E- Motorcycles

By Battery Type

• Lithium Ion
• Sealed Lead Acid

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA