Foldable Electric Scooter Market

Market Overview

The global foldable electric scooter market revenue was valued at USD 656.4 million in 2023 and is projected to reach a value of USD 984.0 million by 2032, registering a CAGR of 4.6% during the forecast period (2024-2032). The increased interest in sustainable and eco-friendly transportation alternatives is expected to propel the foldable electric scooter market growth.

A foldable electric scooter is a small, portable personal mobility device propelled by an electric motor. These scooters are intended for short-distance transportation, last-mile connection, and urban mobility. One of its defining qualities is its capacity to fold, allowing for easy storage and transportation. The scooter's folding form allows users to take it on public transportation, store it in small locations, or keep it conveniently at home or work.

The global foldable electric scooter market has expanded significantly, driven by rising demand for sustainable and convenient urban mobility options. With their folding form, these scooters provide users with a compact and portable mode of transportation, making them ideal for short trips and last-mile connectivity. Rising urbanization, environmental awareness, and technological breakthroughs in electric mobility have all contributed to market growth. The growing popularity of micro-mobility services and regulatory support for electric mobility in various countries also impact the industry.

Highlights

• Maximum Load of 200-250 pounds accounts for the largest share of the market by type.
• Adults are the major end-users of the market.
• Lithium-ion batteries hold the major market share by battery type.
• 36V generates the most revenue share by Voltage.

Market Dynamics

Market Drivers

Urbanization and Traffic Congestion

The accelerated pace of global urbanization has resulted in congested cities with an increasing demand for effective last-mile mobility solutions. Foldable electric scooters address this issue by offering a small and convenient method of transportation for short distances, frequently connecting commuters to transportation hubs and final destinations. According to the United Nations, the world's urban population will be 4.6 billion people by mid-2023, accounting for 57% of the total population. The UN predicts that the urban population will reach 5.2 billion by 2030. By 2050, 68% of the world's population will reside in cities. As cities grow, so does the demand for solutions that reduce traffic congestion and allow for speedy, last-mile commuting.

Furthermore, traffic congestion is a major concern in urban areas. According to the TomTom Traffic Index, people in 2023 will lose an average of 153 hours due to traffic bottlenecks. This is twelve hours and thirty-one minutes more than in 2022. Bengaluru will have the most congested traffic in India and Asia by 2023. According to the TomTom Traffic Index 2023, congestion accounts for 63% of traffic in Bengaluru. Bengaluru commuters lose 132 hours per year due to rush-hour traffic congestion. This is approximately 132 hours of driving at an average 18 km/h speed during rush hour. Foldable electric scooters provide a quick and effective way to navigate congested traffic.

Moreover, Foldable electric scooters offer a feasible alternative to traditional modes of transportation in congested urban areas. Commuters can easily navigate traffic, use designated bike lanes, and get to their destinations quickly, helping to improve last-mile connectivity. Some cities actively support micromobility options as part of their urban planning efforts. Initiatives such as bike lanes, pedestrian-friendly zones, and legislation that enables electric scooters all contribute to a more accessible and connected urban environment. Micro-mobility services, such as shared electric scooters, are increasingly popular in cities. According to a McKinsey & Company estimate, shared micro-mobility services might be worth USD 300 billion to USD 500 billion annually by 2030, demonstrating that such solutions are becoming more popular. As cities evolve, the demand for compact and nimble personal transportation solutions is expected to fuel the continued expansion of the foldable electric scooter market trend.

Market Restraints

Regulatory Uncertainties and Restrictions

The implementation of foldable electric scooters is frequently hampered by regulatory uncertainty and changing restrictions imposed by municipal governments. Concerns about safety, pedestrian interactions, and integrating scooters into existing transportation networks result in various legislative responses, posing barriers to industry expansion. Cities worldwide have adopted various policies restricting the use of electric scooters. For example, some cities may allow scooter-sharing programs with dedicated parking places, while others may have tougher laws, limiting their use to specific zones or outright prohibiting them. This lack of standardization presents issues for scooter-sharing service providers and manufacturers looking to operate worldwide.

Additionally, the US federal law allows two or three-wheeled vehicles with 750W or fewer motors or pedals to be ridden as long as the rider does not exceed 20 mph. In Massachusetts, motorized scooters must not exceed 20 mph, and users must have a US DOT standard helmet. Such regulatory fragmentation can complicate operations for businesses operating in many jurisdictions.

Furthermore, safety concerns about electric scooters have led to the implementation of legislation to reduce dangers. Cities commonly enact safety measures such as helmet mandates, speed limits, and sidewalk riding bans. Regulatory organizations are balancing the convenience of scooters with the safety of riders and pedestrians. In June 2023, the Ministry of Road Transport and Highways (MoRTH) proposed Motor Third Party Premium and Liability Rules for 2023-2024. In reaction to recent EV fires, the MoRTH implemented additional safety measures. 

Market Opportunity

Integration with Smart City Initiatives

The global push toward smart cities, defined by incorporating digital technologies to improve urban living, represents a big opportunity for foldable electric scooters. The seamless integration of these scooters into smart city efforts can boost overall transportation efficiency, alleviate congestion, and promote sustainable urban mobility. The Korean government prioritizes smart cities as part of its industrial policy. President Moon Jae-in's government has launched two innovative city pilot projects in Busan and Sejong City. Furthermore, South Korea signed the Global Methane Pledge to reduce methane emissions by 30% by 2030. It revised its Nationally Determined Contribution (NDC) to aim for a 40% reduction in GHGs (Green House Gases) from 2018 levels by 2030. Every country plans to reduce nonrenewable energy resource vehicles to reduce GHG emissions. The electric vehicle (EV) market is quickly expanding, with various technologies, methods, and innovations to help decarbonization.

Furthermore, smart city programs frequently incorporate modern traffic control technologies. Integrating foldable electric scooters into these systems can improve scooter navigation, optimize routes, and help with overall traffic flow. Real-time data transmission between scooters and traffic management systems boosts efficiency. According to a May 2023 article by Henry Petroski, traffic congestion and delays cost the US economy more than USD 120 billion per year.

Regional Analysis

The global foldable electric scooter market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America's foldable electric scooter market share is estimated to grow at a CAGR of 4.8% over the forecast period.  North America is the most critical market for foldable electric scooters due to the high number of electric vehicle manufacturers. Countries like the United States and Canada have a large consumer base for foldable electric scooters. The National Association of City Transportation Officials (NACTO) anticipates more than five million micromobility journeys by 2023. In 2022, consumers made 157 million micromobility journeys, the same number as in 2019. Consumers in the United States are increasingly concerned about the environmental impact of automotive emissions, encouraging them to utilize these scooters to commute. For example, in the United States, Corporate Average Fuel Economy (CAFÉ) requirements promote the adoption of energy-efficient vehicles by enacting laws aimed at increasing the use of alternative fuel vehicles and reducing fossil fuel consumption, paving the way for the expansion of the foldable e-scooter market. 

Similarly, the Canadian government is developing a strategy to reduce greenhouse gas emissions and increase the number of zero-emission cars on the road, which may boost demand for the folding e-scooter industry. Aside from that, the widespread adoption of scooter-sharing services has piqued interest in battery-powered two-wheelers. As a result, the market for foldable e-scooters has become highly competitive. 

Asia-Pacific is anticipated to exhibit a CAGR of 5.0% over the forecast period. Asia-Pacific is the fastest-growing market for foldable electric scooters, thanks to the presence of leading manufacturers such as Xiaomi Corporation. Rising pollution levels and more government financial incentives are driving up demand for electric scooters in the region.  Moreover, China has the largest market for electric automobiles. China is the world's most significant producer and customer of electric vehicles. India and Japan also contributed significantly to the Asia-Pacific foldable electric scooter market. Tesla's recent introduction in India and customer interest in electric vehicles will drive regional market growth throughout the forecast period.

Europe's foldable electric scooter industry has grown significantly due to the region's emphasis on sustainable and environmentally friendly urban mobility options. European cities are noted for their small urban surroundings, and Europe has been at the forefront of environmental measures, with an increasing awareness of the environmental impact of transportation. Foldable electric scooters, both emission-free and energy-efficient, fit nicely with the region's sustainability aims. Environmental conscience has made people more open to micro-mobility trends, and folding electric scooters have grown in popularity. Besides, according to a McKinsey and Company analysis, the European micromobility market, which includes electric scooters, is expected to reach Euros 300 to Euros 500 million per year by 2025. This suggests a significant growth potential and increased acceptance of micro-mobility solutions in the region. 

Segmental Analysis

The global foldable electric scooter market is segmented based on type, end-users, battery type, and voltage.

The market is further segmented by type into a Maximum Load Below 200 Pounds and a maximum Load of 200-250 pounds.

The foldable electric scooters, with a maximum load capacity of 200 to 250 pounds, are designed for a broader user demographic, including people with slightly heavier body weights. This sector caters to consumers who may demand sturdier and more robust scooters to ensure maximum performance and stability. Scooters in this category frequently have upgraded frames and components to accommodate the higher load capacity, resulting in a comfortable and secure riding experience for a broad spectrum of users. The 200-250 pound load capacity segment maintains a mix between portability and durability, making it appropriate for a wider audience seeking dependable electric scooters for daily commuting.

The segment catering to a maximum load of less than 200 pounds meets the needs of lightweight riders and commuters. Scooters in this category are intended for those with lighter body weights, providing a small and maneuverable alternative for adequate urban transportation. These scooters are distinguished by their lightweight design, which makes them easy to handle, transport, and navigate through congested city streets. They are ideal for short-distance travel and prioritize portability and agility, making them a practical solution for customers who place a premium on ease of use and transportability in their daily commute.

Based on end-users, the market is fragmented into Children and Adults.

The adult category accounts for the most significant market share because of the growing habit of riding these bikes to work. These scooters are becoming more common on U.S. and European streets. These electric scooters have recently gained popularity among adults due to their low cost, sustainability, and safety features. Companies currently provide these scooters with a battery backup of more than 30 kilometers and maximum speeds ranging from 25 to 50 kilometers per hour, making them perfect for commuting. Furthermore, they provide practical and environmentally beneficial solutions for last-mile commute or urban mobility for individuals seeking efficient and compact personal transportation options. This section focuses on durability, range, and comfort to fulfill the varying needs of adult riders in urban contexts.

The foldable electric scooter market segment aimed at children is specifically developed to fulfill the needs of younger riders. These scooters prioritize safety, ease of use, and age-appropriate features, making them ideal for children's recreational rides or short-distance commutes. These scooters, which often have lower speeds, adjustable height handlebars, and additional safety measures, are designed to provide a pleasant and safe introduction to electric mobility for the younger audience. The designs may also include appealing colors and motifs to make riding more pleasurable for youngsters, while parents value the emphasis on safety and age-appropriate requirements.

The market can be bifurcated by battery type into Sealed Lead Acid Batteries and Lithium-ion Battery.

Foldable electric scooters with lithium-ion batteries fall into a more current and technologically advanced category. Lithium-ion batteries are noted for their lower weight, higher energy density, and longer lifespan than sealed lead acid batteries. Scooters with lithium-ion batteries provide several advantages, including faster charging times, decreased weight, and increased range per charge. This section caters to people who value performance, efficiency, and cutting-edge battery technology. It is incredibly tempting to individuals looking for a more luxurious and sustainable electric scooter experience, frequently preferred by commuters who value a higher initial investment for long-term benefits and expanded functionality.

Electric scooters with sealed lead acid batteries are famous for their durability and low cost. Sealed lead acid batteries are traditional but durable power sources that offer a dependable and cost-effective solution for foldable electric scooters. While these batteries are heavier than lithium-ion equivalents, they are ideal for consumers who want a low upfront cost and a simple charging method. Scooters in this sector will likely appeal to budget-conscious customers who appreciate a mix of performance and price.

Based on Voltage, the market is classified into 24V, 36V, 48V, and Above 48V.

The 36V section in the foldable electric scooter industry is a medium voltage category. 36V scooters have more power and performance than 24V versions. They are appropriate for riders who need more speed and range for everyday commuting or recreational purposes. Scooters in this category frequently compromise battery efficiency and overall performance, appealing to those looking for a more adaptable electric scooter that can handle moderate distances and different terrains.

Electric scooters with a voltage rating of 24V are typically linked with entry-level or lightweight models. These scooters are ideal for short-distance commuting and leisure use, with a balance of power and efficiency. The 24V category will likely appeal to riders who value convenience, simplicity, and price. While 24V electric scooters may not attain high speeds or go great distances as higher voltage options, they are perfect for those looking for a low-cost and practical solution for their everyday commuting needs.

Recent Developments

October 2023- Baja Mobility and Pride Mobility announced that camouflage color options will be available for two of their most popular outdoor scooters! The limited-edition Woodlands option will be available on the Baja Wrangler 2, while the Pride PX4 will have the Forest Camo option.

November 2023- Honda introduced The new Honda Motocompacto electric scooter, a compact, foldable e-scooter.

December 2023- Xiaomi unveiled five core automotive technologies and introduced the Xiaomi SU7, completing the Human x Car x Home Smart Ecosystem.