A foldable electric scooter is a lightweight, compact size vehicle and does not involve any manual work like the old school kick scooter. The foldable electric scooter market is registering robust growth owing to the increasing demand for fuel-efficient vehicles among consumers. Also, the compact size and light-weight of these scooters contribute significantly to the market growth.
As these scooters are driven electrically, they give economic driving and low maintenance. The integration of advanced technologies and smart features in foldable electric scooters is gaining consumers' attention. Various features include safe driving mode and maximum speed restrictor. According to the manufacturers, children older than 8 years can drive these scooters. However, the size and specification of the scooters can differ for each age group.
Consumers are inclining towards foldable electric scooters due to features such as compact in size, light-weight, cost-effective, environment-friendly, and fuel-efficient. Vehicles that run on petrol, diesel, and gas emit harmful gases such as carbon dioxide that pollute the air. The growing concern regarding air pollution and consumer preference towards environment-friendly vehicles is expected to drive the foldable electric scooter market growth during the forecast period.
Increasing electric scooter adoption is creating a buzz among electric vehicle manufacturers. Existing players in the electric vehicle market are developing a new vehicle with advanced technologies and smart features. New players are increasingly building their position in the electric scooter market. For instance, electric scooter start-up companies such as JUMP, Lime, and Bird Rides, Inc., are gaining traction in the U.S. market.
According to the data published by Sensor Tower, Inc., the monthly download count of Lime and Bird apps increased by 58.0% from January 2018 to July 2018. The monthly downloads of Lime and Bird apps reached more than 880,000 in the U.S., demonstrates the drastic growth in demand in the U.S. The same trend is expected in the European countries.
Based on end-user, the adult segment accounts for the largest market share due to the increasing trend of traveling on these bikes to workplaces. These scooters are becoming widespread on the U.S. and European streets. These electric scooters are gaining traction among adults recently as they are affordable, sustainable, and safer. Companies are now providing these scooters with a battery backup of more than 30 kilometers with maximum speed ranges between 25–50 kilometers per hour, making them suitable for the commute.
The children segment is also expected to grow at a high pace during the forecast period. Most manufacturers claim that children above 8 years of age can use these electric scooters. They can be considered a replacement for conventional non-electric scooters. The features and specifications of foldable electric scooters for children may differ from adult scooters. For instance, Raine Electric Scooters offers different scooters for the children segment, which is small in size and has “maximum speed restrictor.”
Based on battery type, the Lithium-ion battery segment is expected to dominate the market during the forecast period. The market dominance can be due to its reliability and efficiency. The lithium-ion battery is expensive than the lead-acid battery still, it is highly-used in most electrical and electronic devices. The lightweight of lithium-ion battery makes it ideal for foldable electric scooters.
The lithium-ion battery has a significantly higher energy density compared to a lead-acid battery. Energy storage in the Lithium-ion battery is more than a lead battery of the same size. The lithium-ion battery also has a superior depth of discharge, efficiency, lifespan, and other attributes, making it suitable for foldable electric scooters.
Manufacturers such as Xiaomi Corporation and Segway are installing Lithium-ion batteries in their products. Lithium-ion battery accounts for more than three-fourth market share in the global foldable electric scooter market. The demand for Lithium-ion is increasing due to increasing on-road electric vehicles. According to European Commission, the Lithium-ion batteries used in electric vehicles were less than 4 million in 2018 and are expected to reach 50-200 million by 2028.
North America is the largest market for foldable electric scooter market owing to the presence of high number of electric vehicle manufacturers. Moreover, the countries, such as U.S. and Canada have high consumer base for foldable electric scooters.
According to the National Association of City Transportation Officials (NATCO), in the U.S., approximately 84 million trips were taken on micromobility vehicles in 2018, 38.5 million of which were on a shared electric scooter. Increasing environmental concerns among consumers in the U.S. regarding air pollution created by automobiles influence consumers to use these scooters to commute. For instance, according to the Portland Bureau of Transportation (PBOT), in 2019, more than 70% of people who had ridden a foldable electric scooter said they mostly used these scooters for transportation rather than recreation. Consumers ride these foldable electric scooters for convenience, portability, fun, cost, and reliability.
Asia-Pacific is the fastest-growing market for foldable electric scooters owing to the presence of top manufacturers, such as Xiaomi Corporation. The rising pollution and increasing provision of financial incentives by the government are increasing the demand for electric scooters in the region.
China is the largest market for electric vehicles. China is the largest producer as well as consumer of electric vehicles in the world. According to the IEA report on global electric vehicles, the global stock of electric passenger cars was over 5 million in 2018, which increased around 63% compared to 2017. Among these, almost 43% of the electric passenger cars were on the road of China only.
Source: IEA (International Energy Agency)
India and Japan are also contributed significantly to the Asia-Pacific foldable electric scooter market. The recent launch of Tesla in India and consumers attraction towards electric vehicle is expected to propel the regional market growth during the forecast period.