Electric scooters are two or three-wheeled vehicles powered by electricity. They are lightweight, compact, eco-friendly, and fuel-efficient. The demand for electric vehicles has witnessed a high growth in recent years. This can be mainly attributed to the rising awareness about the importance of adopting eco-friendly transportation for protecting the environment.
Further, governments across the world are providing tax concessions on electric vehicles, keeping in mind issues like carbon emissions, global warming, and climate change. Regulatory bodies are also coming up with stringent rules and regulations regarding carbon emissions, in order to reduce the dependence on fossil fuels and promote the use of clean energy. All these factors are propelling the market growth of electric scooters.
Apart from these, electric vehicles are easier to maintain and handle. The low maintenance cost of these vehicles is another factor that is pushing market growth. Further, the demand for electric vehicles is driven by declining prices of raw materials and the growing adoption of electric scooter sharing services. As mentioned already, electric vehicles are fuel-efficient, which is yet another reason behind their growing popularity.
The prices of electric scooters have seen a downward movement in recent years, which will boost the market in the coming years. Moreover, continuous product innovation and the introduction of a range of new stylish models of electric scooters will create a favorable environment for the growth of the global electric scooters market. However, lack of infrastructure for battery charging, concerns about the travelling range, as well as high prices of batteries may limit the growth of the market.
According to market estimates, the global electric scooters market is expected to reach approximately $43.5 billion by 2025, by growing at a CAGR of around 11.4%. Region-wise, the Asia-Pacific electric scooters market held more than 78% of the industry share in the year 2018. This is mainly due to rapid urbanization in the region along with the growth of the vehicle charging infrastructure. In the coming years, Asia-Pacific is expected to continue its dominance over the market. However, the North America region is likely to emerge as an important region for the global electric scooters market.
The key players that are operating in the electric scooters market are, Gogoro Inc., Terra Motors Corporation, Vmoto Limited, Mahindra GenZe, AIMA Technology Co. Ltd., Yadea Technology Group Co. Ltd., Jiangsu Xinri Electric Vehicle Co. Ltd, BMW AG, and Energica Motor Company S.p.A.
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