Electric Scooter Market size is estimated to reach USD 30 Billion by the end of 2033, growing at a CAGR of 10% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of electric scooter was USD 20 Billion. The primary factor attributed to the growth of the global electric scooter market size is the high demand for electric vehicles by the burgeoning population across the world. The reports by the International Energy Agency (IEA) stated that the sales of electric vehicles (EVs) doubled in 2021 from the previous year to a new record of 6.6 million. The rising government initiatives to reduce the use of fuel to decrease dependency on other countries for oil, petrol, or diesel resources. The increasing cost of fuel production decreases economic growth, thereby increasing poverty levels in these countries. The use of electric scooters reduces fuel costs, increases the efficiency of the vehicles, and also decreases environmental pollution. Electric vehicles are run by electric batteries, electricity, or fuel cells that can be recharged whenever required with less energy consumption.
The increasing demand for fuel-efficient vehicles, coupled with growing concerns over greenhouse gas and carbon emissions, is anticipated to drive the adoption of electric scooters (e-scooters) during the forecast period. As a result, the rising government support to produce electric scooters is anticipated to expand the electric scooter market size. A report of 2021 stated that the Indian government has increased the subsidy under the second phase of the FAME India scheme on electric two-wheelers by 50 percent, making them more affordable. The use of fossil fuels such as oil, diesel, or petrol release greenhouse gases on combustion leads to environmental damage. On the other hand, electric scooters do not emit any gases and work on electricity consumption or chargeable batteries. The rising concern of people about global warming is attributed to the increasing preference for electrical scooters.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~ USD 20 Billion |
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Forecast Year Market Size (2033) |
~ USD 30 Billion |
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Regional Scope |
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Battery Type (Sealed Lead Acid, NiMH, Li-Ion)
The global electric scooter market is segmented and analyzed for demand and supply by battery type into sealed lead acid, NiMH, Li-Ion, and others. Out of these, the Li-Ion segment is attributed to garnering the highest market share, owing to the superior quality of lithium-ion battery chemistry, efficient and fast charging, good battery life, zero maintenance requirements, and ease of portability. For instance, compared to the average lead acid battery's 85% efficiency, lithium battery charge with a nearly 100% efficiency. Li-Ion batteries include properties such as tolerance to damage, durability, and low cost, that increases their demand in the automobile industry for manufacturing batteries. Lithium-ion battery is lighter than lead acid battery with more energy density and longevity I.e., they can be recharged many times in their lifetime. These batteries also charge very fast providing more power in less time, with a life span of about 5 years.
Product (Retro, Self-balancing, Folding)
The global electric scooter market is also segmented and analyzed for demand and supply by the product into retro, self-balancing, and folding. Amongst these three segments, the folding segment is expected to garner a significant share. Folding electric scooters are in high demand owing to their small size, portability, lightweight, and easy start without any kick rods. Followed by the rising fuel prices and the increasing use of e-scooters by children above 8 years for various uses. This type of scooter is available in different sizes and is customizable based on the age group. Also, they occupy less parking space which can be stored under desks, inside cabinets, and on bookshelves. In addition, they can be transported or carried in a car trunk very easily owing to their foldable nature and small size. This convenient storage option makes it the best option for people living in small residential apartments or rooms with no parking space. The maintenance cost is low compared to other conventional motor vehicles and comes at an affordable price.
Our in-depth analysis of the global market includes the following segments:
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By Vehicle Type |
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By Battery Type |
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By Product |
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By Technology |
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By Voltage |
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APAC Market Statistics
The Asia Pacific electric scooter market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The rising demand for electric two-wheelers among the population is estimated to drive market growth in the region as per the market analysis. A report from 2022 stated that electric two-wheelers register a staggering 130% growth in 2021 in India. Further, the growing stances of traffic congestion, upsurge in carbon emission regulations, and growing urbanization in the region. For instance, in 2021, Mumbai's congestion level accounted nearly 54%, which represents that it took 54% longer time to get from one point to another than in a free-flow scenario. Increasing urbanization with advancements in lifestyle and rising living standards of people owing to more disposable income leads to economic growth in the region. The rising economic standards increase the spending capacity of people on trending goods including electric scooters, bikes, and dockless bikes, and it is expected to boost the market’s growth in the region. Moreover, the rising preference for electric scooters is attributed to their eco-friendly and convenient nature with less cost and high efficiency.
OLA Group has acquired an Amsterdam-based electric scooter startup to produce and launch its line of two-wheelers as soon as this year.
Hero Electric Vehicles Pvt. Ltd. is all set to finalize the dealership in Hyderabad in partnership with Kukatpally Ankur Motors to meet the growing demand for electric 2-wheelers in the area.
Author Credits: Harshita Srivastava, Saima Khursheed
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