May 22, 2024
Electric Scooter Market

The Global Electric Scooter Market is Driven by Rapid Urbanization

Electric scooters have emerged as a convenient and environmentally friendly mode of transportation, especially in congested urban areas. They provide users with an affordable and emission-free mobility solution for commuting over short to medium distances within cities. Electric scooters run on electric drive trains consisting of lithium-ion batteries, brushless motors, and wireless connectivity that offer performance similar to conventional gasoline-powered scooters while reducing reliance on fossil fuels. Some key advantages of electric scooters include zero tailpipe emissions, low cost of ownership compared to fuel vehicles, minimum noise and vibration, electronically limited top speeds, regenerative braking for improved range, and over-the-air updates. The growing need for sustainable urban mobility amid rising environmental concerns has led to a burgeoning demand for electric two-wheelers in recent years.

The global Electric Scooter Market is estimated to be valued at US$ 30.36 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends driving the electric scooter market is the declining battery prices and subsequent rise in battery capacities. Lithium-ion batteries, which power most electric two-wheelers, have witnessed a significant drop in prices over the last decade. This coupled with continuous technological advancements has enabled electric scooter manufacturers to increasingly offer vehicles with longer range on a single charge. Many models now provide a real-world driving range of over 50 miles per charge, addressing a key barrier to adoption. Improvements in battery energy density is also allowing OEMs to produce electric scooters in innovative form factors such as foldable designs for boosted portability without compromising on performance.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the electric scooter market is moderate as the market requires high investment to setup manufacturing facilities.

Bargaining power of buyers: The bargaining power of buyers in the electric scooter market is high as there are numerous manufacturers offering products at competitive pricing.

Bargaining power of suppliers: There are numerous component suppliers in the market, giving them low bargaining power.

Threat of new substitutes: Threat of new substitutes is low as electric scooters have few direct substitutes.

Competitive rivalry: Competition in the electric scooter market is high due to presence of numerous international and local players.

Key Takeaways
The Global Electric Scooter Market Size is expected to witness high growth over the forecast period of 2024 to 2031. The market size is projected to reach US$ 30.36 Bn in 2024.

Regional analysis:

The Asia Pacific region dominates the global electric scooter market and is expected to continue its dominance over the forecast period. China accounts for the major share in the region due to rising environmental concerns.

Key players: Key players operating in the electric scooter market are Accenture plc, Hewlett-Packard Company, BAE Systems plc, Tata Consultancy Services Limited, Fujitsu Limited, Lockheed Martin Corporation, Infosys Technologies Limited, Oracle Corporation, and IBM Corporation.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it