Electric Motorcycles & Scooters Market size is set to exceed USD 40 billion by 2027, according to a new research report by Global Market Insights Inc.
The positive market outlook can be accredited to low operating and maintenance costs of electric two-wheelers compared to Internal Combustion Engine (ICE) motorcycles and scooters. Rechargeable batteries and fewer mechanical parts in electric motorcycles and scooters make them convenient to use. Commuters prefer electric two-wheelers as they can be recharged effortlessly at commercial or residential charging stations.
Increasing government initiatives, such as low tax rates, high subsidies, and other incentives, on the purchase of electric scooters and motorcycles are propelling the market growth. Growing government investments to build and expand the charging infrastructure of electric vehicles will increase convenience and drive the industry outlook. For instance, in April 2021, the U.S. government allocated USD 15 billion to build 500,000 charging stations by 2030.
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Restraints in the electric motorcycles and scooters market are the high initial costs of two-wheelers and the lack of charging infrastructure. The high cost of batteries increases the overall costs of electric two-wheelers. The lack of charging stations and the long time required to charge electric motorcycles and scooters limits the industry statistics. A gradual decrease in cost and increase in battery performance will improve the market revenue. Growing government spending in building charging infrastructure is likely to boost the market trend of electric two-wheelers.
Analyst view: “The rising demand for green automobiles is propelling the electric motorcycles and scooters market growth. Increasing government investments in building charging stations will drive the adoption of electric two-wheelers”
The COVID-19 pandemic has significantly impacted the automotive industry. The global lockdown has disrupted the supply chain management and manufacturing facilities, slowing down the electric motorcycles and scooters market demand. The shutdown of several manufacturing units has led to the declining production. The market will witness a recovery in 2021 due to the lifting of lockdown restrictions and resumption of manufacturing sectors. Increased aid in the form of subsidies by government authorities to boost the production of electric vehicles will augment the market growth.
Browse key industry insights spread across 250 pages with 428 market data tables & 26 figures & charts from the report, “Electric Motorcycles & Scooters Market Size By Product (Motorcycles, Scooters), By Battery (SLA, Li-ion), By Voltage (24V, 36V, 48V), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Growing demand for electric scooters for short-distance commute
The electric scooter market is poised to grow at 4.5% CAGR from 2021 to 2027. Rising need for fuel-efficient vehicles along with concerns over greenhouse gas emissions is fueling the market growth. Electric scooters provide several benefits, such as low maintenance cost, compact size, and reduced weight, leading to their high demand. Growing adoption of electric scooter sharing services in countries including the U.S., the UK, Germany, and France has impelled the demand for electric scooters.
Increasing adoption of electric scooters for short-distance commute is contributing to the proliferation of these electric two-wheelers. Electric scooters are becoming a viable mode of transport in urban environments owing to higher efficiency and flexibility. In response to the market trend, several industry players are launching new electric scooters in the market. For instance, in May 2020, Ola electric acquired Etergo BV, an Amsterdam-based e-scooter firm, to build smart electric scooters for the global market. The company announced its plans to bolster its engineering and designing capabilities with Etergo team’s vehicle development experience.
Gradual fall in demand for SLA batteries owing to its lower efficiency and shorter life span
The SLA battery segment held over 10% of the market revenue share in 2020. Sealed Lead-Acid (SLA) batteries are cost-effective and reduce the initial purchase cost of the vehicle. SLA batteries are widely used in Asia Pacific due to their low price and compatibility with various electric motorcycle & scooter models, escalating their usage in price-sensitive regions. The market forecast shows that SLA batteries will slowly lose their share through 2027. SLA batteries will be replaced by high-performing and superior quality Li-ion batteries.
Presence of strong market players and favorable government policies in Europe
The Europe electric motorcycles and scooters market size is predicted to expand at more than 10% CAGR through 2027. In 2020, over 65,000 units of electric motorcycles & scooters were sold in Europe. High availability of charging infrastructure and favorable government policies promoting electric vehicles across the region is fostering the market revenue. For instance, the French government offers a grant of USD 3,026 on the purchase of new electric bikes to reduce the number of old polluting vehicles from the road. Rising affordability backed by growing demand for green vehicles is contributing to the regional market growth.
Market participants are focusing on new product launches, partnerships & strategic acquisitions to enhance their share and gain a competitive edge over competitors. For instance, in May 2021, Govecs, one of the leading manufacturers of electric scooters, launched GOVECS FLEX 2.0 for the sharing sector. The GOVECS FLEX 2.0 uses 9.4kg light batteries and provides a speed of 45 km/hr. Similarly, in June 2020, Ampere Vehicles launched the Ampere Magnus Pro electric scooter in the Indian market.
Some major companies in the electric motorcycles and scooters market are Zero Motorcycles, Yadea Technology Co. Ltd, Ampere Vehicles, Energica Motor Company S.p.A., Lightning Motorcycles., Z Electric Vehicle, Govecs Group, Hero Electric, Harley Davidson, KTM, BMW, and Mahindra GenZe.