Electric Scooter and Motorcycles Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)
The Electric Scooters and Motorcycles Market was valued at USD 5176.16 million in 2020 and is expected to reach USD 23178.7 million in 2026 by registering a CAGR of 25.08% during the forecast period (2021 - 2026).
The COVID-19 pandemic had a negative impact on the electric scooters and motorcycles market. The worldwide lockdown restriction has resulted in a halt of production and sales of new vehicles, including electric scooters and motorcycles.
Also, due to the disruption of the supply chain, the raw materials required for the production of different parts of the scooters and motorcycles were unavailable, causing delays in production. However, with the growing inclination toward cleaner mobility across the world, the industry is looking forward to the economic revival during the post-COVID-19 pandemic.
The electric scooters and motorcycles market has noticed significant growth, owing to the growing need for sustainable transportation. Increasing environmental concerns, coupled with favorable government initiatives, are some of the major factors driving the market's growth. Rising energy costs and competition among the emerging energy-efficient technologies are also expected to fuel the market's growth.
Asia-Pacific region expected to dominate the market owing to growing awareness about environmental benefits, increasing petrol and diesel prices across the region. Moreover, government intiatives related to e-mobility to further increase demand in the region during the forecast period.
E-scooters witness higher sales than e-motorcycles, due to less upfront cost and the availability of more models in the market, which provide ample options for the buyer. The allure of the e-scooter, both as a toy and as a potential vehicle for commuting, is driving its adoption. Thus, several startups are beginning to flood major metropolitan areas with hundreds of 'rent by minute' scooters.
To reduce vehicle emission in cities, several pilot programs have been initiated to introduce e-scooters in a phased manner. The popularity of e-scooters is also encouraging conventional two-wheeler manufacturers to enter the market. For instance, India is emerging as a lucrative market for e-scooters. Hence, several Indian two-wheeler manufacturers are gearing up to launch their own models in the segment. For instance,
Such instances and developments expected to drive demand in e-scooter segment of the market during the forecast period.
Asia-Pacific is anticipated to lead the market over the forecast period. China, India, and Japan are the major economies in the regional market, which are anticipated to influence the overall market. These countries are witnessing the entry of an increasing number of start-ups and well-established and conventional manufacturers in the market.
India, one of the largest two-wheeler markets, is witnessing the entry of many new start-ups, which are marking their presence by launching new models and expanding current models and existing infrastructure. For instance,
Several electric motorcycles and scooter companies are launching the latest products and entering into a strategic partnership with global players in the region to attract more customers and gain market share. For instance,
With the aforementioned trends and developments, it is expected that the market will grow at a healthy rate during the forecast period.
The Electric scooters and motorcycles market is moderately consolidated market and it has a number of local players. The conventional companies are expanding their presence in this new market, which was earlier dominated by startups. Conventional companies are entering the market by introducing new plants and converting the existing scooters and motorcycles into e-vehicles. For instance,
Some of the major players in the market are Zhejiang Luyuan Electric Vehicle Co. Ltd, Dongguan Tailing Electric Vehicle Co. Ltd, Zhejiang Yadea Motorcycle Co. Ltd, NIU International, and Others.