North America Electric Scooters and Motorcycles Market Overview
The North American electric scooters and motorcycles market estimated a value of $154.8 million in 2018 and is expected to grow at a CAGR of 28.4% during 2019–2024. This is mainly attributed to favorable government incentives and federal tax credits, emergence of electric scooter sharing fleet, and low maintenance requirement for these two-wheelers.
Based on type, the North American electric scooters and motorcycles market is categorized into motorcycle, scooter, and kick scooter. Among these, the kick scooter category held the largest market share in 2018, in terms of volume, owing to significant adoption of electric kick scooters in sharing fleets. Scooter sharing companies introduced a large number of electric kick scooters in their fleet as these are economical, environment-friendly, and convenient to use. Also, electric kick scooters have low operating cost as compared others, which results in high adoption rate of these vehicles in sharing fleet; thus holding the largest share in the market in this region.
On the basis of battery capacity, the North American electric scooters and motorcycles market has been categorized into less than 5 kWh, 5–10 kWh, 10–15 kWh, and more than 15 kWh. Among these, electric scooters and motorcycles having batteries with capacity of less than 5 kWh dominated the market in 2018 with more than 90% volume share. This is majorly due to the sudden increase in demand for electric kick scooters in sharing fleet and rise in their adoption by personal users, which mostly use batteries with capacity of less than 5 kWh.
Region wise, the North American electric scooters and motorcycles market has been categorized into the U.S. and Canada. The U.S. was larger market for these vehicles, contributing close to 85% share to the North American market in 2018 in terms of volume. Faster adoption of electric vehicles (EVs) in the country, support by the government in form of financial and non-financial incentives for the procurement of these vehicles, and high commuter base are the main factors driving the growth of the market in the U.S.
North America Electric Scooters and Motorcycles Market Dynamics
Emergence of electric scooter sharing fleet is a major driver for the growth of the North American electric scooters and motorcycles market. Electric scooter sharing service in North America is currently experiencing rapid development and is in a state of evolution. The service has been in the market since 2012, but it was only in the last two years where a wave of electric scooter sharing services emerged. Compared to the other types of shared mobility, electric scooter and electric kick scooter sharing services can be more hyper-localized and are solving the issue of last mile commute.
These services are an enticing option for shared mobility as they are compact, easier to operate, and do not require any physical exertion. Also, typical operational problems of running an all-electric fleet are nominal with electric scooter and kick scooter sharing as the sharing trips are shorter in length and duration than other vehicles. The size of battery pack is also smaller as compared to other EVs, making it easier to swap out and faster to change, which in turn, enhances the growth of the North American electric scooters and motorcycles market through faster adoption.
Lack of clarity on operational guidelines for electric kick scooters is one of the major restraining factors for the growth of the North American electric scooters and motorcycles market. Although the number of electric kick scooters continues to grow across North America, the lack of operational guidelines for these vehicles leads to slow down the market growth to some extent. The kick scooters have swarmed cities across the U.S. within the past year, with sharing service providers such as Bird Rides Inc. and Neutron Holdings Inc. aggressively growing across the country. However, authorities are worried about public areas getting filled with broken scooters or scooters get parked anywhere, which might hinder routes for others.
Increasing availability of smart charging stations shows greater opportunity for the growth of the North American electric scooters and motorcycles market. Solar powered and automated charging stations create a huge opportunity for the market players. In a move toward 100% renewable powered society, aggressive actions are being taken up to eliminate the need of fossil fuels from transportation and logistics sectors. EV providers have ample opportunities to put forward their arms in the design and development of such charging stations to widen the horizons of complete nature-based transportation across the region.
North America Electric Scooters and Motorcycles Market Competitive Landscape
Some of the major players operating in the North American electric scooters and motorcycles market are KTM North America Inc., Razor USA LLC, Segway Inc., TORROT ELECTRIC EUROPA S.A., Zero Motorcycles Inc., Mahindra GenZe, Energica Motor Company S.p.A., and Alta Motors.