Electric Scooter and Motorcycle Market to Reach a Value of $10,529.7 Million by 2025

  • Published: February 2021

The falling price of lithium-ion (Li-ion) batteries is one of the major factors driving the growth of the electric scooter and motorcycle market, globally. The continuous fall in the prices of Li-ion batteries has increased the affordability of electric scooters and motorcycles, which, in turn, is expected to positively impact the market growth during the forecast period (2020–2025). For instance, from 2010 to 2019, the prices of Li-ion batteries reduced by around 87% and between 2018 and 2019, the prices witnessed an overall cut of 13%, thereby resulting in the increased demand for these batteries. Due to this, the global electric scooter and motorcycle market is projected to reach $10,529.7 million by 2025, advancing with a CAGR of 14.4% during the forecast period.

The COVID-19 outbreak has negatively impacted the market for electric scooters and motorcycles, globally.Due to the lockdown imposed by several countries across the world, many manufacturing sites were impacted negatively and mostly remained non-functional for some time, which further dented the market of electric scooters and motorcycles.

Scooter Category Dominated the Market in 2019

The electric scooter and motorcycle market has been categorized into scooter and motorcycle, on the basis of product. Of the two, the scooter category held the larger market share in 2019. Factors such as tax incentives and rebates by various governments and the declining popularity of diesel and petrol vehicles are resulting in the increased sales of electric scooters across the world.

Furthermore, the electric scooter and motorcycle market has been categorized into sealed lead–acid and Li-ion on the basis of battery type. During the forecast period, Li-ion is expected to emerge as the faster-growing category. The rising demand for long-range, high-powered two-wheelers, coupled with the fall in battery prices, is propelling the market growth in this category.

Geographically, Asia-Pacific (APAC) held the largest market share in terms of value in 2019. The presence of a large electric vehicle manufacturing base in China and India, coupled with supportive government policies to encourage the adoption of electric vehicles, is a major factor driving the growth of the electric scooter and motorcycle market in the region. In terms of market growth, however, Europe is expected to witness the highest CAGR over the forecast period, owing to the increasing focus on the adoption of efficient and sustainable mobility solutions.

Industry Players Are Focusing on Product Launches and Mergers & Acquisitions to Expand Their Market Share

Globally, electric scooter and motorcycle market players are actively focusing on new product launches and mergers & acquisitions to expand their market presence. For instance, in April 2020, GOVECS Group acquired LiveCycle GmbH, a two-wheeler repair service provider in Munich, Germany, to triple its network of sales and service points. Additionally, the company is focusing on building a nationwide service network.

Furthermore, in January 2020, Bajaj Auto Ltd. launched an electric scooter named Chetak. The model has been designed to cover a range of 95 km per charge. The company also provides a warranty of 50,000 km or three years, whichever is earlier.

Similarly, in January 2020, Ather Energy Pvt. Ltd. launched its latest electric scooter model Ather 450X, which can travel up to 85 km with a maximum speed of 80 km/h.

Some of the major players operating in the global electric scooter and motorcycle market are Yadea Technology Group Co. Ltd., Zhejiang Luyuan Electric Vehicle Co. Ltd., AIMA Technology Co. Ltd., Jiangsu Xinri E-Vehicle Co. Ltd., Dongguan Tailing Electric Vehicle Co. Ltd., GOVECS Group, Ampere Vehicles Pvt. Ltd., Vmoto Limited, Hero Electric Vehicles Pvt. Ltd., and Energica Motor Company S.p.A.