Electric Scooter Market Growth Demand &Opportunities

Posted by Rahul Gautam on January 10th, 2022

Greening the earth is arguably one of the biggest trends today. While the literal meaning of ‘green earth’ might hint at reforestation, the concept also includes bringing down the pollution levels. Now, since automobiles are one of the biggest sources of air pollution, a major change is being brought about in their functioning. Their internal combustion engines (ICE), which burn gasoline and diesel, and, therefore, release greenhouse and toxic gases into the atmosphere, are being gradually replaced with electric batteries and motors.

To achieve this, governments around the world are implementing stringent emission regulations, which are making conventional automobiles costlier every year, and offering financial support to boost the manufacturing and sales of electric vehicles (EVs). P&S Intelligence expects the electric scooter and motorcycle market size, driven by all these factors, to rise from ,913.9 million in 2019 to ,529.7 million by 2025, at a 14.4% CAGR between 2020 and 2025. One of the policies implemented to boost electric two-wheeler sales is the FAME India II scheme, under which purchase incentives are being offered for 1,000,000 such automobiles.

Between scooters and motorcycles, electric scooters have witnessed the higher sales till now because they are cheaper and easily available. However, electric scooters have range and speed issues, which is why the demand for electric motorcycles is increasing fast. Automakers have begun introducing new electric motorcycle models with better batteries and more-powerful motors, so the issue of driving range and speed can be remedied. Plus, with their sleeker look, motorcycles appeal more to the youth compared to scooters.

Both these types of electric two-wheelers are available with the battery or plug-in technology. Of these, those working on the plug-in technology are more popular as they are easier to operate and charge. Their charging mechanism can be plugged into most domestic electricity sockets, just like any other electrical appliance. However, charging an electric two-wheeler is a long process, especially since most of the charging stations are slow, alternating current (AC) variants. This creates hindrances in the adoption of such vehicles by fleet operators, who cannot afford to have the vehicle grounded for over 8 hours, for a full charge.

As a result, the demand for battery-technology electric scooters and motorcycles is expected to increase rapidly, especially with the commercializing of the EV battery swapping concept. At battery swapping stations, which have already been established in Taiwan, the depleted battery is taken out of the EV and replaced with a pre-charged one. In all, the process merely takes around 3 minutes, with the time taken set to reduce once the process is automated. This would further allow people to purchase their electric two-wheeler without the battery, which could result in a drop in their costs by up to 45%!

Presently, the combined sales of all types of electric two-wheelers are the highest in Asia-Pacific (APAC), as it is home to some of the most-polluted countries in the world, specifically China and India. Moreover, being the largest auto markets on earth, these countries are witnessing a burgeoning demand for all types of EVs. Another reason for the dominance of APAC on the global electric scooter and motorcycle market is the presence of a large number of organized and unorganized automakers and manufacturers of EV components, such as motors, battery packs, wires, controllers, and battery management systems.

Hence, with the growing environmental concerns and sustained government support, the adoption of electric two-wheelers will keep increasing around the world.

Get more insight: https://www.prnewswire.com/news-releases/global-electric-scooter-and-motorcycle-market-worth-10-529-7-million-by-2025--says-ps-intelligence-301244210.html