E-scooters charging up daily commutes

Electric two-wheelers are viewed as a cost-effective and eco-friendly mode of transportation. — Ather Energy/Unsplash

THE electric scooter market is growing exponentially globally, fuelled by increasing localisation of production in emerging economies.

According to findings by Meticulous Research, the growth is also driven by increasing consumer preference for electric two-wheelers over internal combustion engine models, particularly in developed economies.

The e-scooter market is projected to reach US$408.1bil by 2031, with a compound annual growth rate (CAGR) of 21.6% from 2024 to 2031. By volume, it is expected to hit 298.5 million units by 2031, growing at a CAGR of 18.1% during the same period.

Much of this growth is centred upon commuters looking for more convenient, time-efficient and cost-effective transportation. As traffic congestion gets worse, micro-mobility solutions – such as bicycles, skateboards, e-bikes, scooters, skates and small electric vehicles (EVs) powered by rechargeable batteries – are becoming preferred options.

Scooting on

Ideal for short distances and specific speed ranges, these micro-mobility solutions are fast gaining traction, resulting in the birth of vehicle-sharing programmes.

Scooter-sharing systems, such as Beam and Tryke, allow users to access e-scooters for short-term use without ownership. These dockless scooters, which lack designated parking spots, can be located via an e-scooter application.

Such sharing programmes have proliferated, now available in more than 100 cities worldwide. For example, there are over 15,000 scooters available for hire on the streets of Paris today.

Their growing popularity is due to their low environmental impact compared with other modes of transport. Presently, e-scooters make up 2.5% of all two-wheelers on the road, according to Meticulous Research. North America is the fastest-growing regional market with a projected CAGR of over 50% during the forecast period.

In terms of value, the United States is expected to dominate the North American market, accounting for 53% of the e-scooter market in 2024. In Europe, Italy is expected to account for the largest share of the market due to major players in the country increasingly investing in e-scooter development.

Asia rides high

When it comes to sheer numbers, Asia Pacific holds the largest share of of the e-scooter market, accounting for 81.5% this year. The region’s dominance is attributed to several factors, including rising incomes in developing countries, increasing fuel prices, traffic congestion and pollution.

These factors are fuelling the demand for more cost-effective and eco-friendly transportation options. Governments across the region are implementing initiatives to encourage the adoption of EVs, while industry players are investing in charging infrastructure and introducing e-scooters to cater to the increasing demand.

Moreover, rising consumer interest in EVs is bolstered by tax incentives, further supporting market growth. Companies plying their trade in Asia Pacific are also innovating with new product offerings.

Developing economies are setting targets to boost EV sales, prompting manufacturers, vendors and other stakeholders to refine their marketing strategies and enhance sales efforts. Some of the leading brands in the region include Fuji-Ta Bicycle Co Ltd (China), Yamaha Motor Co Ltd (Japan), Gogoro Inc (Taiwan) and Ather Energy Pvt Ltd (India).

Bump in the road

Major companies in the e-scooter market have begun expanding their global footprints while augmenting their market shares. The key strategies adopted by market leaders are largely focused on product launches, expansions, mergers and acquisitions, agreements, collaborations and partnerships.

Furthermore, government initiatives across Asia Pacific to mitigate traffic congestion and pollution are expected to generate additional market growth opportunities. However, there are stumbling blocks that threaten to slow the pace.

Increasing reliability concerns among consumers, stemming from a rise in accidents involving electric two-wheelers, remain a siginificant stumbling block. Additionally, insufficient investments by traditional two-wheeler manufacturers in e-scooter development are restraining market growth. A lack of charging infrastructure also poses a major challenge.

On a positive note, advancements in charging technology could transform the e-scooter market. In August 2023, Taiwan’s Gogoro, a pioneer in battery swapping technology, partnered with Swiggy in India to provide access to the Gogoro Smartscooter.

Battery swapping is essential to successfully transition India’s urban fleets to electric.

Technological advancements are paving the way forward for e-scooters. ElectReon Wireless, a leading provider in wireless charging solutions for EVs, has developed a technology that enables EV batteries to recharge while in motion via specialised electrified roads.

This involves embedding copper coils under asphalt to facilitate wireless energy transfer.

The development of charging infrastructure also opens up new business opportunities.

In terms of value, the connector charging segment is expected to account for a larger share of the e-scooter market in 2024.

The wireless charging segment is poised to register a higher CAGR of 41.2% during the forecast period from 2024 to 2031, according to Meticulous Research.