The global electric scooter and motorcycle market is projected to generate a revenue of $13,864.0 million by 2025, witnessing a 7.3% CAGR during the forecast period (2018–2025). The market is growing due to the tax concession on purchasing eco-friendly vehicles, favorable regulatory environment, low maintenance of these vehicles, and rising concern regarding environmental degradation. During the historical period (2013–2017), the larger demand, both in terms of value and volume, was created for scooters. The faster CAGR is projected to be registered by motorcycles during the forecast period, in terms of value and volume.
Two types of batteries are used in electric scooters and motorcycles, namely lithium-ion (Li-ion) and sealed lead acid (SLA). The electric scooter and motorcycle market was dominated by the SLA category during the historical period, both in terms of value and volume. The Li-ion category is projected to grow at a faster pace during the forecast period, in terms of value and volume. This is because Li-ion batteries have a higher density as compared to SLA batteries, thereby making them more efficient and lighter.
Geographically, the largest share of the electric scooter and motorcycle market was occupied by the Asia-Pacific region during the historical period, with a value share of more than 90.0% in 2017. Among all the countries categorized in the region, China accounted for the major value share of the market during the historical period and is projected to retain its position during the forecast period. This is attributed to the high-paced urbanization in the country, and its large population. India is projected to witness the fastest growth rate during the forecast period.
A major driving factor of the electric scooter and motorcycle market is the low maintenance of these vehicles. The need for periodic servicing of electric scooters and motorcycles is less than that of traditional vehicles, as these vehicles have fewer vibrating and moving parts. Because of this, the adoption of electric scooters and motorcycles is increasing, as people are not capable of assigning extra time for vehicle servicing. In addition to this, the cost associated with regular maintenance of vehicles is also reduced for electric two-wheelers.
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| Electric Scooter and Motorcycle Market |
The rising concern regarding environmental degradation is also a key factor contributing significantly to the growth of the electric scooter and motorcycle market. The carbon emissions from vehicles is a primary factor due to which the air pollution level is increasing rapidly. As these vehicles help in reducing the carbon footprints, the governments around the world are spreading awareness regarding their efficiency and reliability. Moreover, as a significant part of any smart city project is to reduce the carbon emissions, their development is further driving the adoption of electric two-wheelers.
Another factor driving the growth of the electric scooter and motorcycle market is the tax concessions on purchasing eco-friendly vehicles. In order to encourage the adoption of eco-friendly vehicles, the governments in various countries are offering reduction in registration tax and other incentives such as tax rebates and subsidies. For example, the Federal Government of the U.S. offered 10% electric motorcycle tax credit, of up to $2,500, on the purchase of Zero motorcycles (manufactured by Zero Motorcycles Inc.), in 2017.
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Hence, the market is registering growth due to the provision of tax concessions on purchasing eco-friendly vehicles, surging concern regarding environmental degradation, and low maintenance of electric two-wheelers.
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