Increasing Demand for Micromobility Solutions Fueling Kick Scooter Sales

The increasing adoption of kick scooters in kick scooter sharing services is fueling their sales across the world. As compared to the other types of vehicles used by shared mobility service providers, electric kick scooters can be easily leveraged for solving the issue of last-mile connectivity and they can also be hyper-localized. Moreover, these vehicles are highly compact, easy to operate, and do not need any physical exertion, which further boost their popularity among shared mobility service providers. 

Additionally, many companies have started providing their scooter sharing services in different locations, which has also propelled the growth of the kick scooter market. For example, Sharing Muving SL, which is a Spanish electric scooter sharing company, announced in 2018 that it has started offering its service in Atlanta, the U.S. Furthermore, Neutron Holdings Inc., which operates under the name LimeBike, launched dockless electric kick scooters and bikes for sharing in many cities in the U.S. in 2017. 

Furthermore, the declining prices of these batteries are also boosting their sales across the world. Geographically, the demand for kick scooters is currently the highest in the Asia-Pacific (APAC) region, as per the observations of P&S Intelligence, a market research company based in India. This is attributed to the large-scale deployment of these scooters in China. The existence of many major electric kick scooter manufacturing companies, rapidly developing electric vehicle value chain, implementation of favorable government policies, availability of affordable batteries, and the presence of a large customer pool are the main factors propelling the sales of these vehicles in the country. 

Hence, the demand for kick scooters will surge sharply in the upcoming years, primarily because of their soaring adoption in shared mobility fleets, growing popularity of micromobility solutions, owing to the increasing road congestion levels, rising requirement for better last-mile connectivity, and falling prices of lithium-ion batteries all over the world. 

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Growing Trend for Kick Scooter Market

The global kick scooter market is currently in its nascent phase; however, it is expected to observe notable growth during 2019–2024 on account of the increasing demand for last-mile transportation solutions and the emergence of kick scooter sharing fleets. Megacities across the world are facing issues of pollution and congestion as a result of rapid urbanization. Nearly 45% of the traffic in the U.S. is caused by cars that are used for traveling less than three miles a day, and micromobility solutions, such as kick scooters, can help reduce this snarled-up traffic substantially.

Based on battery type, the market has been categorized into lead acid and lithium-ion (li-ion) kick scooters. Between the two, li-ion kick scooters are expected to witness faster growth in demand during the forecast period. This can be majorly attributed to the advantages of li-ion batteries over lead acid batteries. Li-ion batteries offer more energy density, are compact and lightweight, and hold the charge for a longer time. Furthermore, the falling price of these batteries is propelling their adoption, thus boosting the category growth in the kick scooter market.

The kick scooter market has also been classified into personal, rental, and sharing applications. Of these, kick scooters used in the sharing fleet are projected to witness the fastest growth during the forecast period. Kick scooter sharing service is evolving and is gaining ground across several countries. The service has enabled the users to travel to their destinations without having the need to own vehicles and bear secondary charges, including maintenance, insurance, and parking. Such advantages are expected to boost the demand for these vehicles for sharing services in the near future.

Geographically, Asia-Pacific holds the largest share in the kick scooter market, owing to the major adoption of these vehicles in China. The presence of key electric kick scooter manufacturers, developed electric vehicle value chain, extensive government support for electric vehicles, availability of low-cost batteries, and strong customer base are some of the factors that are boosting the adoption of these vehicles in China, thus driving the market in the APAC region.

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Investments in kick scooter companies are accelerating. The electric kick scooter market is currently at its nascent stage, but is steadily growing with the increase in scooter startups offering kick scooters for sharing purposes. Competition in the market has grown in recent years and so have the investments. For instance, in July 2018, Google Ventures, an Alphabet Inc.’s venture capital division, led a $355 million funding round for Neutron Holdings Inc. (LimeBike).

Some of the major players operating in the industry are Razor USA LLC, Segway Inc. (Ninebot Inc.), Xiaomi Corporation, Shenzhen Xiaobaima Energy Tech Co. Ltd., Ningbo MYWAY Intelligent Technology Co. Ltd., Spin, Skip, Scoot, PopScoot Singapore Pte. Ltd., Tier Mobility GmbH, WIND Mobility, VOI Technology AB, Vogo Automotive Pvt. Ltd., Dott, and LMTS Holding S.C.A.

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