Market Research Report
Electric Scooter and Motorcycles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Electric Scooter and Motorcycles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: July 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 100 Pages
Delivery time: 2-3 business days
The electric scooter and motorcycles market was valued at USD 2 Billion in 2020 and is anticipated to reach USD 3.5 Billion by 2026, registering a CAGR of over 10% during the forecast period.
The Covid-19 pandemic had a negative impact on the Electric Scooter and Motorcycles Market. The worldwide lockdown restriction has resulted in a halt of production and sales of new vehicles including electric scooters and motorcycles. Also, due to the disruption of the supply chain, the raw materials required for the production of different parts of the scooters and motorcycles were unavailable, causing delays in production. This has led to the rapid downfall of the industry's economy. However, with the growing inclination towards cleaner mobility across the world, the industry is looking forward to economic revival post-Covid-19 pandemic.
The electric scooter and motorcycles market has noticed significant growth, owing to the growing need for sustainable transportation. Increasing environmental concerns, coupled with favorable government initiatives, are some of the major factors driving the market's growth. Rising energy costs and competition among the emerging energy-efficient technologies are also expected to fuel the market's growth.
Currently, the price of electric two-wheelers is higher than that of conventional motorcycles, owing mostly to the cost of batteries. Although governments of different countries are offering subsidies for electric vehicle purchases, the final expenditure on the vehicle is still high. Hence, companies and local governing bodies are pushing hard to promote and provide more fuel for the growth of electric two-wheelers.
Many countries where two-wheelers are popular have come up with new incentive schemes for e-scooters and motorcycles. For instance, in February 2021, the Indian government has announced its plan to support the electric bikes market in the country which is at around 1.5 million units currently.
The government is providing subsidies for the buyers via its Faster Adoption and Manufacturing of Electric-Vehicles (FAME) scheme, which invests a total of INR 10,000 Crore in the market. the increasing trend of e-bike sales in India is an example of the government and corporate efforts.
Also, in April 2021, the renowned electric bike startup Ather Energy announced the set up of 128 fast Charging stations across Mumbai, as part of a network of charging stations that can be used by all electric two wheelers, further aiding the growth of electric scooters and motorcycles.
Asia-Pacific is anticipated to lead the market studied, over the forecast period. China, India, and Japan are the major economies in the regional market, which are anticipated to influence the overall market. These countries are witnessing the entry of an increasing number of start-ups and well-established, conventional manufacturers in the market.
From 2020, Taiwan began providing a subsidy of up to USD 900-1000 for the purchase of new electric motorcycles/scooters. Owing to such plans in the past, in December 2019, Gogoro, a local start-up, sold a record of 22,500 units. It also ended 2019 with a record of 145,000 sales in Taiwan.
India, one of the largest two-wheeler markets, is witnessing the entry of many new start-ups, which are marking their presence by launching new models and expanding current models and existing infrastructure. For instance,
Corporater efforts for better vehicle and battery technology employed in the vehicles is another important step for the market. For instance, 4 major Japanese manufacturers Honda Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., Suzuki Motor Corporation and Yamaha Motor Co., have established The Swappable Battery Consortium that standardizes the batteries used in all these electric motorvyvles.
The electric scooter and motorcycles market is moderately fragmented and has a number of local players. The conventional companies are expanding their presence in this new market, which was earlier dominated by startups. Conventional companies are entering the market by introducing new plants and converting the existing scooters and motorcycles into e-vehicles. For instance,