Largest e scooter companies. Methodology

Largest e scooter companies

Report Format: PDF | Latest Update: Apr, 2023 | Published Date: Feb, 2022 | Report ID: FBI102056 | Status : Published

The global electric scooter market size was USD 14.28 billion in 2020 and is projected to grow from USD 15.22 billion in 2021 to USD 31.04 billion by 2028, exhibiting a CAGR of 10.7% during the 2021-2028 forecast period. The Asia-Pacific electric scooter market size was valued at 12.39 billion in 2020. The Lithium-ion battery segment held the largest share of global electric scooter industry in 2020.

Based on our analysis, the global market exhibited a substantial decline of.18.80% in 2020 as compared to the average year-on-year growth during 2017-2019. The global impact of COVID-19 has been unprecedented and staggering, with electric scooter witnessing a negative impact on demand across all regions amid the pandemic. The Rapid increase in CAGR is due to the demand and growth of this market, which will return to pre-pandemic levels once the pandemic is over.

E-scooter is a motorized scooter powered by electric motor. Conventional scooters require gas or fuel to operate, whereas the EV does not require fuel. The motor and battery are linked in e-scooters, and the battery is charged by plugging into an electric charging station or a power source. The charged battery generates the motion to push the two-wheeler forward. These scooters are environment-friendly, fuel-efficient, battery-powered, and simple to use. The shift from conventional to an electric mode of transportation is driven by the growing need for sustainable urban mobility and modernized transportation infrastructure. This type of scooter is anticipated to improve energy security and also air quality. The rising demand for fuel-efficient vehicles coupled with increasing concerns over greenhouse gas and carbon emissions is expected to increase the adoption of e-mopeds.

Decrease in New Vehicles Sales amid COVID-19 to Hamper Market Growth

The COVID-19 pandemic resulted in a global economic slowdown. Lockdowns imposed in several parts of the world to prevent the spread of the virus led to supply chains disruptions and temporary closure of many production facilities.

The pandemic of COVID-19 had a severe impact on this market. Attributed to the global lockdown restriction, production and sales of new vehicles, including these scooters, have been halted. The raw materials required to produce various parts were also unavailable due to the supply chain disruption, creating production delays. As a result, the industry’s economy suffered a fast downturn. However, with a growing global inclination toward cleaner transportation, the industry expects a revenue recovery post the COVID-19 pandemic.

NIU International has seen a significant decline of around 40% in its revenue in the first quarter of 2020 due to the thirty-day production halt in February 2020. Hero Electric and Okinawa had to halt their manufacturing plants for a few days due to India’s nationwide lockdown.

The introduction of COVID-19 vaccines in early 2021 is predicted to benefit the automotive industry, although the pandemic’s duration is difficult to predict.

LATEST TRENDS

Government Initiatives for Electrification and Increase in Adoption of E-Scooters to Boost the Market Growth

OEMs will be able to expand their revenue stream and geographical presence as governments across the globe increasing their investments in charging infrastructure and offer incentives to consumers. For instance, the Indian government launched the FAME scheme (Faster Adoption and Manufacturing of Hybrid and EV) in 2019 with a budget outlay of USD 100 billion to support 7,000 e-buses, 500,000 e-three wheelers, 55,000 e-passenger vehicles, and a million e-two wheelers. As of now, about 124,415 vehicles have benefited under the scheme.

Additionally, as customers move toward the adoption of EVs, fluctuating fuel have decreased sales of gasoline-powered vehicles. Consumers are abandoning the gasoline-powered vehicle segment due to the rising fuel prices, which coincides with significant growth in sales of these scooters, primarily in India, Hong Kong, and the Netherlands. Norway is expected to phase out the sale of all fossil-fuel-powered vehicles over the next few years to meet its 2025 target of 100% renewable energy.

DRIVING FACTORS

Low Maintenance Cost and Rising Demand for EVs to Set Positive Trend for Market Growth

The increasing price of petroleum products is one of the most important factors driving the electric scooter market growth. The increasing cost of gasoline is already affecting consumers in emerging markets. Electric two-wheelers will significantly lower the running costs of these vehicles due to being more fuel-efficient than conventional two-wheelers. This scooter with a longer range than the present generation of e-two wheelers is expected to be developed by manufacturers. Maintenance will not be an issue as there are fewer moving parts than on traditional two-wheelers. The most expensive thing of maintenance is changing the battery, which is not done very often.

The increasing adoption of these scooters across the globe is boosting the market growth, owing to benefits such as low noise levels, low maintenance costs, and high mechanical efficiency. Governments are also offering monetary and non-monetary incentives, which resulted in significant growth of the market. Consumers are becoming more aware of the environmental impact of conventional modes of transportation and are shifting to EVs.

Electric Scooter Market to Surpass USD 31.04 Billion by 2028, at a CAGR of 10.7% from 2022–2028 as Preference for Cost-Effective Modes of Transportation Increases

January 30, 2023 09:19 ET | Source: SkyQuest Technology Consulting Pvt. Ltd. SkyQuest Technology Consulting Pvt. Ltd.

Westford USA, Jan. 30, 2023 (GLOBE NEWSWIRE).- North America emerges as the largest electric scooter market because of the presence of giant EV companies and the support of government bodies in building robust vehicle charging infrastructure. In addition, the introduction of electric scooter-sharing fleets, the rising concern over greenhouse gases and carbon emissions, and the growing demand for micro-mobility solutions for short distances are all factors contributing to the growth of this market. The market demand for electronic vehicles is primarily driven by lighter lithium-ion batteries being significantly less expensive. Solar electricity has become the most affordable energy source in human history. These remarkable discoveries have made it possible for a manufacturer of electric vehicles to give stiff competition to other vehicle segments.

Browse in-depth TOC on the Electric Scooter Market

According to SkyQuest’s global research, after a decade of steady development, the global electric 2-wheeler (scooter plus motorcycles) market reached the 10 million mark in 2022, a 78% rise over the pre-pandemic phase and representing a 19.3% overall 2-Wheeler sector.

The LED lights on electric vehicles utilize very little Energy to power the light. Additionally, they include electronic braking systems that can return up to 10% of their braking Energy to the battery. As a result, electronic vehicles require less maintenance and have a smaller environmental impact than gas-powered vehicles since fewer parts need to replace. Furthermore, the market has a lot of scopes to grow thanks to the availability of Smart charging stations and the rising popularity of micro-mobility in logistics applications.

Prominent Players in Electric Scooter Market

Yadea Technology Group Co. Ltd
Niu Technologies
Zhejiang Luyuan Electric Vehicle Co Ltd
Hero Electric
Mahendra GenZe
AllCell Technologies LLC
Amper Vehicles
Jiangsu Xinri Electric Vehicle Co.
Greenwit Technologies Inc.
Terra Motors Corporation
Vmoto Limited
BMW Motorrad International
Govecs Group
Gogoro Inc.
Honda Motor Co. Ltd.

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36V Segment to be the Fastest Growing Category owing to Its Higher Compatibility Feature

Voltage-wise, the 36V sector dominated the electric scooter market in 2022, taking up 58.4% of the total revenue share. These batteries’ high power output and e-scooter compatibility are expected to fuel the segment’s growth. Furthermore, due to their significantly more compact designs, quicker charging periods, and lack of harmful chemical emissions compared to sealed lead-acid batteries, Li-Ion and NiMH batteries are largely used to meet the need for batteries used in 36V systems. On the other hand, due to ongoing research and development efforts to increase the range and speed of e-scooters, the market for E-scooters with 60V and 70V batteries will experience considerable growth.

North America is predicted to witness the fastest rise in value and volume in the coming years. High growth in electric bicycle sales in the US during the pandemic, rising investments by shared mobility players in electric scooter companies, falling battery in the US, and rising efforts by major two-wheeler companies in the US to introduce electric motorcycles are the factors attributed to the high growth of this region.

Browse summary of the report and Complete Table of Contents (ToC):

Lead-Acid Battery Segment to Register Highest CAGR due to Its Quick Rechargeable Functionality

The sealed lead-acid battery category captured 23% market share in 2022 and is anticipated to take this lead due to its strength and cost-effective advantages. These batteries are rechargeable and can be fully charged 300 times before needing to be replaced. China is the world’s producer, exporter, and consumer of lead-acid batteries. The world’s biggest electric vehicle producer dominates China’s lead-acid market. Growing consumer demand for energy-efficient commuting and rising government spending on the construction of EV charging infrastructure are major contributors to the segment’s Rapid growth.

Asia Pacific region will continue to lead the electric scooter market in terms of revenue share over the future years. Such growth is attributed to the growing concentration of electric scooter producers in Japan, China, and Taiwan, who are gaining a sizable portion of the global industry. Furthermore, China has established itself as the world’s top exporter and producer of electric scooters and their biggest buyer.

During the Projected Period, the lithium-ion Polymer Market is expected to Increase Rapidly

Based on battery technology, the lithium-ion polymer category, is predicted to develop at the fastest CAGR throughout the projection period. This segment’s quick development may be ascribed to low-cost production, simple cell architecture, high energy density, lightweight batteries, strong resistance to physical damage, and fewer risks of electrolyte leakage.

Due to the features of the Lead-Acid battery, such as longevity, damage tolerance, and cheap cost, the Lead-Acid battery category led the market with a revenue share. However, because SLA batteries are huge and drain fast even when not carrying major loads, their use is projected to reduce in the future years.

V Battery-Powered Vehicles Control the Market

Higher power output is required to power the deployment of 48V battery packs in electric two-wheelers in 2022, the 48V battery section of the electric motorcycles and scooters industry. These batteries provide more power, are smaller in size, and can minimize the amount of battery space required in electric two-wheelers. Furthermore, higher performance and extensive charge cycles are two important characteristics of 48V battery packs. As a result, electric two-wheeler manufacturers are using these batteries to reduce power lag and increase acceleration. Aside from that, incorporating sophisticated technology into 48-V batteries, such as regenerative braking, should improve product use in electric bikes and scooters.

The Asia Pacific region led the worldwide market, and this dominance is expected to continue over the projection period. The presence of an expanding number of e-scooter manufacturers and rising vehicle charging infrastructure investments in nations such as China, India, and Taiwan are attributed to the region’s rise.

Furthermore, the governments in this region are looking for active engagement in promoting electric scooters and automobiles. For example, the Indian government is actively pushing electric scooters and automobiles through fiscal incentives, capital, and interest subsidies. The use of electric motorbikes is increasing in emerging economies. Electric motorbike sales in India climbed by 16.5% in 2019-20. The Indian government has implemented tax breaks to encourage the use of electric bikes. The GST on electric bikes has been cut from 12% to 5%. For example, Revel spent US 27.6 Million in the United States to debut 68 MUVI electric scooters produced by the Spanish manufacturer Torrot.

The European market, on the other hand, will increase the quickest throughout the predicted period. This Rapid expansion can be ascribed to the region’s growing urbanisation, which causes higher levels of air pollution, greenhouse gas emissions, and energy waste. To address these concerns, governments are working on implementing efficient and sustainable transportation alternatives, such as electric scooters and motorbikes, in order to fulfil the demands of an expanding number of daily commuters. Furthermore, rising compliance with electric scooter-sharing programmes in countries such as Spain, France, Germany, and the United States has fueled the battery-powered and two-wheeler industry.

Market Insights from Key Companies

Energica Motor Company, Niu Technologies, Vmoto Limited, Yadea Group Holdings Ltd, and KTM Group are focusing on introducing last-mile e-scooter rental services in various nations and cities as part of a joint venture plan to broaden their industry presence globally.

In Taiwan, for example, Gogoro Inc. transformed the industry by introducing swappable battery electric scooters. Furthermore, some Asian suppliers have joined forces with the business to include swappable battery technology into their e-scooters.

Ford, for example, joined with the new lab in October 2021 to contribute electric car technologies to the mobility innovation initiative.

The report titled “Electric Scooter Market Global Forecast by Product (Retro, Standing/self-balancing, Folding), By Battery Voltage (24V, 36V, 48V, Above 48V), Battery Type (Lithium-ion (Li-Ion), Lead Acid), Regions (Asia Pacific, North America, Europe, RoW), Company (Energica Motor Company, Niu Technologies, Vmoto Limited, Yadea Group Holdings Ltd, KTM Group)’ provides a detailed analysis of Electric Scooter Industry.

Who Will Win LA’s E-scooter Wars?

Maylin Tu is a freelance writer who lives in L.A. She writes about scooters, bikes and micro-mobility. Find her hovering by the cheese at your next local tech mixer.

Los Angeles — it’s not just beautiful weather, traffic and the Hollywood Walk of Fame — it’s also the largest shared micromobility market in the U.S. with six operators permitted to deploy up to 6,000 vehicles each. And despite the open market policy, the competition shows no signs of slowing down. In June, Santa Monica-based scooter startup Veo expanded east from Santa Monica into L.A. Newcomer TukTuk launched in November. Bird, which went public via SPAC in 2021, announced in December that it was merging with Bird Canada after revealing that it had overstated revenues for the last 2.5 years and might not have enough cash to survive. Spin was acquired by Tier in March and pulled out of L.A. by the end of the year, close on the heels of Lyft, which left L.A. and Santa Monica. Meanwhile, Wheels was acquired by Helbiz and dropped out of both Culver City and West Hollywood (it is still operating in L.A.). With six companies still in the running and Bird’s growth-at-all-costs strategy over, is it possible that a smaller player will win the City of Angels? We present four dark horse contenders.

Superpedestrian: The Second Mover Advantage

Cambridge-based Superpedestrian was founded in 2013 out of an MIT research lab and got its start building an electrified wheel to turn any bike into an e-bike. The company first launched its e-scooters in 2020 and in Los Angeles in 2021. The privately-held company has emphasized city relations and safety over Rapid growth. Though hardly small —it operates in 60 cities in the U.S. and Europe — the company joined the industry late in the game, something it calls the “second mover advantage.” Focusing on technology that solved some of shared micromobility’s biggest pain points, like sidewalk riding, Superpedestrian could zig where Bird and Lime zagged. Though so far, Superpedestrian has rolled out its pedestrian defense technology only in Chicago. “Micromobility has had big names attached to it from Uber and Lyft to Ford,” said Zach Williams, director of policy and government partnerships for Superpedestrian. “But I think the reality is that at their core, these businesses are or should be somewhat boring and behind-the-scenes. They’re logistics businesses where you move stuff around cities as effectively and efficiently as possible.” Williams declined to say whether the company has achieved profitability in L.A., but said that he is “cautiously optimistic” about the future.

Boaz Bikes, which is based in Dallas and currently operates in six markets, is raising funds to launch in L.A. in April. “L.A. is the city that other cities look to,” CEO Emil Nnani told dot.LA. “Which is absolutely crazy. But they look to L.A. and they say, ‘Okay, what is L.A. doing?’” Nnani founded Boaz Bikes in 2018 after seeing how dangerous e-scooters could be. “I knew that safety was going to be a huge issue. And coming from a mechanical background, I just knew I could create a safer model.” Boaz primarily deploys seated scooters, which some operators say is the safer option compared to traditional standing scooters due to the lower center of gravity, though there are limited studies comparing the safety of seated versus standing scooters. And instead of deploying only in affluent downtown areas, Boaz focuses on transit deserts where mobility options can be few and far between. “I feel like we have a head start in this space since… we had no choice but to build a cash flow positive model due to the lack of funding,” said Nnani. Adding, however, that the company is cash flow positive during the busy summer months, but operating at a loss due to the slower winter months. That said, Prabin Joel Jones, ex-CTO of Bond Mobility and founder of Freshkart, told dot.LA that he’s doubtful that any of the current players in the market have achieved profitability. “For any new venture like shared e-scooters, at the beginning, you do absolutely have to burn cash to expand,” he said. “. But it cannot sustain for a very long time. You will absolutely have to find your path to profitability as soon as possible.” Unlike the competition, Boaz is crowdfunding its next raise at 450.94 per share. As for competing with bigger players, Nnani pointed out that Spin left not only L.A. but also Detroit last year, one of Boaz’s strongest markets. “We already operate at a level of excellence compared to our competitors, so we already know that we’re going to beat out our competitors [in L.A.]. And, you know, hopefully force them to leave the market as well.”

TukTuk: A Self-made Scooter Entrepreneur

New arrival TukTuk, funded wholly by founder and CEO Yahya Dabbagh, might herald a new age of the self-made owner-operator who doesn’t rely on VC funding. Although the company was first founded in 2019 with test launches in L.A. and Ventura county, TukTuk took a long pause during the pandemic and only re-launched in Los Angeles in November with 2,000 scooters. The new operator might be small, but Dabbagh told dot.LA he sees an opportunity in the market in neighborhoods that have less competition. “So we’ll be sure to go to some areas of [the] city [which] will be low competition or nobody — or one or two max,” he said. Operators tend to congregate in more lucrative areas like Venice and Hollywood, meaning that in some neighborhoods, TukTuk could be at an advantage. In addition, unlike Bird or Lime, the company doesn’t have to worry about a bloated HQ driving down revenues. TukTuk operates out of a storefront warehouse in Palms and doesn’t have 100s, 1,000s or even 10s of employees which helps it cut down on overhead costs.

But what if you could go even smaller? The rise of the independent operator model where one person owns and manages a fleet of 100s of independently sourced e-bikes or e-scooters could be the future. According to Vince Cifani, CEO and cofounder of micromobility platform Joyride, his company speaks to Bird fleet managers every single day who want to switch over to an independent operator model. Fleet managers are classified as independent contractors and do not own the vehicles — which means they also take home only a share of the profits. So why can’t a fleet manager who is already managing their own fleet simply buy and brand their own scooters and take home all of the profits? Joyride is offering independent operators the tools to do just that, giving scooter entrepreneurs access to the technology component and even helping existing customers finance their vehicles. “Nothing beats operations experience,” said Cifani. “You have to be on the ground… moving heavy vehicles, carrying them into trucks. And so at the end of the day, it’s an ops game.” Cifani estimates that independent operators need about 200,000 to 300,000 to launch their own business. Could Bird fleet managers — who already manage a small fleet of vehicles and are paying a portion of their profits to Bird — simply own and operate their own e-scooters? Maybe.Though Los Angeles could be a tough market for smaller operators to compete with the fees required by the city of L.A. and the high cost of insurance. Either way, as 2023 unfolds, new winners and losers will emerge in Los Angeles with ripple effects throughout the global shared micromobility market. “[Los Angeles] is such a proving ground,” said Superpedestrian’s Zach Williams. “We just know if we can make it work there, we can make it work anywhere.”

Sources:

https://www.fortunebusinessinsights.com/amp/electric-scooter-market-102056
https://www.globenewswire.com/en/news-release/2023/01/30/2597662/0/en/Electric-Scooter-Market-to-Surpass-USD-31-04-Billion-by-2028-at-a-CAGR-of-10-7-from-2022-2028-as-Preference-for-Cost-Effective-Modes-of-Transportation-Increases.html
https://www.researchandmarkets.com/reports/5740670/electric-scooter-market-size-global
https://dot.la/micromobility-escooters-2659337082.html

Largest e scooter companies. Methodology