Robust demand for electric two-wheelers, along with government subsidies, may push the growth for the e-scooter market globally. According to the latest research from Counterpoint’s Smart Automotive Service, the global e-scooter market is expected to grow at a rate of 14 per cent CAGR during the 2020-2025 period, with cumulative shipments crossing 22 million units.
The study finds that new regulations in China on e-scooter classification including speed and weight limits, and license requirements, adversely affected the global market in 2019, with many companies failing to comply with the new norms.
“China, which accounts for more than 90 per cent of all e-scooters sold globally, will continue to play an important role in the global e-scooter market and drive demand,” said Maurice Klaehne, research analyst at Counterpoint. Long-term growth in China will depend on government incentives and regulations for e-scooters in that country.
Apart from China, countries like India and Indonesia, where two-wheelers are a prominent mode of transport, will also begin to impact global sales by 2025. The sales will benefit from growing income levels, urbanisation, government incentives for e-scooters, and consumers’ preference for more cost-efficient and environmenta-friendly transport in these countries.
On the growing sales of shared e-scooters, Peter Richardson, research director, said, “The growth in the shared market mainly comes from service providers including more e-scooters in their fleet, especially in European countries like France and Spain.”
Richardson said the market is still nascent and mobility service providers should prepare themselves for fluctuating competition and difficult financing models in the shared market, which a few providers have pulled out already. China is likely to enter the shared market in 2021-2022 as restrictions on e-scooter sharing reduce. There has also been a considerable market consolidation in recent years, and now the top 10 players account for 70 per cent of the global private e-scooter sales, he added.