Factors such as the increasing support of governments, especially of developing countries of APAC, and the growing e-retailing of EVs are expected to drive the electric scooter and motorcycle market at an exceptional CAGR of 14.4% during 2020–2025. According to P&S Intelligence, the industry was valued at $5,913.9 million in 2019, and it will generate $10,529.7 million revenue by 2025. Additionally, the falling price of Li-ion batteries and growing environmental concerns will also support the market growth.
The surging dependency on e-retailing, owing to the economical and convenient shopping experience offered by online channels, is expected to steer the market growth in the coming years. In comparison to brick-and-mortar stores, e-commerce platforms save time and cost, owing to which customers are switching to the latter. Additionally, the online stores have proved quite effective in helping OEMs carry out their operations and expand their reach to a larger customer base.
Moreover, the growing concerns over environmental degradation will also facilitate the electric scooter and motorcycle market growth, globally. Governments around the world are implementing stringent emission control policies to encourage the production and adoption of new energy vehicles. Additionally, governments are also offering several financial initiatives on the production and adoption of EVs to mitigate air pollution. For instance, the Hong Kong government is encouraging the use of environment-friendly vehicles by offering tax concessions on the registration of electric motor vehicles.
The SLA category, within the battery type segment, held a larger share in the electric scooter and motorcycle industry in 2019. On the other hand, the Li-ion category is projected to demonstrate faster growth in the foreseeable future. This will be primarily on account of the increasing preference for environment-friendly Li-ion batteries by OEMs and ongoing technological advantages in energy storage technologies. Besides, the higher efficiency and less charging time of Li-ion batteries will also contribute to the market growth in this category.
In recent years, players in the electric scooter and motorcycle industry have engaged in product launches to gain a competitive edge. For instance, in February 2020, Zero Motorcycles Inc. unveiled the Fully Faired SR/S, a new electric motorcycle, which exhibits 140 ft-lbs. of torque and 110 HP with a twist of the wrist. It includes a 14.4 kWh Li-ion battery, which offers a range of 323.4 km per charge, and a strong ZF75-10 motor. Other players offering new electric two-wheelers are Zhejiang Luyuan Electric Vehicle Co. Ltd., Alta Motors, AIMA Technology Co. Ltd., and BMW AG.
Globally, the APAC electric scooter and motorcycle market is expected to generate the highest revenue in the coming years, due to the increasing urbanization rate, soaring per capita income, and implementation of favorable government policies for EVs in the region. Among APAC countries, India, China, and Japan are the prominent markets for electric scooters and motorcycles, due to the extensive government support, in the form of tax credits, tax exemptions, and subsidies on EVs, for the EV sector.
Therefore, the increasing concerns about environmental degradation and the growing dependency of customers and OEMs on e-retail networks will supplement the market growth, worldwide.
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