Africa Electric Scooter Industry Overview
The Africa electric scooter market size is expected to reach USD 84.3 million by 2030, registering a CAGR of 7.5% from 2022 to 2030, according to a new report by Grand View Research, Inc. The growing concern of increasing CO2 emissions, vehicular pollutants, and their environmental impact has shifted consumers from using Internal Combustion Engine vehicles to alternative propulsion systems such as Electric Vehicles (EVs). The introduction of technologically advanced vehicles by global EV manufacturers to Africa has made the region a part of the electric-powered transport wave. However, the high cost of EVs such as electric scooters is hampering growth. To make them cost-effective, various initiatives are taken by governments and private automobile manufacturers.
Global electric scooter manufacturers are focusing on bringing innovation and technology to Africa. They are manufacturing and supplying advanced electric scooters to the region. In May 2021, Yadea Technology Group Co., Ltd. released the Yadea Champion 2.0 series globally. The vehicle range is equipped with the TTFAR 8 extended-range system. The company has incorporated new technology to make scooters advanced and smart. The vehicles provide better mileage, fast charge, and have a greater lifespan, thus making them suitable for long trips. Furthermore, the global players have robust distribution channels in Africa. They follow the B2C model, making electric scooters available directly to the customers based on the order.
However, the high price of electric scooters is a major challenge for potential purchasers. To overcome this, start-ups based in Africa are investing in developing the electric vehicle space to design scooters at a low cost. Besides, they are trying to make the vehicle lightweight, easy to operate and extend the battery life to be durable, to be used for local traveling.
Moreover, the government in the region is taking initiatives to increase the adoption of electric vehicles. There is a reduction in the import duty of the electric vehicle and investment in the battery charging infrastructure development. The UNEP's Global E-mobility Program has been introduced in Africa to aid the government in establishing supportive policies to switch from fossil fuel mobility to electric vehicles. Also, the regional government has made various changes in the tax structure to favor EV uptake. Initiatives taken by the government are expected to reduce the cost of EVs, such as the electric scooter, and expected to drive their demand in the market.
Furthermore, electric scooter sales are majorly threatened by substituting electric vehicles in the market. Electric scooters are suitable for short distances, runs at a lesser speed, and are driven by a single rider. However, electric mopeds and e-bikes are more robust, have long battery life, are fast chargeable, and offer long-distance travel. In addition to this, they have better maneuverability and are easy to operate, thus providing comfort to the driver. These features gain consumers' traction and shift their preference from electric scooters to substitutes.
Africa Electric Scooter Market Segmentation
Grand View Research has segmented the Africa electric scooter market based on product, battery, voltage type, and country:
Based on the Product Type, the market is segmented into Retro Electric Scooter, Standing/Self-balancing Electric Scooters, and Folding Electric Scooters.
- The African electric scooter market is segmented into retro/self-start, standing/self-balancing, and folding by product type. The retro/self-start segment accounted for a revenue share of 58.7% in 2021. The drivetrain swing arm powers the retro electric scooters; they have a liquid-cooled electric motor, which enables the scooter to achieve more speed and endurance.
- The folding segment is expected to witness the highest CAGR of 9.3% from 2022 to 2030. The segment's growth can be attributed to scooter features, they are portable, lightweight, fast chargeable, can be charged through a mobile charging dock, and have better mileage.
Based on the Battery Type, the market is segmented into Sealed Lead Acid, NiMH, and Li-Ion.
- The sealed lead-acid segment holds a market share of more than 50% in 2021 and is expected to remain dominant during the forecast period. The liquid sealed batteries are reliable, require low maintenance, are economical, and portable. Further, no particular precaution is necessary for handling due to their leak-proof battery construction.
- The Li-ion segment is expected to witness the highest CAGR of 8.4% during the forecast period. Lithium batteries have better energy storage capacity, low discharge rate, better charging efficiency, and durability. Besides, these batteries are 100% recyclable, thus making them re-introduced back to the supply chain. The price of the Li-ion battery is high compared to its counterparts.
Based on the Voltage Type, the market is segmented into 24V, 36V, 48V, and Greater than 48V.
- The vehicles integrated with 36V systems have better charge retention capacity than 24V voltage systems, provide extra mileage, and are cost-effective. Thus, electric scooter manufacturers are widely adopting 36V Li-ion and NiMh batteries.
- The greater than 48V segment is expected to witness of CAGR of 9.9% during the forecast period. The electric scooters are majorly threatened by their counterparts, such as electric bikes, e-motorcycles, and other e-mopeds. Its substitutes have various beneficial features such as fast charging, long-distance travel, and being faster in speed.
Key Companies Market Share Insights
The key players that dominated the Africa market in 2021 include Honda Motor Co Ltd, KTM AG, Mahindra GenZe, Suzuki Motor Corporation, Yamaha Motor Company Limited, and Ninebot Limited. The prominent players in the electric scooter market are investing in developing advanced scooters with better design, and enhanced battery life. The companies are also pursuing strategic initiatives, such as regional expansion and strategic acquisitions, mergers, partnerships, and collaborations to strengthen their position in the market.
Organic growth remains the key strategy for most of the market's incumbents. As such, market players are focusing on expanding their product offerings by developing and launching new and innovative products. In May 2021, Yadea Technology Group Co., Ltd., the major player in the electric scooter market launched a range of electric vehicles such as kick scooters, motorcycles, and mopeds. The launch of these new electric vehicles demonstrates its commitment to remaining at the forefront of electric vehicle innovation and delivering its growth strategy to maintain its dominant position. Some prominent players in the electric scooter market include:
- Honda Motor Co Ltd
- KTM AG
- Mahindra GenZe
- Peugeot Scooters
- Ninebot Limited
- Suzuki Motor Corporation
- Terra Motors Corporation
- Vmoto Limited
- Yadea Technology Group Co., Ltd.
- Yamaha Motor Company Limited
Order a free sample PDF of the Africa Electric Scooter Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: sales@grandviewresearch.com
