Scooter Industry Overview
The global scooter market is expected to reach USD 111.37 billion by 2030, expanding at a compound annual growth rate (CAGR) of 5.9% during the forecast period, according to a new report by Grand View Research, Inc. The rising demand for comfortable rides with a gearless driving system is propelling the growth of the scooter market. Scooters are lightweight, easy to drive, require low maintenance, and are cost-effective, thus widely preferred over other two-wheelers. Besides, the increasing adoption of rental electric scooters for local travel and sightseeing is expected to foster scooters' market growth.
However, various factors drive demand for scooters; the pandemic severely impacted scooter sales from 2019 to 2020. The pandemic has stalled all manufacturing activities globally, which has cascading effects on the production and sales of new scooters. The demand for scooters witnessed an upsurge post-pandemic due to shifting consumer preference towards cost-effective scooters. Furthermore, to increase the penetration of electric scooters, the rental business model is followed by manufacturers. Companies such as Lime, Bird, Skip, Scoot, Spin, and Segway offer electric scooters on a rental basis; the minimum ride cost is $0.15 per minute. Thus, customers prefer rental electric scooters over buying them.
As more automobile manufacturers in the Asia Pacific region are entering the scooter market, it leads to the intensification of competition. Thus, to reduce the fierce competition in the scooter market, manufacturers are adopting a market consolidation strategy. For instance, in May 2021, China-based prominent scooter manufacturer Yadea Technology Group Co., Ltd., Gogoro Inc., and Dachanging Group (DCJ) underwent a joint venture in which Yadea and DCJ invested $50 million. The strategic partnership was established to develop smart infrastructure in the country which will promote the adoption of electric scooters.
Scooters Market Segmentation
Grand View Research has segmented the global scooters market based on product, type, and region:
Based on the Product, the market is segmented into Normal Scooter, and Electric Scooter.
- The global scooter market is bifurcated into normal scooters and electric scooters. The normal scooter segment held the largest market share of 69% in 2021. There is increasing consumer traction towards a vehicle that offers comfortable rides with gearless driving systems and operates at a minimal cost, propelling the sales of normal scooters.
- Governments worldwide are formulating new policies and regulations to increase the penetration of electric scooters by offering various incentives and benefits to consumers. Besides, an upsurge in the adoption of electric scooters for rental sharing services has spurred the demand for electric scooters.
Based on the Scooter Type, the market is segmented into Conventional Electric Scooter, and Swappable Electric Scooter.
- The electric scooter segment is bifurcated into the conventional scooter and the swappable scooter. The conventional electric scooter segment held a market share of 88% in 2021. Conventional electric scooters are lightweight, robust, and have lower initial and maintenance costs than their counterparts, thus widely adopted by consumers.
- The battery swappable electric scooter segment is expected to witness significant growth of 18.6% during the forecast period. The segment growth is attributed to the increasing focus of automobile manufacturers on developing battery-swapping technology to enable scooter owners to replace depleted batteries with fully charged ones. Battery swappable electric scooter manufacturers are introducing scooters without installed batteries.
Key Companies Market Share Insights
The key players that dominated the global scooter market in 2021 include Yadea Technology Group Co., Ltd., Neutron Holdings, Inc., Ninebot Limited, and Bird Rides, Inc., among others. Most of these manufacturers strongly emphasize providing advanced scooters that incorporate the latest technologies that widen the company's product portfolio and maintain dominance in the scooter market. Further, the companies take strategic initiatives, such as regional expansion, acquisition, merger, partnership, and collaboration.
Organic growth remains the key strategy for most of the market's incumbents. As such, electric scooter manufacturers focus on product launching activities in emerging nations. For instance, in April 2022, Bird, an electric scooter manufacturer, launched an e-scooter in Helsinki. The scooter is incorporated with advanced safety features and has an IP68-rated waterproof battery. Moreover, in May 2021, Bird Rides, Inc., introduced a next-generation scooter, “Bird Three,” with enhanced features, such as a diagnostic monitoring system and a longer-range battery in Berlin. Some prominent players in the global scooter market include:
- Yadea Technology Group Co., Ltd.
- Ninebot Limited
- Neutron Holdings, Inc. (Lime)
- Bird Rides, Inc.
- Spin
- Gotrax
- Segway Inc.
- Razor USA LLC
- Uber Technologies Inc. (Jump)
- OKAI
Order a free sample PDF of the 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.
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