Electric scooter market to reach $41.8 billion by 2032

Press Release, 14 January 2025

The electric scooter market size was valued at USD 25.09 billion in 2023. It is anticipated to grow from USD 26.55 billion in 2024 to USD 41.8 billion by 2032, with an expected CAGR of 5.83% over the forecast period (2025–2032).

Electric scooters are transforming urban transportation with their eco-friendly nature, affordability, and ease of use. As cities aim for greener and more sustainable mobility solutions, the electric scooter market has emerged as a significant player in the global transportation landscape. Let’s dive into the details of this burgeoning industry.

Market Overview

The electric scooter market has witnessed rapid growth over the past decade. With increasing concerns about air pollution and rising fuel prices, consumers are actively seeking cost-effective and environmentally friendly transportation options. Electric scooters, powered by rechargeable batteries, offer a quiet, emission-free alternative to traditional vehicles. They have become particularly popular in urban areas due to their compact design, which makes them ideal for navigating through congested streets and limited parking spaces.

The market caters to various segments, including personal users, rental services, and last-mile delivery providers. Technological advancements, such as the integration of IoT and smart features, have further enhanced the appeal of electric scooters, attracting tech-savvy consumers worldwide.

Market Drivers

Several factors are driving the growth of the electric scooter market:

Environmental Concerns: Governments and consumers are increasingly focusing on reducing carbon footprints. Electric scooters, with zero emissions, are a perfect fit for this objective.
Rising Fuel Costs: The volatility of global fuel prices has made electric scooters a more economical choice for daily commutes.
Government Incentives: Many countries are offering subsidies, tax benefits, and other incentives to encourage the adoption of electric vehicles, including scooters.
Urbanization and Traffic Congestion: With growing urban populations, traffic congestion is a significant challenge. Electric scooters provide a quick and efficient way to navigate through busy streets.
Advancements in Battery Technology: The development of lightweight, long-lasting lithium-ion batteries has significantly improved the performance and range of electric scooters, making them more practical for daily use.
Key Companies in the Electric Scooter Market

Some of the major players driving innovation and competition in the electric scooter market include:

Segway-Ninebot: Known for its advanced technology and stylish designs, Segway-Ninebot is a leading name in the electric scooter industry.
Xiaomi: With affordable and reliable models, Xiaomi has captured a significant share of the market.
Yadea: This Chinese company is one of the largest manufacturers of electric two-wheelers globally.
Ather Energy: An Indian startup that focuses on high-performance electric scooters with smart features.
Bird and Lime: These companies dominate the shared electric scooter rental space in various urban markets.

Market Restraints

Despite its promising growth, the electric scooter market faces several challenges:

High Initial Costs: The upfront cost of electric scooters can be higher than traditional scooters, deterring price-sensitive consumers.
Limited Charging Infrastructure: In many regions, the lack of widespread and accessible charging stations remains a significant hurdle.
Battery Concerns: Issues such as limited range, long charging times, and battery degradation over time can impact user experience.
Regulatory Challenges: In some areas, unclear or restrictive regulations regarding the use of electric scooters hinder market growth.
Durability and Maintenance: Concerns about the durability of components and the availability of repair services can deter potential buyers.

The future of the electric scooter market looks bright, with several trends shaping its growth:

Smart Connectivity: Integration of IoT, GPS, and mobile apps will make electric scooters smarter and more user-friendly, allowing for real-time tracking, remote diagnostics, and enhanced safety features.
Expansion of Charging Infrastructure: Governments and private players are investing heavily in building robust charging networks to support the growing number of electric vehicles.
Innovations in Battery Technology: Research on solid-state batteries and fast-charging solutions promises to overcome current limitations and significantly enhance performance.
Growth of Shared Mobility: The popularity of electric scooter rental services is expected to rise as cities embrace shared mobility solutions to reduce traffic congestion and emissions.
Customization and Personalization: Manufacturers are likely to offer more options for customization to cater to diverse consumer preferences.
Global Adoption: While currently concentrated in urban areas, the adoption of electric scooters is expected to expand to rural regions and developing countries, driven by affordability and government support.