Global Electric Scooter and Motorcycle Market Analysis Report 2022 Featuring Major Players - Yadea Group, Jiangsu Xinri E-Vehicle, NIU International, Silence Urban Ecomobility, and Hero Electric
The global electric scooter and motorcycle market is expected to account for 6,193 thousand units by 2027, growing at a CAGR of 33.1%
Favorable Government policies for electric two-wheelers through subsidies & tax rebates and the development of charging infrastructure together with OEMs would support the growth of the electric scooter and electric motorcycle market in near future.
Consumers from emerging countries are already affected by the increased cost of petrol. Electrical two-wheelers operating on electricity will reduce the operating cost of these vehicles. These two-wheelers are more efficient than conventional ones. Electronic systems are more resistant than mechanical ones because they break less often due to less friction and, logically, less wear.
As a result, electric two-wheeler vehicles last longer and therefore reduce the environmental impact in their use compared to vehicles powered by fuel. Manufacturers are expected to develop electric scooters and motorcycles that have a higher range than the current breed of electric two-wheelers.
The 48V segment is expected to be the largest voltage segment in the forecast
In Asia Pacific, most electric scooter/moped manufacturers prefer 48V batteries over 36V. For instance, Hero Electric is one of the leading Indian companies offering 48V electric scooters for daily commuting. Models such as VMOTO CUmini, Govecs Elmoto Loop, Sunra Lander, Zhejiang Luyan ZK5, INNO7, etc are models equipped with 48 V batteries. With improving battery technologies demand for batteries with higher voltage will have the highest adoption by automakers over the forecast period.
Factors such as range and efficiency will also play a key role in the choice and selection of batteries by manufacturers which will determine the future demand for batteries.
Economy segment is expected to be the largest vehicle class segment during the forecast period
The economy class segment is projected to be the larger segment in the electric scooter and motorcycle market during the forecast period due to the less initial price as compared with the luxury segment and the growing demand for affordable commuting. These kinds of electric scooters and motorcycles sell mostly in developing countries as an affordable alternative to other commuting options such as public transport buses and trains.
Several well-established two-wheeler manufacturers have entered the Economic segment. China and India represent the most important markets for economy class electric scooters due to the high inclination of the consumers toward low-cost commutes. In Asia Pacific, electric scooters are primarily considered a flexible mode of transport for the daily commute and short-distance traveling.
According to industry experts, most electric two-wheelers sold in India and China by major players fall in the range of USD 400 to USD 900 due to consumer spending patterns and current driving needs. For instance, companies such as Hero Electric, Pure EV, Okinawa, Ampere, and TVS cater to the economy segment in the Indian market.
Similarly, the Chinese market is dominated by two-wheelers manufactured by Yadea, Jiangsu Xinri, and Luyuan. Yadea G5, Hero Nyx LX, Hero Flash LX, Revolt RV 400, Ampere Zeal Li, Vmoto TC, and TS are a few of the models in this category.
Lithium-ion battery is estimated to be the largest battery segment in the forecast period
The lithium-ion segment is projected to be the fastest-growing electric scooter and motorcycle market during the forecast period. Manufacturers are attempting to develop electric scooters and motorcycles equipped with advanced lithium-ion batteries. The limited lifecycle and usable capacity are likely to shift the focus from lead-acid batteries to lithium-ion batteries and drive the electric scooter and motorcycle market during the forecast period.
Another advantage of a lithium-ion battery is that it is lightweight, which helps maintain the energy to weight ratio of the vehicle. Its electrodes are made of lithium and carbon. It can store more energy per kilogram of weight than a lead-acid battery. Lithium-ion batteries require less energy to keep them charged than lead-acid batteries.
The charge cycle is 90% efficient for a lithium-ion battery vs. 80-85% for a lead-acid battery. Lithium-ion batteries are also considered more environmentally friendly than lead-acid batteries, making them a preferable choice. Also, the cost of lithium-ion batteries is high, but it has come down significantly in the last few years, which is expected to reduce further.
The electric scooter and motorcycle market comprises major companies such as Yadea Group Holdings Ltd. (China), Jiangsu Xinri E-Vehicle Co., Ltd. (China), NIU International (China), Silence Urban Ecomobility (Spain), and Hero Electric (India).
Market Dynamics
Drivers
Rising fuel prices
Need to minimize the levels of collective carbon footprints
Increasing affordability of electric two-wheelers
Increasing Government initiatives toward electric mobility
Restraints
High time consumed in recharging process
High cost of batteries along with high initial costs
