Valued at $29 billion electric scooter market is expected to grow at CAGR of 7.3% in 2022-2028
Vantage Market Research's new analysis of the global electric scooter development Market observes that the advancements in battery technologies are enabling market growth in the industry. Mainly supported by strong government strategies to minimise carbon emission, the total Global Electric Scooter Market is estimated to arrive at USD 29.9 Billion by 2028.
The Global market value for the electric scooter development industry was USD 19.6 Billion in the year 2021 and the market is expected to grow at the Compound Annual Growth Rate (CAGR) of 7.3%.
Key Growth Driver: Advancements in Battery Technologies
The adoption of electric vehicles (EV) is increasing with time. This has led most of the businesses to come up with new battery technologies which might perform more effectively and efficiently in low cost.
- Battery tech that could revolutionize EV charging is the introduction of lithium carbon batteries. This technology has been unveiled by MAHLE Powertrain and Allotrope Energy which offers ultra-fast recharging with good power density.
- The technology combines the benefits of traditional lithium-ion batteries with super capacitors and enables a full charging in a short time.
- In addition, lithium carbon cells are fully recyclable, free from rare-earth metals, and not susceptible to run away. Thus, the new advancements in the battery technologies are also anticipated to fuel the growth of the market in the years to come.
Key Growth Driver: Coronavirus Impact
Electric scooter development industry was also one to be severely affected by the COVID-19 outbreak. . Governments across the world imposed strict lockdown measures and social distancing policies in order to restrict the rapid spread of the virus.
Manufacturing facilities around the world were shut down during the initial stages of the pandemic. There has been a steep drop in revenue since the start of the pandemic in 2020. Hence, market players have tackled a number of challenges as supply chains were affected since then.
However, all industries across the board have been recuperating and coming out of that difficult phase. Now, in 2022, almost 2 years later, we are seeing the post-pandemic era of rehabilitation.
Electric scooter development is taking off again, backed by government support and technology advancement. The demand created after covid-19, is considerable and people are working to increase their production capacity.
On the demand side, Covid-19 has driven the growth of the industry. Main reasons being,
- Budget and finance:
- Many people have faced financial crises in the past two years. Switching to scooter-sharing and electric vehicles in general, has been preferred over expensive fuel. Electric scooter development has definitely made this a selling point for them.
- Fuel Costs
- As stated earlier, fuel cost is an important factor of people switching over to electric vehicles. Electric scooter development has made commute more affordable for the average citizen.
- Environmental Awareness:
- Part of the growth has been driven by environmental awareness and the understanding of harmful effects of carbon emissions. People are sharing information online and otherwise making them more aware of the consequences of pollution, global warming etc. Electric scooter developers are taking this into account and creating more planet-friendly solutions.
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