Asia-Pacific Electric Scooter Market (2022-2029)

The growth of this market is attributed to favorable government policies and regulations, the rising environmental concerns, and the increasing investments by OEMs & ride-hailing companies in the micromobility space. Furthermore, decreasing prices of batteries offer lucrative opportunities for the growth of this market.

The outbreak of the COVID-19 pandemic emerged towards the end of December 2019 in Wuhan, China. By March 2020, it had already spread worldwide, resulting in huge casualties and heavy economic losses. The pandemic severely impacted several sectors, including the automotive sector, with major manufacturers shutting down their operations completely or operating at reduced capacities following the directives issued by their respective governments. The automotive industry was severely affected by the nationwide lockdowns. Furthermore, the uncertainty regarding the duration of the lockdown and supply-chain disruptions made it more difficult for industry players to anticipate the recovery of the industry. This crisis caused structural shifts that had significant implications on market growth.

The Asian electric Scooter market was moderately affected as the severe spread of the COVID-19 outbreak was limited to some countries. However, several developing countries witnessed a sharp decline in their economy due to low consumer demands and increased prices for essential commodities. As a result, the annual growth of electric Scooter witnessed a severe decline compared to previous years. To overcome this problem, several companies invested huge capital in their research and development programs to enhance the development of electric Scooter. For instance, Hyundai Motor Group developed a new prototype electric scooter with rear-wheel drive, a highly capable lithium battery, and sophisticated front and rear lights.

The Asia-Pacific electric Scooter market is segmented based on vehicle type, power output, battery technology, motor type, charging type, end user, and country. The study also evaluates industry competitors and analyses the market at the country level.

Battery electric vehicles include electric Scooter, e-bikes, electric motorcycles, and other electric vehicles. However, the cost and range limitations associated with batteries are a major restraining factor for the complete transition to electric mobility. Its capacity determines the cost of an electric vehicle battery in kilowatt-hours (kWh), which dictates its range and the power level of the motor supplied. Technological advancements have brought down the cost of electric two-wheelers. Today, EV battery manufacturers are aiming to provide EV manufacturers with high-capacity batteries or reduce battery prices to ensure the overall cost of a vehicle falls under the subsidized range.

The government regulations in Asia to phase out fossil fuel-powered vehicles, the growing concerns raised over the environmental impacts of conventional vehicles, the improvements in battery capacity, and the increasing number of supportive government policies and regulations are promoting the growth of this market.

In 2020, the Government of India announced its plans to invest $4.6 billion in incentives for setting up advanced battery manufacturing facilities and promoting the use of EVs. Also, it announced to retain its import tax rate of 5% for certain types of batteries, including batteries for e-Scooter, e-bikes, electric motorcycles, and other electric vehicles, until 2022. Therefore, such initiatives are expected to help reduce the total manufacturing cost of batteries, thus promoting electric two-wheelers adoption in the coming years.

According to a report by Bloomberg NEF, the average price per kilowatt-hour for batteries is expected to be approximately $100/kWh by 2023, making it possible for electric two-wheeled vehicles to be priced the same as comparable gasoline-powered vehicles.

Several players in the market are incorporating advanced technologies and focusing on ways to reduce the battery size and costs of vehicles and improve their performance and power-to-weight ratio. In 2020, Samsung SDI (South Korea) commercialized a Li-ion battery product to replace liquid electrolytes in a battery cell with a solid electrolyte to improve battery performance. Such developments by major players in reducing the battery size of vehicles and improving their performance further contribute to the growth of this market.