Less polluting, silent, well-designed ... Electric Motorcycles and scooters are hitting the streets in droves.
Global market estimated at 19.3 billion USD for 2018
Research firm Bekryl recently released a report on the "World Market for Electric Scooters and Motorcycles and Sector Opportunities for 2018-2028." It showed a 40% increase in sales in 2017 compared to 2014. It is estimated that the global market hit 19.3 billion USD for 2018. Bekryl also projects an average annual global growth of 7.8% over 2018-2028. Clearly, we can expect a wave of electric two-wheelers in the coming decade.
Factors boosting sales of electric motorcycles and scooters
The Asia-Pacific region accounts for 64% of global sales in 2018. China and India are the leading buyers. It is the urgency to radically curb air pollution and CO2 emissions in major cities that has generated huge demands for electric scooters in areas where two-wheelers were already incorporated into the transport culture. It is estimated that China sells about 30 million electric scooters and bicycles each year, a market up 5% per year, while that of combustion vehicles shrinks by 9%. About 200 Chinese cities have taken measures to accelerate the transition to electric motorization through the limitation of granting licenses to gasoline vehicles and/or the limitation of traffic in the city centres. In India, while collecting the superlative titles of being the second most populous country in the world and the third most polluting country in the world (after the United States and China), these titles contribute unsurprisingly to the popularity of electric two-wheeler sales, incentivized by government initiatives.
Electric two-wheelers are gaining popularity in Europe and North America. The sales of electric motorcycles and scooters are still marginal, however, but there is no doubt that the electric two-wheelers market has begun its next phase. Sales are up. Environmental issues and urban traffic are driving manufacturers, cities and users to adopt new modes of travel and, in turn, reduce their carbon footprint. Electric scooters are changing the streets of European and North American cities. New products, more efficient batteries, lower prices, subsidies and self-service services set up by cities - all factors that are boosting sales of these vehicles.
The Bekryl study also highlights some key trends for the global market for electric scooters and motorcycles.
Trend # 1: Electric scooter sales will be 2.5 times higher than electric motorcycle sales in 2018
Around the world, the electric scooter is more popular than the motorcycle, likely simply due to cost. In fact, Bekryl anticipates an impressive growth in global demand for this segment, creating an additional $ 15 billion opportunity between 2017 and 2028. To get to work or drive downtown, the scooter seems the most sensible for many - men and women alike. Practically, from its ease of parking spaces, will also contribute to its popularity.
Trend 2: Manufacturers will seek to differentiate their products
The industry is becoming even more competitive thanks to technological advances. A minority of the industry is focused on the development of renewable batteries, while a majority of the industry has focused on the Internet of Things (IoT) or artificial intelligence (AI), including big data, to create smart two-wheelers.
Trend 3: Companies take an innovative approach to growth
The global market for electric scooters and motorcycles is slowly moving towards consolidation. The major players in the market are focusing on mergers and acquisitions as part of strengthening their global position. For example, in 2017, the Taiwan-based Gogoro-based electric scooter company raised US $ 300 million in Series C financing from Temasek Holdings. In 2015, Polaris acquired Brammo to strengthen its position in the electric motorcycle segment. Chinese NIU has just launched a $ 150 million initial public offering in the United States.
It is clear that electric two-wheelers are promised a bright future.