Asia Pacific Electric Scooter Market (By Battery Type: Lithium-ion, Lead-acid; By Drive Type: Belt Drive, Hub Motor; By End-use: Personal, Commercial) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The Asia Pacific electric scooter market size was estimated at around USD 24.89 billion in 2022 and it is projected to hit around USD 76.96 billion by 2032, growing at a CAGR of 11.95% from 2023 to 2032.

Key Pointers

• The hub motor segment accounted for the largest share of over 81% of the Asia Pacific electric scooters market in 2022. 
• The lithium-ion battery segment accounts for the largest market share of over 74% in 2022.
• The personal end-use segment accounts for the largest market share of 69% in 2022.

Report Scope of the Asia Pacific Electric Scooter Market

The growth is ascribed to the growing government support for the growth and development of electric vehicles in the region in the form of various tax rebate policies and subsidies for purchasing new vehicles. The rising number of start-ups offering advanced electric scooter models and increasing availability of the scooters at physical stores in Tier 2 & 3 cities of the region are further attributed as key factors driving the market growth. Furthermore, consistent fuel price rises and growing awareness regarding environmental concerns are poised to boost the sale of electric scooters in the region. However, the need for digitization in supply chain operations is observed as a challenging factor enabling marketers to focus more on innovative ways to improve supply chain issues.

The implementation of government initiatives such as subsidies, reduction in customs duty, and manufacturing-related schemes has been propelling the Asia Pacific electric scooters market growth. The active enforcement of these government initiatives supported the initial uptake of electric scooters by attracting buyers. For instance, in 2021, the State Government of Maharashtra, in India, announced to provide a maximum incentive of USD 121 on the purchase of new electric scooters for the first 1,00,000 vehicles produced.

A majority of the consumers in the state benefitted from this incentive program thereby creating opportunities for electric scooters manufacturers. Moreover, to encourage the local production of lithium-ion cells used in batteries of electric vehicles, in February 2023, the government of India eliminated the customs duty on the import of goods and machinery used in the production of lithium-ion cells. As a result, such initiatives are cited as a major factor in the increasing sales of electric scooters.

The growing adoption of 5G across the Asia Pacific and the accelerated adoption of smartphones in the region is prompting manufacturers to integrate connected vehicle solutions in electric scooters. Manufacturers are introducing connected scooters that leverage smartphone-to-vehicle connectivity through Bluetooth, cloud, USB, and LAN. For instance, in May 2022, TVS Motor Company, a major two-wheeler OEM from India, launched the TVS iQube Electric scooter featuring an on-road range of 140 km on a single charge.

The scooter also features a variety of cloud and Bluetooth connectivity options and other advanced features such as voice assistance, infinity theme personalization, and a 7" TFT touchscreen with a clean user interface, intuitive music player control, fast charging with a plug-and-play carry-along charger, OTA updates and safety notifications. TVS has also launched the Smart Xonnect app, which provides information regarding the vehicle speed, battery charging level, and charging stations and enables navigation.

High battery raw material prices are one of the key reasons leading to the high total ownership cost of electric scooters compared to their conventional counterparts. The high battery cost is attributed to factors such as limited reserves of chemical elements such as lithium and cobalt concentrated in countries such as China, Australia, and Indonesia.

Electric scooters from major manufacturers such as Ola Electric Mobility and Okinawa Autotech International Private Limited have reported incidents of electric scooters catching fire, resulting in damage or loss of property and injuries to owners, thereby deterring potential consumers from buying electric scooters. Thus, the threat of lithium-ion batteries catching fire is raising concerns over the safety challenges associated with using lithium-ion batteries.

However, with rising concerns over the prices of raw materials for batteries and battery integration in electric scooters, newer opportunity avenues in terms of battery swapping and Battery-as-a-Service (BaaS) technology are observed in the region. Adopting the battery-as-a-service model allows consumers to keep their electric vehicles running without worrying about the draining of batteries. Electric scooter users using the battery-as-a-service model can rent batteries separately from their vehicles enabling electric scooter buyers to purchase the vehicle for less upfront cost.

Moreover, compared to charging stations, battery switching is quicker and requires minimal infrastructure, making it a practical approach to mitigating battery-associated costs. An electric scooter owner can lease or sign up for a battery subscription plan as a more affordable alternative to purchasing a battery pack with the vehicle. With the help of the battery-as-a-service model, the customer can decide to pay only the rental costs for the batteries in exchange for simply owning the vehicle. The owner can swap out the battery in the same vehicle shell for a new one.

Drive Type Insights

The hub motor segment accounted for the largest share of over 81% of the Asia Pacific electric scooters market in 2022. Integrating the hub motor into the electric scooter allows manufacturers to reduce production costs over their counterparts. This has been the key factor driving the segment’s growth. Also, owing to several technical benefits in terms of lower transmission power, considerable performance, and ease in mounting the motor into the electric scooters, manufacturers prefer hub motors over other drive types, thereby driving the segment’s growth.

The belt drive segment is expected to grow significantly over the forecast period. The segment is gaining traction within the scooter market owing to the advantages of this type, such as low maintenance, longevity, and lighter weight. Belt drive-based scooters provide better performance, motor condensation, and enhanced pickup while protecting the scooter from overloading and slips. Over the forecast period, belt-drive scooters are expected to experience higher adoption.

Battery Type Insights

The lithium-ion battery segment accounts for the largest market share of over 74% in 2022. Factors such as the development of new battery cell chemistry, which provides improved range, performance, faster charging time, and lower discharge time, are driving segmental growth. Moreover, the growing focus on sustainable mobility in the Asia Pacific region has promoted major economies such as India and China to implement initiatives such as exemption from import duties and providing subsidies to reduce the price of lithium-ion batteries in their countries accelerating the adoption of electric scooters.

For instance, in February 2023, the Indian Government reduced the customs duty on lithium-ion batteries from 21 % to 13 %, which may reduce the price of electric scooters in the country. Moreover, the Indian government has also announced duties exemption on machinery and capital goods required to manufacture lithium-ion batteries, which may further reduce the price of lithium-ion batteries over the forecast period.

The lithium-ion segment is expected to grow significantly over the forecast period. The segmental growth is ascribed to factors such as development in the structure and chemistry of lithium-ion batteries to increase battery storage and lower charging time. Major incumbents operating in the Asia Pacific electric scooters market are also investing a substantial amount in research and development of improved batteries to mitigate challenges such as high battery cost and battery fires are expected to create new opportunities for segmental growth.

End-use Insights

The personal end-use segment accounts for the largest market share of 69% in 2022. Integration of telematics, improved battery range, and growing traction of electric two-wheelers among millennials are some of the key factors driving the segmental growth. Moreover, manufacturers are establishing charging stations in locations that are situated in prime locations, major roadways, and places with higher footfall, such as eateries and shopping canter’s, further augmenting the Asia Pacific Electric Scooter industry growth.

The commercial segment is expected to grow significantly over the forecast period. The segmental growth is ascribed to factors such as the deployment of electric scooters for last-mile deliveries by e-commerce companies. Also, the growing need to commute quickly using rental services, to avoid excessive traffic congestion has created opportunities in the e-bike rental services segment. Moreover, the expanding last-mile delivery and logistics segments are further augmenting the deployment of electric scooters, as manufacturers are partnering with last-mile delivery service providers to expand their electric two-wheeler fleets.

For instance, in April 2022, Hero Electric announced its partnership with Shadowfax Technologies Pvt. Ltd., an on-demand crowd-sourced third-party logistics platform for supplying e-scooters for last-mile deliveries. Hero Electric will convert around 25 % of the Shadowfax delivery fleet with electric scooters. The association will ensure the growth of carbon-free mobility in the logistics segment while expanding the last-mile delivery offered by Shadowfax Technologies Pvt. Ltd.

Asia Pacific Electric Scooter Market Segmentations:

By Drive Type 

• Belt Drive
• Chain Drive
• Hub Motors

By Battery Type 

• Lead Acid
• Lithium-Ion
• Other

By End-use 

• Personal
• Commercial