Scooter Market size was over USD 36.6 billion in 2023 and is likely to reach USD 127.8 billion by the end of 2036, witnessing around 10.1% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of scooter is estimated at USD 40.2 billion.
The scooter market expansion is due to the rapid shift towards urbanization and improved road networks in developing nations. According to the United Nations Population Fund (UNFPA), more than half of the world’s population lives in cities and towns and this number is expected to reach up to 5 billion by 2030. Scooters are more common than cars for personal mobility since they are less expensive, simpler to use, and easier to park. In most parts of the world, scooter licensing requirements are generally less expensive and demanding than those for cars and other vehicles, and insurance is also affordable.
In many cities, scooters are seen as a practical solution to traffic congestion and pollution, offering a more sustainable alternative to traditional vehicles. Additionally, advancements in battery technology and the expansion of e-scooter sharing solutions contribute significantly to the market’s growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
10.1% |
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Base Year Market Size (2023) |
USD 36.6 billion |
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Forecast Year Market Size (2036) |
USD 127.8 billion |
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Regional Scope |
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Electric Scooter Type (Conventional, Swappable)
The conventional segment in the scooter market is poised to capture the largest share of 86.4% by the end of 2036. The segment growth can be attributed to the advantages of conventional scooters, such as being lightweight and robust, and having lower initial and maintenance costs. Furthermore, conventional electric scooter manufacturers focus on developing technologically advanced electric scooters at a minimum price, contributing to a high segmental share. For instance, in 2023, the TVS X was the second electric scooter that TVS Motor Company released. This cutting-edge scooter is built on the sturdy TVS XLETON platform, which is well-known for its high-strength aluminum construction.
On the other hand, the swappable segment is also expected to garner a significant share of 13.6% during the forecast period. The segment is expanding since automakers are working harder and longer to develop battery-swapping technology that will enable scooter owners to replace their depleted batteries with fully charged ones. Battery-swappable electric scooter manufacturers are beginning to provide models without built-in batteries so that consumers can choose the batteries that best suit their needs and budget.
Product (Electric, Normal)
The normal (or conventional) segment in the scooter market is estimated to hold a notable share by the end of 2036. The segment is growing, and the market for scooters is expected to rise as a result of rising disposable income. With higher disposable income, consumers may choose to upgrade or replace older scooters with newer models. This trend can boost sales in the conventional scooter segment. Moreover, in areas with well-developed fuel infrastructure, conventional scooters are convenient and practical, as they do not rely on charging facilities. Also, the availability of a diverse range of models catering to different needs and preferences helps sustain demand in the normal scooter segment.
Our in-depth analysis of the global market includes the following segments:
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Product |
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Electric Scooter Type |
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APAC Market Statistics
The scooter market in Asia Pacific is anticipated to hold the largest share of 37% by the end of 2036. The market expansion is attributed to the rapid urbanization in countries such as India, and China, which demands efficient space-saving transportation solutions. Scooters are well-suited for navigating crowded urban environments. Moreover, rising disposable incomes and economic growth in the region increase consumers’ purchasing power, making scooters more accessible to a larger segment of the population. According to the International Monetary Fund, in 2023, economic growth in Asia Pacific exceeded forecasts and achieved 5.0%annual growth.
In China, consumers are highly opting for scooters as their primary mode of transportation. Due to the government's emphasis on environmentally friendly transportation and the advancement of battery technologies, electric scooters have become more popular in the country. Compared to conventional gasoline-powered scooters, electric scooters are more environmentally friendly and sustainable, supporting the nation's environmental objectives.
In India, scooters are a popular mode of transport due to their ease of use and ability to handle diverse road conditions, contributing to their widespread adoption. Additionally, the Government of India has introduced policies and incentives to promote electric vehicles, including electric scooters. Initiatives such as Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme support the growth of the electric scooter market.
In South Korea, shared electric scooters are gaining popularity as urban areas become increasingly crowded. Shared electric scooters are in high demand in major cities like Seoul and Busan, driven by both locals and visitors looking for a convenient method to get around the city.
North America Market Analysis
North America will also encounter huge growth for the scooter market during the forecast period and will hold the second position owing to the increasing adoption of rental electric scooters because of their sustainability and efficient mode of transportation. The demand for rental electric scooters among consumers is mostly due to their accessibility and availability, which also promotes the market's overall growth.
In the U.S., the growing demand for electric scooters is one of the major factors propelling the market growth in the region. For instance, by 2029, there will be 30.90 million users, with a user penetration rate of 8.34% in 2024 and 8.9% in 2029.
In Canada, increasing technological advancements including enhanced security measures, alert systems, remote telemetry, and GPS tracking are accelerating the growth of the market. For instance, in 2024, Monimoto, a global leader in GPS tracker solutions for power sports and bicycles, introduced the Monimoto 9, a dust and water-resistant unit tailored to the needs of UTV/SxS users. Its tiny size and enhanced durability make it an ideal way to provide peace of mind to off-road enthusiasts.
To maintain their market positions, industry players are pursuing strategic initiatives such as regional expansion, mergers and acquisitions, partnerships, and collaboration. Organic expansion remains the primary strategy for the majority of the market's incumbents. Electric scooter producers concentrate on product launch activities in emerging markets.
Author Credits: Saima Khursheed
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