Scooter Market Trends

Growth Drivers

• Growing demand for electric scooters: E-scooters are in greater demand on the international market as a result of consumers' growing preferences for quick travel and lower running costs, including cheaper maintenance and no fuel expenses, which make them a more economical option. It is anticipated that by 2028, there will be 143.50 million e-scooter users. By 2028, it will have 1.8% of the user base, up from 1.3% in 2024. Growing public consciousness of pollution and global warming is shifting consumer preference away from fuel-powered scooters and toward electric scooters. Also, the growing demand for lightweight vehicles and the need for modern, environmentally friendly transportation have led to an increase in the market for electric scooters.

• Expansion of logistic businesses: The rise in e-commerce and delivery services drives the need for efficient last-mile delivery solutions. Scooters, especially electric ones, are well suited for this task due to their flexibility and lower operating costs. According to the International Trade Administration, the e-commerce industry will be valued at USD 26 trillion by 2026. Logistics companies opt for scooters since they are more cost effective than traditional delivery vehicles. They help reduce expenses related to fuel, maintenance, and parking. Thus, there is an increased adoption of scooters in the logistics sector, contributing to the overall growth of the scooter market.
• Growing popularity of scooter rentals: Scooter rentals offer a convenient transportation option for short trips in urban areas. As cities face increasing traffic congestion, rental scooters provide a practical alternative for quick and efficient travel. Rentals allow users to access scooters without the upfront cost of purchase and maintenance. This flexibility attracts more people to use scooters for their daily commute or occasional needs. Moreover, increasing investments and partnerships in scooter-sharing programs and supportive regulations in urban planning contribute to the growth of the market.
• Growing incorporation of new technologies: The scooter producers are integrating new technology into their products to boost speed, improve battery efficiency, and lower the cost of ownership for consumers. Additionally, a variety of scooters have been introduced by electric scooter producers in emerging economies. For instance, in July 2024, BMW Motorrad India pre-launched reservations for the brand-new BMW CE 04, India's first high-end electric scooter. The innovative design and urban mobility are seamlessly combined in the all-new BMW CE 4. Its cutting-edge design, eco-friendly performance, and futuristic appearance redefine city commutes.

Challenges

• Regulatory challenges: Different regions and cities have varying regulations regarding scooter usage, such as speed limits, helmet requirements, and designated riding areas. Navigating this patchwork of rules can be complex for manufacturers and operators. Moreover, regulations requiring specific insurance coverage or liability measures can add operational costs and complicate the management of scooter fleets.
• Safety concerns: High rates of accidents and injuries involving scooters can deter potential users. This includes risks from collisions with vehicles, pedestrians, or other obstacles, which raises concerns about rider safety. Insufficient or poorly maintained infrastructure, such as inadequate scooter lanes or poorly lit areas, can contribute to accidents and make riding less safe, which discourages use.