Government encouraging e-scooter businesses: Grab the opportunity to make your own place in this space
Previously, the companies used to deploy their services in cities without any regard for rules and regulations. But now with the rise of electric scooters everywhere around the world, cities have already become hip to tech’s status quo. This we can say has happened because of companies like Uber, Lyft, Bird, and Lime that rose to leave behind the competition.
Though in the beginning, e-scooters faced a lot of challenges, they overcame them step by step luring the common man. The e-scooters proved to be eco-friendly and pocket-friendly as well. But even after a lot of efforts the e-scooters had to face the wrath of city officials for their e-scooters launched on the road without the permission. The scooter startups were concerned about the city regulations as these could make or break their businesses across nearly every aspect of operations.
The two major impacts faced by the business are ridership growth and ability to attract investor dollars. The city officials are now issuing permits and determining how many scooters any one company can operate at any one time. They are also enforcing low-income plans and impacting product roadmaps. As they say, the ball is really in the city’s court.
Global Electric Scooters and Motorcycles Market Size is determined to be valued at USD 20 billion in 2019. The market size will register a CAGR of 8.5% to generate high return opportunity for business professionals throughout the prediction period. Electric scooters and e-bikes market will be fueled by sustainable growth force which will be taken up by different governments across the world.
Exhausting oil reserves have made it necessary to develop alternative solutions. The market of these e-scooters is much stronger in the developing regions of Asia and Latin America. China also experiences a lot of sales in these e-vehicles. However, the last few years have seen tremendous growth and developments in the e-scooter and e-bike industry. There has been an increase in the number of dealers to the adoption of the online sales channel and enhancement in technology. The industry is anticipated to be incorporated by 2025.
Here is a graph showing the advancement in the e-scooter industry:
Challenges faced by Global Electric Scooters and e-bikes Market Drivers
Global e-scooters and e-bike market are essentially driven by a large presence of OEM and government action towards sustainable development. To top it there has been a huge increase in disposable income of the working-class population. This is producing favorable interest in the trade of electric two-wheelers. The increased awareness is also playing an important role in the overall growth of electric scooters. The e-scooters and e-bikes are accounting for over 2.5% of total vehicles on the road. This share is anticipated to touch 8% by 2023.
Growing interest from big-scale manufacturers and deterioration in battery costs by 65% will produce a positive market aspect for electric bikes and scooters players. There are many different players like
Harley Davidson and Yamaha who are poised to increase their product offerings into this area.
According to a report in a renowned website, a total of 129 million units of electric scooters and e-bikes are expected to be running on the road by 2028.
The e-scooter industry is also beholding a huge increase in the number of dealerships. To increase their business presence, companies are focusing more on the sales platform. With the increasing digitization, the shares of the online channel are expected to increase further.
Analysis by vehicle type in the electric vehicle industry:
The electric scooters will continue to dominate the market but the e-bikes will be registering the fastest CAGR during the forecast period.
» Analysis by Battery Type:
The lithium-ion will keep on continuing to dominate the industry granting the light-weightiness and high power efficiency. Moreover, the percent share will rise with improvement in lithium-ion technology.
» Regional Analysis
In terms of regional analysis, Asia Pacific will dominate the global e-scooter market. The Asia Pacific and Western Europe accounted for over 89% of total sales in the year 2018. Asia is mostly dominated by China and India. China market has seen a lot of key development took place. The country not only leads in the overall sale but also in the manufacturing also. The country is a major exporter of e-vehicles in Europe and Africa. Companies in China are concentrated towards product level strategy.
» Competition Landscape
Some of the important e-scooters and e-bikes market industry players are Yadea, Aima, Zhejiang Luyuan, Niu, Amego Electric, BMW, Govecs Group, Honda Motors, GenZe, Sunra, Suzuki Motors Corporation, Yamaha Motors, Zero Motorcycle, Z Electric Vehicle, and Shandong Incalcu Electric Vehicle, etc.
Scope to start your own E scooter sharing business:
Looking at the current market scenario and what we have recently covered about the support from the government authorities of different countries, a huge scope can be forecasted for the newbies in the e-scooter industry.
The most important challenge that people used to face in this industry were related to the government permit. But since different governments are now encouraging the use of eco-friendly vehicles, the challenge to drop your vehicles on the roads is now easily eliminated. As you can see the growing scope of the industry, you can think about gearing up and getting down into the niche with the latest technology and Coruscate as your technology partner.
We can help you out with an app with seamless user interface and the best technological features. You can also refer to various blogs related to the e-scooter business models, manufacturers for your fleet and everything that you need for your business from start to end.
To discuss further regarding the business models and features and cost of app development, connect with us and schedule a free consultation session.