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Exploring the Size and Growth of the Electric Scooter Industry

The electric scooter industry has witnessed tremendous growth in recent years, fuelled by rapid urbanization, increased awareness towards sustainable mobility, and a shift in consumer preferences. As a relatively new and evolving market, the electric scooter industry is poised for significant expansion in the coming years. In this article, we will delve into the size of the electric scooter industry, its growth projections, and the factors driving its boom.

According to a report by Grand View Research, the global electric scooters market According to a report by Grand View Research, the global electric scooters market was valued at USD 18.6 billion in 2019. It is projected to grow at a compound annual growth rate (CAGR) of 7.7% from 2020 to 2027. An important segment of the electric scooter market is the shared electric scooter services, which took off in 2017 with the launch of companies like Lime and Bird. Allied Market Research estimates that the global shared e-scooter market will reach $5.84 billion by 2030, growing at a CAGR of 27.7% from 2021 to 2030.

The demand for electric scooters has been driven by several key factors, including:

  1. Urbanization and traffic congestion: With rapid urbanization comes the problem of traffic congestion in cities. Electric scooters offer a convenient, time-saving, and affordable solution to commuting problems in densely populated areas.

  2. Environmentally friendly: Electric scooters emit no greenhouse gases and are thus an eco-friendly alternative to traditional fuel-powered vehicles, aligning with growing public awareness of climate change and pollution.

  3. Technological advancements: The advancement in battery technology, such as lithium-ion batteries, has extended the range and reduced the charging times for electric scooters. This has made them increasingly practical and attractive for consumers.

  1. Government policies and initiatives: Governments around the world have been promoting the use of environmentally friendly transport solutions, offering subsidies and incentives to encourage electric scooter adoption.

  2. Changing consumer preferences: As millennials and Gen Z become the largest consumer segments, their focus on sustainability and preference for shared mobility services will drive the electric scooter industry.

China currently dominates the electric scooter market, accounting for a majority of the global production and demand. However, Europe and North America are catching up as consumer awareness and demand for eco-friendly transportation rise.

Key players in the electric scooter industry include Xiaomi, Segway-Ninebot, Gogoro, and Ather Energy. However, due to the sharing model's popularity, companies like Lime and Bird have also become significant stakeholders in the market.

While COVID-19 has temporarily impacted the growth of the electric scooter industry due to lockdowns and restrictions on public mobility, the market is expected to bounce back and continue its upward trajectory. The electric scooter industry is increasingly becoming a key component of the urban mobility landscape and is set to grow substantially in the coming years.

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