Visit Spain, and you’ll find more electric scooters than cars and motorcycles. And in the next five years, similar scenes could be witnessed in the US and other European countries. The global e-scooter market is skyrocketing as more people are shifting from private and public transport to electric scooter rentals. E-scooters are environment friendly and reduce pollution. Besides, they’re an affordable mode of transportation.
Table Of Contents
- E-Scooters: An Overview.
- Rise of E-Scooters and Scooter Sharing System.
- Statistics Surrounding E-Scooters.
- Usage by Segment – Type, Area, and Demographics.
- The Big Players.
- E-Scooter Future Trends and Opportunities.
- On-Demand E-Scooter Apps: The New Era?
- E-Scooter App Development: The New Business Opportunity.
- Esferasoft for E-Scooter App Development.
- Wrapping Up
In this post, we’ll delve deep into the global e-scooter market trends and statistics and what the future holds for the sector.
E-Scooters: An Overview
An electronic scooter, also known as an electric kick scooter or a motorized scooter, is a stand-up scooter powered by an electronic motor. They’re classified as a form of micro-mobility, where the rider stands in the center. The history of electronic scooters goes back to 1915 when Autoped introduced its stand-up scooter. However, the major revolution in the e-scooter market was seen in 1986, when Go-Ped introduced its first production of stand-up scooters. Go-Ped continued to dominate the market till the early 2010s with several series of e-scooters. In 2013-2014, the first electronic folding scooters running on lithium batteries came into play.
However, most modern-day scooters we see today were introduced in 2018, when scooter-sharing systems became the norm. Now, riders can use an e-scooter app and find a nearby scooter, just like bike-sharing systems. Electric scooters play a pivotal role in the health and safety of the environment. As the pollution due to vehicle emission is at its peak, people are taking environment-friendly measures to commute. This has led to the increased use of e-scooters.
These scooters are more popular in urban areas. Several countries in Europe, including Germany, France, Switzerland, and Austria, have permitted the use of electric scooters in public. They’re also allowed in the US, though the rider needs to be 18+ years of age.
Rise of E-Scooters and Scooter Sharing System
The concept of a scooter-sharing system was introduced in 2018. It’s a service that enables riders to use electric scooters for the short term without owning them. These scooters are dockless, meaning that they don’t have a fixed home location. Riders can spot them using an e-scooter application. The rise of the e-scooter industry can be attributed to myriad developments over the past decade. Let’s look at these events in chronological order.
- Scoot Networks, an American e-scooter company, released moped-style scooters for short-range in 2012.
- Bird and Lime, two American transportation companies, launched dockless eclectic kick scooters in 2017. Within a year, Bird reached 100 cities and a valuation of $2 billion. In the same year, Lime offered more than 11.5 million rides.
- In 2018, Uber and Lyft, the largest ridesharing companies in the US, launched their e-scooter sharing services.
Though the concept of e-scooter ridesharing initially originated in the US, it quickly expanded to other parts of the world. Let’s delve into the international expansion of the e-scooter industry.
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In Asia, e-scooters first emerged in Singapore when Neuron and Grab, two Singaporean mobility startups, introduced e-scooter services in the country.
- Grab managed to amass $10 billion; however, it currently operates from a singular location.
- Neuron soon expanded its operations to Thailand and now owners the biggest collection of e-scooters in Singapore and Thailand.
- In 2018, Uber entered the Southeast Asian e-scooter market by acquiring a 27.5% stake in Grab’s equity.
- In 2018, Lime became the first foreign company to provide e-scooter services in the city, with its headquarters for Asia operations in Singapore.
- Since 2018, both Lime and Bird have been working with Japanese traffic authorities to expand their operations in Japan.
Europe was quick to grab the e-scooter trend.
- In June 2018, LIme launched a large-scale expansion of its e-scooter operations in Paris. In four months, Lime’s mobile app became the top-ranked travel app in France on the App Store.
- By 2019, Lime expanded its European operations to 50+ European cities, including Paris, London, Berlin, Rome, Madrid, and Athens.
- In August 2018, Bird launched its European e-scooter expansion strategy in Paris, which now covers 20+ European municipalities.
- In April 2019, Uber entered the European e-scooter market with Uber Jump with a test launch in Madrid. The company expanded its operations to Europe’s ten most populated urban centers within seven months.
- Felyx, an Amsterdam-based mobility company, has been dominating the e-scooter market in the Netherlands and Brussels.
The entry of e-scooters in South America was late, compared with the US and Europe.
- Yellow owns the majority e-scooter market share in South America. The startup raised a $63 million funding at the start of 2019 and later merged with Grow Mobility, a Mexican e-scooter service. As of 2019 end, Grow Mobility is the biggest e-scooter service provider in South America, with more than 100,000 e-scooters in the country.
- Cosmic Go, a Columbian e-scooter startup, and Movo, a Spanish mobility service, are other major e-scooter players in South America.
Statistics Surrounding E-Scooters
The global e-scooter market is projected to reach $41.98 billion by 2030, with a CAGR of 7.7%. Several factors have contributed to this increasing use of e-scooters and e-scooter sharing services. These include rapid urbanization, an increasing population of Gen Z and millennials, and the rising focus on environment-friendliness and sustainability. To better grasp the rise and expansion of the e-scooter industry, let’s delve into some statistics.
1. Increase in Sales
The global sale of electric scooters and bicycles would reach 50 million units by the end of 2020. The international sale of e-scooters and bikes in 2019 was 46.89 million. This number is expected to reach 129 million by 2028.
2. 8% of Overall Two-Wheelers
By 2023, electric two-wheelers would make up 8% of all two-wheelers on the road. Currently, this number stands at 2.5%.
3. Increased Installs of E-Scooter Sharing Apps.
The monthly installs of e-scooter sharing apps like Bird and Lime increased by 580% during 2018-2019. This number will continue to increase as e-scooter sharing services continue to gain popularity.
4. $1 Fixed Fee plus $0.15 per Minute
The average cost of an e-scooter rise is $3.65. Most services, like Lime and Bird, have a $1 fixed fee per ride, along with a $0.15 per minute cost.
5. Growth in E-Scooter Revenue
The e-scooter revenue is anticipated to rise by 21% By 2023, as major developments and surges are expected in North America, Europe, and Latin America.
6. China to Invest in Charging Facility Infrastructure
China plans to invest more than $2 billion in the charging facility infrastructure, which indicates massive developments in the e-scooter segment in the near future. Many experts consider this move as an invitation to global e-scooter companies for setting up operations in China.
7. Rise of the E-Scooter Market in Different Countries
Until recently, e-scooter sharing was an entirely western concept confined to Europe, North America, and Latin America. While the growth will continue in these regions, countries like China and Singapore will also join the charts. The e-scooter market will reach $200-300 billion in the US, $100-150 billion in Europe, and $30-50 billion in China.
Usage by Segment – Type, Area, and Demographics
In this section, you’ll learn about the segment analysis of the global e-scooter market by type, area, and demographics.
When it comes to the type of battery, lead-acid and Li-ion batteries dominate the market. Until recently, sealed lead-acid batteries were the key players due to their low costs and high power. However, issues like bulkiness and overheating made e-scooter providers think of alternatives. Lithium-ion batteries resolved these problems. They have better efficiency and are less bulky compared with lead-acid batteries. Hence, most modern-day e-scooters are coming with Li-ion batteries.
The e-scooter market is also segmented based on voltage, with the most popular voltage readings being 24V, 36V, 48V, and 48V+. Since 2017, 48V and 48V+ batteries have acquired the largest share. Another segmentation is based on category. Two battery categories – L3e and L1e – consist of the majority market share. The final segmentation is based on e-scooter type, with retro, folding, and self-balancing/standing being the major types.
When segmented by region and area, North America remains to be the market leader. The North American e-scooter sector is expected to grow at a CAGR of 28.4% during 2019-2024. In North America, the US and Canada are the main players, followed by Mexico. The USA, being the epicenter of e-scooter, is likely to dominate the global e-scooter segment. Europe is the second-largest e-scooter market after North America. The expansion of companies like Bird, Lime, and Uber has propelled the e-scooter industry in Europe. This year, an 80% surge in year-on-year unit sales can be witnessed in Europe.
Latin America will continue to be a key player in the global e-scooter market. Electronic scooter startups are thriving in Latin American countries, making the region a potential hotspot for future e-scooter investments.
Lastly, the Asia Pacific region is also making its way to the segment. The APAC e-scooter and motorcycle market could reach 31.2 million units by 2025. China and Singapore will remain the key players in the sector, though countries like India are also on their way to adopting e-scooter sharing services.
E-scooter sharing services are the most popular among the low and medium-income public. More than 70% of people with an annual income under $50k have a positive view of e-scooters. The positive perception decreases slightly as the income increases. When it comes to segmentation by gender, females tend to use e-scooters more than males (72% vs. 67%). However, the difference will soon diminish as more men are ditching personal vehicles for e-scooters and motorcycles.
The Big Players
As the global e-scooter market continues to grow, several electric scooter sharing companies have made their way into the industry. Let’s look at the big players currently dominating the e-scooter segment.
Lime has been one of the industry leaders in the dockless electric scooter sharing industry since the concept of e-scooters first emerged. Established in 2017, the company has its operations in 32 countries, along with 28 states in the US. Currently, Lime has a network of around 120,000 scooters.
Bird is another obvious name on the list. The company has witnessed enormous growth since it went live in September 2017. Bird registered more than 10 million rides in its debut year. As of November-end, Bird had expanded its operations in over 100 cities across the globe.
Headquartered in Stockholm, Voi claims to be the first European e-scooter operator. The company is spread across ten countries and 39 cities in Europe and has more than 4 million scooter users.
Another rapidly growing electric scooter company in Europe, Tier offered over 10 million rides within 14 months of its launching in July 2018. The company is headquartered in berlin has operated in 44 locations in Europe, along with Abu Dhabi.
Beam is a Singapore-based e-scooter company and one of the fastest-growing e-scooter sharing providers in the Asia Pacific Region.
One of the oldest players in the electric scooters segment, Scoot Networks is one of the biggest e-scooter company in San Fransisco. It’s coming up with the new Scoot Kicks variant of scooters.
Another European name on the list, Circ, is a Zurich-based e-scooter company that reached 1 million scooter rides within five months of its initial launch. As of now, the Circ is headquartered in Berlin and operates in dozens of cities in Norway, Sweden, and Southern Europe.
E-Scooter Future Trends and Opportunities
E-scooter sharing is gradually becoming a major transportation trend in several countries. The increasing focus on environment-friendliness and the need for effective, low-cost transportation has contributed to the surge of the market.Let’s look at some future trends and opportunities in the global e-scooter sector.
1. Acceptance by Government
Back in the day when e-scooters were newly launched, e-scooter companies had a hard time getting government approval. To date, several states in the US and many countries in Europe haven’t approved electric scooters for safety reasons. This can soon change. Governments across the globe are contemplating the implementation of electric scooters. In the next five years, you can witness a spike in government approvals of electric scooters in all regions of the world.
2. Increasing Number of New and Repeat Users
The number of people riding electric scooters is increasing, and this number will rise in the near future. More people than ever are getting acquainted with the benefits of e-scooters. And thanks to e-scooter sharing services, people can ride the scooters without even owning them. Hence, more people than ever are using electric scooters – some to help the environment, some to save money, and some for fun.
3. Increased Funding
Investors have shown interest in e-scooter companies since their introduction in 2017. The bird had raised over $415 million in funding soon after it launched. Tier also managed to raise an investment of $250 million in a single round. Other companies like Voi and Circ have also done a great job raising investment. As the e-scooter market continues to thrive, investors will show interest in new e-scooter and ridesharing startups. This also means new players are likely to enter the market with innovative e-scooter sharing solutions.
4. Beyond Customers
The use of e-scooters isn’t confined to riders looking to avoid walking. Many companies and universities with large campuses are deploying e-scooter services for their employees and students. It helps individuals avoid walking long distances, helping them reach their destination faster in a hassle-free manner.
On-Demand E-Scooter Apps: The New Era?
As dockless e-scooter services become the new norm, on-demand e-scooter applications are gaining popularity. These applications allow riders to spot scooters and rent them. Since most e-scooter companies provide dockless services, customers can rent any scooter near their location. This makes renting a quick and seamless experience. Let’s take a look at some key features every e-scooter app should have.
1. Scooter Location
Riders should be able to locate nearby scooters with just a click. Most e-scooter sharing service providers like Birt and Lime provide similar capabilities. The user can simply install and open the app. A map interface opens up, which shows the rider’s location along with the location of nearby e-scooters. The user can then walk to the scooter and start a ride from the app.
2. QR Codes
QR codes make the process of booking and making payments easier. Users can scan the code and book a ride or make the payment, thereby eliminating the need for cash or paper-based tickets or tokens.
3. GPS for Easy Tracking
Each e-scooter sharing app has GPS functionality that enables it to track nearby scooters. With this function, riders can find all scooters in their area within seconds.
4. Hassle-Free Payments
E-scooter sharing apps include multiple payment methods, such as PayPal, Braintree, Stripe, etc. This ensures hassle-free payments and provides a seamless experience to customers.
5. Push Notifications
These apps come with push notifications capabilities so users can get real-time information regarding their rides. On the other hand, e-scooter companies can also use push notifications to inform their riders about the latest deals and offers.
E-Scooter App Development: The New Business Opportunity
If you’re looking for a lucrative business idea with amazing growth and scalability potential, the e-scooter sharing business is the way to go. Here’s why entrepreneurs and business owners should invest in e-scooter app development.
1. Increasing Demand
The demand for dockless e-scooter sharing services is surging. People are becoming more environmentally conscious and are ditching private transport for electric scooters and motorcycles. By developing and providing an e-scooter app, you can attract a large number of customers in a short time period.
2. Low Competition
While new e-scooter sharing brands are erupting, the competition is still low, especially in Africa, Australia, and the Asia Pacific region. By offering a high-quality e-scooter app, you can gain success and develop a successful and sustainable business.
3. Instant Return On Investment
Unlike other business models where you have to see returns, the e-scooter sharing business provides an instant return on investment. All you need to do is develop the app and connect it with your e-scooters. Users can download it and start riding their scooters. If you can’t have your own scooters, you can partner with other e-scooter companies to provide a unified platform for numerous e-scooter services. You can charge a small commission fee for each ride to generate revenue.
4. Abundance of Investors
All major e-scooter sharing companies – Lime, Bird, JUMP, etc. – managed to find investors with ease in a time when hardly anyone knew about e-scooters. Now, as the market is worth billions, a sea of investors is eager to invest in new e-scooter opportunities.
Esferasoft for E-Scooter App Development
When it comes to developing an e-scooter app, quality and expertise are crucial. The competition in the sector will soon increase, and only the businesses that provide the best quality will prevail. Therefore, working with an experienced on-demand app development company that understands your requirements is crucial.
Esferasoft can help.
At Esferasoft, we provide cutting-edge e-scooter app development solution that offers the best experience for both users and service providers. We follow a transparent development process to develop solutions that align with your business objectives. Our team of development experts ensures you achieve the business goals you desire.
Some key benefits of our e-scooter app development solution are:
- Pre-Built Solution
- White Label & Customizable
- Domain Expertise
- On-Premise and Cloud Deployment
- Intuitive User Experience
Get in touch with Esferasoft to discuss your e-scooter app development requirements now.
The e-scooter market holds myriad opportunities for new businesses and startups. The sector is still in its primordial stage, with several developments and advancements on their way. Hence, it’s the ideal time to invest in e-scooter app development. If you’re looking for high-quality e-scooter app development services, make sure to get in touch with Esferasoft.