Electric Scooter Battery Market Analysis

Electric Scooter and Battery Market (Global, 2024)

Introduction

Electric Scooter and Battery Market is undergoing a transformation, driven by the confluence of technological development, urbanization and the growing importance of sustainable transport solutions. Electric Scooters have emerged as a viable alternative for short-distance travel, providing an environment-friendly mode of transport that is in line with the growing importance of sustainable transport solutions. The integration of advanced battery technology is vital to enhance the performance, range and efficiency of electric scooters, which will in turn make them more attractive to consumers. Shared mobility services and e-commerce are driving the demand for electric scooters as they provide a convenient and cost-effective solution for the last-mile problem. This report examines the key trends, competitive landscape and consumer preferences influencing the electric scooter and battery market.

PESTLE Analysis

Political

In 2024, the government’s attitude is becoming increasingly favorable to the use of electric means of locomotion, and over thirty countries have introduced subsidies for the use of electric scooters. In Europe, for example, the Green Deal allocates fifteen hundred million to encourage the use of electric vehicles, including scooters. Paris and Amsterdam have even introduced regulations promoting the use of electric vehicles. In fact, by 2025, half of all new cars sold in urban areas must be electric.

Economic

The electric-scooter market is experiencing a considerable change in price. The average price of electric-scooters in 2024 will range from 300 to 1,200 dollars, depending on the model and its accessories. The market for batteries is also expanding. The global production capacity of batteries will be 1,200 GWh by the end of 2024, driven by the increasing need for energy storage. Production will rise from 40,000 GWh in 2021 to 140,000 GWh in 2024, and the production of batteries will be responsible for the creation of 200,000 jobs in Europe and North America.

Social

Electrified vehicles are gradually becoming accepted by the public. Recent surveys show that 66% of city residents are willing to use electric vehicles as their main form of transport. This trend is partly due to the growing awareness of the environment and the desire for sustainable mobility. The average age of electric scooter users is increasing, with 40% now aged between 18 and 34. This is part of a general trend towards a younger public favouring greener means of transport.

Technological

The development of the batteries has had a considerable effect on the market for electric scooters. In 2024 the average energy density of lithium-ion batteries has increased to 250 Wh/Kg, allowing longer ranges and shorter charging times. In addition, the integration of smart features such as GPS tracking and app connection has increased, and more than 70 per cent of new models have these features. The technological progress has improved the experience and the safety, and this has increased the appeal of the electric scooters.

Legal

The laws relating to the use of electric scooters are still evolving, and in some areas they are becoming more restrictive. In 2024, for example, the law in San Francisco required all electric scooters to be registered and insured, and a fine of up to $500 was imposed on those who failed to comply. The U.S. Department of Transportation proposed new safety standards for electric scooters, which would require all riders under the age of 18 to wear a helmet. This reflected the growing concern for rider safety and public policy.

Environmental

Electric scoters are proving increasingly attractive from an environment-friendly point of view. One study found that when replacing short car trips, e-scooters could reduce carbon emissions by up to 30 per cent. By 2024, the average electric scooter is projected to emit 0.015 kg of CO2 per kilometre, compared with 0.12 kg for a conventional car. The lithium-ion batteries are also becoming easier to dispose of. By 2025, the aim is to recycle up to 90 per cent of battery materials, thus reducing waste and enhancing the prospects for a sustainable future.

Porter's Five Forces

Threat of New Entrants

The barriers to entry in the market for electric scooters and batteries are moderate. They include a need for significant investment in both manufacturing and technology. The growing demand for greener forms of transport also attracts new competitors, which increases competition. Brand-name products have advantages in terms of brand awareness and distribution. But innovative start-ups can also disrupt the market with their unique offerings.

Bargaining Power of Suppliers

The bargaining power of suppliers in the electric scooter and battery market is relatively low because of the availability of many suppliers for the key components such as batteries and electric components. Competition has increased in the supply of batteries and components, allowing manufacturers to obtain favorable terms and prices.

Bargaining Power of Buyers

The market for electric scooters and batteries is a highly competitive one, and buyers have considerable bargaining power, owing to the growing number of products on the market. Prices are therefore highly sensitive. The emergence of e-commerce has given buyers even more power to find the best deal, which in turn has forced manufacturers to improve their value propositions and customer services.

Threat of Substitutes

The threat of substitutes in the electric-scooter and battery market is moderate. Electric scooters are popular, but there are also bicycles, public transport, and even old-fashioned scooters. Nonetheless, the unique benefits of electric scooters, such as their convenience and eco-friendliness, reduce this threat. The ongoing development of electric scooters will further reduce the threat of substitutes.

Competitive Rivalry

Competition in the electric bicycle and battery market is intense. There are many companies competing for a share of the market. New companies and established companies are constantly coming up with new ideas to entice consumers. The companies are investing heavily in marketing and research and development to create products with a point of difference, which has resulted in a very dynamic market.

SWOT Analysis

Strengths

• Growing consumer demand for eco-friendly transportation options.
• Advancements in battery technology leading to longer ranges and shorter charging times.
• Government incentives and subsidies promoting electric vehicle adoption.

Weaknesses

• High initial costs of electric scooters and batteries compared to traditional vehicles.
• Limited infrastructure for charging and maintenance in some regions.
• Concerns over battery disposal and environmental impact.

Opportunities

• Expansion into emerging markets with increasing urbanization.
• Partnerships with tech companies for smart features and connectivity.
• Development of shared mobility solutions and rental services.

Threats

• Intense competition from established automotive manufacturers and new entrants.
• Regulatory changes that could impact production and sales.
• Potential supply chain disruptions affecting battery materials.

Summary

The Electric Scooter and Battery Market in 2024 is characterized by strong consumer demand and technological advancements. But high cost and lack of infrastructure are the major obstacles. Opportunities exist in emerging markets and through strategic alliances. Competition and regulations may affect the market. Strategic focus on sustainable development and consumer education will be key to success.