July 2020 | Report Format: Electronic (PDF)
The Africa electric scooter market size is expected to reach USD 56.2 million by 2025, exhibiting a CAGR of 6.5% over the forecast period, according to a new report by Grand View Research Inc. Growing popularity of scooter sharing services in the region is likely to trigger product demand. Slyd, Rabbit, and Bolt are some of the players offering electric scooter sharing services in Africa.
In addition to reducing carbon emissions, cost-effectiveness has been a crucial factor driving the popularity of electric scooters in the region, emerging as a preferred mode of transportation in urban areas. Sleek design and easy handling capabilities enable the user to avoid traffic congestion. Furthermore, convenient last-mile transportation achieved through the use of these battery-operated vehicles has played a pivotal role in their adoption. High growth potential of such services is encouraging an increasing number of ride-sharing companies to foray into the field.
Batteries play an essential role in building a compact, lightweight, high-performance, and cost-effective electric scooter. Features such as short charge time, eco-friendliness, and long battery-life proliferate the adoption of Li-Ion battery in these vehicles. The capacity of sealed lead-acid batteries reduces to around 50 percent of the initial capacity after 18 months of use. In contrast, the capacity of Li-Ion batteries remains around 75 percent of the initial capacity even after 36 months of use. Thus, the Li-Ion battery segment is anticipated to exhibit the highest CAGR over the forecast period.
Growing consumer awareness is playing a pivotal role in shaping the market. Over the past decade, soaring carbon emission by traditional fuel-based vehicles has emerged as a critical concern for government authorities. Furthermore, shortage of natural reserves and fuel has influenced the shift from fuel-based to battery-operated vehicles. Declining prices of raw material are also expected to reduce the overall cost of electric scooters, thereby driving the market.
Further key findings from the report suggest:
- The retro/self-start product segment accounted for the largest Africa electric scooter market share in 2018 and was valued at USD 21.3 million. Cost-effectiveness of this product type for shorter distances has driven its demand
- Sealed lead acid battery held the dominant share in 2018 and this trend is likely to continue over the forecast period owing to its reliability and cost-effectiveness
- In terms of voltage, the 36V segment accounted for a larger share compared to other alternatives. These variants offer better charging time, subsequently augmenting vehicle performance
- Key players operating in the market include Gogoro Inc.; Honda Motor Co Ltd.; JIANGSU XINRI E-VEHICLE Co. LTD; Yamaha Motor Company Limited; Suzuki Motor Corporation; and KTM AG.
