The North American electric scooters and motorcycles market is likely to reach $675.7 million by 2024, with a CAGR of 28.4%, according to P&S Intelligence.
Emergence of electric scooter sharing fleet, government policies and incentives, development in battery technology, and low maintenance cost are the key factors driving the growth of the market.
Emergence of electric scooter sharing fleet is responsible for the growth of the North American electric scooters and motorcycles market. Many new sharing service providers have started to deploy electric scooters and kick scooters in their fleet. Further, the availability of smart charging stations and application of these vehicles in food and beverages delivery services are opening up new opportunity for the growth in the market.
Favorable government incentives and federal tax credits are a major driver in the market
Growing importance for environment-friendly transportation systems in order to reduce greenhouse gas (GHG) emissions is one of the major factors enabling governments to support the sales of electric scooters and motorcycles. The support is provided by offering several incentives and tax credits to customers at the time of purchase of these vehicles, which trigger the growth of the North American electric scooters and motorcycles market. Selected regions, states, and cities provide incentives for buying electric motorcycles. For instance, in 2017, the Government of California offered 10% federal tax credit for the purchase of electric motorcycle, up to $2,500, in that year. Also, Clean Vehicle Rebate Project (CVRP) promotes adoption of clean vehicles in California by providing rebates of up to $900 for the purchase of electric motorcycle in the state.
The U.S. stands as larger market for electric scooters and motorcycles in North America
The U.S. was larger market for these vehicles, in terms of volume, contributing close to 85% share to the North American electric scooters and motorcycles market in 2018. Factors driving the growth of the market in the U.S. are faster adoption of electric vehicles (EVs) in the country, support by the government in form of financial and non-financial incentives for the procurement of these vehicles, and high commuter base.
North America Electric Scooters and Motorcycles Market Competitive landscape
The major players operating in the market are KTM North America Inc., Razor USA LLC, Segway Inc., TORROT ELECTRIC EUROPA S.A., Zero Motorcycles Inc., Mahindra GenZe, Energica Motor Company S.p.A., and Alta Motors.