Electric Scooter Battery Market Expected to Reach $7.3 Billion by 2030

According to a new report published by Allied Market Research, titled, "Electric Scooter Battery Market by Product Type and Capacity: Global Opportunity Analysis and Industry Forecast, 2021–2030,"the global electric scooter battery market was valued at $1.0 billion in 2020, and is projected to reach $7.3 billion by 2030, growing at a CAGR of 21.6% from 2021 to 2030.

An electric scooter battery is a power storage unit used to provide voltage (power) to the DC motor, controller, lights, and other scooter accessories. An electric scooter battery consists of one or more cells used to provide voltage (power) to different scooter accessories such as the DC motor, lights, and controller. 

The dependency on lightweight electric vehicles is increasing rapidly owing to zero carbon emission, low operating and maintenance costs, and other factors. Moreover, significant fiscal incentives spurred the uptake of light-duty electric vehicles; thus, scaled up the growth of electronic vehicles and battery industries. This has led both government and key manufacturing companies to invest in building charging infrastructure to provide efficient and advanced charging facilities to customers. For instance, according to a report published by International Energy Agency (IEA), the governments of countries such as China, the U.S., Switzerland, and others, have provided support for electronic vehicle charging infrastructure through measures such as direct investment to install publicly accessible chargers or incentives for EV owners to install charging points at home. This is expected to lead the customers to become more linear toward using electric scooters, which in turn may boost the growth of the electric scooters battery market during the forecast period.

However, the sealed lead-acid batteries (SLA) consist of lead and sulfuric acid that if discarded on the ground may contaminate groundwater and may cause a potential threat to both humans and the environment. Furthermore, several regulatory bodies such as the United Nations Environment Program (UNEP), Environmental Protection Agency (EPA), Ministry of Environment and Forests and others, have laid regulations for the use and disposal of lead-acid batteries. This is expected to hamper the electric scooter battery market growth during the forecast period.   

The rapid growth in the transportation sector uses a lot of fuel that increases pollution and global warming. To promote the use of clean and energy-efficient vehicles lightweight lithium-ion (Li-ion) battery is used to provide voltage to the motor. It has high energy densities than other batteries and a smaller battery size makes it suitable for use in electric scooters. In addition, it uses lightweight lithium for the electrode instead of heavier graphite that enhances the mileage of electric scooters by reducing their overall weight. Moreover, rising completion among key manufacturers of electric scooters has made them more linear toward using the lightweight lithium-ion battery for providing affordable and last-mile transportation. This is anticipated to increase the sales of lightweight lithium-ion electric scooter batteries; thus creating remunerative opportunities for the market.

The electric scooter battery market is segmented on the basis of product type, capacity, and region.

By product type, the market is segregated into Lithium-ion (Li-ion), Lithium iron phosphate battery (LFP), Lithium Polymer (LiPo), Sealed Lead Acid Battery (SLA), and Nickel Metal Hydride Battery (NiMH). The Lithium-ion (Li-ion) segment dominated the global market, in terms of revenue in 2020, with over half of the total market share. They are capable of storing more energy and produce greater output as compared to other electric scooter batteries. This has made the key automobile manufacturers more linear towards using lightweight lithium-ion battery which in turn may propel the market growth.  

By capacity, the global electric scooter battery market is classified into 100–500 Wh, 500 – 1000 Wh, 1000 – 1500 Wh, 1500 – 2000 Wh, 2000 Wh & above. The 1000-1500 Wh segment dominated the global market, in terms of revenue in 2020, with over one-third of the total share. The increasing sales of lightweight electric scooters where 1,000-1,500 Wh batteries are mostly used owing to their lightweight and high efficiency. This is anticipated to increase the sales of 1,000-1,500 Wh batteries; thus creating remunerative opportunities for the market.

Region wise, the electric scooter battery market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific electric scooter battery market size is projected to witness growth at the highest CAGR during the forecast period and accounted for 97.2% electric scooter battery market share in 2020. The Indian government has launched several schemes to provide subsidies on the purchase of electric scooters. For instance, the faster adoption and manufacturing of electric vehicles in the India phase 2 (FAME 2) scheme provides subsidies on the purchase of electric scooters. This is anticipated to increase the sales of electric scooters which in turn may propel the growth of the electric scooter battery market in the Asia-Pacific region.

Key players operating in the global electric scooter battery industry include Contemporary Amperex Technology Co. Ltd., Dande Renewable Energy Pvt. Ltd., Hunan CTS Technology Co. Ltd., LG Energy Solution, Maxvolt Energy, Pastiche Energy Solutions, Pure EV, Samsung SDI Co. Ltd., SmartPropel Lithium Battery, and Xupai Battery Inc.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The electronic scooter battery market has been negatively impacted, due to the wake of the COVID-19 pandemic owing to its dependence on transportation sectors. According to a report published by the International Energy Agency, the global road transport activity was almost 50% below the average by the end of March 2020 as compared to March 2019. Also, several companies have either shut down or shrank their operations, due to the risk of infections among the workforce, which in turn has slowed the production rates of electric scooter batteries during the COVID-19 period. In addition, the falling income of customers and travel restrictions imposed by both local and government bodies has decreased the sales of electric scooters which in turn has led the electric scooter battery market to witness a downfall in demand. Also, around 180 countries have temporarily stopped the trade of unnecessary products, which in turn has hampered the demand-supply chain of electric scooter battery amid the COVID-19 situation.

Key findings of the study

• The Lithium-ion (Li-ion) is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 23.5% from 2021 to 2030.
• The 1500-2000 Wh type is anticipated to register the highest CAGR of 24.8% during the forecast period.
• Asia-Pacific is estimated to grow at a high CAGR of 21.7% during the forecast period