Increasing threat on account of greenhouse gas (GHG) emissions in Europe triggers the automotive industry more than other industrial segments. The GHG emissions in Europe rose from 1,080 million tonnes in 2016 to 1,095 million tonnes in 2017. As a result, the European electric scooters and motorcycles market size, which stood at $284.2 million in 2019, is projected to increase to $758.5 million by 2025, at a 27.6% CAGR during 2020–2025, according to the market research report published by P&S Intelligence.
This is because concerned with the rapid degradation of the environment, the European Union (EU) and governments in individual countries have started implementing stringent emission regulations. Moreover, the European electric scooters and motorcycles market is being driven by government initiatives to encourage people to switch to green mobility. For instance, Italy's government has set aside $11.34 million (€10 million) to offer subsidies on the purchase of electric scooters.
Key Highlights of Electric Scooters and Motorcycles Market in Europe
- Electric scooters continue to witness highest adoption in Europe
- Electric two-wheelers with a >80-km/h maximum speed witnessing rising demand
- Government initiatives key driver for electric scooter and motorcycle sales in continent
- France largest hub for electric two-wheelers in Europe
- Market has consolidated nature
- Automakers launching new vehicle models for higher revenue
Due to the COVID-19 pandemic, the European electric scooters and motorcycles market has been dealt a severe blow, as the factory shutdowns and movement restrictions have almost completely halted the production and import of such automobiles. Moreover, even people have been facing financial distress because of job and salary cuts, so they are not spending on non-essential commodities, including automobiles.
In the coming years, the high-powered motorcycle category, under the product segment of the European electric scooters and motorcycles market, is predicted to witness the fastest growth. European residents have begun opting for electric vehicles (EVs) that offer higher motor power and greater speed with time.
In the years to come, electric scooters and motorcycles with lithium-ion batteries are expected to witness a higher sales value CAGR, of 27.8%, in Europe. These batteries can carry more charge per volume, which offers the vehicle a more extended driving range. Moreover, the cost of these batteries is declining, they are lighter, and their disposal has few associated environmental concerns.
Electric two-wheelers that support the removable battery charging mode are gaining widespread popularity among Europeans because their batteries are easier to charge and cost-effective.
France has contributed the highest revenue to the European electric scooters and motorcycles market for some time now. The country's government has implemented several favourable policies to encourage the adoption of clean-energy vehicles. For instance, companies with fewer than 50 employees are offered subsidies of up to $3,543 (€3,000) on electric two-wheelers, the batteries of which have a capacity of more than 10 kWh.
In the future, sales of electric scooters and motorcycles are expected to pick up the most rapidly in Spain, in terms of revenue. Like in France, government initiatives must be credited for the rising demand for such eco-friendly vehicles. In December 2018, the government started providing an $886 (€750) subsidy in Madrid on electric motorcycles costing less than $9,440 (€8,000) and offering a maximum speed of 70 km/h or above.
NB: Featured photo is representational.