After China, the U.S. emits the highest amount of greenhouse gases (GHG) into the atmosphere, with the transportation sector accounting for almost 28% of the total emissions in the country in 2018, according to the Environmental Protection Agency (EPA). Similarly, as per the Canadian government, this sector released 186 Megatonnes of Mt CO2 equivalent (eq) of GHGs into Canada’sair, accounting for a 25% (second-largest) share in the total emissions, in 2018. As a result, numerous initiatives are being taken in North America to increase the number of electric vehicles on the roads.
P&S Intelligence credits these government efforts while forecasting a massive 28.4% CAGR for the North American electric scooters and motorcycles market between 2019 and 2024, whereby the sales worth of these automobiles will increase from $154.8 million in 2018 to $675.7 million by 2024. For shorter distances, at least, the government is encouraging the public to switch to electric two-wheelers, by offering purchase subsidies and tax rebates. For instance, in 2017, the Californian government announced a federal tax credit of 10% on every electric motorcycle costing up to $2,500.
In addition, under the Clean Vehicle Rebate Project (CVRP), California offers a $900 rebate on the purchase of electric motorcycles. Similarly, in Canada, the British Columbia Specialty-Use Vehicle Incentive (SUVI) Program offers a rebate of almost $1,524 (CAD 2,000) on electric motorcycles. As a result, the sale of electric motorcycles in North America is expected to rise more rapidly in comparison to those of electric scooters and kick scooters, the latter of which have historically witnessed the highest adoption in the region on account of their incorporation in public sharing fleets.
In the same way, the adoption of electric scooters is increasing in the region, with shared mobility companies incorporating them quickly into their fleets. Available since 2012, the popularity of scooter sharing services has burgeoned in the continent in the last 2–3 years, as they are cost-effective, thus a better option for first- and last-mile traveling than hiring a cab. Moreover, since electric scooters do not suffer as many problems as full-fledged electric cars due to the shorter trip distance, fleet owners are offering more of them every year.
Yet another emerging application area that North American electric scooters and motorcycles market players can see as a lucrative opportunity is food and beverage and grocery delivery. With the rising disposable income of people, they are eating out more often and having food and beverages delivered to them. This, along with the growth of the e-commerce sector, is leading to the expansion of delivery fleets, which generally consist of two-wheelers. Due to the low maintenance costs of electric two-wheelers, they are replacing internal combustion engine (ICE)-based ones in the fleets of regional short-distance delivery service providers.
On the individual level, the adoption of electric two-wheelers in the continent is increasing for almost the same reasons as among fleet owners…low maintenance! Compared to conventional, ICE-based two-wheelers, the electric variants have a simpler drivetrain, therefore, fewer moving parts. This not only leads to a low downtime but also helps consumers save on regular repair and servicing expenditure, which often ends up making automobiles costlier in the long run than they wereto initially purchase.
However, electric vehicles (EVs) are still out of the reach of the masses, as they are expensive, majorly because of the battery. This is why extensive research is being put, which has now reduced the price of automotive batteries to around $209per kilowatt-hour (kWh) in 2017 from $642/kWh in 2012. Apart from making the batteries cheaper, research and development (R&D) has also given them a higher energy density, which offers the vehicle a longer driving range. As range anxiety is another major factor that discourages people from buying EVs, more-powerful batteries are the key to propelling EV adoption.
Therefore, with regional governments offering support for EV adoption and R&D, sales of electric scooters and motorcycles in the U.S. and Canada will increase even further.
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