E-Scooter Financing Market Poised for Remarkable Expansion, Eyes US$ 279.8 Billion by 2033

The global e-scooter financing market revenue amounted to US$ 17 billion in 2022. Looking ahead, the e-scooter financing market is projected to expand significantly and reach a total value of US$ 279.8 billion by the year 2033. This growth is anticipated to occur steadily at a CAGR of 29% during the forecast period.

E-scooter financing currently accounts for around 22.6% of the total e-vehicle financing market. In recent years, electric scooters have gained traction because they are convenient, easy to use, and relatively eco-friendly. They are quite simple to drive and hence can be a viable substitute for traditional modes of transportation, particularly in large cities for short distances.

Electrically powered scooters are becoming more popular as consumers prefer personal mobility solutions as compared to public transportation. E-scooters are becoming a more common and vital mode of urban mobility. Rising awareness of environmental pollution and the need to migrate from traditional gasoline-powered vehicles to electric-powered vehicles, which aids in the decarbonization of urban transportation will fuel sales.

Congestion is one of the most serious urban issues faced by cities, causing endless traffic jams. Using public transport results in delays, poor sanitation, cancellations, last-mile commute issues, and even a lack of safety. Individuals are looking for easy, time-efficient, and cost-effective forms of transportation to get to their destinations due to rising traffic congestion and long commutes.

Electric scooters, especially ones manufactured for city transportation, provide a number of advantages. These e-scooters are small enough to fit in public transportation, easy to transfer over short distances, and does not get stuck in traffic in general. Furthermore, electric scooters are free of oil and fossil fuels, making for a green and peaceful mode of urban transportation. Backed by the aforementioned factors, sales in the global e-scooter financing market are expected to gain traction in the forthcoming years.

Key Takeaways from the E-Scooter Financing Market Report:

The e-scooter financing market is poised for significant growth, driven by various factors highlighted in recent reports. Electric mopeds emerge as a lucrative segment, with an estimated absolute dollar opportunity surpassing US$ 126.8 Billion. Moreover, non-banking finance corporations are expected to witness a remarkable surge in demand, projected to grow by 13.4 times during the forecast period. Lease purposes are predicted to drive sales, with an impressive CAGR of 30.3% from 2022 to 2032. Specific regional insights reveal Germany’s potential to generate over US$ 7.8 Billion in absolute dollar opportunity, while the U.S. is anticipated to dominate the North American market share, accounting for approximately 68.5%. Additionally, India showcases promising growth, with the e-scooter financing market expected to expand at a robust CAGR of 36.4% over the assessment period. These findings underscore a thriving landscape for e-scooter financing, indicative of evolving consumer preferences and market dynamics.

Competitive Landscape:

E-scooter financing providers are building strategies such as product innovation to improve their services to meet the growing demand. Players are collaborating with technology professionals to gain a competitive edge.

In March 2022, IDFC First Bank announced a partnership with Ather Energy to provide electric scooter financing options to customers. This partnership is projected to allow customers to make use of instant loans from IDFC First Bank at low interest rates.

In March 2022, L&T Finance joined hands with Hero Electrics to provide consumers with simple financing options, hassle-free loan approvals in under three minutes, and reasonable interest rates starting at 7.99%.

Enigma established a strategic alliance with EZFinance, a financial institution, in July 2023, to boost Enigma’s ability to provide end-to-end e-scooter financing support to its loyal dealers and assure an efficient buying experience for clients countrywide.

Quantum Energy, a well-known electric vehicle (EV) startup specializing in the design, creation, manufacturing, and selling of electric scooters, revealed a strategic partnership with Bike Bazaar in July 2023. This collaboration intends to expedite the implementation of environmentally friendly mobility solutions by making Quantum Energy’s Bziness Pro e-scooters more widely available, especially for last-mile delivery.

Leading Key Players:

The leading key players in the E-Scooter Financing Market include established names such as Bank of America, AEON Credit, Volkswagen Financial Services, HDB Financial Services, IDFC First Bank, Klarna, Katapult, Greaves Finance, L&T Finance, Hyundai Capital, and Affirm. With their diverse range of financial services and extensive networks, these companies play a pivotal role in enabling individuals and businesses to access financing solutions for the purchase of e-scooters, driving the growth and accessibility of this burgeoning market segment.

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