That valuation sounds like the business has a serious grasp on the market.
BuzzVestor did a quick snoop to see where this market is going. And supposedly it has traction, according to a new report.
The Global Electric Scooter and Motorcycle market accounted for $7.5bn in 2018 and is expected to reach $16.5bn by 2027 growing at a CAGR of 9.2% during the forecast period, according to a Research and Markets report.
The rechargeable battery-powered two-wheel vehicles are cashing in on greater consumer demand for cleaner transport. Recharging infrastructure will be a hurdle until investors tap that opportunity.
Analysts estimate that the e-motorcycle segment is going to have a lucrative growth proposition during the forecast period owing to the advancements in battery technology, the range and performance standards of electric two-wheelers. As e-motorcycles serve different purposes such as cruising, racing, off-roading, and commuting, their demand would rise in the future, said the report.
Having lived in Southeast Asia for a few years and navigated the roads (I lived to write this story), I am putting my bets on Asia remaining the honeypot. That is when prices come down, and cheap electricity is readily available in convenient locations. Motor scooters are the leading form of transport, however, not for the hipsters (yes, you can be hip at 40+ too), being targeted in the US and Europe. This is also a mass targeting in Asia, but perhaps at a very different price point that meets the every-man kind of customer.
But a Wired report questions the viability of e-bikes on US roads without the proper road infrastructure.
“American cities will need to dedicate public roads to micromobilty as they have in China, where massive protected bike lanes flank boulevards. Cyclists on 40-pound vehicles should not be forced to ride shoulder to shoulder with cars weighing 4,000 pounds. Asking them to do so is dangerous and impractical,” said the Wired report.
The e-bikes are also causing a lot of grief among auto drivers in cities, such as Madrid, or so says my super hip 30-something nephew, who has had to curb his e-scooter use for his morning commute on account of being harassed my perturb drivers.
McKinsey estimates that in the US, EU, and China micromobility could be a $300bn to $500bn market by 2030. Barclays predicts the market will be worth nearly $900bn.
By 2040, I planned on being on a motorized scooter anyway, but by then it will be hip, powered by renewable energy and get me to the church hall on a Saturday night, faster than you can say BINGO!