As per MRFR analysis, the Electric Two-Wheeler Market Size was estimated at 26.94 (USD Billion) in 2023. The Electric Two-Wheeler Market is expected to grow from 30.05 (USD Billion) in 2024 to 100 (USD Billion) by 2035. The Electric Two-Wheeler Market CAGR (growth rate) is expected to be around 11.55% during the forecast period (2025 - 2035).
Regulatory backing and shifting consumer tastes are driving major changes in the Electric Two-Wheeler Market. Recognizing the effect of emissions on climate change, consumers are being encouraged to switch from conventional gasoline-powered vehicles to electric alternatives.
Governments everywhere are promoting this shift by putting in place advantageous laws and incentives, such tax breaks and subsidies for buying electric cars, which serve as powerful market stimulants. Additionally, electric two-wheelers are becoming increasingly appealing to a larger audience due to improvements in their performance and range brought about by breakthroughs in battery technology.
The demand for effective and environmentally sustainable transportation options is rising along with the world's urbanization. Electric two-wheelers are being progressively included into ride-sharing and leasing services as part of the shared mobility trend, offering consumers who value flexibility easy choices.
In developing economies, where rising disposable incomes and rates of urbanization may greatly accelerate the adoption of electric two-wheelers, there are also a lot of chances to investigate. Manufacturers have recently concentrated on creating models that meet a range of consumer demands, from entry-level commuter cars to high-performance choices.
Additionally, partnerships between digital firms and automakers to create intelligent features and connection for electric two-wheelers are becoming a prominent trend. As the market develops, the incorporation of these intelligent technologies is anticipated to draw in tech-savvy customers and propel the Electric Two-Wheeler Market's expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Government support plays a crucial role in the growth of the Electric Two-Wheeler Market. Various countries are implementing policies that favor electric vehicle adoption through subsidies, tax incentives, and rebates. For instance, numerous Asian countries, including India and China, are investing heavily in electric mobility.
The Indian government has set a target of achieving a significant increase in electric two-wheeler sales as part of its national policy framework, which aims for 30% electric vehicle penetration by 2030. This initiative is supported by the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which allocated a budget of approximately USD 1.4 billion to promote electric vehicles.
Such financial backing from governments encourages manufacturers to innovate and consumers to adopt electric solutions, resulting in a projected increase in sales volume and overall market growth in the coming years.
Advancements in battery technology significantly impact the Electric Two-Wheeler Market, emphasizing the need for efficient and longer-lasting batteries. Research and Development efforts led by organizations such as Tesla and Panasonic are driving progress in lithium-ion battery technology.
For example, improvements in battery density and reduction in production costs have led to an average battery life of more than 300 miles on a single charge.
The Global Battery Alliance reports that innovations in battery recycling processes can facilitate the sustainable growth of electric two-wheelers, thus improving consumer adoption rates. With these technological advancements, consumers are more inclined to choose electric over traditional gasoline-powered two-wheelers, thereby contributing to market growth.
Rapid urbanization accompanied by increased environmental awareness drives the growth of the Electric Two-Wheeler Market. According to the United Nations, it is projected that by 2050, 68% of the global population will live in urban areas, leading to increased traffic congestion and pollution. This demographic shift compels governments and citizens to seek sustainable transportation options.
Electric two-wheelers are viewed as a solution to mitigating urban pollution, with cities like Amsterdam and Copenhagen setting examples by encouraging electric mobility and reducing vehicular emissions.
Reports indicate that electric vehicles emit about 50% less CO2 compared to conventional vehicles. The rising environmental concerns thus catalyze consumers to transition toward electric two-wheelers for cleaner commuting, ultimately boosting market demand.
The escalating prices of fossil fuels worldwide play a significant role in speeding up the adoption of electric two-wheelers in the Electric Two-Wheeler Market. As oil prices fluctuate, the cost-efficiency of owning and operating electric two-wheelers becomes increasingly attractive.
Reports from various governmental energy departments indicate that the average cost of gasoline has risen by over 50% since 2020, which incentivizes consumers to look for alternative, more economical forms of transportation.
Electric vehicles can provide significant savings on fuel costs, as electric charging typically costs much less than gasoline. Additionally, organizations like the International Energy Agency are projecting that by 2030, electric vehicles could account for a significant portion of new vehicle sales, reflecting consumer awareness on cost-saving benefits in tandem with reduced reliance on fuel prices.
The Electric Two-Wheeler Market, an evolving segment of the transportation sector, was poised for remarkable growth, driven by the increasing demand for eco-friendly and efficient urban mobility solutions. Within this expansive market, the type segmentation played a vital role, significantly influencing the dynamics of the overall industry.
Electric Scooters emerged as a dominant force, estimated to be valued at 12.0 USD Billion in 2024 and projected to surge to 40.0 USD Billion by 2035. Their popularity stemmed from their practicality for urban commuting, ease of use, and lower operational costs, making them a preferred choice among consumers looking for green alternatives in congested cities.
Electric Motorcycles, another crucial category, held a valuation of 10.5 USD Billion in 2024, anticipated to expand to 35.0 USD Billion by 2035. This segment appealed particularly to younger riders and those seeking performance and adventure, reflecting a significant lifestyle choice that aligns with the rising trend of sustainable transportation.
Mopeds, with a valuation of 4.55 USD Billion in 2024, are expected to grow to 15.0 USD Billion by 2035, primarily catering to short-distance travel in urban areas. Their compact design and affordability made them an essential mode of transport in densely populated regions.
E-Bikes, valued at 3.0 USD Billion in 2024 and expected to reach 10.0 USD Billion by 2035, rapidly gained traction among consumers prioritizing health and environmental benefits. The increasing emphasis on cycling as a sustainable mode of transport contributed to their significance in the Electric Two-Wheeler Market.
The diverse Type segmentation reflected the overall market's capacity to cater to a broad range of consumer needs and preferences. As urban areas continue to expand and pollution regulations tighten globally, the shift toward electric two-wheelers appears to be an inevitable evolution in transportation.
The electric scooter segment, in particular, dominates the landscape due to its versatility and alignment with governmental initiatives promoting electric mobility. Conversely, E-Bikes present opportunities that capitalize on lifestyles emphasizing health and fitness, appealing to a different demographic, thus enriching the market's ecosystem.
Overall, the Electric Two-Wheeler Market is expected to see significant growth across all segments, with trends and innovations fostering the development of electric two-wheelers as a leading mode of sustainable transport worldwide.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Electric Two-Wheeler Market is experiencing significant growth, primarily driven by advancements in battery technologies. The market segmentation in terms of Battery Type highlights the trending adoption of Lithium-Ion Batteries, which are favored for their high energy density and longer lifespan, making them suitable for urban commuting.
Lead-Acid Batteries continue to hold a substantial share due to their cost-effectiveness, particularly in developing regions, while Nickel-Metal Hydride Batteries are recognized for their environmental benefits. As the market evolves, the weight of environmental regulations and consumer preference for sustainable options play a crucial role in shaping the demand for these battery types.
Moreover, technological innovations are enhancing battery performance and reducing costs, thereby creating opportunities for market expansion. Emerging trends reflect a shift towards more efficient energy solutions, alongside an increasing emphasis on electric mobility driven by government initiatives aimed at reducing urban congestion and pollution.
Overall, the interplay of battery technologies significantly influences the Electric Two-Wheeler Market dynamics.
The Voltage Capacity segment of the Electric Two-Wheeler Market plays a crucial role in defining the performance, efficiency, and range of electric two-wheelers. The segmentation within Voltage Capacity encompasses three main categories: Below 48V, 48V to 72V, and Above 72V, each catering to different consumer needs and technological advancements.
The Below 48V range often targets urban commuters looking for cost-effective solutions, ensuring accessibility to a broader audience. The 48V to 72V segment has gained traction, as it balances power and efficiency, making it ideal for mid-range electric two-wheelers that can cater to diverse riding conditions.
Meanwhile, the Above 72V segment represents high-performance vehicles that are preferred by enthusiasts and professionals, dominating the market for more robust applications.
As the Electric Two-Wheeler Market continues to expand, factors such as the rising environmental concerns and advancements in battery technology are driving growth in these Voltage Capacity categories, with significant opportunities for innovation and market expansion.
The Electric Two-Wheeler Market segment focusing on End Use includes Personal Transportation, Commercial Delivery, and Shared Mobility, reflecting significant growth dynamics. As environmental concerns accelerate, the demand for electric two-wheelers for Personal Transportation has surged, driven by the need for sustainable commuting solutions.
The Commercial Delivery sector has witnessed increased adoption due to the rise of e-commerce, requiring efficient, cost-effective transport methods, which electric two-wheelers provide.
Meanwhile, Shared Mobility has transformed urban transport landscapes, as more users prefer this model for its convenience and lower carbon footprint. This segment is gaining traction globally, supported by favorable regulations promoting electric vehicles and a growing awareness of their benefits.
The Electric Two-Wheeler Market revenue is poised for robust growth, with trends indicating a greater shift towards electrification across various mobility sectors. The market statistics reflect this engagement, as increasing investments in charging infrastructure enhance the usability of these vehicles, ultimately contributing to the market's overall expansion.
The Electric Two-Wheeler Market experienced substantial growth across various regions, showcasing significant revenue potential. In 2024, the North America Electric Two-Wheeler Market was valued at 4.0 USD Billion and is expected to grow to 10.0 USD Billion by 2035, highlighting a rising interest in sustainable transportation solutions within the region.
Europe stood as a major player with a valuation of 8.0 USD Billion in 2024, projected to reach 25.0 USD Billion by 2035, driven by stringent environmental regulations and increasing adoption of electric mobility.
The APAC region dominated the market with a valuation of 15.0 USD Billion in 2024, expected to soar to 55.0 USD Billion by 2035, largely due to expanding urban populations and government incentives for electric vehicles.
South America and the Middle East and Africa (MEA) appeared smaller on the market scale, valued at 2.0 USD Billion and 1.05 USD Billion respectively in 2024; however, both regions presented significant growth opportunities due to increasing urbanization and awareness of sustainable transport.
The overall market statistics reflected diverse demand dynamics globally, highlighting the important role of regions like APAC and Europe in shaping the future of the Electric Two-Wheeler Market, driven by innovations and supportive policies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Electric Two-Wheeler Market has witnessed remarkable growth driven by several factors, including increasing demand for eco-friendly transportation, advancements in battery technology, and supportive government policies promoting electric vehicles.
The competition within this sector is intensifying as numerous companies vie for market share by innovating their electric two-wheeler offerings. Companies are investing heavily in research and development to enhance the performance, range, and affordability of their electric scooters and motorcycles.
Understanding the competitive landscape is crucial for stakeholders aiming to capitalize on this burgeoning market, as emerging players disrupt traditional pathways, while established manufacturers work to maintain their foothold through strategic partnerships and improved product lines.
In terms of presence in the Electric Two-Wheeler Market, Mahindra Electric stands out due to its commitment to sustainable mobility solutions and innovation. The company has leveraged its experience and expertise in the electric vehicle sector to offer a range of electric two-wheelers that cater to diverse consumer needs.
One of the key strengths of Mahindra Electric lies in its robust research initiatives, which have facilitated the development of advanced technologies in electric mobility. Partnerships with various stakeholders, including government entities and technology providers, enhance its market capabilities.
This collaborative approach not only fosters innovation but also allows Mahindra Electric to expand its market presence internationally, allowing for growth in regions that prioritize sustainable transportation options.
Peugeot Motorcycles has carved out a significant niche in the Electric Two-Wheeler Market by focusing on the transition to electric mobility. The company boasts a strong history of excellence in engineering and design, and it has introduced several key electric models that appeal to environmentally conscious consumers.
Peugeot Motorcycles emphasizes the delivery of high-quality, stylish, and performance-oriented electric two-wheelers, thereby positioning itself effectively in competitive markets. With strategic mergers and acquisitions, Peugeot has enhanced its capabilities and expanded its product offerings.
The brand’s commitment to technological innovation, combined with its focus on integrating smart features in its two-wheelers, strengthens its appeal across global markets. The combination of strong brand equity, innovative product range, and a growing commitment to sustainable solutions places Peugeot Motorcycles in a competitive position as the demand for electric mobility continues to rise.
In September 2023, Ola Electric announced plans to establish a mega manufacturing facility in Tamil Nadu, intending to ramp up production capabilities due to growing demand for electric scooters in the Electric Two-Wheeler Market.
Meanwhile, Hero Electric launched new models focusing on innovative battery technology to enhance range and performance, thus attracting environmentally conscious consumers. Bajaj Auto continues to expand its electric vehicle portfolio by introducing additional models aimed at both urban and rural markets.
In September 2023, Zero Motorcycles secured new funding to bolster its R&D activities, further contributing to advancements in electric performance motorcycles.
The market experiences significant growth, with increasing investments reflected in the valuations of companies, further fostering competition among major players like Mahindra Electric, TVS Motor Company, and Yamaha Motor.
Brokering major events from the last few years, Peugeot Motorcycles launched its e-scooter range in May 2022, indicating strong advancements in technology and design within the electric two-wheeler segment. The growing presence of manufacturers like Ather Energy and Niu Technologies in global markets signals a shift towards environmentally friendly transportation options.
The industry is also witnessing increased partnerships among manufacturers to collaborate on technology and logistics, enhancing capacity and service within this burgeoning global market.
| Report Attribute/Metric | Details |
| Market Size 2023 | 26.94(USD Billion) |
| Market Size 2024 | 30.05(USD Billion) |
| Market Size 2035 | 100.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 11.55% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Mahindra Electric, Peugeot Motorcycles, Zero Motorcycles, Piaggio, Bajaj Auto, TVS Motor Company, Ola Electric, Niu Technologies, SegwayNinebot, BMW Motorrad, Kawasaki Heavy Industries, Yamaha Motor, Ather Energy, Gogoro, Hero Electric |
| Segments Covered | Type, Battery Type, Voltage Capacity, End Use, Regional |
| Key Market Opportunities | Rising demand for eco-friendly transport, Government incentives and subsidies, Expanding charging infrastructure, Advancements in battery technology, Urban mobility solutions and convenience |
| Key Market Dynamics | Increasing environmental regulations, rising fuel prices, growing urbanization, advancements in battery technology, and increasing government incentives. |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Electric two-wheeler Market Highlights:
Frequently Asked Questions (FAQ) :
The market size of the Electric Two-Wheeler Market in 2024 was valued at 30.05 USD Billion.
The forecasted market value for the Electric Two-Wheeler Market by 2035 is expected to reach 100.0 USD Billion.
The expected CAGR for the Electric Two-Wheeler Market from 2025 to 2035 is 11.55%.
The APAC region is expected to hold the largest market share for the Electric Two-Wheeler Market in 2035, valued at 55.0 USD Billion.
The market value for Electric Scooters is projected to be 40.0 USD Billion in 2035.
Major players in the Electric Two-Wheeler Market include Mahindra Electric, Peugeot Motorcycles, Zero Motorcycles, and Bajaj Auto.
The market size for Electric Motorcycles in 2024 was 10.5 USD Billion.
Factors driving growth include increasing environmental awareness and government incentives for electric vehicle adoption.
The anticipated market value for Electric E-Bikes by 2035 is expected to reach 10.0 USD Billion.
The APAC region is projected to experience significant growth in the Electric Two-Wheeler Market, particularly from 2025 to 2035.
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Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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