Electric two-wheeler Market Analysis

Electric Two-Wheeler Market Overview

Electric Two-Wheeler Market Size was valued at USD 5789.58 million in 2023. The global electric two-wheeler market industry is projected to grow from USD 7260.13 Million in 2024 to USD 44423.18 million by 2032, exhibiting a compound annual growth rate (CAGR) of 25.41% during the forecast period (2024 - 2032). Government incentives to encourage electric vehicle adoption and increasing demand for electric two-wheelers among tourists are some the key market drivers boosting the growth of the electric two-wheeler market.  

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electric Two-Wheeler Market Drivers

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  Government incentives to encourage electric vehicle adoption

  
  

Rapidly growing pollution across the globe and scarcity of energy resources are likely to push many governments to rely on alternative resources. The governments of different countries have stepped in to support the usage of electric two-wheelers as it helps to regulate the emissions and reduce the traffic congestion situations. For example, the French government provides the highest incentive of USD 1,400 for purchasing cargo e-Bikes. Many European countries include Belgium, Denmark, Norway, etc. are giving tax relaxation for purchasing electric motorcycles which further promote the electric two-wheelers market across the region. Indian government has taken the National Electric Mobility Mission Plan 2020 (NEMMP 2020), the Atmanirbhar Bharat Abhiyan, and the Make in India campaign to promote the electric bikes. Furthermore, the Electric Vehicles Initiative (EVI) is a multi-government policy forum dedicated to accelerating the introduction and adoption of electric bikes worldwide. EVI was launched under the Clean Energy Ministerial (CEM), a high-level dialogue among Energy Ministers from the world’s major economies such as Canada, Chile, China, Finland, France, Germany, India, Japan, the Netherlands, New Zealand, Norway, Poland, Portugal, Sweden, and the United Kingdom and the United States. Therefore, such initiatives will augment the demand for E-bikes in the upcoming years.

Electric Two-Wheeler Market Segment Insights:

Electric Two-Wheeler Type Insights

Based on Type, the Electric Two-Wheeler Market segmentation includes Electric Motorcycles, and Electric Scooters. The Electric Scooters Type held the majority share in 2022, contributing around ~69.50% to the market revenue. Moreover, owing to less upfront cost and the availability of more models in the market provide ample options for the buyer, which further impetus to the growth of this segment. Several start-ups are beginning to introduce themselves in major metropolitan areas with hundreds of 'rent by minute' scooters. To reduce vehicle emission in cities, several pilot programs have been initiated to introduce e-scooters in a phased manner. Such instances and developments expected to drive demand in e-scooter segment of the market which will account a CAGR of 24.75% during the forecast period.

Figure1: Electric Two-Wheeler Market, by Type, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electric Two-Wheeler Battery Type Insights

Based on the Battery Type, the Electric Two-Wheeler Market segmentation includes Sealed Lead Acid, Li-ion, and Others. The Li-ion battery type held the majority share in 2022. Li-ion batteries have the highest market share in 2022 and can be traced largely in the electric two-wheeler marketplace due to it's the high energy density. Factors including great durability, low maintenance, and fast charging ability make it suitable for high-end applications. Further, o promote the use of clean and energy-efficient vehicles lightweight lithium-ion (Li-ion) battery is used to provide voltage to the motor. Therefore, Lithium-ion based battery segment is likely to showcase a considerable growth at rate of 25.60% throughout the projected timeframe.

Electric Two-Wheeler Voltage Insights

Based on the Voltage, the Electric Two-Wheeler Market is segmented into 36V, 24V, 48V, and more than 48V. More than 48V segment dominated the market in 2022. Furthermore, the battery weight is also increased significantly which further reduce the efficiency in hilly roads. The more than 48V segment accounted for the largest market share of 44.38%, with a market value of USD 2118.99 million in 2022; it is expected to register a CAGR of 25.36%. The 48V segment was the second-largest market and valued at USD 1412.33 million in 2022; it is projected to exhibit the highest CAGR of 25.83% during the forecast period.

Electric Two-Wheeler Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia Pacific electric two-wheeler market accounted for ~92.40% in 2022. Asia-Pacific is anticipated to lead the market over the forecast period. China, India, and Japan are the major economies in the regional market, which are anticipated to influence the overall market. These countries are witnessing the entry of an increasing number of start-ups and well-established and conventional manufacturers in the market. Thus, Asia Pacific is likely to hold 90.08% of market share at the end of forecast period.

China accounted for the largest market share of 82.81%, with a market value of USD 3652.83 million in 2022; the market is expected to register a CAGR of 23.83%. India was the second-largest market and valued at USD 555.65 million in 2022; the market is projected to exhibit a CAGR of 30.65%. However, the market in Indonesia is expected to register the highest CAGR of 35.73% during the forecast period.

Further, the major countries studied in the market report are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, Australia, South Korea, Indonesia, Vietnam, Philippines, Myanmar, Singapore, UAE, Saudi Arabia, Bahrain, Oman, Kuwait, Egypt, South Africa, Algeria, Nigeria, Kenya, Ghana, Brazil, Argentina, Chile, Colombia, Peru, and Venezuela.

South America electric two-wheeler market accounts for the second-largest market share and had a market of 3.2% for the electric two-wheeler industry in 2022. Growth in the South America electric two-wheeler market is attributed to the increasing support from governments in terms of multiple supporting activities and initiatives for boosting the market share. The expansion of the commercial infrastructure such as charging platforms, after-sales servicing points, etc. are boosting the demand for electric two-wheeler across the region.

North America electric two-wheeler market accounts for the third-largest market share and had a market of 2.18% for the electric two-wheeler industry in 2022. The growth of the market is mainly attributed by the rising need for eco-friendly solutions to reduce the consumption of traditional energy resources. Moreover, to minimize carbon emissions and meet the government standards the manufacturers are shifting their production line towards the more energy efficient products. These factors will boost the overall electric two-wheeler market over the forecast period.

Europe electric two-wheeler market is expected to grow at the fastest CAGR between 2022 and 2032. European market is expected to attain a considerable market share at the end of 2032 owing to rising demand of electric two-wheelers in the major cities. Many countries have imposed certain regulations to curb the fossil fuel usages which further drive the electric mobility across the region. Moreover, favourable government policies will also account significant impact to the market growth throughout the projected timeframe.

Electric Two-Wheeler Key Market Players & Competitive Insights

The global electric two-wheelers market is profitable, both for existing players as well as new entrants. The market is highly competitive with all the players competing to gain a higher market share. Intense competition. The growth of the electric two-wheeler market is influenced by the increasing demand for energy-efficient products, supportive government regulations & initiatives for promoting personal electric mobility.

The major players in the market include Jiangsu Xinri E-Vehicle (China), Yadea Technologies (China), VMOTO (Australia), NIU International (China), Energica Motor (Italy), Govecs (Germany), China Zhongneng Vehicle (China), Zero Motorcycles (US), Hero Electric (India), Ampere Vehicles (India), and GOGORO Inc. (Taiwan). The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Yadea Technologies, VMOTO, NIU International, Energica Motor, and GOGORO Inc. are the players dominating the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.

The market players are focused on investing in research & development and adopting strategic growth initiatives such as expansion, product launches, agreement, partnership, acquisition, and merger to strengthen their market position and capture a large customer base.

Key companies in the Electric Two-Wheeler market

• Jiangsu Xinri E-Vehicle (China)


• Yadea Technologies (China)


• VMOTO (Australia)


• NIU International (China)


• Energica Motor (Italy)


• Govecs (Germany)


• China Zhongneng Vehicle (China)


• Zero Motorcycles (US)


• Hero Electric (India)


• Ampere Vehicles (India)


• GOGORO Inc. (Taiwan)

Electric Two-Wheeler Industry Developments

Electric Two-Wheeler Market Segmentation

Electric Two-Wheeler Type Outlook

• Electric Motorcycles


• Electric Scooters

Electric Two-Wheeler Battery Type Outlook

• Sealed Lead Acid


• Li-ion


• Others

Electric Two-Wheeler Voltage Outlook

• 36V


• 24V


• 48V


• More than 48V

Electric Two-Wheeler Regional Outlook

North America

• US


• Canada


• Mexico

Europe

• UK


• Germany


• France


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• India


• Japan


• Australia


• South Korea


• Indonesia


• Vietnam


• Philippines


• Myanmar


• Singapore


• Rest of Asia-Pacific

Middle East & Africa

• UAE


• Saudi Arabia


• Bahrain


• Oman


• Kuwait


• Egypt


• South Africa


• Algeria


• Nigeria


• Kenya


• Ghana


• Rest of Middle East & Africa

South America

• Brazil


• Argentina


• Chile


• Colombia


• Peru


• Venezuela


• Rest of South America