Electric Two-wheeler Market Trend, Share, Growth, Size and Forecast 2032

Electric Two-wheeler Industry Prospective:

The global electric two-wheeler market size was worth around USD 529.36 million in 2023 and is predicted to grow to around USD 1,228.93 million by 2032 with a compound annual growth rate (CAGR) of roughly 9.81% between 2024 and 2032.

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Electric Two-wheeler Market: Overview

An electric two-wheeler is an automobile powered by an electric battery and runs on two wheels. Currently, the consumer market offers two main types of two-wheelers that are traditional variants and more sustainable options in the form of electric versions. The difference between the two variants is in the ways in which they are powered. For instance, the former type runs on commonly available fuel such as petrol and diesel while the latter is operated using a rechargeable electric battery. Electric two-wheelers are considered more environmentally friendly and have slowly risen in terms of consumer acceptance in the last few years with factors such as the growing number of options available along rising awareness.

As per market research, emerging nations are most likely to take the lead in the coming years in terms of sales of electric two-wheelers since such nations have a high demand for compact vehicles as compared to advanced nations with a higher market for passenger cars or larger vehicles. Between 2020 and 2023, the electric two-wheeler industry has registered monumental growth with factors such as reduced prices and availability of financial assistance aiding in shaping the industry revenue. As companies continue to invest in technological advancements to improve electric battery performance, the industry for electric two-wheelers is projected to grow rapidly during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global electric two-wheeler market is estimated to grow annually at a CAGR of around 9.81% over the forecast period (2024-2032)
• In terms of revenue, the global electric two-wheeler market size was valued at around USD 529.36 million in 2023 and is projected to reach USD 1,228.93 million by 2032.
• The electric two-wheeler electric two-wheeler market is projected to grow at a significant rate due to the increasing launch of new and affordable electric two-wheelers
• Based on motor placement segmentation, hub-motor was predicted to show maximum market share in the year 2023
• Based on vehicle type segmentation, electric scooter was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

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Electric Two-wheeler Market: Growth Drivers

Increasing launch of new and affordable electric two-wheelers may drive market demand

The global electric two-wheeler market is expected to grow due to the rising launch of new vehicles in the commercial market which contributes to consumers having more options to choose from. Before 2020, only limited players were operating in the market. This led to high prices of electric two-wheelers making them unaffordable among a large part of the population. However, as the number of players has grown, the monopoly is broken which means that prices can be altered by manufacturers and suppliers of electric two-wheelers depending on the features of the vehicle. The commercialization of the technology involved in developing electric two-wheelers has been of prime importance since more companies can experiment with the electric two-wheeler technology and provide better solutions to the customers.

For instance, in India, electric scooters are currently priced between INR 90,000 to INR 120,000. As per market projections, smaller companies with limited buyers are not expected to raise the prices anytime soon. Additionally, since electric two-wheelers have exhibited exceptional performance across seasons and harsh conditions, the demand for these sustainable vehicles is likely to grow.

Rising investments in infrastructure development to facilitate electric two-wheeler adoption may aid the market growth trend

The industry for electric two-wheelers is expected to be further propelled as government organizations and private players are equally investing in projects aimed at supporting infrastructure development. For instance, in December 2023, Adani Total Gas, Indias leading gas distribution company, announced its plans to set up 75,000 EV charging stations in the country by the end of 2032.

In December 2021, Tesla, a US-based leading EV maker, announced that it is expected to develop around 5000 charging stations for electric two-wheelers across India in the coming years. The installations will be aided by franchise-owned Tesla Power Shops. Such high investments are likely to work in the favor of the global electric two-wheeler market.

Electric Two-wheeler Market: Restraints

High price of electric two-wheelers as compared to traditional counterparts restricts the market growth

The global electric two-wheeler industry is restricted in terms of growth since they are more expensive than their counterparts. The addition of new players has helped in reducing the prices of the electric versions however relatively they continue to be more expensive at least in the form of initial investments. Moreover, the cost of maintaining electric two-wheelers is also higher since a large number of the countries lack essential infrastructure such as skilled mechanics and easy availability of vehicle parts.

On the other hand, mechanics and experts in traditional vehicles are abundantly available. Consumers do not face any problems in acquiring vehicle parts which eases the maintenance process of the vehicle. This leads to an increased overall expense in terms of buying and maintaining an electric two-wheeler.

Electric Two-wheeler Market: Opportunities

Technological innovation leading to better battery performance could become an essential growth contributor

The global electric two-wheeler industry growth rate is expected to be encouraged as a result of rising technological innovation.

Manufacturers are working on electric two-wheelers that can provide either similar or superior performance to their counterparts. The focus is on increasing the rising range and battery capacity. Moreover, improved safety is an important factor for all electric two-wheeler manufacturers especially since several accident-related reports have been registered globally. In December 2023, Acer, an innovation-oriented key player in the industry, announced the launch of ebii thus redefining the e-bike segment. The product is expected to become commercially available in the first quarter of 2024. The new e-bike has several features apart from covering long distances.

For instance, it will allow users to charge laptops, phones, and other electronic products with the help of its removable battery technology. ebii is also integrated with artificial intelligence (AI) technology to improve user assistance. In December 2023, researchers at the Indian Institute of Technology (IIT), announced the launch of Creatara. It boasts of cutting-edge technology and the option to customize along with improved safety features.

Climate change and higher awareness to encourage more people to opt for sustainable choices

One of the leading influencers in the global electric two-wheeler industry is the growing awareness about the impact of fuel burning on the environment. The process has multi-layered effects on the ecological systems. One of the major impacts is the rising rate of environmental pollution which negatively impacts the health of humans and other living organisms.

Consumers are becoming increasingly aware of these facts and hence are consciously opting for sustainable solutions such as electric two-wheelers. A December 2023 survey by TheRoundup.org concluded that almost 50% of surveyed individuals were trying to become environmentally conscious in the last 6 months.

Electric Two-wheeler Market: Challenges

Risk of dead battery and other technical limitations may challenge market demand

The global electric two-wheeler market is projected to be challenged since electric vehicles continue to showcase several technical limitations of the vehicles. For instance, there is a high chance of the battery dying while the vehicle is in motion.

Other related issues include lost battery chargers, problems with brake systems, and issues with acceleration. In addition to this, certain vehicles have reported engine overheating thus putting the life of the user and people around the bike at risk.

Electric Two-wheeler Market: Segmentation

The global electric two-wheeler market is segmented based on motor placement, batter, vehicle type, and region.

Based on motor placement, the global market is divided into frame-mounted motor and hub-motor. In 2023, the highest growth was in the hub-motor segment. EV two-wheels are generally manufactured by directly placing the structure on the wheels. Hub-motor placement allows improved performance by electric two-wheelers. It offers excellent flexibility in terms of power and brake systems. Furthermore, EV two-wheeler manufacturers can achieve lightweight characteristics with the aid of hub-motor placement. Electric bikes generally have a run time of 100 kilometers.

Based on battery, the global electric two-wheeler market is divided into Li-Ion and SLA.

Based on vehicle type, the global market is divided into electric scooter, electric motorcycle, e-bikes, and electric kick scooter. In 2023, the highest growth rate was registered in the electric scooter segment. The rising influence of electric scooters on the general population and the exceptional features integrated into these vehicles have fueled segmental growth. In December 2023, Ola, Indias regional electric two-wheeler maker.

Electric Two-wheeler Market: Report Scope

Electric Two-wheeler Market: Regional Analysis

Asia-Pacific to lead the way during the projection period

The global electric two-wheeler market is expected to be led by Asia-Pacific during the forecast period. Some of the largest automobile manufacturers are located in Asia-Pacific. Countries such as Japan and China are declared as the leading nations in terms of mass automobile manufacturing. The presence of extensive labor along with rising investments by the regional governments to continue promoting the domestic automobile sector has helped shape Asia-Pacifics electric two-wheeler industry. In addition to this, these nations are making advancements in electric battery technology.

China, for instance, is the worlds largest RV manufacturer and exporter. In the first half of 2023, China exported more than 350,000 EVs to European nations. Electric two-wheelers are a popular choice among regional consumers due to the high population density making it difficult to navigate traffic jams. In October 2023, QJMotor, China is leading player in the EV industry, announced the launch of a TQ electric scooter offering a range of 120 km on a single charge.

India is witnessing a rapid emergence of new EV two-wheeler startups. International companies are investing in the regional market while domestic players continue to lead through innovation. In April 2023, SONAE EV announced its plans to launch 1 lakh electric two-wheeler charging stations in the Indian market by 2027.

Electric Two-wheeler Market: Competitive Analysis

The global electric two-wheeler market is led by players like:

• Revolt Motors
• Zero Motorcycles
• NIU Technologies
• Segway
• Tork Motors
• Energica Motor Company
• Hero Electric
• Ather Energy
• Yadea Group
• Ola Electric
• Emflux Motors
• Evoke Motorcycles
• Vmoto Limited (Super Soco)
• Vespa Electric
• Evoke Motorcycles

The global electric two-wheeler market is segmented as follows:

By Motor Placement

• Frame-Mounted Motor
• Hub-Motor

By Battery

• Li-Ion
• SLA

By Vehicle Type

• Electric Scooter
• Electric Motorcycle
• E-Bikes
• Electric Kick Scooter

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa