Electric Two Wheeler Market

Electric Two Wheeler Market Outlook (2024 to 2034)

The global electric two wheeler market is poised to reach US$ 70,880.2 million in 2024. The global market is forecasted to increase at an 11.1% CAGR and reach a market value of US$ 203,078.7 million by 2034.

The electric two wheeler market size is expected to experience growth opportunities in emerging economies, attributed to the technological innovations, which play a pivotal role in driving the adoption of electric two-wheelers. Continuous advancements in technology contribute to making electric two-wheelers more attractive to consumers, as the electric vehicle industry evolves. Key areas of innovation include smart connectivity features, improved range, and enhanced safety features.

Integration of smart connectivity features enhances the user experience for electric two-wheeler owners. Many electric scooters and motorcycles now come equipped with advanced telematics systems, allowing riders to connect their vehicles to smartphones or other devices.

Smartphone apps associated with electric two-wheelers provide real-time information on battery status, range estimation, charging station locations, and vehicle diagnostics. The connectivity not only offers convenience but also contributes to a more engaging and user-friendly ownership experience.

One of the critical factors influencing the adoption of electric two-wheelers is the range they can cover on a single charge. Continuous advancements in battery technology, as discussed earlier, contribute to improved energy density, resulting in increased vehicle range.

Report Attributes	Details
Electric Two Wheeler Market Size (2024E)	US$ 70,880.2 million
Forecasted Market Value (2034F)	US$ 203,078.7 million
Global Market Growth Rate (2024 to 2034)	11.1% CAGR
North America Market Share (2034F)	29.2%
Demand Growth in Japan (2024 to 2034)	11.8% CAGR
China Market Value (2034F)	US$ 55,026.8 million
Demand for Electric Scooters (2034F)	US$ 126,314.9 million
Revenue Share of Lithium Ion Segment (2034F)	82.3%
Key Companies Profiled	AIMA Technology Co., Ltd Ather Energy Pvt. Ltd. Energica Motor Company SPA Gogoro Limited Govecs AG Hero Electric Vehicles Pvt. Ltd Jiangsu Xinri E-Vehicle Co. Ltd. Piaggio & C. SpA Vmoto Limited Zero Motorcycles Inc.

Which Market Trends are Opening New Opportunities for Manufacturers?

“Advancements in Battery Technology to Fuel the Market Growth”

Energy density refers to the amount of energy that can be stored in a given volume or weight of a battery. Higher energy density allows for the storage of more energy in a smaller and lighter battery.

Lithium-ion batteries have been at the forefront of electric vehicle adoption due to their high energy density.

Ongoing research is aimed at enhancing the energy density further, enabling electric two-wheelers to have longer ranges without significantly increasing the size or weight of the battery. Researchers are exploring new battery chemistries beyond traditional lithium-ion. Solid-state batteries, for instance, are being developed as a potential replacement. The batteries use solid electrolytes instead of liquid electrolytes, offering advantages in terms of safety, energy density, and lifespan.

Charging speed is a critical factor for the practicality of electric two-wheelers. Advances in fast-charging technologies are reducing charging times significantly. High-power chargers and innovative charging algorithms contribute to faster and more efficient charging, improving the convenience of electric two-wheelers for daily use.

“Urbanization and Traffic Congestion to Accelerate the Growth Prospects”

Urbanization is a global phenomenon characterized by the increasing population concentration in urban areas. One of the significant challenges that arise is traffic congestion, as more people migrate to cities for job opportunities and better living standards. Traffic congestion negatively impacts the efficiency of transportation systems, leading to increased travel times, air pollution, and overall decreased quality of life.

Electric two-wheelers, such as electric scooters and motorcycles, have a smaller footprint compared to traditional four-wheeled vehicles. The compact design makes them highly maneuverable in dense urban environments, allowing riders to navigate through traffic with greater ease. Electric scooters, in particular, are well-suited for short-distance commuting and can easily weave through congested streets.

The use of electric two-wheelers contributes to reducing the overall traffic footprint. Since these vehicles take up less space on the road and in parking areas, they help alleviate congestion and create more room for other modes of transportation, which is especially important in cities where road infrastructure may be limited or congested.

“Infrastructure Development to Contribute Significantly”

The development of charging infrastructure is a crucial factor in overcoming range anxiety and enhancing the practicality of electric two-wheelers. Range anxiety, the fear of running out of battery power before reaching a charging station, has been a significant barrier to the widespread adoption of electric vehicles. The expansion of charging infrastructure, particularly the deployment of fast-charging stations, plays a key role in mitigating these concerns and making electric two-wheelers a more attractive choice for consumers.

One of the primary concerns for consumers considering electric vehicles, including two-wheelers, is the fear of not having enough range for their daily commuting needs. The availability of a well-distributed and accessible charging infrastructure helps alleviate this range anxiety by providing users with the confidence that they can charge their vehicles conveniently.

The strategic placement of charging stations in urban areas, along popular commuting routes, and at key destinations addresses the need for convenient access to charging, which is especially important for electric two-wheelers, which are often used for short-distance commuting and may require frequent charging.

Which Factor is Restraining the Demand for Electric Two Wheeler?

“High Initial Cost to Restrain the Market Growth”

The high initial cost of electric two-wheelers, largely attributed to the expense of batteries, can be a significant deterrent for price-sensitive consumers. While electric vehicles, in general, are becoming more cost-competitive over time, the upfront price remains a crucial factor influencing consumer decisions.

The cost of batteries is a major contributor to the higher upfront price of electric two-wheelers. Advancements in battery technology have led to cost reductions, and batteries still constitute a substantial portion of the overall vehicle cost, which is due to the high-performance requirements and energy density needed for electric vehicles.

Economies of scale can lead to cost reductions, as the production volumes of electric two-wheelers increase. The current lower production volumes compared to traditional internal combustion engine vehicles may contribute to the higher initial cost. As the market matures and production ramps up, prices are expected to become more competitive.

What Strategy Should Start-ups Incorporate to Enhance Their Market Presence?

“Rising Fuel Costs is Key to Gaining Competitive Edge”

The volatility in traditional fuel prices, often characterized by unpredictable fluctuations and overall upward trends, has been a significant factor driving the increasing attractiveness of electric vehicles (EVs) to consumers. The trend is particularly pronounced in the context of rising fuel costs, and it contributes to the appeal of electric vehicles as cost-effective and sustainable alternatives.

Traditional fuel prices, especially those of gasoline and diesel, are subject to various geopolitical, economic, and environmental factors. Consumers often face uncertainty regarding future fuel prices, and the volatility can lead to increased operating costs for conventional vehicles. Electric vehicles, on the other hand, offer a more stable and predictable cost of operation, as electricity prices tend to be more consistent over time.

Electric vehicles generally have lower operating costs compared to their internal combustion engine counterparts. The cost per mile or kilometer for electricity is often lower than that for gasoline or diesel. Electric vehicles also have fewer moving parts, leading to reduced maintenance costs over the vehicle's lifetime. The economic benefits of owning and operating an electric vehicle become more pronounced, as fuel prices rise.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, asserts in its newly published study that North America is predicted to hold a 29.2% share of the global market by 2034. Many governments worldwide are offering financial incentives, subsidies, and tax benefits to promote the adoption of electric vehicles, making them more affordable for consumers.

What is the Scenario of the Market in the United States?

“Government Incentives and Policies to Augment the Growth”

Attribute	United States
Market Value (2024E)	US$ 13,119.1 million
Growth Rate (2024 to 2034)	12.5% CAGR
Projected Value (2034F)	US$ 42,695.3 million

The United States is predicted to account for 72.0% of the North American market by 2034. Incentives such as federal tax credits, rebates, and state-level incentives for electric vehicles, including electric two-wheelers, play a crucial role in encouraging consumer adoption. Favorable government policies can accelerate market growth.

The expansion of charging infrastructure, including public charging stations and residential charging options, can address range anxiety concerns and make electric two-wheelers more practical for daily use.

Ongoing advancements in electric vehicle technology, including improvements in battery efficiency, range, and connectivity features, are anticipated to make electric two-wheelers more appealing to consumers.

What is projected to Propel Demand for Electric Two Wheeler in China?

“Affordability and Cost of Ownership in China to Fuel the Demand”

Attribute	China
Market Value (2024E)	US$ 17,757.9 million
Growth Rate (2024 to 2034)	12.0% CAGR
Projected Value (2034F)	US$ 55,026.8 million

China is forecasted to hold a 69.3% share of East Asia market revenue by 2034. The affordability of electric two-wheelers, supported by government incentives, makes them an attractive option for cost-conscious consumers. The lower operating costs compared to traditional vehicles contribute to their popularity.

Intense competition among domestic electric two-wheeler manufacturers fosters innovation, improved features, and competitive pricing, driving market growth. The rise of e-commerce and the demand for efficient delivery services create opportunities for electric two-wheelers in the last-mile delivery sector. Many delivery companies in China use electric scooters for cost-effective and eco-friendly deliveries.

What is projected to Propel Demand for Electric Two Wheeler in Japan?

“Collaborations with Industry Stakeholders to Enhance Market Prospects”

Attribute	Japan
Market Value (2024E)	US$ 5,066.4 million
Growth Rate (2024 to 2034)	11.8% CAGR
Projected Value (2034F)	US$ 15,483.7 million

Japan is anticipated to hold a 19.5% share of East Asia market revenue by 2034. Collaborations between electric vehicle manufacturers, technology companies, and government agencies can drive innovation, improve infrastructure, and contribute to the overall growth of the electric two-wheeler market.

Government support for domestic electric vehicle manufacturers fosters a competitive market and contributes to the development of high-quality electric two-wheelers. Educational campaigns and initiatives aimed at raising consumer awareness about the benefits of electric two-wheelers, as well as dispelling any misconceptions, can positively influence adoption rates. Incentives and policies encouraging businesses to incorporate electric two-wheelers into their corporate fleets for commuting or delivery services can drive commercial adoption.

Category-wise Insights

Based on product type, global demand for electric two wheeler is projected to rise significantly in the electric scooters segment. Electric scooters are user-friendly, with simple controls and easy maneuverability, which makes them attractive to a wide range of consumers, including those who may not have prior experience with motorcycles or scooters.

Which Product Type to Contribute Significantly in the Sales of Electric Two Wheeler?

“Electric Scooters are expected to Accelerate the Demand for Electric Two Wheeler”

Attribute	Electric Scooters
Segment Value (2024E)	US$ 43,378.7 million
Growth Rate (2024 to 2034)	11.3% CAGR
Projected Value (2034F)	US$ 126,314.9 million

The electric scooters segment of electric two wheeler is forecasted to hold 62.2% of the market share by 2034. Electric scooters are well-suited for urban commuting, offering a compact and agile means of transportation that can navigate through traffic congestion and crowded city streets. The increasing need for efficient urban mobility solutions is driving the demand for electric scooters.

Electric scooters often have a lower upfront cost compared to electric motorcycles and four-wheel electric vehicles. The affordability makes them more accessible to a broader range of consumers, including first-time electric vehicle buyers.

Electric scooters are ideal for addressing the last-mile connectivity challenge, providing a convenient and cost-effective solution for short-distance travel between transportation hubs, workplaces, and residential areas.

Which Battery Type of Electric Two Wheeler is set to Occupy a Leading Market Share?

“Lithium Ion Segment is expected to be the Dominant Battery Type”

Attribute	Lithium Ion
Segment Value (2024E)	US$ 56,845.9 million
Growth Rate (2024 to 2034)	11.4% CAGR
Projected Value (2034F)	US$ 167,133.7 million

The lithium ion segment is predicted to occupy an 82.3% share of the global market by 2034. Lithium-ion batteries offer high energy density, providing a greater amount of energy storage per unit of weight. The characteristic allows electric two-wheelers equipped with lithium-ion batteries to achieve longer ranges on a single charge, addressing a key concern for consumers.

Lithium-ion batteries are known for their lightweight and compact design, making them suitable for integration into the compact frame of two-wheelers, which contributes to the overall weight reduction of electric scooters and motorcycles, improving efficiency and handling.

Lithium-ion batteries can support fast-charging technologies, allowing electric two-wheelers to recharge quickly. Fast charging enhances the convenience of using electric two-wheelers, particularly in urban settings where frequent, short-distance trips are common.

Competitive Landscape

Key players in the electric two wheeler industry are employing a range of strategies to attain their objectives. The tactics involve promoting innovation, implementing rigorous quality control measures for their products, establishing strategic partnerships, optimizing supply chain management systems, and continually advancing their products and technologies.

Recent Developments :

• In 2022, Gogoro Inc. unveiled its cutting-edge battery swapping system and Smart scooters in the Tel Aviv metropolitan area. Collaborating with industry leaders Metro Motor and Paz Group, the companies anticipate extending this launch to additional cities in Israel in the coming years.
• In 2022, HERO Electric entered into a strategic partnership with Jio-BP to collaborate on electric vehicle charging and battery solutions. The collaboration is expected to significantly enhance the company's after-sales service capabilities.

AIMA Technology Co., Ltd, Ather Energy Pvt. Ltd., Energica Motor Company SPA, Gogoro Limited, Govecs AG, Hero Electric Vehicles Pvt. Ltd, Jiangsu Xinri E-Vehicle Co. Ltd., Piaggio & C. SpA, Vmoto Limited, and Zero Motorcycles Inc. are key players in the market.

Segmentation of Electric Two Wheeler Market Research

• By Product Type:

  • Electric Scooters
  • Electric Motorcycles
  • Electric Bicycles

• By Battery Type:

  • Lithium Ion
  • Lead Based
  • NiMH

• By Region:

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania