Electric Two-wheeler Market - Global Electric Two-Wheeler Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030

Electric Scooters and Battery Swapping Technology to Drive Market Expansion

The global electric two-wheeler market is on a trajectory of impressive growth, with an estimated Compound Annual Growth Rate (CAGR) of around 12% between 2023 and 2030. By the end of the forecast period, the market is expected to exceed a valuation of US$80 billion. Electric two-wheelers, including electric scooters and motorcycles, are gaining popularity for their eco-friendly nature and efficiency, fueled by advancements in battery technology and government incentives.

Market Analysis in Brief

Electric two-wheelers represent a sustainable mode of personal transportation, operating solely on batteries and eliminating local tailpipe emissions. The market is witnessing strong demand due to their environmental benefits and cost-efficiency. Technological advancements in battery management systems are anticipated to further boost the adoption of electric two-wheelers. Governments and suppliers are offering tax benefits to promote electric vehicle adoption. Additionally, the volatile nature of petrol prices is leading consumers to seek predictable long-term transportation costs, favoring electric two-wheelers.

Key Report Findings

• The electric two-wheeler market is poised for significant expansion between 2023 and 2030.
• Electric scooters are a major driver of demand in the electric two-wheeler market.
• Hub motors continue to be in high demand within the electric two-wheeler segment.
• The 48V category held the highest market revenue share in 2022.
• Lithium-ion batteries dominated the market revenue share in 2022.
• Asia Pacific is expected to maintain its market leadership, while North America is set to experience the most robust growth by 2030.

Growth Drivers

Growing Use of Battery Swapping Technology

Battery swapping technology is transforming the electric vehicle landscape by enabling users to replace depleted batteries with fully charged ones, alleviating range anxiety and enhancing convenience during long journeys. This innovative technology is making electric vehicles more accessible to a wider audience, particularly in rural and less developed areas where the cost of building battery-swapping stations is significantly lower than traditional petrol stations. Governments are supporting battery-swapping initiatives, with India announcing a battery-swapping policy and interoperability standards in its 2023 financial budget. This breakthrough addresses range limitations in electric two-wheelers, making them a more attractive option for consumers.

Mounting Sales of Electric Motorbikes and E-Bikes for Short Trips

The rise in urban traffic congestion and the need for quick, cost-effective commuting solutions are driving sales of lightweight electric vehicles such as e-kicks, electric motorbikes, and electric bicycles. Sales of electric motorcycles in India, for example, increased by 16.5% from 2019 to 2020, supported by favorable tax policies. Electric motorcycles offer additional tax advantages and reduced Goods and Services Tax (GST) rates, making them an attractive choice for urban commuters. These policies promote the use of electric motorbikes and e-bikes for short urban trips.

Market Challenges

Performance, Range, and Design Limitations

Electric motorcycles and scooters are still evolving, with most models yet to match the performance and power levels of traditional two-wheelers. Range limitation is another challenge, as electric two-wheelers lack the fuel tanks found in conventional counterparts. While battery technology is advancing, fully charged batteries in electric two-wheelers offer a significantly shorter range compared to internal combustion engines. This limitation affects consumers who regularly travel long distances and contributes to range anxiety.

Overview of Key Segments

E-scooter Sales Take the Lead

E-scooters and mopeds are expected to dominate the electric scooter and motorcycle market, driven by their affordability and increasing demand for budget-friendly commuting solutions. The lower initial cost of e-scooters, combined with their energy efficiency and contribution to cleaner air, positions them as an ideal choice for daily urban commuting. Key players, including Nexzu Mobility, are focusing on producing fashionable and eco-friendly electric scooters at competitive prices, driving rapid market growth.

Lithium-ion Battery Type Dominant

Lithium-ion batteries are set to dominate the electric two-wheeler market due to their numerous advantages over traditional lead-acid batteries. These benefits include higher energy density, lighter weight, longer lifespan, faster charging times, and improved safety features. Lithium-ion batteries address the limitations of low battery capacity, offering increased range and enhanced performance. Their reduced weight enhances mobility and overall efficiency in electric two-wheelers, contributing positively to market growth.

Growth Opportunities Across Regions

e-Mobility Adoption Soars in Key Asian Countries

Asia Pacific is expected to maintain its dominance in the electric two-wheeler market, driven by environmental concerns and increasing adoption of electric vehicles. Governments in the region have implemented subsidies, tax incentives, and infrastructure development plans to promote electric mobility. These policies, along with rising awareness of air pollution's adverse effects on public health, have encouraged consumers to opt for eco-friendly transportation options such as electric scooters and motorcycles.

North America Witnesses Escalating Sales

North America is poised to witness significant growth in the electric two-wheeler market, driven by falling battery prices, increased investments by shared mobility companies in electric two-wheeler firms, and major two-wheeler manufacturers introducing electric models. The United States experienced substantial growth in electric two-wheeler sales during the pandemic, while Canada emerged as the fastest-growing market for electric two-wheelers. Robust research and development efforts by major players in the region are contributing to the expansion of electric mobility options.

Electric Two-wheeler Market: Competitive Landscape

Leading players at the forefront of the global electric two-wheeler market include Yadea Group Holdings Ltd., Silence Urban Ecomobility, Niu Technologies, Segway Inc., Hero Electric Pvt. Ltd., Okinawa Autotech Pvt. Ltd., Ather Energy Pvt. Ltd., AIMA Technology Co., Ltd., Ola Electric Mobility Pvt Ltd., Pure Electric, Piaggio & C. SpA, and BMW North America, LLC.