Electric Two-Wheeler Market Overview, 2024-2029

The global electric two-wheeler market is experiencing a period of dynamic transformation. Once a niche segment within the transportation industry, electric two-wheelers are rapidly gaining traction as consumers become increasingly aware of the environmental and economic benefits they offer. Driven by advancements in battery technology, government incentives, and a growing emphasis on sustainable transportation solutions, the market is projected to witness significant growth in the coming years. Beyond this overall growth trajectory, the global electric two-wheeler landscape exhibits some distinct characteristics across different regions. One unique aspect of the global market lies in the emergence of regional champions.

While established motorcycle manufacturers from developed nations are actively developing and launching electric two-wheeler models, several regional players are carving out a significant space for themselves. In India, for instance, a new wave of electric two-wheeler startups like Ather Energy, Ola Electric, and Hero Electric are capturing a sizeable share of the domestic market. These companies understand the specific needs and preferences of Indian consumers, offering electric two-wheelers designed for affordability, practicality, and adaptability to local riding conditions. Their success highlights the growing importance of regional players who can cater to the unique demands of their respective markets.

This phenomenon extends beyond India. In China, established players like Yadea and Sunra dominate the electric two-wheeler market, leveraging their extensive production capabilities and established distribution networks. These companies offer a wide range of electric two-wheeler models, from basic commuter scooters to high-performance motorcycles, catering to a diverse consumer base. Similarly, in Southeast Asia, regional players like VinFast in Vietnam and WINNER in Indonesia are making significant strides in the electric two-wheeler market. These companies benefit from their deep understanding of local market dynamics and their ability to navigate complex regulatory environments. The emergence of regional champions is a defining characteristic of the global electric two-wheeler landscape, as these players challenge the dominance of established multinational corporations and contribute to a more diverse and competitive market.

According to the research report, “Global Electric Two-wheeler Market Overview, 2024-29”, the market is anticipated to cross USD 80 Billion by 2029, increasing from USD 45.84 Billion in 2023. The market is expected to grow with 10.55% CAGR by 2024-29. While established motorcycle manufacturers are actively developing and launching their own electric two-wheeler models, a wave of innovative startups is disrupting the market. These startups often focus on specific niches within the electric two-wheeler market, such as high-performance electric motorcycles or lightweight and affordable electric scooters designed for urban commuting. Their nimbleness and focus on user experience are challenging traditional manufacturers to adapt and innovate.

Additionally, some startups are pioneering new ownership models, such as battery swapping services or subscription-based electric two-wheeler access. These models address concerns about upfront purchase costs and battery degradation, potentially accelerating consumer adoption. This trend of innovation extends beyond the vehicles themselves. The global electric two-wheeler market is witnessing the development of a robust ecosystem of supporting services. Companies are creating smartphone applications that allow riders to locate charging stations, monitor battery health, and even book service appointments.

Furthermore, insurance providers are developing customized policies for electric two-wheelers, reflecting the unique risk profiles of these vehicles. These developments are crucial for building consumer confidence and creating a seamless ownership experience, which is essential for the long-term success of the electric two-wheeler market. The rise of electric two-wheelers also presents unique opportunities for collaboration between established players and new entrants. Strategic partnerships can leverage the strengths of each entity. For instance, a traditional motorcycle manufacturer could partner with a battery technology startup to gain access to cutting-edge battery solutions.

Similarly, a startup specializing in electric scooter design could collaborate with a major retailer to establish a robust sales and distribution network. These collaborations can accelerate innovation, optimize resource allocation, and ultimately benefit consumers by offering a wider range of high-quality electric two-wheeler options. Looking ahead, the global electric two-wheeler market is poised for continued growth. As battery technology advances, infrastructure expands, and the ecosystem of supporting services matures, electric two-wheelers are likely to become an increasingly ubiquitous sight on roads worldwide.

Market Drivers

• Government Policy and Incentive Programs: A crucial driver propelling the global electric two-wheeler market forward lies in the increasing focus by governments worldwide on promoting sustainable transportation solutions. This translates into a growing number of government policy initiatives aimed at incentivizing electric two-wheeler adoption. These initiatives encompass a range of measures, including tax breaks on electric two-wheeler purchases, subsidies for charging infrastructure development, and favorable registration fees. For instance, many European countries offer significant purchase subsidies for electric two-wheelers, effectively reducing the upfront cost and making them more competitive with gasoline-powered alternatives. Similarly, countries in Southeast Asia are investing heavily in expanding charging infrastructure networks, addressing concerns about range anxiety and encouraging wider consumer acceptance of electric two-wheelers. Government support through policy and incentives plays a pivotal role in overcoming initial cost barriers and fostering a market environment conducive to the growth of electric two-wheelers.
• Rising Popularity of Battery Swapping Technology: A unique trend gaining traction within the global electric two-wheeler market is the growing adoption of battery swapping technology. This system allows users to quickly swap depleted batteries for fully charged ones at designated swapping stations. This approach eliminates the need for lengthy charging times at home or reliance on a developed charging infrastructure network. Battery swapping is particularly advantageous in regions with limited access to home charging or in countries with a high density of short-distance commuters using electric two-wheelers. Several companies are deploying battery swapping networks specifically designed for electric two-wheelers. This trend holds immense potential to address range anxiety concerns, a major barrier to wider electric two-wheeler adoption, and could be particularly transformative in developing economies where widespread charging infrastructure development might be a slower process.
• Technological Advancements in Battery Technology: Another key driver for the global electric two-wheeler market lies in the continuous advancements in battery technology. Range anxiety, the concern about limited travel distance on a single charge, remains a significant barrier for some potential electric two-wheeler buyers. However, advancements in battery technology are addressing this challenge. Manufacturers are developing batteries with higher energy densities, allowing electric two-wheelers to travel longer distances on a single charge. Furthermore, innovations in battery swapping technologies offer a potential solution. This system allows users to quickly replace a depleted battery with a fully charged one, significantly reducing charging times and addressing range anxiety concerns. These advancements in battery technology are not only improving the performance of electric two-wheelers but also fostering greater consumer confidence in this evolving mode of transportation.

Market Challenges

• Limited Range and Charging Infrastructure: A key challenge hindering the wider adoption of electric two-wheelers is the issue of limited range and underdeveloped charging infrastructure. While battery technology is constantly improving, range anxiety remains a concern for some potential buyers, particularly those who require electric two-wheelers for longer commutes. Furthermore, the lack of widespread charging infrastructure, especially in developing regions, can create challenges for electric two-wheeler ownership. Relying solely on home charging might not be feasible for everyone, and the availability of public charging points can be limited. Addressing this challenge requires a multi-pronged approach. Battery manufacturers need to continue innovating to improve range and develop faster charging solutions. Governments and private companies must invest in expanding charging infrastructure, ensuring a network of easily accessible charging points across urban and rural areas.
• Higher Upfront Costs Compared to Gasoline Options: Despite government subsidies and incentives in some regions, the upfront cost of electric two-wheelers can still be higher compared to traditional gasoline-powered options. This can be a significant barrier for potential buyers, particularly in developing economies where affordability remains a major concern. While the long-term operational costs of electric two-wheelers, including lower maintenance expenses and reduced fuel costs, can be more economical, the initial investment can be a deterrent for some consumers. Manufacturers need to focus on cost optimization and developing more affordable electric two-wheeler models to cater to a wider range of income brackets. Additionally, innovative financing options like battery leasing or subscription models can help overcome the upfront cost barrier and make electric two-wheelers a more attractive proposition for budget-conscious consumers.
• Consumer Perceptions and Concerns Regarding Battery Performance: Despite advancements in battery technology, consumer perceptions and concerns regarding battery performance remain a challenge for the global electric two-wheeler market. Potential buyers might harbor anxieties about battery range limitations, especially in colder climates where battery performance can be impacted. Additionally, concerns about battery degradation over time and the potential high cost of battery replacements can be a deterrent for some consumers. Addressing these concerns requires educational campaigns highlighting the advancements in battery technology and promoting the long-term economic benefits of electric two-wheeler ownership, considering the lower running costs compared to gasoline-powered options. Furthermore, manufacturers need to focus on transparency regarding battery performance and offer warranties or replacement programs to alleviate consumer anxieties.

Market Trends

• Focus on Urban Mobility Solutions: A prominent trend within the global electric two-wheeler market is the growing focus on urban mobility solutions. Electric two-wheelers offer a convenient, cost-effective, and environmentally friendly mode of transportation, making them ideal for navigating congested city environments. Additionally, the growing emphasis on sustainable urban development initiatives further fuels the demand for electric two-wheelers. Many cities are implementing policies that prioritize electric vehicles, including dedicated parking spaces, access to bus lanes, and restrictions on gasoline-powered vehicles in specific zones. This creates a favorable environment for electric two-wheelers to flourish, particularly in densely populated urban areas.
• Diversification of Electric Two-Wheeler Product Offerings: The global electric two-wheeler market is witnessing a trend towards diversification of product offerings. While traditional scooter designs remain popular, manufacturers are developing a wider range of electric two-wheeler options to cater to different consumer needs and preferences. This includes electric motorcycles with high-performance specifications for long-distance travel, electric mopeds designed for short-distance urban commutes, and even electric bicycles that offer a pedal-assisted mode of transportation. This diversification caters to a broader consumer base and allows electric two-wheeler manufacturers to compete more effectively within the overall transportation landscape.
• Integration with Smart Technologies and Connectivity Features: A growing trend within the global electric two-wheeler market is the integration of smart technologies and connectivity features. This includes features like GPS navigation, smartphone connectivity, and real-time battery monitoring systems. These advancements not only enhance the user experience but also offer valuable data for manufacturers to improve future product iterations. Additionally, the integration of internet-of-things (IoT) technology allows for remote diagnostics and over-the-air software updates, ensuring optimal performance and safety of electric two-wheelers. This focus on smart technology integration positions electric two-wheelers at the forefront of modern transportation solutions, potentially attracting a tech-savvy consumer segment.

Electric scooters lead in the Electric Two-wheeler market attributed to practicality, affordability, and suitability for urban environments.

Electric scooters offer a practical and convenient mode of transportation, particularly for short-distance commuting within urban areas. Their compact size allows for easier maneuverability through congested city streets and facilitates parking in tight spaces. Additionally, the lightweight nature of electric scooters makes them ideal for a wider range of riders, including those who might find traditional motorcycles intimidating or physically demanding. Furthermore, electric scooters generally present a more affordable entry point into the electric two-wheeler market compared to electric motorcycles. This affordability is crucial in developing regions, where price sensitivity is a significant factor influencing consumer purchasing decisions.

While battery technology advancements are narrowing the price gap between electric scooters and motorcycles, electric scooters still offer a cost-competitive option for budget-conscious consumers seeking a sustainable and fuel-efficient mode of transportation. Beyond affordability, electric scooters cater perfectly to the growing demand for urban mobility solutions. The increasing congestion and pollution levels plaguing major cities worldwide are prompting a shift towards cleaner and more sustainable transportation options. Electric scooters, with their zero-emission operation and quiet electric motors, contribute to improved air quality and reduced noise pollution in urban environments.

Additionally, many cities are implementing policies that favor electric vehicles, such as dedicated parking spaces or access to bus lanes. This creates a favorable environment for electric scooters to flourish, solidifying their position as the leading segment within the global electric two-wheeler market. However, the electric motorcycle segment should not be disregarded. As battery technology improves, offering greater range and performance, electric motorcycles are poised to attract a growing consumer segment seeking a more powerful and long-distance capable alternative for electric two-wheeler transportation.

The lithium ion battery leads in the Electric Two-wheeler market attributed to several advantages lithium-ion technology offers over traditional sealed lead acid (SLA) batteries.

Lithium-ion batteries boast a significantly higher energy density compared to SLA batteries. This translates to a longer range on a single charge for electric two-wheelers, addressing a key concern for potential buyers - range anxiety. Lithium-ion batteries are also lighter in weight compared to SLA batteries, contributing to the overall lighter weight and better maneuverability of electric two-wheelers. Furthermore, lithium-ion batteries offer a longer lifespan compared to SLA batteries. This translates to a lower total cost of ownership for electric two-wheelers, as lithium-ion batteries require replacement less frequently.

Additionally, lithium-ion batteries have a faster charging time compared to SLA batteries, allowing electric two-wheelers to be recharged more quickly, a crucial factor for urban commuters with busy schedules. Advancements in lithium-ion battery technology are also continuously improving their safety profiles, addressing some earlier concerns regarding potential overheating issues. While SLA batteries offer a lower upfront cost compared to lithium-ion batteries, their shorter lifespan and lower energy density ultimately make them a less attractive option for electric two-wheeler manufacturers and consumers in the long run. However, SLA batteries might still find some niche applications in specific electric two-wheeler models, particularly low-speed electric scooters or budget-oriented options in developing economies.

The 48V two-wheelers lead in the Electric Two-wheeler market attributed to affordability, practicality, and regulatory compliance across diverse regions.

Within the multifaceted global electric two-wheeler market, the 48V motor power segment reigns supreme. This dominance can be attributed to a unique confluence of factors that prioritize affordability, practicality, and regulatory compliance across diverse regions. Firstly, the 48V motor power offers a compelling balance between performance and cost-effectiveness. It delivers sufficient power for electric scooters, the leading vehicle type in the global market, to navigate congested urban environments efficiently. This range capability caters to the primary usage patterns of electric two-wheeler riders in many regions - short-distance commuting within city limits.

Additionally, the lower motor power translates to a more affordable price point for both manufacturers and consumers. This is particularly crucial in developing economies, where cost remains a significant barrier to electric two-wheeler adoption. Furthermore, the 48V segment often aligns well with regulatory limitations for low-speed electric vehicles (LSEVs) in many countries. These regulations typically restrict LSEVs to speeds around 30-50 km/h (18-31 mph), making 48V motors a compliant and practical choice. This regulatory compliance is essential for market growth, as it ensures electric two-wheelers can operate legally within designated zones and alongside traditional traffic. However, the dominance of 48V is not without its limitations.

In regions with established infrastructure for higher-powered electric vehicles, including robust charging networks, consumers might seek electric two-wheelers with greater range and speed capabilities. This is where higher voltage segments like 60V and 72V come into play. Looking ahead, advancements in battery technology, particularly those focusing on increased energy density, could potentially enhance the range capabilities of 48V electric two-wheelers, further solidifying their leadership position in the global market, especially in cost-sensitive regions.

The commercial sector leads in the Electric Two-wheeler market attributed to affordability, regulatory compliance, and their suitability for urban transportation needs in developing regions.

The commercial segment reigns supreme when it comes to usage within the global electric two-wheeler market. This leadership position can be attributed to several factors that make electric two-wheelers a compelling choice for businesses seeking efficient and sustainable transportation solutions. Firstly, electric two-wheelers offer significant operational cost savings for commercial applications. Their reliance on electricity translates to lower fuel costs compared to gasoline-powered alternatives. Additionally, electric two-wheelers require less maintenance due to the simpler electric drivetrain compared to internal combustion engines, further reducing operational expenses for businesses.

This cost-effectiveness is particularly attractive for delivery companies operating within urban areas, where electric two-wheelers excel due to their agility and ability to navigate congested streets efficiently. Furthermore, the environmental benefits of electric two-wheelers resonate strongly with businesses seeking to reduce their carbon footprint and promote a more sustainable brand image. The zero-tailpipe emissions of electric two-wheelers contribute to cleaner air quality in urban environments, aligning with growing global environmental concerns.

Governments in many regions are also offering incentives and subsidies specifically for commercial electric vehicle adoption, further incentivizing businesses to switch to electric two-wheeler fleets. Looking ahead, the commercial segment is expected to remain a key driver of growth in the global electric two-wheeler market. Advancements in battery technology promising longer range capabilities and shorter charging times will further enhance the operational efficiency of electric two-wheelers for commercial applications. Additionally, the growing popularity of shared mobility programs that utilize electric two-wheelers is expected to contribute to the dominance of the commercial segment within the global market.

Asia-Pacific leads in the Electric Two-wheeler market due to the region’s rapid economic growth and large-scale infrastructure development projects.

The Asia Pacific region reigns supreme as the undisputed leader in the global Electric Two-wheeler market, accounting for over half of global sales. This dominance can be attributed to a unique confluence of factors specific to the region's demographics, economic landscape, and government policies. A burgeoning population, particularly in developing countries like China and India, is a key driver. Rapid urbanization creates a demand for affordable and efficient transportation options. Electric Two-wheelers offer a compelling solution, particularly for short-distance commuting within congested city centers.

Their lower running costs compared to gasoline-powered scooters due to reduced electricity costs make them an attractive proposition for budget-conscious consumers. Furthermore, governments across the Asia Pacific region are actively promoting the adoption of electric vehicles through a combination of financial incentives and stricter emission regulations. For instance, China offers generous subsidies for Electric Two-wheeler purchases, making them significantly cheaper than their gasoline counterparts. India's Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme provides financial assistance for both manufacturers and consumers, fostering the domestic production and adoption of Electric Two-wheelers.

These government initiatives are creating a supportive environment for the Electric Two-wheeler market to flourish. Uniquely shaping the market in this region is the dominance of low-speed Electric Two-wheelers. These scooters, with speeds limited to 25 km/h or less, are particularly popular in China and Southeast Asia. Their affordability, ease of operation, and exemption from requiring a driver's license in some countries contribute to their widespread adoption. However, this focus on low-speed options presents a challenge, as some consumers might perceive them as lacking in performance compared to traditional gasoline scooters.

Manufacturers are addressing this by developing higher-speed Electric Two-wheeler models with improved range and performance capabilities. The rise of powerful electric scooter companies like China's NIU and India's Ather Energy is another unique aspect of the Asia Pacific market. These companies cater to a growing segment of urban consumers seeking stylish and technologically advanced Electric Two-wheelers. Their focus on design, performance, and connectivity features is attracting a new wave of riders to the electric scooter market.

Recent Developments

• April 2024: In a move targeting eco-conscious cyclists, DAB Motors announced the DAB-1 Alpha electric bike. Inspired by classic motorcycles, the Alpha boasts a futuristic design with a key focus on sustainability. The bike features a fully recyclable and dismountable battery, reducing environmental impact. Furthermore, for a seamless charging experience, DAB Motors offers an optional wireless charger designed in collaboration with Quadlock. This combination of sustainable design and user-friendly features positions the DAB-1 Alpha as a compelling option for environmentally responsible riders.
• April 2024: In a move to accelerate global expansion, Gogoro signed a Memorandum of Understanding (MOU) to form a new partnership with Japanese giants Sumitomo Corporation and Sumitomo Mitsui Finance and Leasing Company (SMFL). This collaboration aims to leverage Gogoro's innovative battery swapping technology and smart batteries to establish a new asset class. The partnership will focus on expanding Sumitomo's mobility business and creating new revenue streams through battery utilization and second-life opportunities.
• April 2024: Tesla Power India and E-Ashwa Automotive announced a collaboration to launch India's first Electric Two-wheeler equipped with fire safety technology. This innovation aims to address a critical safety concern regarding electric vehicles and potentially boost consumer confidence in this growing market segment. Details regarding the specific model, launch date, and fire safety technology employed are expected to be revealed soon.
• January 2024: In a move to enhance rider safety, electric motorcycle startup Verge Motorcycles announced a comprehensive safety suite for its TS line of electric motorcycles. This suite includes a suite of features like anti-lock braking system (ABS), traction control system (TCS), and a motorcycle stability control (MSC) system. Verge highlights that these features are specifically calibrated for the unique handling characteristics of their hubless electric motor design. It is currently available in Europe and the company is eyeing to expand to the American market this year.
• November 2023: In a move to expand its global footprint, TVS Motor Company announced a partnership with Emil Frey, a European automotive retail giant, to enter the French market. This collaboration paves the way for TVS Motor to launch its range of two-wheelers in France by January 2024. The product line-up will include motorcycles, scooters, and potentially electric vehicles, catering to the diverse needs of European consumers. This strategic partnership leverages Emil Frey's extensive distribution network and market expertise to establish TVS Motor in the competitive European market.
• November 2023: Hero MotoCorp, the world's largest two-wheeler manufacturer, announced its entry into the European electric scooter market. The company plans to launch its VIDA V1 electric scooter range in Spain, France, and the United Kingdom by mid-2024. This move signifies Hero MotoCorp's global expansion strategy and its commitment to the electric vehicle segment. The company has partnered with distributors in each country to establish commercial operations and will also introduce its premium internal combustion engine motorcycles and scooters in the future.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Electric Two-Wheeler market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type

• Electric Motorcycle
• Electric Scooter

By Battery

• Sealed Lead Acid (SLA)
• Lithium-Ion

By Motor Power

• 48 V
• 60 V
• 72 V
• Others

By Usage

• Commercial
• Private

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the analyst started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the analyst had primary data, they started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Two-Wheeler industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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