Europe Electric Two-Wheeler Market Outlook, 2029

The European electric two-wheeler market presents a dynamic and evolving landscape. Accounting for the second-largest share of the global electric two-wheeler market after Asia Pacific, Europe boasts a robust ecosystem of manufacturers, distributors, and consumers increasingly embracing electric mobility solutions. Factors like stringent emission regulations, rising fuel costs, and growing environmental awareness are propelling the market forward. However, a closer look reveals a fascinating interplay of national and regional policies that significantly influence market dynamics across different European countries.

Beyond the overarching goals of reducing emissions and promoting sustainable transportation, European countries have adopted a diverse range of policies specifically targeting the electric two-wheeler market. One unique aspect lies in the heterogeneity of financial incentives offered by individual governments. Countries like France and Germany provide generous purchase subsidies for electric two-wheelers, significantly reducing the upfront cost for consumers. This strategy has been demonstrably successful in driving rapid adoption rates in these markets.

On the other hand, some countries, like the Netherlands, have opted to phase out purchase subsidies entirely, focusing instead on developing a robust charging infrastructure network and offering tax breaks for electric vehicle ownership. This approach aims to create a long-term sustainable market for electric two-wheelers, independent of government subsidies. Another unique aspect of the European landscape lies in the approach to battery swapping infrastructure. While some countries prioritize the development of a traditional charging network with dedicated stations, others are exploring the potential of battery swapping stations.

This method allows users to quickly swap depleted batteries for charged ones, potentially addressing range anxiety concerns and encouraging wider adoption, particularly for users with limited access to home or workplace charging facilities. Countries like Spain and Italy are actively piloting battery swapping initiatives, with some manufacturers even offering electric two-wheeler models specifically designed for this system. The success of these pilot programs will be closely watched by other European nations as they determine the optimal approach to infrastructure development for their respective markets.

According to the research report, “Europe Electric Two-wheeler Market Outlook, 2029”, the Europe Electric Two-wheeler market is expected to add more than USD 8 Billion from 2024-2029. Mopeds, characterized by their lower top speeds and engine sizes compared to traditional motorcycles, are a popular mode of transportation in several European countries. This is particularly true for nations with a strong culture of two-wheeler usage, such as France, Italy, and the Netherlands. The emergence of electric mopeds caters to this existing user base, offering a familiar and convenient form of transportation with the added benefit of zero emissions.

Furthermore, some European countries have specific regulations and licensing requirements for mopeds that differ from those for motorcycles. This can create an opportunity for manufacturers to develop electric two-wheeler models specifically designed to comply with these regulations, potentially expanding their market reach within Europe. For instance, France categorizes electric mopeds with a power output of less than 4 kW and a maximum speed of 45 km/h as “electric bicycles.”, these “electric bicycles” can be ridden with a standard moped license, making them an attractive option for a wider range of consumers compared to electric motorcycles that might require a motorcycle license.

Manufacturers have responded to this market dynamic by developing electric moped models that fall within these regulatory specifications, ensuring wider consumer accessibility within the French market. Similarly, some European countries offer subsidies specifically for electric mopeds, further incentivizing their adoption and contributing to their prominent role in the market. Furthermore, national and regional variations in regulations regarding electric two-wheeler classifications also present a unique feature of the European market.

Some countries differentiate between electric mopeds, e-scooters, and electric motorcycles based on power output and top speed. These classifications determine licensing requirements, insurance costs, and even helmet usage regulations. This patchwork of regulations can create challenges for manufacturers seeking to offer a standardized product line across different European markets. They might need to adapt their models or marketing strategies to comply with these varying regulations, potentially impacting economies of scale and overall market penetration.

Market Drivers

• Government Incentives and Regulations: A significant driver propelling the European electric two-wheeler market is the concerted effort by governments across the region to promote clean transportation solutions. This translates into a range of policies and incentives specifically aimed at encouraging the adoption of electric two-wheelers. One of the most notable examples is the implementation of generous purchase subsidies for electric vehicles in many European countries. These subsidies significantly reduce the upfront cost of electric two-wheelers, making them a more accessible option for consumers. Additionally, governments are offering tax exemptions on electric vehicles and implementing policies that favor them, such as allowing access to bus lanes or offering free parking in city centers. Furthermore, regulations aimed at reducing emissions from traditional gasoline-powered vehicles are creating a favorable environment for electric two-wheelers as a cleaner and more sustainable alternative. These combined efforts by European governments are playing a crucial role in stimulating demand and accelerating the growth of the electric two-wheeler market within the region.
• Integration with Smart Technologies and Shared Mobility Models: A unique trend shaping the European electric two-wheeler market is the integration of smart technologies and the emergence of shared mobility models. This includes features like GPS navigation, smartphone connectivity, and real-time battery monitoring systems, which enhance the user experience and provide valuable data for manufacturers to improve future iterations. Additionally, the rise of shared electric scooter companies in various European cities is transforming how people access and utilize electric two-wheelers. These shared mobility models offer a convenient and affordable way for individuals to experience the benefits of electric two-wheelers without the commitment of ownership. Furthermore, 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 and shared mobility models positions electric two-wheelers as an innovative and accessible transportation solution within the European landscape.

Market Challenges

• Higher Upfront Cost:While government subsidies help bridge the price gap, electric two-wheelers still carry a higher upfront cost compared to traditional gasoline-powered scooters or motorcycles. This can be a significant deterrent for budget-conscious consumers, particularly in regions with lower average disposable incomes. Manufacturers need to focus on developing more affordable electric two-wheeler models to cater to a broader consumer base and accelerate market penetration. Additionally, innovative financing options, such as battery leasing or subscription models, could potentially make electric two-wheelers more accessible to cost-conscious consumers.
• Limited Charging Infrastructure: Despite significant progress, the availability of charging infrastructure remains a challenge for the European electric two-wheeler market, particularly in some regions. While major cities are witnessing an expansion of charging networks, rural areas and smaller towns often lack adequate charging facilities. This can lead to range anxiety for potential buyers, who might be concerned about the ability to conveniently recharge their electric two-wheelers. Addressing this challenge requires continued investment in expanding charging infrastructure across the entire European region, ensuring widespread accessibility and fostering consumer confidence in electric two-wheelers as a reliable mode of transportation.

Based on the report, the Electric Two-wheeler market is segmented into electric motorcycle and electric scooter categories on the basis of vehicle type.

The European electric two-wheeler market exhibits a distinct segmentation based on vehicle type, with electric scooters currently holding the dominant position. This dominance can be attributed to several factors specific to the European landscape. Firstly, European cities are characterized by densely populated urban centers with narrow streets and limited parking spaces. Electric scooters, with their compact size and maneuverability, are ideally suited for navigating these congested environments. They offer a convenient and fuel-efficient solution for short-distance commutes, errands, and leisure activities within urban areas.

Additionally, many European countries have established regulations classifying electric scooters within the same category as mopeds, allowing them to operate on designated bicycle lanes or specific road sections. This regulatory framework further incentivizes the use of electric scooters within urban mobility solutions. However, the electric motorcycle segment in Europe is also experiencing significant growth, driven by a unique set of consumer preferences. While some European countries categorize electric motorcycles within the same licensing class as traditional gasoline-powered motorcycles, others have established specific licensing requirements with lower power limitations for electric motorcycles.

This creates an opportunity for riders seeking a motorcycle experience with the environmental and economic benefits of electric propulsion. Furthermore, the growing popularity of adventure travel within Europe fuels demand for electric motorcycles with longer range capabilities and more powerful motors. Manufacturers are responding to this demand by developing electric motorcycles specifically designed for European touring enthusiasts, capable of handling diverse terrains and offering features like advanced suspension systems and extended battery ranges.

According to the report, the Electric Two-wheeler market is segmented into sealed-lead acid (SLA) and lithium ion based on battery.

The European electric two-wheeler market exhibits a clear shift towards lithium-ion battery technology, gradually replacing sealed lead acid (SLA) batteries. This transition is driven by several key factors that align with European consumer preferences and regulatory considerations. Firstly, lithium-ion batteries offer a significant advantage in terms of energy density. Compared to SLA batteries, lithium-ion batteries can store more energy in a smaller and lighter package. This translates into a longer range on a single charge for electric two-wheelers, a crucial factor for European consumers seeking practical and reliable transportation solutions.

Furthermore, lithium-ion batteries have a longer lifespan and require less frequent replacements compared to SLA batteries, reducing overall ownership costs. Additionally, lithium-ion batteries boast faster charging times, which is becoming increasingly important as European countries invest in expanding charging infrastructure for electric vehicles. However, SLA batteries still hold a niche within the European electric two-wheeler market, particularly in budget-conscious segments. Their lower upfront cost compared to lithium-ion batteries can be an attractive factor for some consumers.

Additionally, SLA batteries are known for their durability and resilience in extreme weather conditions, which can be a consideration for some European regions with colder climates. However, the environmental benefits of lithium-ion batteries, coupled with their superior performance and efficiency, are propelling a gradual shift towards this technology. Furthermore, European regulations regarding battery recycling and waste management are becoming increasingly stringent. Lithium-ion batteries offer a higher recycling rate compared to SLA batteries, aligning with the European focus on sustainable practices. As regulations and consumer preferences continue to evolve, lithium-ion battery technology is expected to solidify its dominance within the European electric two-wheeler market.

According to the report, the Electric Two-wheeler market is segmented into 48V, 60V and 72V based on motor power.

The European electric two-wheeler market exhibits a unique segmentation by motor power compared to other regions. While higher motor power typically translates to faster speeds and greater range, regulatory limitations and specific consumer preferences within Europe influence the distribution of motor power segments. The 48 V segment holds a significant share within the European electric two-wheeler market. This can be attributed to several factors. Firstly, many European countries classify electric two-wheelers with a motor power below 250 W and a speed limit of 25 km/h (15.5 mph) as e-bikes, exempting them from motorcycle licensing requirements and registration fees.

48 V motors often fall within this regulatory range, making them an attractive option for a large segment of European consumers who prioritize convenience and affordability for short-distance commuting. Additionally, the focus on urban mobility solutions within Europe aligns well with the capabilities of 48 V electric two-wheelers, as they offer sufficient power for navigating congested city streets. The 60 V and 72 V segments cater to a growing demand for higher performance electric two-wheelers in Europe. These motor power options allow for faster speeds and potentially longer ranges, making them suitable for longer commutes or recreational use.

The increasing popularity of electric mopeds in Europe, which are typically classified as L1e vehicles with a speed limit of 45 km/h (28 mph), is driving demand for 60 V and 72 V motors. These motor powers provide enough power to maintain cruising speeds within the L1e regulations. Furthermore, advancements in battery technology are enabling 60 V and 72 V electric two-wheelers to offer competitive range capabilities, addressing concerns about limited travel distance on a single charge. The 'Other Motor Powers' segment encompasses a diverse range of electric two-wheelers with motors exceeding 72 V. This includes high-performance electric motorcycles designed for enthusiasts seeking speed and extended range. However, stricter regulations for higher-powered electric two-wheelers, often requiring motorcycle licenses and registration, limit the overall market share of this segment in Europe compared to regions like Asia.

According to the report, the Electric Two-wheeler market is segmented into commercial and private based on usage.

The commercial segment encompasses electric two-wheelers used for business purposes. This includes delivery services, rental companies, and shared mobility providers. These companies favor electric two-wheelers due to their low operating costs, maneuverability in urban areas, and eco-friendly image. The 48V and 60V segments are particularly popular within the commercial space, offering a balance between affordability, practicality, and sufficient range for last-mile deliveries and short-distance rentals. Government incentives and subsidies for commercial electric vehicle adoption further fuel the growth of this segment.

The private segment represents the largest portion of the European electric two-wheeler market and caters to individual consumers. Within this segment, electric two-wheelers serve a variety of purposes, including commuting to work, running errands, or recreational use. The choice between motor power options depends on individual needs. For instance, urban commuters might prioritize affordability and opt for a 48V model, while those seeking a more powerful option for leisure riding might choose a 60V or even a 72V electric scooter. The rise of electric two-wheelers in the private segment is driven by factors like increasing fuel costs, growing environmental awareness, and government initiatives promoting sustainable transportation solutions.

Based on the report, the major countries covered include Germany, the UK, France, Italy, Spain, Russia, and the rest of Europe.

Germany, the economic powerhouse of Europe, has emerged as a frontrunner in the electric two-wheeler market within the region. This leadership position can be attributed to a confluence of factors, including robust government support, a strong manufacturing base, and a growing consumer appetite for sustainable transportation solutions. Firstly, the German government has played a pivotal role in fostering the adoption of electric two-wheelers. Policy initiatives like generous purchase subsidies, tax exemptions on electric vehicles, and investments in charging infrastructure have significantly reduced the upfront cost barrier for consumers and created a favorable environment for market growth.

For instance, the German government's environmental bonus program offers substantial subsidies for electric two-wheelers, making them a more attractive proposition compared to traditional gasoline-powered options. Additionally, the government has committed to significantly expanding the national charging infrastructure, addressing range anxiety concerns and ensuring convenient charging solutions for electric two-wheeler users. Furthermore, Germany boasts a well-established automotive industry with a strong presence of leading motorcycle manufacturers. These companies, leveraging their existing expertise in design, engineering, and production, are actively developing and launching electric two-wheeler models tailored to the European market.

This domestic manufacturing capability not only fosters innovation within the electric two-wheeler segment but also positions Germany as a key player in the global electric vehicle landscape. Companies like BMW Motorrad, a renowned motorcycle brand, have entered the electric two-wheeler market with innovative models like the C evolution electric scooter, showcasing the commitment of German manufacturers to this evolving segment. Beyond government policies and industry support, German consumers are increasingly embracing electric two-wheelers as a sustainable and convenient mode of transportation. Growing environmental awareness, coupled with rising fuel costs, has fueled a shift towards electric mobility solutions.

Electric two-wheelers cater perfectly to the urban mobility needs of German citizens, offering a practical and eco-friendly alternative for short-distance commuting within cities. Additionally, the growing popularity of electric bicycles (e-bikes) within Germany further highlights the consumer interest in sustainable transportation options. This enthusiasm for e-bikes demonstrates a cultural openness towards electric two-wheelers as a whole, paving the way for wider adoption of electric scooters and electric motorcycles in the future.

Recent Developments

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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