The Electric Two Wheeler Market is expected to reach US$ 375.82 billion 2033 from US$ 228.20 billion in 2024, with a CAGR of 10.44% from 2025 to 2033. Rising gasoline prices, environmental consciousness, government incentives, better battery technology, cost-effectiveness, urbanization, the growing need for environmentally friendly transportation, and changing customer preferences are all contributing factors to the growth of the electric two-wheeler market.
Rising fuel prices, environmental concerns, and government incentives supporting clean energy transportation are some of the factors driving the growth of the electric two-wheeler market. Electric vehicles are becoming more widely available because to improvements in battery technology that have increased range and decreased costs. The need for affordable, effective commuting choices is increased by growing urbanization and traffic congestion. Further propelling market expansion are consumer preferences for environmentally friendly products and the increased emphasis on sustainability. The combination of these elements fosters an atmosphere that is conducive to the adoption of electric two-wheelers.
With approximately 40% of all U.S. sales of electric two-wheelers in 2023, California continues to lead all markets thanks to the state's stringent emission regulations and extensive subsidies. Electric motorcycles from producers like Harley-Davidson and Zero Motorcycles are another factor driving the market. Electric two-wheelers are the ideal choice for urban commuters due to traffic congestion, rising fuel prices, and the fact that they are an economical and efficient substitute for conventional gasoline-powered transportation. In this category, the US is progressively establishing itself as the global leader.
The global electric two wheeler market size was valued at US$ 50.13 billion in 2024 and is expected to reach US$ 122.54 billion in 2033.
2. What is the electric two wheeler industry growth rate?
The global electric two wheeler market is expected to expand at a compound annual growth rate (CAGR) of 10.44% from 2025 to 2033.
3. Who are the key players in electric two wheeler industry?
The top electric two wheeler companies are BMW AG, GOVECS AG, Hero Electric Vehicles Pvt. Ltd., Mahindra GenZe, Terra Motors Corporation, Vmoto Limited, Zero Motorcycles, Inc.
4. What are the factors driving the electric two wheeler industry?
The electric two-wheeler market is growing due to rising fuel costs, environmental awareness, government incentives, improved battery technology, cost-effectiveness, urbanization, increasing demand for eco-friendly transportation, and evolving consumer preferences.
5. Which Region held the largest market share in the electric two wheeler industry?
North America is expected to hold the largest market share in the industry.
6. What segments are covered in the electric two wheeler market report?
Type, Battery Type, Drive Type, Voltage and Countries segment are covered in this report.
Electric Two Wheeler Industry Overview
Vehicles with electric motors rather than internal combustion engines are known as electric two-wheelers. They store energy in rechargeable batteries, usually lithium-ion, which are subsequently transformed into motion. Since these cars emit no emissions, they are seen as environmentally benign since they lessen air pollution and the need for fossil fuels. Compared to conventional cars, electric two-wheelers are more affordable and require less upkeep and operation. They provide quiet, comfortable rides, making them perfect for short-distance urban travel. Due to government incentives, increased environmental concerns, and breakthroughs in battery technology, electric two-wheelers are becoming more and more popular around the world.Rising fuel prices, environmental concerns, and government incentives supporting clean energy transportation are some of the factors driving the growth of the electric two-wheeler market. Electric vehicles are becoming more widely available because to improvements in battery technology that have increased range and decreased costs. The need for affordable, effective commuting choices is increased by growing urbanization and traffic congestion. Further propelling market expansion are consumer preferences for environmentally friendly products and the increased emphasis on sustainability. The combination of these elements fosters an atmosphere that is conducive to the adoption of electric two-wheelers.
Growth Drivers for the Electric Two Wheeler Market
Cycling's Growing Popularity in Fitness and Recreational Activities
The market for electric two-wheelers is growing due in large part to the increase in riding for leisure and exercise. An article claims that there are approximately 1 billion bicycles in use worldwide, demonstrating how popular riding is as a recreational and fitness activity. Because of its many health advantages and the growing emphasis on living an active lifestyle, cycling has become more and more popular as a recreational and fitness activity. For people who wish to ride a bicycle but may encounter obstacles like mountainous terrain or physical fitness restrictions, electric two-wheelers, like electric bicycles, offer an alluring alternative. These vehicles' electric assistance enables riders to handle difficult routes and get beyond obstacles related to physical exertion. Electric two-wheelers give fitness aficionados the freedom to modify the electric motor's assistance level, enabling them to personalize the intensity of their workouts. Because of their adaptability, e-bikes may be used by people of all fitness levels, encouraging more people to include riding in their exercise regimens. The increased range and battery life of electric two-wheelers have led to an increase in their use for recreational purposes. Without having to worry about becoming tired or putting in too much physical effort, riders can travel farther and take part in outdoor activities. This contributes to the expansion of the electric two-wheeler market by creating new opportunities for weekend getaways, picturesque excursions, and environmental exploration.Growing Interest in Eco-Friendly Automobiles
The industry is being positively impacted by the growing demand for environmentally friendly automobiles. The International Energy Agency (IEA) reports that sales of electric vehicles (EVs) increased by 55% from 2021 to 10 million units worldwide in 2022. Reducing carbon emissions and lessening the impact of transportation on the environment have become more important as environmental issues have gained more attention. An environmentally responsible and sustainable substitute for traditional gasoline or diesel-powered cars are electric two-wheelers. Since they don't release any pollutants into the atmosphere, the air quality in urban areas is improved and pollution levels are reduced. Reducing dependency on fossil fuels is the driving force behind the growing interest in eco-friendly automobiles. Electricity, which can be generated from renewable energy sources like solar or wind, powers electric scooters and motorcycles. This strategy promotes the use of cleaner energy alternatives while reducing reliance on finite fossil fuel supply.Concerns About Traffic Congestion Are Growing
The demand for the goods is being greatly impacted by the growing traffic congestion. According to statistics, the International Transport Forum calculates that highly congested urban economies lose an average of 1% of their GDP due to traffic congestion. Commuting times and dissatisfaction with traffic congestion have increased as metropolitan areas becoming increasingly populated with cars. A useful way to go more effectively through crowded streets is with an electric two-wheeler. Because they are small and incredibly agile, electric two-wheelers make it simple for riders to navigate around traffic and discover alternate routes. They are a desirable option for urban commuters who want to escape the delays and annoyances brought on by traffic congestion because they can get to their destinations more quickly and avoid lengthy lines of stationary cars. Electric two-wheelers' ease of use and maneuverability in negotiating traffic jams shorten commutes and lessen the anxiety and annoyance that come with being stopped in traffic. Because of this, more people are choosing to travel by electric two-wheelers, which is increasing the demand for these vehicles.Challenges in the Electric Two Wheeler Market
Limited Charging Infrastructure
One major obstacle facing the market for electric two-wheelers is the lack of adequate charging infrastructure. Customers' willingness to purchase electric vehicles is limited by range anxiety brought on by inadequate charging facilities, particularly in rural or underdeveloped locations. Riders may have to wait a long time to recharge if there are no fast-charging options available. Public and private charging networks must be expanded in order to meet the rising demand for electric two-wheelers and guarantee their widespread use.Regulatory Hurdles
The market for electric two-wheelers is challenged by regulatory barriers because different regions have different laws. Diverse safety requirements, battery laws, and incentives can perplex producers and customers, which will impede market expansion. Furthermore, certain areas have unclear laws governing the manufacture, importation, and use of electric vehicles, which makes it challenging for businesses to expand. Unified international laws and regulations that can expedite production, sales, and infrastructure development are required to create a more encouraging atmosphere.Electric Two Wheeler Market Overview by Regions
Due to government incentives and urbanization, the market for electric two-wheelers is expanding significantly in Asia, particularly China and India. Demand is rising in Europe as a result of sustainable transportation projects and environmental legislation. With increased environmental consciousness and the construction of infrastructure, adoption is expanding more slowly in North America. There are still issues with regional differences in regulations and infrastructure.United States Electric Two Wheeler Market
The market for electric two-wheelers in the US is expanding significantly due to government incentives and rising demand for environmentally friendly transportation options. Due to customers' growing interest in eco-friendly modes of transportation and their decreased reliance on fossil fuels, the U.S. Department of Energy reports that sales of electric two-wheelers are predicted to surpass 400,000 units in 2024. Federal initiatives, such as the USD 7.5 billion investment in electric car charging infrastructure, are crucial to promoting adoption since they help remove one of the primary barriers to the expansion of EVs: the availability of charging stations.With approximately 40% of all U.S. sales of electric two-wheelers in 2023, California continues to lead all markets thanks to the state's stringent emission regulations and extensive subsidies. Electric motorcycles from producers like Harley-Davidson and Zero Motorcycles are another factor driving the market. Electric two-wheelers are the ideal choice for urban commuters due to traffic congestion, rising fuel prices, and the fact that they are an economical and efficient substitute for conventional gasoline-powered transportation. In this category, the US is progressively establishing itself as the global leader.
Germany Electric Two Wheeler Market
The market for electric two-wheelers in Germany is expanding steadily because to environmental regulations, robust government subsidies, and an emphasis on environmentally friendly transportation. Due to rising gasoline prices and urbanization, more people are choosing electric bikes and scooters for economical, environmentally responsible transportation. Germany's well-developed infrastructure and advantageous legal environment encourage the use of electric two-wheelers. Additionally, manufacturers are providing a variety of models to accommodate a wide range of tastes, which attracts both domestic and foreign competitors to the market.India Electric Two Wheeler Market
Rising gasoline prices, government incentives, and a strong push toward environmentally friendly transportation are all contributing to India's electric two-wheeler market's rapid growth. Taiwanese company Gogoro made its debut in the Indian market in December 2023 with the Gogoro Crossover GX250, an electric scooter made in India specifically for Indian riders. This action shows a larger plan by international companies like Komatsu to enter India's rapidly growing electric scooter market. There will likely be a large growth in demand for electric two-wheelers due to urbanization, growing environmental consciousness, and the expansion of charging infrastructure. India's emphasis on sustainability and rising consumer demand for reasonably priced electric vehicles are driving the growth of this industry.Saudi Arabia Electric Two Wheeler Market
Although the Saudi Arabian market for electric two-wheelers is still in its infancy, there is a lot of room for expansion. Eco-friendly transportation is becoming more and more popular, driven by the nation's Vision 2030 aims, which seek to diversify the economy and advance sustainability. Despite the market's tiny size in comparison to worldwide leaders, interest in electric two-wheelers is developing as a result of rising gasoline prices and more environmental consciousness. In the upcoming years, market growth may be fueled by government assistance, possible investments in charging infrastructure, and the growing acceptance of electric vehicles.Electric Two-Wheeler Market Segments
Type
- Electric Motorcycles
- Electric Scooters
Battery Type
- Nickel Metal Hybride Batteries
- Sealed Lead Acid Batteries
- Lithium-Ion Batteries
Drive Type
- Hub Drive Motor
- Mid-Drive Motor
Voltage
- 36V
- 48V
- 60V
- 72V
- Above 72V
Countries- Market breakup by 25 Countries:
North America
- United States
- Canada
Europe
- France
- Germany
- Italy
- Spain
- United Kingdom
- Belgium
- Netherlands
- Turkey
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Thailand
- Malaysia
- Indonesia
- New Zealand
Latin America
- Brazil
- Mexico
- Argentina
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Overview
- Key Persons
- Recent Development & Strategies
- Product Portfolio
- Financial Insights
Key Company Covered
- BMW AG
- GOVECS AG
- Hero Electric Vehicles Pvt. Ltd.
- Mahindra GenZe
- Terra Motors Corporation
- Vmoto Limited
- Zero Motorcycles, Inc.
Key Questions Answered in Report
1. How big is the electric two wheeler industry?The global electric two wheeler market size was valued at US$ 50.13 billion in 2024 and is expected to reach US$ 122.54 billion in 2033.
2. What is the electric two wheeler industry growth rate?
The global electric two wheeler market is expected to expand at a compound annual growth rate (CAGR) of 10.44% from 2025 to 2033.
3. Who are the key players in electric two wheeler industry?
The top electric two wheeler companies are BMW AG, GOVECS AG, Hero Electric Vehicles Pvt. Ltd., Mahindra GenZe, Terra Motors Corporation, Vmoto Limited, Zero Motorcycles, Inc.
4. What are the factors driving the electric two wheeler industry?
The electric two-wheeler market is growing due to rising fuel costs, environmental awareness, government incentives, improved battery technology, cost-effectiveness, urbanization, increasing demand for eco-friendly transportation, and evolving consumer preferences.
5. Which Region held the largest market share in the electric two wheeler industry?
North America is expected to hold the largest market share in the industry.
6. What segments are covered in the electric two wheeler market report?
Type, Battery Type, Drive Type, Voltage and Countries segment are covered in this report.
Table of Contents
1. Introduction2. Research & Methodology3. Executive Summary5. Global Electric Two Wheeler Market
4. Market Dynamics
6. Market Share Analysis
7. Type
8. Battery Type
9. Drive Type
10. Voltage
11. Country
12. Porter’s Five Analysis
13. SWOT Analysis
14. Company Analysis
Companies Mentioned
- BMW AG
- GOVECS AG
- Hero Electric Vehicles Pvt. Ltd.
- Mahindra GenZe
- Terra Motors Corporation
- Vmoto Limited
- Zero Motorcycles, Inc.
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | March 2025 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( USD | $ 50.13 Billion |
| Forecasted Market Value ( USD | $ 122.54 Billion |
| Compound Annual Growth Rate | 10.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 7 |
