Electric Two-wheelers Market By Vehicle (E-Scooter and E-Motorcycle), By Battery (Sealed Lead-acid and Lithium-ion), By Technology (Plug-in Electric Two-wheeler and Battery Electric Two-wheeler), By Battery Voltage (24V, 36V, 48V and More than 48V) - Growth, Share, Opportunities & Competitive Analysis, 2024 - 2032

25 Jun 2019 Format PDF icon PPT icon XLS icon Request Sample

In 2023, the total value of the global market for electric two-wheelers reached US $22 Billion. The market will reach US $ 84.54 Billion by the year 2031, expanding at a CAGR of 16.47% during the forecast period of 2024 to 2032.  The main market drivers that are promoting industry expansion are the growing use of electric motorbikes and e-scooters for short commutes, growing concerns about the environment, and increasing expenditures by ride-hailing businesses in the micro-mobility arena. During the period covered by this forecast, it is anticipated that there will be a rise in the use of electric two-wheelers (also known as e-scooters) due to the growing concern over greenhouse gas (GHG) emissions and carbon emissions, as well as the rising demand for fuel-efficient vehicles. The market for electric two-wheelers is being driven forward by stringent emission norms imposed by government agencies. These norms include emission standards for greenhouse gas emissions imposed by the Environmental Protection Agency (EPA) of the United States and BS-VI in India and China.

Increasing concern for the environment is driving the growth of the electric two-wheelers market

An increasing concern for the environment is the primary factor driving growth in the market for electric two-wheelers. This is due to the fact that an increasing number of people are becoming aware of the importance of lowering pollution levels, and this newfound awareness has inspired them to look for methods of transportation that are friendlier to the environment and help reduce and control pollution levels. For example, according to the results of a survey conducted by Forbes, the level of environmental awareness among Dutch consumers has increased to the point where sales of electric bicycles have surpassed sales of non-electric bicycles in the country. Because carbon dioxide emissions from burning fossil fuels continue to pose a serious threat to the environment by contributing to global warming and climate change, it is anticipated that the number of people using electric two-wheelers will increase in the years to come. This is because carbon dioxide emissions contribute to both of these phenomena. The two most significant trends in the two-wheeler market that have an impact that is diametrically opposed to one another are the expanding e-commerce industry and the rise in sales of electric vehicles. It makes sense for businesses that specialize in e-commerce and last-mile delivery to include electric two-wheelers in their fleets, given that electric mobility is the way of the future.

Low cost of transportation is a major market driver for electric two-wheelers

Because of factors such as high availability, low pricing, and ease of functioning, the ecosystem supporting electric scooters has expanded at an exponential rate. The most important factor for a customer to consider when choosing a service is the price. The fact that electric scooter is a low-cost mode of transportation has encouraged consumers to purchase these vehicles. In addition, the government has acknowledged the potential for electric two-wheelers to serve as a replacement for fuel-guzzling vehicles.

Overheating batteries of electric two-wheelers are a cause of concern

Comparatively, lead-acid batteries are heavier and less efficient than their lithium-ion counterparts. Nonetheless, there have been reports of lithium-ion batteries catching fire, which has given rise to some cause for alarm. As a result of the fact that lithium-ion battery packs are made up of hundreds of individual battery cells, there is a risk of thermal runaway and a fire starting in the battery. On the other hand, the worst-case scenario is that the increase in pressure caused by the increased temperature results in the cell bursting open, which then rapidly heats the cells that are surrounding it. The hundreds of cells eventually experience occurrences of thermal runaway, which leads to a fire.

Electric Motorcycle to Dominate the Market by Vehicle

The electric motorcycle and electric scooter are the two submarkets of electric two-wheelers. The electric scooter segment was the most dominant in terms of revenue in 2023, while the electric motorcycle market is anticipated to be the segment with the highest CAGR during the forecast period of 2024 to 2032. This can be attributed to the increased availability of several different models of electric scooters, as well as their earlier debut and more affordable pricing in significant geographic areas all over the world. Traditional manufacturers of two-wheeled vehicles have another reason to consider entering the market: the growing popularity of electric scooters. Because of their lower entry price and a greater variety of models, electric scooters have proven to be more popular than electric motorcycles.

The Sealed Lead Acid Market Dominates the Market by Battery

The electric two-wheeler market is segmented based on the type of battery, with sealed lead acid and lithium-ion. The sealed lead acid market led the market significantly in 2023. However, the lithium-ion segment is anticipated to be the most lucrative segment during the forecast period of 2024 to 2032.  This is due to the fact that it has a lower cost and is more compatible. Original equipment manufacturers (OEMs) are increasingly selecting environmentally friendly Li-ion batteries, as well as the fact that these batteries have a number of other benefits. As a result, this would have a beneficial impact on the expansion of the market for electric two-wheelers.

APAC remains as the Global Leader

APAC was significantly dominant in 2023 and is expected to sustain its dominance during the forecast period of 2024 to 2032. Over the course of the past few years, there has been a discernible acceleration in the growth of sales of electric two-wheelers across the globe, particularly in China, and Vietnam, where electric two-wheelers make up 10% of the total sales of two-wheelers in the country. Given India's ambitious plans for the electric two-wheeler market, it is possible that the country will stand as the second-largest market in APAC. Although the Minister for Road Transport and Highways has stated that the government's goal is to achieve an 80% market penetration of electric two-wheelers by the year 2030 in terms of sales, original equipment manufacturers (OEMs) believe that a lower market penetration will be achieved.

18% of Japan's total energy consumption in the year that ended in March 2020 came from renewable sources. The current target for Japan is between 22 and 24 percent, which is significantly lower than the goals set by European countries such as Spain (74 percent), Germany (65 percent), and Italy (55 percent). Therefore, the growth of the electric two-wheeler market in Japan is being driven by the subsidies provided by the government for the products as well as the expanding renewable energy sector in the region. There are likely to be opportunities in the retro, standing, and folding scooter markets in the future the electric scooter market in Japan, which bodes well for the market's prospects. Increasing consumer awareness regarding eco-friendly transportation, strict environmental regulations, rising government incentives and subsidy programs, and growing adoption of e-scooter-sharing services are the primary factors driving this market.

Partnership & Collaboration to Enhance the Market Share of Key Companies

The top companies include Hero Electric Vehicles Pvt. Ltd., Ideanomics Inc, Vmoto Ltd., Yadea Technology Group Co., Ltd, Greaves Electric Mobility Pvt. Ltd., Zero Motorcycles, Inc., Niu Technologies, Ola Electric Mobility Pvt Ltd., F-wheel DYU, Sanyang Motor Co., Ltd., Jiangsu Xinari E-vehicle Co., Ltd., Zhejiang Luyuan Electric Vehicle Co., Ltd, and others. Major market participants are investing in R&D in order to broaden their product offerings, which will contribute to the expansion of the electric two-wheeler industry. Participants in the market are also engaging in a variety of strategic initiatives, such as the introduction of new products, the formation of contractual agreements, the completion of mergers and acquisitions, the increase in the number of investments made, the development of the market, and the collaboration with other organizations. 

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Electric Two-wheelers market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the Electric Two-wheelers market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Research Period  2022-2032
Base Year 2023
Forecast Period  2024-2032
Historical Year  2022
Unit  USD Billion
  • E-Scooter
  • E-Motorcycle

  • Sealed Lead-acid
  • Lithium-ion (Li-ion)

  • Plug-in Electric Two-wheeler
  • Battery Electric Two-wheeler

Battery Voltage
  • 24 V
  • 36 V
  • 48 V
  • More than 48 V

 Region Segment (2022-2032; US$ Billion)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of Electric Two-wheelers market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2032.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the Electric Two-wheelers market?
  • Which is the largest regional market for Electric Two-wheelers market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving Electric Two-wheelers market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the Electric Two-wheelers market worldwide?
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