Global Electric Two Wheeler Market Research Report: Forecast (2023-2028)

Market Definition

Electric two-wheelers are vehicles that operate elusively on electrical energy from an off-board source stored in a vehicle battery. They produce zero emissions or pollution when stationary or operating. A range of electric vehicles is available, including an e-scooter, an e-motorcycle, an e-moped, an e-bike, etc. It neither has an engine nor does it burn fossil fuels like gasoline, diesel, or compressed natural gas. Generally, it comes with a rechargeable battery for storing the electric power & propelling the 2-wheeler.  

Market Insights & Analysis: Global Electric Two Wheeler Market (2023-28)

The Global Electric Two Wheeler market is projected to grow at a CAGR of around 25.57% during the forecast period, i.e., 2023-28. The market growth imputes to the rising concern among the governments of countries across Southeast Asia, North America, Europe, the Middle East, and South America to lower the CO2 emission from the automotive industry & lead towards a sustainable future. Additionally, the ease of access to subsidies launched by the government of various countries such as Scotland, Germany, India, and Indonesia, among others, widely catered to the demand for these vehicles across the globe. For instance:

• According to MotorCycles Data, in the first nine months of 2022, Europe witnessed a notable surge in the sales of electric two-wheeler by +46.1% compared to the previous year.

The high demand for these electric vehicles has been observed across the globe due to the wide adoption of electric motorcycles & scooters by delivery partners, e-commerce platforms, and transit companies. In addition to this, these last-mile delivery providers, such as Amazon, Flipkart, and Zomato, are replacing traditional fuel-based motorcycles with electric mopeds & motorcycles to lower operational costs. Therefore, the sales of electric two-wheelers have marginally spiked due to the growing application of these vehicles for commercial purposes.

Furthermore, the companies have been working in line with government initiatives as they are actively making efforts to deploy electric bikes in their fleets to continue their operations across geographies, including Europe, Asia-Pacific, and North America. As a result of the declaration made by last-mile delivery providers to switch to e-bikes, various manufacturers such as Niu International, Cake, and others have announced the launch of several e-bike models to expand across these geographies & capitalize on the emerging market opportunity.

Moreover, the growing investments & partnerships among e-vehicle manufacturers & charging infrastructure providers such as Hero Electric, Boult, and Gogoro, among others, to develop efficient electric two-wheeler charging stations would also enhance the sales of e-motorcycles & e-scooters in the upcoming years.

Global Electric Two Wheeler Market Key Trend:

Growing Expansion of Battery Swapping Stations to Drive the Demand for Electric Two-wheelers - The battery swapping stations are the major component of the industry, allowing drivers to manage vehicle downtime through quick changes. As governments across various countries are accelerating the shift towards EVs, including electric two-wheelers, the consistent deployment of battery-swapping stations by transport ministries is on the rise across the globe. For instance:

• In 2022, Leoparda Electric announced an investment of over USD8.5 million to offer an exclusive range of electric two-wheeler & built a battery swapping station in Latin America.

Additionally, various companies such as Gogoro, Sun Mobility, Ample, etc., are investing in the infrastructure of battery swapping stations in different countries like the US, Taiwan, China, etc., to support the government initiative towards sustainability & provide a sense of reliability to the consumers. As a result, end-users are gradually adopting e-scooters & e-motorcycles. Thus, the global expansion of battery swapping stations is expected to boost the industrial expansion during the forecast period.

Global Electric Two Wheeler Market Key Driver:

Expansion of E-scooter & E-motorcycle Rentals to Serve Tourists Drives the Market - Tourism is one of the major factors boosting the sales globally, as rental electric two-wheelers are the most preferred choice for tourists to visit the city hassle free on their own. Globally, the demand for these vehicles is being driven by urbanization, digitalization, micro-mobility, traffic congestion, and the cost of owning & maintaining bikes.

The tourist cities like Bali, Kuala Lumpur, Madrid, Delhi, etc., across the world, are facing traffic congestion & pollution caused by rapid urbanization that puts a lot of pressure on the public transport system. Therefore, the consumer prefers the rental electric two-wheeler as it offers hassle-free movement at a competent cost than renting a four-wheeler for the same purpose. As a result of the growing demand, various start-ups, such as Revel, City Scoot, Cooltra, VOGO, etc., that provide QR-based dockless services are increasingly expanding worldwide to gain significant revenues.

Thus, the expansion of e-scooter & motorcycle renting companies are notably driving the sales and is anticipated to continue to support the revenue expansion of the market in the upcoming years as well.  

Global Electric Two Wheeler Market Growth Opportunity:

Government-led Initiatives & Subsidies to Escalate the Demand for the Electric Two-wheelers - Several countries, such as Indonesia, the US, Canada, etc., are working towards a sustainable approach to reduce carbon emissions from the environment & lower the air pollution caused by the automobile industry. This has resulted in the government of the countries such as Vietnam, the UK, and others, drafting initiatives such as Net Zero Emission by 2050 and many more, encouraging users to switch towards electric two-wheelers. For instance:

• In 2022, the Government of Vietnam set registration fees for EVs comprising electric motorcycles, electric scooters, and electric cars, to zero, starting in March 2022 to February 2027, to reduce carbon dioxide emissions and work in line with the Net Zero emissions by 2050 initiatives.

Further, the government of countries such as Singapore, France, etc., are also planning to fully support the electric vehicle by providing the required infrastructure like charging stations & battery swapping stations and modifying the availability of incentives such as subsidies, etc. Thus, the rise in the effort of the government of different countries such as the UK, Japan, etc., to switch towards electric vehicles, offers a wide area of opportunity in the sales of electric two-wheeler during the forecast period.

Global Electric Two Wheeler Market Possible Restraint:

High Cost & Limited Functionalities to Restrain the Global Market - Electric two-wheelers have several advantages, such as reduced carbon footprint, easy accessibility, lightweight, and others. However, the cost of these vehicles is high due to the motor, which must be specially crafted & fitted for electric vehicles. The raw materials like lithium-ion batteries, nickel, etc., required for the manufacturing process are costly, therefore the price of EV is significantly higher than that of conventional fuel-based motorcycles & scooters.

Furthermore, an electric two-wheeler lacks in the scenario of speed due to less power of the electric motor compared to a conventional fuel-based vehicle, which provides high speed. In addition, there are riders who are speed or technology enthusiasts, prefer conventional fuel-based bikes for the high speed & technology as electric bike can offer an average speed of just 15-20 miles per hour, which is quite less in comparison to a fuel-based motorcycles. As a result, the high price of electric scooters & motorcycles, combined with speed limits, hindered the market flow.

Global Electric Two Wheeler Market (2023-28): Segmentation Analysis

The Global Electric Two Wheeler Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the Vehicle Type, and Application the market has been further classified as:

Based on the Vehicle Type:

• Scooter/Moped
• Motorcycle

Among them, Electric Scooters/Mopeds dominated the Electric Two Wheeler market owing to the cost-competitiveness of e-scooter & mopeds compared to motorcycles & ease of maintenance. Additionally, the growing deployment of e-scooters & mopeds by transit companies & ride-hailing service providers to cater to the surging mobility needs also augmented the sales of electric scooters.

Further, the expansion plans of e-mobility ride-sharing firms such as Ola, Uber, Beam, etc., in Europe & Southeast Asia market, particularly to provide mobility services to their customers, is expected to enhance the e-scooter & mopeds sales globally in the forthcoming years as well.

Based on Application:

• Personal Use
• Commercial Use

Commercial Use application gained significant traction in the past and is expected to continue to grow considerably in the coming years. As electric vehicles are still emerging across the global market, their adoption by the commercial sector is significant, comparatively to test the viability of the product in the market. In addition, the growing partnerships among the retail giants & electric vehicle manufacturers, such as H&M Group, Amazon, etc., is a key factor in upscaling the share of the commercial segment in the overall market.

Further, as the government of New York, Indonesia, etc., are increasingly taking initiatives to deploy e-scooter in streets to provide residents & tourists with their mobility needs, the demand for electric two-wheelers is expected to grow significantly from the commercial segment in the forecast years as well.

Global Electric Two Wheeler Market Regional Projection

Geographically, the global market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia Pacific

Southeast Asia region observed considerable growth in the historical years due to the increasing incentives of the government of Southeast Asian countries to provide subsidies & flexible grants for the purchase of electric two-wheelers. In addition, the sales of these vehicles are expected to grow at a rapid pace in the coming years due to stronger government support in countries such as Indonesia, Malaysia, Vietnam, and the Philippines, among others, to reduce carbon emissions & minimize air pollution.

Besides, the rising initiatives of the Indonesian government to boost charging infrastructure development in the country & expanding the presence of docking stations for electric vehicles are anticipated to widely support the sales of electric two-wheelers in the country during the forecast years as well.

Global Electric Two Wheeler Industry Recent Developments 

• 2023: An electric two-wheeler manufacturer, Yadea Technology Group Co., Ltd., launched a high-speed electric motorcycle in the US as part of the company's strategic layout for the US market. The company plans to open flagship stores in San Francisco & Los Angeles and over 100 Integrated brand dealer stores in the first half of 2023.
• 2022: Hero Electric Vehicles Private Limited expanded its partnership with Zypp Electric to support the growth of the logistics & delivery segment. Under this partnership, Hero Electric would deploy 1.5 lakh electric scooters for Zypp Electric’s fleet in the next three years.

Gain a Competitive Edge with Our Global Electric Two Wheeler Market Report

1. Global Electric Two Wheeler Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
3. Global Electric Two Wheeler Market report aids in assessing and mitigating risks associated with entering or operating in the market.
4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.