Electric Two-wheeler (E2W) Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[203+ Pages Report] According to Facts and Factors, the global electric two-wheeler (E2W) market size was valued at USD 34.16 billion in 2022 and is likely to surpass USD 72.16 billion by the end of 2030. The electric two-wheeler (E2W) industry is expected to grow with a CAGR of 9.84% during the forecast period.

Market Overview

The electric two-wheeler refers to the segment of vehicles that are powered by electric sources and are designed for personal and commercial transportation. These are eco-friendly alternatives and produce zero tailpipe emissions, thereby helping in reducing greenhouse emissions and air pollution. These vehicles are cost-effective options as they operate on lower fuel and maintenance costs.

Key Insights

• As per the analysis shared by our research analyst, the global electric two-wheeler (E2W) market size is estimated to grow annually at a CAGR of around 9.84% over the forecast period (2023-2030).
• In terms of revenue, the global electric two-wheeler (E2W) market size was valued at around USD 34.16 billion in 2022 and is projected to reach USD 72.16 billion by 2030.
• Consumer behavior and lifestyle are driving the growth of the global electric two-wheeler (E2W) market.
• Based on the product, the e-scooter segment is growing at a high rate and is projected to dominate the global market.
• Based on the battery, the lithium-ion battery segment is projected to swipe the largest market share.
• Based on the end-user, the person-use segment is the fastest-growing segment in the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• Consumer behavior and lifestyle are likely to drive the growth of the global market.

Consumer behavior is changing drastically. People are now preferring health-conscious and active living lifestyles. Also, people are looking forward to the environment-friendly option. There is a significant rise in awareness among people regarding climate change, air pollution, and environmental sustainability, which is driving them towards eco-friendly transportation options like electric two-wheelers.

Furthermore, electric vehicles operate at a low cost as compared to gasoline-powered vehicles. These require less maintenance, which further attracts consumers. For instance,  Ather Energy collaborated with Vaidya Energy with the aim to launch its flagship model in the coming years. The company is planning to open its center in Kathmandu in November.

Restraints

• High upfront costs and limited range are likely to hamper the growth of the global market.

Electric two-wheelers offer high upfront costs as compared to traditional vehicles, which is expected to deter price-sensitive consumers and slow down the growth of the global electric two-wheeler (E2W) market.

Moreover, range anxiety is one of the leading concerns in the industry. People are worried about running out of battery power before reaching their destination. Therefore, such a landscape is expected to hamper the growth of the global marketplace.

Opportunities

• Government policies and incentives are expected to foster growth opportunities in the global market.

Governments all across the globe are coming up with incentives and attractive policies to encourage the adoption of electric mobility among people. The government offers rebates, tax credits, and exemptions on purchase costs and operative expenses of electrical two-wheelers.

Moreover, the future plan of the government to invest in improving the charging infrastructure is further expected to foster several growth opportunities in the electric two-wheeler industry. For instance, Zero Motorcycles revealed its plan to launch electric vehicles in the range of $1,000 to $4,500 with a goal to make these motorcycles more accessible.

Challenges

• Supply chain disruptions and safety concerns are a big challenge in the global market.

Inconsistent supply chain is a big problem in the industry. The lack of availability of electric vehicle components like semiconductors or batteries further affects the growth of the industry. Moreover, safety concerns like the busting of batteries are also likely to negatively impact the growth trajectory of the global electric two-wheeler market in the forthcoming years.

Segmentation Analysis

The global electric two-wheeler (E2W) market can be segmented into product, battery, end user, and region.

By product, the market can be segmented into e-motorcycles, e-scooters, and e-bikes.

The e-scooters segment accounts for the largest share of the electric two-wheeler industry due to the growing focus of people on sustainable and cost-friendly transportation. The e-scooters are gaining popularity among people because of the high convenience offered by these scooters for last-mile transportation or short-distance travel.

Moreover, the major companies operating in the field are further innovating intensively to expand their operations globally, which is also expected to contribute towards the high growth rate of the segment. These e-scooters offer lower upfront costs, and there is a wide availability of a large number of models in the market.

Many start-ups are coming up with hundreds of “rent by minute” e-scooters in the major metropolitan areas for all consumers, thereby expanding the market. However, the e-bike segment is also gaining significant traction among people due to its huge versatility and appeal for recreational riders, daily commuters, and individuals looking for eco-friendly transportation alternatives.

By battery, the electric two-wheeler market can be segmented into lithium-ion batteries and lead-acid batteries.

The lithium-ion battery is more in demand in the market because of the growing trend of adopting electric vehicles all across the globe. The lithium-ion battery offers superior energy density. They are able to store more energy in a lighter and smaller package, which offers a high advantage to the manufacturers as compared to other options. It is ideal for long drives and also improves the overall performance of the electric vehicles.

The lithium-ion battery is suitable for e-scooters, e-motorcycles, and electric cars because it positively impacts the design and overall efficiency of the vehicles. Also, it lowers the cost of ownership for electric vehicle owners and is considered environmentally friendly because it releases less hazardous material into the environment as compared to other options. It can be recycled more efficiently than the lead batteries.

However, the ongoing research and development activities in the market are likely to result in continuous improvements like reduced cost and increased energy densities, thereby helping the segment grow significantly in the market in the forthcoming years.

By end user, the market can be segmented into commercial use and personal use.

The person-use segment is expected to swipe the largest share of the electric two-wheeler (E2W) industry in the forthcoming years. The increasing consumer adoption of electrical vehicle technology is likely to boost personal transportation needs.

Moreover, the growing awareness regarding environmental concerns and the advantages offered by these electric vehicles are further expected to contribute heavily towards the growth of the segment. Electric vehicles offer cleaner energy sources and reduce operating costs, which is likely to boost the interest of people in e-vehicles.

Also, the government is offering a number of subsidies and incentives to encourage the adoption of electric vehicles. The major aim of the government is to target the personal use segment for electric vehicles to promote the industry.

Report Scope

Regional Analysis

• North America to dominate the global market during the projected time period.

North America accounts for the largest share of the global electric two-wheeler (E2W) market because of the increasing popularity of electric bikes in the region. E-bikes are more in demand due to their versatility and suitability for recreational and commuting purposes. The e-bikes have emerged as a more sustainable and cleaner alternative to traditional bicycles.

Also, the growing federal government support in the region by offering tax credits, rebates, and incentives to promote the adoption of electric vehicles is further expected to boost the growth of the regional market. Consumers are also inclined towards eco-friendly alternatives in the region to replace gasoline-powered wheelers.

Also, the well-established infrastructure in the region for electric vehicles is further expected to positively impact the growth trajectory of the regional market. The increasing investment in bike lanes, charging stations, and several others is making the region more EV-friendly.

Asia Pacific has emerged as the most dynamic and rapidly growing market in the world. Major companies are investing in the region because of its high potential, and thereby, it is expected to positively shape the industry landscape in the forthcoming years.

The increasing investment to establish the charging infrastructure for electric two-wheelers to address the challenges faced by people with electric vehicles will also support the growth of the regional market. For instance, Evoke Motorcycle revealed its unique road electric motorcycle in 2023 with 1,000 Nm torque. It will be available in Hong Kong and Beijing. However, the company has not revealed its price in the market.

Competitive Analysis

The key players in the global electric two-wheeler (E2W) market include:

• Zero Motorcycles
• Energica Motor Company
• Harley-Davidson
• Yamaha
• NIU Technologies
• Ather Energy
• Gogoro
• Evoke Motorcycles
• Super Soco
• Segway-Ninebot
• Arcimoto
• Revolt Motors
• E-bike and E-scooter Sharing Companies
• Local Manufacturers

For instance, Revolt Motors launched a limited edition Stealth RV400 in August 2023 on its 6th anniversary. The product is a testament to the company for harmonizing innovation with style.

The global electric two-wheeler (E2W) market is segmented as follows:

By Product Segment Analysis

• E-Motorcycles
• E-Scooters
• E-Bikes

By Battery Segment Analysis

• Lithium-Ion Batteries
• Lead-Acid Batteries

By End-user Segment Analysis

• Commercial Use
• Personal Use

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America