Electric Two-Wheeler Components Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Electric Two-Wheeler Components Market is projected to expand from USD 45.12 Billion in 2025 to USD 72.24 Billion by 2031, reflecting a CAGR of 8.16%. This sector encompasses the critical electrical and mechanical subsystems necessary for operating battery-powered motorcycles and scooters, including controllers, traction motors, battery management systems, and charging units. Growth in this market is fundamentally supported by strict government emission regulations that encourage the shift away from internal combustion engines, alongside rising urbanization that demands efficient, low-emission personal mobility options. These regulatory and economic drivers ensure a consistent demand for lightweight structural parts and specialized electric powertrains, fostering industry expansion independent of consumer technology trends.

However, the market faces a substantial obstacle due to demand volatility in key manufacturing hubs, which introduces unpredictability into the global supply chain. This fluctuation creates significant difficulties for component suppliers regarding inventory management and long-term production planning. For instance, data from the China Chamber of Commerce for Motorcycles indicates that the production of electric motorcycles stood at roughly 3.4 million units in 2024, a statistic that underscores the ongoing regulatory shifts and market adjustments that directly impact the volume of components required by original equipment manufacturers.

Market Drivers

The implementation of favorable government subsidies and policies acts as a primary catalyst for the electric two-wheeler components market, effectively bridging the price gap between electric vehicles and internal combustion engine models. These financial incentives accelerate the procurement of essential parts like motors, controllers, and wiring harnesses as manufacturers scale up production to meet subsidized demand. Additionally, many schemes mandate domestic value addition, compelling suppliers to localize manufacturing to qualify for fiscal benefits. As noted by the Press Information Bureau in September 2024 regarding the 'Cabinet approves PM E-DRIVE Scheme,' the Government of India has allocated INR 3,679 crore to support the deployment of 2.48 million electric two-wheelers, thereby securing future order volumes for drivetrain and electronic component manufacturers.

A second critical driver is the advancement of battery technology and declining pack costs, which fundamentally alters total ownership costs and expands the addressable market for suppliers. As cell chemistry evolves toward more affordable Sodium-ion and Lithium Iron Phosphate (LFP) solutions, the reduction in battery expenses allows OEMs to invest in superior power electronics and battery management systems. According to a February 2024 CnEVPost article titled 'CATL, BYD pushing battery costs down,' major manufacturers are targeting cell costs as low as RMB 0.3 per watt-hour, significantly lowering the bill of materials. This cost reduction supports volume growth in price-sensitive regions, evidenced by the Federation of Automobile Dealers Associations reporting retail sales of approximately 947,000 electric two-wheelers in India for the 2024 fiscal year.

Market Challenges

Demand volatility within major manufacturing hubs presents a formidable barrier to the growth of the Global Electric Two-Wheeler Components Market. This unpredictability causes severe inefficiencies throughout the supply chain, making it difficult for component manufacturers to accurately forecast production requirements. The absence of stable order volumes forces suppliers to maintain conservative inventory levels to avoid dead stock, a practice that ties up working capital and erodes profit margins. Consequently, companies are often hesitant to commit to the long-term facility upgrades and research initiatives necessary to advance the industry.

The severity of this instability is highlighted by recent performance metrics from the world's largest market. Data from the China Chamber of Commerce for Motorcycles reveals that sales of electric motorcycles in 2024 experienced a year-on-year decline of approximately 28%. This significant contraction illustrates the erratic nature of market demand, which undermines the confidence required for sustained investment in the component sector and directly hampers the pace of global market expansion.

Market Trends

The transition toward mid-drive motors for high-performance models is fundamentally reshaping the drivetrain segment, driven by consumer preference for scooters that offer superior thermal management and gradeability compared to entry-level hub motor variants. This shift requires a complex assembly of belts, pulleys, and swing-arm mounted units, migrating value generation from simple wheel-integrated motors to sophisticated transmission systems. The commercial viability of this trend is confirmed by the rapid growth of premium vehicle sales utilizing these powertrains; for example, Hero MotoCorp's April 2025 press release, 'Hero MotoCorp Fortifies Market Leadership in Financial Year 2025,' reported a 200% surge in electric vehicle sales over the previous fiscal year, largely attributed to the success of its high-performance VIDA platform.

Simultaneously, the adoption of IoT-enabled smart battery management systems (BMS) is transforming the component landscape from a hardware-centric model to a software-defined value chain. Manufacturers are increasingly embedding advanced microprocessors and telematics units directly into battery packs to enable real-time state-of-health monitoring, predictive thermal balancing, and over-the-air firmware updates. This emphasis on intelligent energy management has compelled OEMs to direct substantial capital toward software engineering and electronic architecture. According to Ather Energy Limited's 'Abridged Prospectus' filed in April 2025, the firm allocated INR 750 crore to research and development, underscoring the industry-wide pivot toward developing proprietary intelligent systems that differentiate component capabilities.

Key Players Profiled in the Electric Two-Wheeler Components Market

• Continental AG
• Robert Bosch GmbH
• Denso Corporation
• Hella GmbH & Co. KGaA
• Toyota Industries Corporation
• Hyundai Mobis
• Samsung SDI Co. Ltd.
• Panasonic Corporation
• Contemporary Amperex Technology Co. Ltd. (CATL)
• BorgWarner Inc.

Report Scope

In this report, the Global Electric Two-Wheeler Components Market has been segmented into the following categories:

Electric Two-Wheeler Components Market, by Vehicle Type:

• Motorcycle
• Scooter

Electric Two-Wheeler Components Market, by Demand Category:

• OEM
• Aftermarket

Electric Two-Wheeler Components Market, by Component Type:

• Battery Packs
• DC-DC Converter
• Controller & Inverter
• Motor
• On-Board Chargers
• Other Component Types

Electric Two-Wheeler Components Market, by Region:

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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electric Two-Wheeler Components Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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