Asia-Pacific Electric Two-Wheeler Market Outlook, 2029

The Asia Pacific (APAC) region has emerged as the undisputed leader in the global electric two-wheeler market. This dominance can be attributed to a confluence of factors, including government support for EV adoption, rising fuel costs, and a growing awareness of environmental concerns. However, beyond these well-established drivers, the APAC electric two-wheeler market presents a fascinating picture of regional variations and unique consumer preferences. One striking aspect of the APAC electric two-wheeler market is the dominance of the low-speed electric scooter segment.

Unlike their high-speed counterparts, low-speed electric scooters typically have a limited top speed (often below 50 km/h) and do not require a motorcycle license for operation in many countries. This accessibility factor makes them particularly appealing to a broader demographic in the APAC region. For instance, in India, low-speed electric scooters are increasingly popular among students, young professionals, and homemakers seeking a convenient and cost-effective mode of transportation for short-distance commutes. Furthermore, the lower price point of low-speed electric scooters compared to high-speed models makes them an attractive option for budget-conscious consumers in developing economies within the APAC region.

This focus on low-speed electric scooters necessitates a closer look at the role of battery swapping in the APAC market. Range anxiety, a concern regarding the limited range of electric vehicles on a single charge, remains a barrier to wider adoption. Battery swapping stations address this concern by allowing users to quickly exchange a depleted battery for a fully charged one. This model is particularly prevalent in the APAC region, where companies like Gogoro in Taiwan and Bounce in India have established extensive battery swapping networks specifically catering to low-speed electric scooters. The convenience and rapid refueling time offered by battery swapping significantly enhance the user experience and address range anxiety concerns, making electric two-wheelers a more viable alternative to traditional gasoline-powered options.

According to the research report, “Asia Pacific Electric Two-wheeler Market Outlook, 2029”, the Asia Pacific Electric Two-wheeler market is anticipated to grow with more than 9% CAGR from 2024-2029. A trend the APAC market lies in the growing demand for prefabricated construction techniques. One of the most striking aspects of the APAC electric two-wheeler market is the remarkable variation in consumer preferences across different countries. India, for example, boasts the world's largest electric two-wheeler market, driven by a high demand for low-cost, low-speed electric scooters.

These scooters, typically offering a range of 50-70 kilometers and speeds limited to 40-45 kilometers per hour, cater to a budget-conscious customer base primarily focused on short-distance commutes within urban areas. This segment is particularly attractive to young professionals and students seeking a convenient and affordable mode of transportation. In contrast, countries like China and Japan exhibit a growing demand for high-speed electric motorcycles. These two-wheelers offer extended ranges exceeding 100 kilometers and higher top speeds, making them suitable for longer commutes and highway travel. This market segment is driven by a more affluent consumer base willing to pay a premium for performance and advanced features.

Furthermore, government policies in these countries often incentivize the adoption of higher-speed electric motorcycles by offering subsidies or tax breaks specifically for this category. This diversity in consumer preferences necessitates a nuanced approach from manufacturers in the APAC market. International players entering this region need to adapt their product offerings to cater to the specific needs and budget constraints of consumers in different countries. For instance, a global manufacturer might develop a budget-friendly electric scooter for the Indian market while simultaneously offering a high-performance electric motorcycle model for China. Additionally, partnerships with local manufacturers can be crucial for international players, leveraging their established distribution networks and understanding of local consumer preferences.

Market Drivers

• Government Support and Policy Initiatives: Government intervention through subsidies, tax breaks, and infrastructure development plays a crucial role in driving the APAC electric two-wheeler market. Many countries within the region, like India with the FAME II scheme or China with national subsidies and local production mandates, have implemented policies specifically aimed at promoting electric vehicle (EV) adoption. These policies incentivize manufacturers to produce electric two-wheelers and make them more affordable for consumers. Additionally, government investments in charging infrastructure development are crucial for addressing range anxiety, a major concern for potential electric two-wheeler buyers. The unique characteristic of the APAC market lies in the targeted approach of some governments. For instance, some countries within the region might offer higher subsidies for electric two-wheelers compared to electric cars, recognizing the two-wheeler segment's dominance in regional transportation. This targeted support from governments is a significant driver for the APAC electric two-wheeler market.
• Rise of Battery Swapping Networks: A unique phenomenon shaping the APAC electric two-wheeler market is the rapid growth of battery swapping networks. This system allows users to exchange depleted batteries for fully charged ones at designated swapping stations, eliminating the need for lengthy charging times at home or public charging points. This is particularly advantageous in regions with limited access to home charging infrastructure or for users who require frequent charging throughout the day. The widespread adoption of battery swapping networks addresses range anxiety concerns and facilitates faster adoption of electric two-wheelers, particularly for commercial applications like deliveries or ride-hailing services. Furthermore, battery swapping allows manufacturers to potentially reduce upfront vehicle costs by offering electric two-wheelers with smaller, lighter batteries. This focus on battery swapping networks is a distinct characteristic of the APAC electric two-wheeler market compared to other regions where home or public charging infrastructure might be the primary focus.

Market Challenges

• Lack of Standardization and Battery Swapping Compatibility: The burgeoning battery swapping network landscape within the APAC region faces a challenge due to the lack of standardization. Different companies might utilize proprietary battery designs, creating incompatibility issues between vehicles and swapping stations. This can be inconvenient for users and hinder the seamless adoption of battery swapping as a viable solution. Efforts towards standardization of battery swapping technologies and connector types are underway, but achieving industry-wide consensus will be crucial for the long-term success of battery swapping networks and the wider adoption of electric two-wheelers in the APAC region.
• Limited Range and Charging Infrastructure Concerns: Despite the growth of battery swapping networks, concerns about limited range and access to charging infrastructure remain a significant challenge for the APAC electric two-wheeler market. While battery technology is constantly evolving, offering greater range capabilities, some consumers might still be apprehensive about running out of charge, particularly in areas with limited swapping stations or underdeveloped charging networks. This range anxiety can hinder the wider adoption of electric two-wheelers, especially for users who rely on their vehicles for longer commutes. Addressing this challenge requires a multi-pronged approach. Investments in expanding charging infrastructure, both public and private, alongside continued advancements in battery technology offering greater range and faster charging times, will be crucial for overcoming range anxiety concerns.

Based on the report, the Electric Two-wheeler market is segmented into electric motorcycle and electric scooter categories on the basis of vehicle type.

The APAC electric two-wheeler market exhibits a distinct segmentation by vehicle type, with electric scooters dominating the landscape and electric motorcycles experiencing targeted growth. This dominance of electric scooters can be attributed to several factors unique to the APAC region. Firstly, the widespread presence of densely populated urban centers across APAC creates a strong demand for agile and maneuverable vehicles. Electric scooters, with their compact size and ease of operation, are ideally suited for navigating congested city streets and finding parking in tight spaces.

Additionally, the prevalence of shorter commuting distances in many APAC cities makes electric scooters a practical and cost-effective choice for daily transportation. Furthermore, cultural preferences in some APAC countries, particularly in Southeast Asia, favor the use of scooters as a primary mode of transportation. This ingrained preference translates readily to the adoption of electric scooters as a sustainable alternative to traditional gasoline-powered models.However, the electric motorcycle segment within the APAC market is also experiencing noteworthy growth. This can be attributed to a rising disposable income in some APAC economies, leading to a growing demand for premium electric two-wheeler options.

Electric motorcycles cater to this segment by offering longer ranges, higher performance specifications, and a more motorcycle-like riding experience compared to scooters. Additionally, government initiatives in some APAC countries, like India's FAME II scheme, offer subsidies specifically for electric motorcycles, making them a more attractive proposition for budget-conscious consumers seeking higher-powered electric two-wheelers. Furthermore, the growing popularity of electric two-wheeler delivery services in APAC cities is creating a demand for electric motorcycles with larger cargo capacities and higher payload capabilities. These factors are expected to contribute to a steady rise in the electric motorcycle segment within the APAC market, although electric scooters are likely to retain their dominant position in the foreseeable future.

According to the report, the Electric Two-wheeler market is segmented into sealed-lead acid (SLA) and lithium ion based on battery.

The APAC electric two-wheeler market presents a unique picture regarding battery segmentation, with both sealed lead acid (SLA) and lithium-ion batteries playing significant roles. However, a clear shift towards lithium-ion dominance is underway, driven by several factors specific to the APAC landscape. While SLA batteries were historically the dominant battery technology in low-cost electric two-wheelers across APAC, their limitations are becoming increasingly apparent. The shorter lifespan, lower energy density, and heavier weight of SLA batteries make them less desirable for modern electric two-wheelers.

Conversely, lithium-ion batteries offer a longer range, lighter weight, and higher energy density, translating to a more efficient and user-friendly electric two-wheeler experience. Furthermore, advancements in lithium-ion battery technology are leading to cost reductions, making them a more viable option for manufacturers across various price points within the APAC market. However, the dominance of SLA batteries persists in some segments of the APAC electric two-wheeler market. This is particularly true for low-speed electric scooters and budget-oriented electric two-wheelers in developing economies within APAC. The lower upfront cost of SLA batteries remains a significant factor for some cost-conscious consumers. Additionally, established supply chains and readily available SLA battery infrastructure in some APAC regions contribute to their continued presence in the market.

According to the report, the Electric Two-wheeler market is segmented into 48V, 60V and 72V based on motor power.

48V segment holds a dominant position within the APAC electric two-wheeler market, particularly in countries like China and India. The popularity of 48V motors can be attributed to several factors. Firstly, they offer a good balance between power, range, and affordability. This is crucial in regions where cost-effectiveness remains a primary concern for many consumers. Additionally, 48V motors are well-suited for low-speed electric scooters, a popular choice for short-distance commuting in urban areas. Furthermore, regulations in some APAC countries might limit the maximum power output of electric two-wheelers to comply with specific speed restrictions.

In such cases, 48V motors ensure adherence to regulations while still providing sufficient power for everyday use. 60V & 72V segments are gaining traction in the APAC market, particularly in regions with growing demand for performance-oriented electric two-wheelers. 60V and 72V motors offer increased power output, translating to higher top speeds and potentially longer ranges on a single charge. This caters to consumers who might require their electric two-wheelers for longer commutes or who desire a more powerful riding experience. The adoption of these higher voltage motors is likely to accelerate as battery technology advances and charging infrastructure becomes more developed across the APAC region.

While less prevalent, the APAC market also witnesses a niche segment for electric two-wheelers equipped with lower voltage motors (below 48V) or even exceeding 72V. Lower voltage motors might find application in specific low-speed utility vehicles or extremely budget-oriented electric two-wheeler options. Conversely, electric motorcycles targeting a premium performance segment might utilize motors exceeding 72V, although stringent regulations in some countries might limit the widespread adoption of such high-powered options.

According to the report, the Electric Two-wheeler market is segmented into commercial and private based on usage.

The commercial segment in the APAC electric two-wheeler market is experiencing significant growth, driven by the rising demand for cost-effective and sustainable last-mile delivery solutions. Food delivery companies, e-commerce giants, and logistics firms are increasingly adopting electric two-wheelers for their fleets due to their lower operational costs compared to traditional gasoline-powered vehicles. Additionally, government policies promoting electric vehicle adoption, including subsidies for commercial usage, are further accelerating the growth of this segment.

Manufacturers are catering to this demand by developing electric two-wheelers specifically designed for commercial use, with features like higher load-carrying capacities, swappable batteries for extended range, and robust designs for frequent use. The private segment remains the larger portion of the APAC electric two-wheeler market. Consumers are drawn to electric two-wheelers for various reasons, including lower running costs compared to gasoline-powered options, environmental benefits, and government incentives for private electric vehicle ownership. Within this segment, there's a growing diversity of consumer preferences. In urban environments, electric scooters with a focus on maneuverability and affordability are popular choices for short-distance commutes. In some regions, electric motorcycles with higher performance capabilities are gaining traction, particularly among younger consumers seeking a more powerful and stylish alternative to traditional gasoline motorcycles.

Based on the report, the major countries covered include China, Japan, India, Australia, South Korea, and the rest of Asia Pacific.

Within the dynamic landscape of the Asia Pacific (APAC) Electric Two-wheeler market, China stands out as the undisputed leader. This dominance can be attributed to a confluence of unique factors specific to the Chinese market and government policies. Firstly, China boasts a mature and well-established Electric Two-wheeler ecosystem. This includes a robust domestic manufacturing base with numerous players offering a diverse range of electric scooters and motorcycles at various price points. Furthermore, a vast network of battery swapping stations has been established across the country, addressing the crucial concern of range anxiety for Electric Two-wheeler users.

This widespread availability of swapping stations, often operated by companies like China's leading battery provider CATL (Contemporary Amperex Technology Co. Limited), eliminates the need for long charging times and allows for quick battery swaps, mirroring the refueling experience of traditional gasoline scooters. Uniquely shaping the Chinese Electric Two-wheeler market are strong government subsidies and incentives. In a bid to promote clean energy adoption and reduce dependence on fossil fuels, the Chinese government has implemented generous subsidies for Electric Two-wheeler purchases.

These subsidies can significantly reduce the upfront cost of electric scooters compared to their gasoline counterparts, making them a more attractive proposition for consumers. Additionally, preferential policies like exemption from vehicle registration fees or relaxed licensing requirements further incentivize Electric Two-wheeler adoption. Beyond subsidies, the Chinese government has also implemented stringent emission regulations, particularly in major cities. These regulations restrict the use of gasoline-powered vehicles in certain zones, effectively pushing consumers towards cleaner alternatives like Electric Two-wheelers. This focus on environmental regulations, coupled with government subsidies, has created a supportive environment for the Electric Two-wheeler market to flourish in China.

Recent Developments

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Electric Two-Wheeler market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type

• Electric Motorcycle
• Electric Scooter

By Battery

• Sealed Lead Acid (SLA)
• Lithium-Ion

By Motor Power

• 48 V
• 60 V
• 72 V
• Others

By Usage

• Commercial
• Private

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the analyst started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the analyst had primary data, they started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Two-Wheeler industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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