Global Electric Two-Wheeler Market Outlook, 2029

In recent years, the transportation sector has witnessed a significant shift towards sustainability, driven by environmental concerns and technological advancements. One of the most promising developments in this regard is the emergence of electric two-wheelers. These vehicles offer a clean, efficient, and convenient mode of transportation, contributing to reduced carbon emissions and improved urban mobility. With growing awareness of climate change and air pollution, consumers are increasingly seeking eco-friendly alternatives to traditional gasoline-powered vehicles. Electric two-wheelers produce zero tailpipe emissions, making them a cleaner option for urban commuting.

Electric two-wheelers offer significant cost savings over their gasoline counterparts in terms of fuel and maintenance expenses. Electricity is generally cheaper than gasoline, and electric vehicles have fewer moving parts, reducing the need for regular maintenance. Advances in battery technology have greatly improved the range and performance of electric two-wheelers. Lithium-ion batteries, in particular, offer higher energy density and faster charging times, making electric vehicles more practical for daily use. With increasing traffic congestion and limited parking space in urban areas, electric two-wheelers provide a convenient solution for short-distance travel.

Their compact size allows riders to navigate through crowded streets and easily find parking, making them ideal for commuting in busy city centers. The two- and three-wheeler markets often referred to as the 'close to the bottom peaches' of the EV business, has been the main drivers of this growth. They are more affordable than electric passenger or commercial vehicle segments, making them accessible to a wider range of consumers. The market is majorly driven by the increasing support of governments. Besides, the growing network of charging infrastructure is catalyzing the market.

Establishing more charging stations and developing fast-charging technologies have made it more convenient for electric two-wheeler owners to charge their vehicles, further boosting the market growth. Additionally, the advancements in electric vehicle technology, including motor efficiency, lightweight materials, and improved aerodynamics, have contributed to the overall product performance and efficiency. The reduction in component costs, particularly batteries, has made electric two-wheelers more affordable for consumers. The availability of government-funded research and development initiatives and collaborations with private companies has accelerated innovation in the electric two-wheeler industry. These initiatives encourage the development of cutting-edge technologies and the introduction of new features in electric two-wheelers.

According to the research report, “Global Electric Two-wheeler Market Outlook, 2029”, the market is anticipated to cross USD 80 Billion by 2029, increasing from USD 45.84 Billion in 2023. The market is expected to grow with 10.55% CAGR by 2024-29. The electric two-wheeler market is experiencing significant growth due to rising technological advancements. Manufacturers are constantly innovating to enhance the performance, range, and features of electric scooters & motorcycles. These advancements include improvements in battery technology, motor efficiency, connectivity features, and the use of lightweight materials.

As a result, electric two-wheelers are becoming more appealing to consumers, offering longer ranges, faster charging times, and smart features. This technological progress is driving the adoption of electric two-wheelers and contributing to market expansion as they address the demand for cleaner & more efficient urban transportation solutions. Increasing fuel prices are driving the market growth as consumers seek more cost-effective & eco-friendly transportation options. For instance, in August 2023, petrol prices in the UK surged up to USD 180 per liter.

Electric two-wheelers offer relief from rising gasoline expenses, making them an attractive choice for budget-conscious individuals and businesses looking to reduce operating costs while contributing to environmental sustainability. Several governments worldwide provide financial incentives, tax benefits, and subsidies to promote the adoption of electric vehicles, including electric two-wheelers. These incentives make electric two-wheelers more affordable and attractive to consumers. Furthermore, the rising consumer awareness and consciousness about environmental issues are significantly contributing to the market.

Individuals are becoming more concerned about climate change and air pollution, leading them to choose electric two-wheelers as a cleaner and greener mode of transportation. Apart from this, advancements in battery technology have significantly improved the performance and range of electric two-wheelers. Longer battery life and faster charging times have alleviated concerns about range anxiety, making electric two-wheelers a more viable option for daily commuting.

The commercial sector, particularly in logistics and food delivery, is emerging as a promising avenue for the electric motorcycle industry. For example, in Latin America and Africa, food delivery platforms have partnered with electric mobility startups to incorporate electric motorcycles into their operations. This trend is exemplified by iFood, a Brazilian food delivery platform, which collaborated with Voltz Motor to develop the EVS Motor iFood electric motorcycle. The motorcycle offers significant cost savings and covers a distance of 100 to 180 kilometers with two battery packs.

Market Drivers

• Environmental Awareness and Regulations: Increasing concerns about climate change and air pollution have led to a growing demand for eco-friendly transportation solutions. Governments around the world are implementing stricter emissions regulations and promoting the adoption of electric vehicles (EVs) through incentives and subsidies. Electric two-wheelers, being zero-emission vehicles, align well with these regulatory shifts and benefit from the growing consumer preference for sustainable mobility options.
• Technological Advancements: Rapid advancements in battery technology, electric motors, and power electronics have significantly improved the performance, range, and affordability of electric two-wheelers. Lithium-ion batteries, in particular, have become lighter, more energy-dense, and cheaper, addressing one of the major barriers to EV adoption. Moreover, innovations in connectivity, smart features, and lightweight materials are enhancing the overall user experience and attractiveness of electric two-wheelers.

Market Challenges

• Infrastructure Development: The lack of adequate charging infrastructure remains one of the biggest challenges for electric two-wheelers. Unlike cars, which can utilize existing charging networks, electric two-wheelers often require dedicated charging stations at convenient locations such as residential complexes, workplaces, and public areas. The slow pace of infrastructure development can hinder consumer confidence and limit the adoption of electric two-wheelers, particularly for long-distance travel.
• Cost and Affordability: Although the cost of electric two-wheelers has been declining steadily, they still tend to have higher upfront costs compared to their gasoline-powered counterparts. Battery accounts for a significant portion of the overall cost, and while battery prices have been decreasing, further reductions are needed to make electric two-wheelers more accessible to a broader range of consumers, particularly in emerging markets where affordability is a significant concern.

Market Trends

• Urban Mobility Solutions: Electric two-wheelers are increasingly being recognized as efficient and sustainable solutions for urban mobility challenges. With rapid urbanization and increasing traffic congestion in cities worldwide, electric bicycles, scooters, and motorcycles offer a convenient and eco-friendly mode of transportation for short-distance travel. Shared mobility services, such as electric scooter rentals and bike-sharing programs, are also gaining popularity, providing flexible and cost-effective alternatives to traditional transportation modes.
• Integration of Smart Features: The integration of smart features and connectivity is a significant trend in the electric two-wheeler market. Manufacturers are incorporating IoT (Internet of Things) technology, GPS tracking, smartphone connectivity, and app-based services to enhance the functionality, safety, and user experience of electric two-wheelers. These smart features enable features such as remote diagnostics, theft prevention, navigation assistance, and ride-sharing platforms, catering to the evolving needs of modern consumers.

Electric scooters are leading in the electric two-wheeler industry due to their affordability, versatility, and suitability for urban commuting.

Electric scooters have emerged as the frontrunners in the electric two-wheeler industry, and several factors contribute to their leading position. One of the primary reasons for their dominance is their affordability, versatility, and suitability for urban commuting. Electric scooters offer a compelling value proposition to consumers, balancing cost-effectiveness with practicality. Compared to electric bicycles and motorcycles, electric scooters typically have lower upfront costs, making them more accessible to a broader range of consumers, including students, young professionals, and urban dwellers.

This affordability factor is particularly significant in markets where cost plays a crucial role in purchasing decisions, driving higher adoption rates for electric scooters. Versatility is another key strength of electric scooters. They are designed to cater to a wide range of users and use cases, from short-distance commuting to leisurely rides and last-mile delivery services. Their compact size, lightweight construction, and maneuverability make them ideal for navigating through crowded city streets, weaving through traffic, and finding parking in tight spaces. This versatility appeals to urban commuters seeking convenient and efficient transportation solutions that can adapt to their diverse needs and lifestyles.

Furthermore, electric scooters are well-suited for urban commuting, addressing the challenges of traffic congestion, pollution, and limited parking space in densely populated cities. With zero tailpipe emissions, electric scooters offer a cleaner alternative to gasoline-powered vehicles, contributing to improved air quality and reduced environmental impact. Their quiet operation minimizes noise pollution, enhancing the overall urban living experience for residents. The rise of shared mobility services, such as electric scooter rentals and ride-sharing platforms, has further propelled the popularity of electric scooters in urban areas.

These services provide on-demand access to electric scooters, allowing users to conveniently rent and ride them for short trips without the hassle of ownership or maintenance. The affordability and accessibility of shared electric scooters make them an attractive choice for commuters looking for cost-effective and sustainable transportation options. Moreover, technological advancements have enhanced the functionality and appeal of electric scooters, incorporating features such as regenerative braking, smartphone connectivity, GPS navigation, and integrated safety systems. These smart features improve the overall riding experience, enhance safety, and provide added convenience for users.

Lithium-ion (Li-ion) batteries are leading in the electric two-wheeler industry due to their high energy density, long cycle life, and superior performance.

Lithium-ion (Li-ion) batteries have established themselves as the dominant power source in the electric two-wheeler industry, and several factors contribute to their leading position. Li-ion batteries boast a significantly higher energy density compared to other types of rechargeable batteries, such as lead-acid and nickel-metal hydride (NiMH) batteries. This means they can store more energy in a smaller and lighter package, making them ideal for electric two-wheelers where space and weight constraints are critical factors. The high energy density of Li-ion batteries allows electric two-wheelers to achieve longer ranges on a single charge, providing users with greater flexibility and convenience for their daily commuting needs.

Moreover, Li-ion batteries offer an impressive cycle life, retaining their capacity and performance over hundreds, if not thousands, of charge-discharge cycles. This durability ensures that electric two-wheelers equipped with Li-ion batteries maintain their reliability and longevity over time, reducing the need for frequent battery replacements and lowering overall ownership costs for consumers. The extended cycle life of Li-ion batteries also contributes to their sustainability, as they can be reused in secondary applications or recycled at the end of their useful life, minimizing environmental impact.

In addition to their high energy density and long cycle life, Li-ion batteries deliver superior performance in terms of power output, charge/discharge efficiency, and voltage stability. Their ability to deliver high power bursts when accelerating or climbing hills makes them well-suited for the dynamic demands of electric two-wheelers, providing riders with responsive and enjoyable riding experiences. Furthermore, Li-ion batteries exhibit excellent charge/discharge efficiency, meaning they can efficiently convert electrical energy into kinetic energy and vice versa, minimizing energy losses and maximizing the range of electric two-wheelers.

The voltage stability of Li-ion batteries ensures consistent performance throughout the charge cycle, maintaining a stable power delivery to the electric motor and other onboard electronics. This voltage stability enhances the overall reliability and safety of electric two-wheelers, preventing unexpected power fluctuations or performance degradation during operation. Additionally, ongoing research and development efforts in battery technology continue to improve the energy density, cycle life, and performance of Li-ion batteries, driving further innovation and advancement in the electric two-wheeler industry. As a result, Li-ion batteries remain the preferred choice for manufacturers and consumers alike, providing the power and efficiency required to propel the widespread adoption of electric mobility solutions across the globe.

Commercial usage is leading in the electric two-wheelers industry due to the compelling economics of operation, regulatory incentives, and suitability for last-mile delivery and urban logistics.

Commercial usage has emerged as a leading sector in the electric two-wheelers industry, driven by several factors that make electric two-wheelers particularly well-suited for commercial applications. One of the primary reasons for this trend is the compelling economics of operation offered by electric two-wheelers in commercial fleets. Electric two-wheelers present significant cost savings over their gasoline-powered counterparts in terms of fuel and maintenance expenses. With electricity generally being cheaper than gasoline and electric vehicles having fewer moving parts, commercial operators can enjoy lower operating costs and higher profit margins by transitioning to electric two-wheelers for their fleet operations.

This cost advantage is particularly attractive for businesses engaged in last-mile delivery and urban logistics, where fuel expenses constitute a significant portion of operating expenses. Furthermore, regulatory incentives and environmental policies aimed at reducing emissions and promoting sustainable transportation have incentivized commercial operators to adopt electric two-wheelers. Governments around the world offer various incentives, such as subsidies, tax breaks, and preferential treatment for electric vehicles, making it more financially appealing for businesses to invest in electric two-wheelers for their fleets.

Additionally, stricter emissions regulations in urban areas have compelled commercial operators to seek cleaner and greener alternatives to traditional gasoline-powered vehicles, further driving the uptake of electric two-wheelers for commercial usage. Electric two-wheelers are particularly well-suited for last-mile delivery and urban logistics, where speed, maneuverability, and accessibility are essential factors. Their compact size, agility, and ability to navigate through congested city streets and narrow alleyways make them ideal for delivering goods and services to customers in densely populated urban areas.

Electric two-wheelers can bypass traffic jams, access pedestrian zones, and park conveniently, allowing commercial operators to achieve faster delivery times and improve overall efficiency in their logistics operations. Moreover, electric two-wheelers offer a quieter and more environmentally friendly alternative to traditional delivery vehicles, minimizing noise pollution and reducing carbon emissions in urban environments. This eco-friendly image aligns with the sustainability goals of many businesses and enhances their brand reputation among environmentally conscious consumers.

The rise of e-commerce and online shopping has further fueled the demand for electric two-wheelers in commercial fleets, as businesses strive to meet the growing expectations for fast and efficient delivery services. Electric two-wheelers enable businesses to optimize their delivery routes, reduce delivery times, and lower the overall carbon footprint of their logistics operations, contributing to a more sustainable and efficient urban transportation ecosystem.

48V motor power is leading in the electric two-wheelers industry due to its balance of performance, efficiency, and affordability, catering to a wide range of applications and user preferences.

48V motor power has emerged as a leading choice in the electric two-wheelers industry, offering a balance of performance, efficiency, and affordability that meets the diverse needs of consumers and manufacturers alike. One of the primary reasons for the widespread adoption of 48V motor power is its ability to deliver sufficient performance for various types of electric two-wheelers while maintaining cost-effectiveness. Electric two-wheelers equipped with 48V motor power strike a delicate balance between power output and energy efficiency, making them suitable for a wide range of applications, from electric bicycles and scooters to motorcycles.

The 48V motor power provides adequate acceleration and speed capabilities, allowing riders to navigate through urban environments and tackle moderate inclines with ease. This level of performance meets the requirements of most urban commuters and recreational riders, providing a satisfying riding experience without compromising on energy efficiency or range. Moreover, 48V motor power offers excellent efficiency, converting electrical energy into mechanical power with minimal energy losses. The relatively low voltage of 48V systems results in lower power dissipation and heat generation, contributing to improved overall efficiency and reliability of electric two-wheelers.

This efficiency translates into longer battery life and extended range, allowing riders to travel further on a single charge and reducing the need for frequent recharging, thereby enhancing the practicality and convenience of electric two-wheelers for daily use. While higher voltage systems may offer superior performance in terms of acceleration and top speed, they often come with higher costs associated with motor controllers, battery packs, and charging infrastructure. In contrast, 48V motor power strikes a more cost-effective balance between performance and affordability, making electric two-wheelers accessible to a broader range of consumers, including budget-conscious buyers and price-sensitive markets.

Additionally, the widespread availability of components and technologies compatible with 48V motor power contributes to its leading position in the electric two-wheelers industry. Manufacturers have developed a wide range of motors, controllers, and battery packs optimized for 48V systems, allowing for easier integration and customization of electric two-wheelers to meet specific performance and design requirements. This availability of standardized components streamlines the manufacturing process, reduces development costs, and enables economies of scale, further driving down the overall cost of electric two-wheelers equipped with 48V motor power.

The Asia-Pacific region is leading in the electric two-wheelers industry due to its large population, rapid urbanization, government incentives, and strong manufacturing capabilities.

The Asia-Pacific region has emerged as a global leader in the electric two-wheelers industry, driven by several factors that contribute to its dominance in this sector. One of the primary reasons for the region's leadership is its large population, coupled with rapid urbanization trends, creating a significant demand for efficient and sustainable transportation solutions. With a population of over 4.6 billion people, the Asia-Pacific region represents a massive market for electric two-wheelers, accounting for a substantial portion of global sales.

Rapid urbanization in countries like China, India, and Southeast Asian nations has led to increased congestion, pollution, and demand for alternative modes of transportation, providing a fertile ground for the growth of electric two-wheelers. In densely populated cities across the region, electric two-wheelers offer a practical and cost-effective solution for navigating through traffic, accessing narrow streets, and reducing the environmental footprint of urban mobility. Furthermore, government incentives and supportive policies have played a crucial role in driving the adoption of electric two-wheelers in the Asia-Pacific region.

Many governments offer subsidies, tax breaks, and other financial incentives to encourage consumers and businesses to switch to electric vehicles, including electric two-wheelers. These incentives help offset the higher upfront costs of electric vehicles and create a more favorable environment for their widespread adoption. Additionally, regulatory measures aimed at reducing emissions and promoting clean transportation further incentivize the transition to electric two-wheelers, driving market growth and innovation in the region. The Asia-Pacific region also boasts strong manufacturing capabilities and a robust supply chain ecosystem, making it a hub for electric two-wheeler production and innovation.

Countries like China, India, Taiwan, and Vietnam are home to numerous electric vehicle manufacturers, suppliers, and component manufacturers, leveraging their manufacturing expertise, scale, and cost advantages to produce a wide range of electric two-wheelers for domestic and export markets. This manufacturing prowess enables the region to meet the growing demand for electric two-wheelers both domestically and globally, driving economies of scale and reducing production costs, thereby making electric two-wheelers more affordable and accessible to consumers worldwide.

Moreover, the Asia-Pacific region benefits from a culture of innovation and entrepreneurship, with many startups and tech companies pioneering new technologies and business models in the electric mobility space. From electric scooter sharing platforms to battery swapping networks and smart charging solutions, the region is at the forefront of innovation in electric two-wheeler technology and services, driving market growth and differentiation in a highly competitive industry landscape.

Recent Developments

• In January 2024, Riley Scooter, a Cambridge-based company proposed plans to introduce RS3 Electric Scooter, a fully foldable electric scooter in the U.S. at the Consumers Electronics Show held in Las Vegas.
• In December 2023, Gogoro, a Taiwanese player unveiled Gogoro CrossOver GX250 domestically produced electric scooter in India. The company offers a tailor smart scooter to Indian riders. The introduction of these models marked a strategic move for Komatsu to tap into the Indian electric scooter market.
• In September 2023, Bird, a key player in the electric micro mobility market acquired Spin, an electric scooter and e-bike rental company for USD 19 million. This acquisition has reduced bird competition and aided in maintaining the company’s dominance in the market.
• In March 2023, Yadea Technology Group Co, Ltd, launched the range of products YADEA Fierider, YADEA VoltGuard Scooter, and YADEA Keeness Electric Motorcycle in Vietnam. The products offered by the company have premium-level quality and exceptional rider experience which provide a competitive edge to the company.

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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