Electric Two Wheelers Market
Electric Two Wheelers Market Size, Share & Industry Analysis, By Vehicle Type (Electric Scooters, Electric Motorcycles), By Battery Type (Lead Acid, Lithium-Ion), By Voltage (24V, 36V, 48V, Greater than 48V), By Technology (Plug-in, Battery), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
The Electric Two Wheelers Market is projected to grow at a CAGR of 11.8% from 2024 to 2031. The market value is expected to increase from USD YY billion in 2024 to USD YY billion by 2031. Asia-Pacific currently dominates the market, with key metrics indicating a high adoption rate of electric two-wheelers in countries like China and India. The market is experiencing rapid growth due to increasing environmental concerns, government incentives for electric vehicle adoption, and advancements in battery technology.
Market Dynamics:
Market Trend: Shift towards high-performance electric motorcycles
High-performance electric motorcycles are being developed and adopted at a rapid pace in the electric two-wheeler sector. This trend is being pushed by advancements in battery technology, increased motor efficiency, and rising consumer desire for powerful yet environmentally friendly alternatives to traditional motorcycles. Manufacturers are increasingly focused on building electric motorcycles that can match or outperform gasoline-powered models in terms of speed, range, and acceleration. Zero Motorcycles and Energica, for example, have developed models with top speeds of over 200 km/h and ranges of more than 360 km on a single charge. This trend is attracting new clients, especially motorbike aficionados who were previously dubious of electric automobiles. The growing interest in electric motorcycle racing, as evidenced by events like MotoE, is fuelling innovation and customer excitement in the sector.
Market Driver: Government incentives and regulations promoting electric vehicle adoption
The expansion of the electric two-wheeler sector is mostly driven by government assistance in the form of subsidies and restrictions. Many countries have passed legislation encouraging the use of electric vehicles as part of their efforts to cut carbon emissions and improve urban air quality. For example, in India, the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme offers subsidies of up to INR 15,000 per kWh for electric two-wheelers, significantly cutting their purchasing cost. In Europe, governments such as France and Germany provide purchase incentives of up to €900 for electric scooters and motorcycles. Furthermore, tighter emission restrictions for internal combustion engine vehicles are indirectly boosting the adoption of electric vehicles. According to the International Energy Agency, government rules accounted for 30% of global electric vehicle sales in 2020. These beneficial laws make electric two-wheelers more affordable to consumers, hastening industry growth.
Market Restraint: Limited charging infrastructure in many regions
Despite the growing popularity of electric two-wheelers, a lack of charging infrastructure in many locations remains a significant barrier to widespread adoption. This issue is particularly acute in developing countries and rural areas, where the electrical grid may be fragile or underdeveloped. According to the industry expert, potential electric vehicle customers in numerous nations are most concerned about 'range anxiety' and a scarcity of charging infrastructure. In heavily crowded urban areas, it is challenging to offer enough charging points to meet demand, especially for consumers without private parking. The cost of developing and maintaining charging infrastructure is considerable, and many local governments and industry organisations are hesitant to commit without assurances of high usage rates. This chicken-and-egg problem between infrastructure development and vehicle adoption is impeding market growth in some locations and must be resolved before the market can reach its full potential.
Segment Overview:
Electric scooters dominate the vehicle type segment, driven by their affordability and suitability for urban commuting.
Electric scooters dominate the electric two-wheeler market, accounting for more than YY% of total revenue. This dominance is owing to electric scooters' lower cost than electric motorcycles, ease of usage, and suitability for short-distance urban transport. Electric scooters are especially popular in densely populated Asian cities, where they offer a convenient and environmentally friendly alternative to traditional gasoline-powered scooters.
Recent breakthroughs in electric scooter technology have bolstered their market share. For example, the introduction of removable batteries addressed the charging infrastructure problem by allowing customers to charge their batteries at home or work. Companies such as Gogoro in Taiwan have pioneered battery swapping networks, allowing users to replace exhausted batteries with charged ones in seconds.
In addition, the electric scooter sharing segment has grown significantly. Companies like Lime and Bird have expanded their operations globally, introducing millions of people to electric two-wheelers and potentially driving future private ownership. Lime stated in 2022 that its users had completed more than 250 million journeys worldwide, illustrating the growing appeal of electric scooters for last-mile mobility.
Furthermore, major automakers are entering the electric scooter market, bringing their extensive manufacturing and distribution experience. For example, BMW's CE 04 electric scooter, which launched in 2021, combines high performance with futuristic design, appealing to the luxury segment of the market.
Regional Outlook:
Asia-Pacific leads the global electric two-wheeler market, driven by high adoption rates in China and India.
Asia-Pacific leads the electric two-wheeler market, accounting for more than 85% of the global total. This dominant position is due in part to high adoption rates in China and India, which account for the great majority of global electric two-wheeler sales. China, in particular, has set the standard for electric two-wheeler adoption, with a mature industry and well-developed supply chain for electric vehicle components.
Recent market developments in Asia-Pacific show an increased emphasis on product variety and technological innovation. For example, Indian companies such as Ola Electric and Ather Energy have created high-performance electric scooters with modern amenities such as touchscreen displays and smartphone connectivity, targeting tech-savvy clients.
Key facts demonstrate Asia-Pacific's enormous market potential. According to the Society of Manufacturers of Electric Vehicles (SMEV), electric two-wheeler sales in India will climb by 132% in 2021, to more than 230,000 units. In China, the China Association of Automobile Manufacturers predicted that electric two-wheeler sales reached 30 million units in 2020, with continued growth expected in the next years.
Government initiatives in the region have had a substantial impact on market growth. For example, China's ban on gasoline-powered motorcycles in certain cities has led to a significant surge in electric two-wheeler use. In India, the FAME II plan and other state-level incentives have made electric two-wheelers more cheap, leading to significant market growth.
Competitive Intelligence:
The electric two-wheeler market is extremely competitive, with a mix of big automakers and emerging startups. To gain a competitive advantage, significant companies invest in technological advancements, product diversification, and global expansion.
Niu Technologies, a major player in the electric scooter industry, has grown its market share by emphasising on smart, connected scooters. The company's focus on urban transit solutions, as well as its strong brand positioning, have aided its success, particularly in China and Europe. Niu's revenue climbed 43% year on year in 2022, exhibiting exceptional market success.
Traditional motorcycle manufacturers, such as Honda and Yamaha, are leveraging their brand reputation and extensive distribution networks to enter the electric two-wheeler market. Honda's PCX electric scooter and Yamaha's E01 prototype highlight the companies' commitment to electrification.
Emerging players, like as Ather Energy in India and Zero Motorcycles in the United States, are challenging existing companies with innovative product designs and cutting-edge technical integration. Ather Energy, for example, has had success in the Indian market with their 450X smart scooter, which features over-the-air updates and a touchscreen display.
Companies producing battery and drivetrain technology are also expanding their presence in the market. Bosch, for example, has emerged as a leading provider of electric motorbike powertrains, collaborating with a number of manufacturers to develop electrification.
In the future, strategic agreements between electric two-wheeler manufacturers and battery technology companies are expected to shape the competitive landscape. These agreements attempt to address major issues like range anxiety and charging times, which might lead to game-changing advances in the industry.
Analyst Opinion:
The electric two-wheeler market is nearing a tipping point, with numerous factors converging to drive rapid development and innovation. One significant trend to watch is the introduction of modern technology such as IoT and AI into electric two-wheelers. This integration not only enhances the user experience, but it also opens up new revenue opportunities such as predictive maintenance and usage-based insurance.
Another noticeable trend is a greater emphasis on sustainability beyond zero-emission vehicles. Manufacturers are looking at the usage of recycled and ecologically friendly materials in manufacturing, as well as developing closed-loop battery recycling technology. This holistic approach to sustainability has the potential to be a key market differentiator.
The usage of electric two-wheelers in last-mile delivery and other business applications is an intriguing topic to follow. With the growth of e-commerce and food delivery services, there is a greater need for efficient, low-cost delivery vans. Electric two-wheelers are well-positioned to meet this need, potentially leading to significant market growth in the commercial sector.
Finally, the advancement of solid-state batteries has the potential to greatly impact the electric two-wheeler sector. When compared to traditional lithium-ion batteries, these batteries promise more energy density, faster charging times, and improved safety. While still in its early stages, successful commercialisation of solid-state batteries has the potential to alleviate many of the current restrictions of electric two-wheelers, hence boosting mainstream adoption.
Major Players:
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Yadea Technology Group Co., Ltd.
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Niu Technologies
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Jiangsu Xinri E-Vehicle Co., Ltd.
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AIMA Technology Co., Ltd.
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Zhejiang Luyuan Electric Vehicle Co., Ltd.
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Hero Electric Vehicles Pvt. Ltd.
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Gogoro Inc.
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Okinawa Autotech Pvt. Ltd.
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Ather Energy Pvt. Ltd.
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Zero Motorcycles Inc.
Key Developments:
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Ola Electric announced in August 2023 that it will invest $920 million in a new electric vehicle manufacturing facility in India, with plans to produce both electric two-wheelers and cars.
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Honda Motor Co., Ltd. will launch its first electric motorcycle for the European market, the EM1 e:, in May 2023, underlining the company's commitment to electrification in the two-wheeler business.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Yadea Technology Group Co., Ltd.
5.2. Niu Technologies
5.3. Jiangsu Xinri E-Vehicle Co., Ltd.
5.4. AIMA Technology Co., Ltd.
5.5. Zhejiang Luyuan Electric Vehicle Co., Ltd.
5.6. Hero Electric Vehicles Pvt. Ltd.
5.7. Gogoro Inc.
5.8. Okinawa Autotech Pvt. Ltd.
5.9. Ather Energy Pvt. Ltd.
5.10. Zero Motorcycles Inc. (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Shift towards high-performance electric motorcycles
6.1.2. Integration of IoT and AI in electric two-wheelers
6.1.3. Focus on sustainability beyond zero-emission vehicles
6.2. Market Drivers
6.2.1. Government incentives and regulations promoting electric vehicle adoption
6.2.2. Increasing environmental concerns
6.2.3. Advancements in battery technology
6.3. Market Restraints
6.3.1. Limited charging infrastructure in many regions
6.3.2. High initial cost compared to conventional two-wheelers
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY VEHICLE TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Electric Scooters
7.2. Electric Motorcycles
8. BY BATTERY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Lead Acid
8.2. Lithium-Ion
9. BY VOLTAGE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. 24V
9.2. 36V
9.3. 48V
9.4. Greater than 48V
10. BY TECHNOLOGY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. Plug-in
10.2. Battery
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. Australia
11.4.5. South Korea
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
Electric Two Wheelers Market Segmentation:
By Vehicle Type:
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Electric Scooters
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Electric Motorcycles
By Battery Type:
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Lead Acid
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Lithium-Ion
By Voltage:
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24V
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36V
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48V
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Greater than 48V
By Technology:
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Plug-in
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Battery
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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