Global Electric Two-Wheeler Market Size, Share & Forecast 2025–2033

Electric Two-Wheeler Market Overview

An electric two-wheeler is a motorcycle or scooter powered by an electric motor instead of a conventional internal combustion engine. These vehicles are fueled by rechargeable batteries, typically lithium-ion, and are designed to provide an eco-friendly, efficient, and cost-effective alternative to traditional gasoline-powered motorcycles and scooters. Electric two-wheelers come in various designs, ranging from sporty to commuter-focused models, offering features such as longer battery life, fast charging options, and higher speeds.

The popularity of electric two-wheelers has surged in recent years due to rising environmental concerns and the growing shift toward sustainable transportation. Many consumers are drawn to the lower operating costs, reduced carbon footprint, and quiet operation of electric two-wheelers. Additionally, governments worldwide incentivize electric vehicle adoption through subsidies, tax breaks, and infrastructure development, further propelling market growth. As battery technology improves, electric two-wheelers are becoming more accessible and practical, particularly in urban areas with traffic congestion and pollution concerns.

Growth Drivers of the Global Electric Two-Wheeler Market

Rising Environmental Awareness

As global environmental concerns increase, many consumers turn to electric two-wheelers as eco-friendly transportation options. These vehicles produce zero emissions, reducing air pollution and carbon footprints compared to traditional petrol-powered motorcycles and scooters. As governments, businesses, and individuals strive to combat climate change, the demand for electric vehicles (EVs) in all forms, including two-wheelers, continues to rise. Many countries are setting ambitious carbon reduction goals, which further propels the growth of the electric two-wheeler market. In August 2024, The U.S. Administration announced $521 million in grants to expand the EV charging network, adding over 9,200 charging ports across 29 states and eight Tribes. Publicly available chargers have doubled to over 192,000 since they started, with around 1,000 new chargers added weekly.

Government Incentives and Policies

Governments worldwide are implementing favorable policies to promote electric vehicle adoption. These include subsidies, tax incentives, and rebates for consumers and manufacturers. Additionally, governments are investing in developing EV infrastructure, such as charging stations, which supports the widespread adoption of electric two-wheelers. These incentives and policies make electric two-wheelers more affordable for consumers and encourage manufacturers to develop innovative, high-performance models. June 2023, China has extended its tax exemption for new energy vehicles (NEVs) until 2027, reinforcing its commitment to the electric vehicle (EV) industry. This extension aims to boost domestic sales, support consumers and manufacturers, and attract foreign investment in electric mobility.

Advancements in Battery Technology

Advancements in battery technology, particularly lithium-ion batteries, are a significant growth driver for the electric two-wheeler market. With improvements in energy density, charging speed, and overall battery lifespan, electric two-wheelers are becoming more practical and efficient for daily use. As battery costs continue to decrease, the affordability of electric two-wheelers increases, making them an attractive alternative to traditional vehicles. Additionally, the rise of fast-changing technology and longer-range capabilities is helping to ease concerns over range anxiety. September 2023, Yamaha Motor Company introduced the E01, its new electric scooter designed for urban commuters. This high-performance model features advanced battery technology and promotes eco-friendly transportation.

Challenges in the Global Electric Two-Wheeler Market

High Initial Purchase Cost

Despite their advantages, electric two-wheelers' initial purchase price remains a major challenge for widespread adoption. While operating costs are lower than traditional motorcycles, the upfront cost of electric two-wheelers can be significantly higher due to expensive batteries and advanced technology. For many consumers, the high cost of purchase outweighs the long-term savings. This price barrier makes electric two-wheelers less accessible to lower-income consumers and limits their mass-market appeal, especially in developing economies.

Limited Charging Infrastructure

One of the primary barriers to adopting electric two-wheelers is the lack of sufficient charging infrastructure. While some regions are making strides in expanding charging networks, many areas still lack the infrastructure to support the widespread use of electric vehicles. This results in concerns about charging accessibility, particularly for long-distance travel. Without convenient and easily accessible charging stations, consumers may hesitate to switch to electric two-wheelers, limiting market growth.

Electric Motorcycle Industry Forecast

Electric motorcycles market is booming because of improvements in battery technology and heightened environmental awareness among consumers. Electric two-wheeler manufacturers have to develop new products for conscientious buyers who want to go green. Key players in the market are investing in research and development activities to enhance range, reduce charging times, and improve overall efficiency. Government incentives and supportive policies are further promoting electric vehicle adoption. As urban areas become more congested, electric motorcycles offer a practical and sustainable solution for commuting, making them an attractive option for both consumers and businesses alike.

Lithium-Ion Battery Two-Wheelers

The Electric Two-Wheeler Lithium-Ion Batteries Market is experiencing significant growth, driven by the rising demand for eco-friendly transportation solutions and advancements in battery technology. Lithium-ion batteries are the most preferred ones due to high energy density, lightweight, and longer lifespan. This makes electric scooters and motorcycles a popular choice. Incentives by the government and investment in charging infrastructure are adding fuel to market growth. Consumer awareness about the environment is further propelling electric mobility. Key players are focusing on innovation and sustainability to enhance performance, reduce costs, and meet regulatory standards, shaping the future of this booming market.

United States Electric Two-Wheeler Market

The United States electric two-wheeler market is growing steadily, driven by increasing demand for eco-friendly transportation options. Consumers in urban areas are particularly attracted to electric motorcycles and scooters due to their efficiency, affordability, and low environmental impact. Government policies, such as tax incentives and rebates, further boost the adoption of electric two-wheelers. In addition, the expansion of charging infrastructure and improvements in battery technology are addressing some of the challenges, making electric two-wheelers a viable option for more consumers. The market is expected to continue growing in the coming years. Jan 2024, VinFast Auto has announced the US launch of the DrgnFly electric bike at CES 2024. With the slogan "Ride your style," the DrgnFly promises a unique and thrilling ride, advancing the future of accessible electric mobility for all.

France Electric Two-Wheeler Market

France’s electric two-wheeler market is witnessing strong growth, driven by environmental concerns, government incentives, and increasing urbanization. French consumers are embracing electric motorcycles and scooters as an eco-friendly alternative to traditional vehicles. The French government supports adopting electric vehicles through subsidies and tax credits, making them more affordable for consumers. Additionally, the expansion of charging infrastructure and innovations in battery technology are helping to meet the rising demand for electric two-wheelers. With a growing focus on sustainability, France’s electric two-wheeler market is poised for continued growth. Jul 2024. TVS Motor Company plans to launch its premium electric and combustion two-wheelers in France and Italy as part of its European expansion.

India Electric Two-Wheeler Market

India's electric two-wheeler market is experiencing significant growth, fueled by government incentives, increasing environmental awareness, and rising fuel costs. With a large population and high pollution levels, electric two-wheelers offer an affordable and sustainable solution for urban mobility. The Indian government has introduced various schemes to promote the adoption of electric vehicles, including subsidies and tax exemptions. As battery prices decrease and charging infrastructure improves, electric two-wheelers are becoming more accessible to a broader range of consumers. October 2024, TVS plans to expand its electric two-wheeler range in India and launch a new model by March 2025, as confirmed during an investor call.

Saudi Arabia Electric Two-Wheeler Market

The electric two-wheeler market in Saudi Arabia is gaining traction as the country looks to diversify its economy and reduce carbon emissions. With growing interest in sustainable transportation options, electric motorcycles, and scooters are becoming popular among environmentally conscious consumers. The Saudi government has introduced initiatives to support electric vehicle adoption, including subsidies and infrastructure development. Although the market is still in its early stages, increasing awareness of the environmental impact of traditional vehicles and advancements in electric two-wheeler technology are expected to accelerate growth in the coming years. Dec 2024, Vego Group has signed a strategic partnership with a Chinese company to establish a plant in Sudair City, 150km from Riyadh, with full operations expected by 2026.

Global Electric Two-Wheeler Market Segmentation

Type

• Electric Motorcycles
• Electric Scooters

Battery Type

• Nickel Metal Hybride Batteries
• Sealed Lead Acid Batteries
• Lithium-Ion Batteries

Drive Type

• Hub Drive Motor
• Mid-Drive Motor

Voltage

• 36V
• 48V
• 60V
• 72V
• Above 72V

Regional Analysis

North America

• United States
• Canada

Europe

• France
• Germany
• Italy
• Spain
• United Kingdom
• Belgium
• Netherlands
• Turkey

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Thailand
• Malaysia
• Indonesia
• New Zealand

Latin America

• Brazil
• Mexico
• Argentina

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE

All the Key players have been covered from 4 Viewpoints:

• Overview
• Key Persons
• Recent Development & Strategies
• Product Portfolio
• Financial Insights

Key Company Covered

• BMW AG
• GOVECS AG
• Hero Electric Vehicles Pvt. Ltd.
• Mahindra GenZe
• Terra Motors Corporation
• Vmoto Limited
• Zero Motorcycles, Inc.

Report Details: