Industry: Automotive
Published Date: November-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 171
Report ID: PMRREP33028
The global electric two wheelers market is predicted to reach a value of US$ 19.6 Bn by 2024. It is anticipated to record a CAGR of 11.6% through the forecast period to reach a size of US$ 58.6 Bn by 2031.
The electric two wheelers market is highly driven by the rising environmental concerns across the globe. Governments in several countries are progressively offering subsidies on the adoption of EV scooters to promote sustainable transportation and reduce their carbon footprints.
Developed and developing countries are witnessing a shift toward electric mobility, mainly to control the adverse environmental impact caused by the increasing number of pollutions emitting vehicles on the roads.
Battery-operated two wheelers are lightweight, affordable, fuel efficient, adaptable, and durable, thereby making it a popular choice among cost-sensitive consumers. Compact two wheelers are gaining traction as they enable faster short distance travel and can efficiently avoid traffic bottlenecks.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Electric Two Wheelers Market Size (2024E) |
US$ 19.6 Bn |
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Projected Market Value (2031F) |
US$ 58.6 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
11.6% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
9.9% |
Indian electric two wheelers market dominated the India automobile market, accounting for 70% of all registered motorcycles. Most tier 1 and tier 2 cities in India face a huge problem of traffic congestion. EV scooters being compact, can efficiently drive through the traffic and narrow roads, thereby saving time and offering continence to users.
Government initiatives are playing a crucial role in the adoption of EV motorcycles in India. They are providing subsidies and incentives on the purchase of electric vehicles through FAME II (Faster Adoption and Manufacture of EVs) scheme along with separate state EV policies to encourage the adoption of battery-operated two wheelers.
According to the stats provided by the Ministry of Heavy Industries and Public Enterprises, the modification of FAME II scheme in June 2021 increased the demand for electric two wheelers to 5,000 units per week from 700 units per week.
To achieve net GHG emissions target by 2030, the Biden administration had unveiled a target of 50% EV usage in 2021. Several federal and state administrations are supporting the adoption of EV scooters by offering tax rebates to keep up with this target. The United States has a well-established charging infrastructure which foster the expansion of the market. The increasing availability of latest and top models in the country further propels electric two wheelers market growth in the U.S.
Royal Enfield, in November 2024, announced its plans to introduce its electric bike, the Flying Flea C6, in early 2026, initially in the developed markets like Europe and the U.S. as these markets are likely to show better traction for premium products.
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Category |
CAGR through 2031 |
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Technology- Plug-in Electric Two-Wheeler |
18.9% |
Plug-in electric two-wheelers are convenient for several consumers due to their ease of use. The home charging accessibility of these plug-in EV scooters is user-friendly, thereby increasing their adoption. These EV motorcycles do not require access to any battery swapping infrastructure and can be easily charged through home charging systems or public charging stations.
As plug-in electric two wheelers only need charging stations, they are much cheaper to set up on a large scale, compared to battery-operated EV bikes. Several consumers prefer to directly own the scooter battery than to rent or swap it as it gives the owner complete control over its maintenance and longevity. Through this, they are also less dependent on third-party infrastructure which may be limited or unavailable in certain areas.
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Category |
CAGR through 2031 |
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Battery Type- Lithium-ion |
18% |
Lithium-ion batteries are much lighter and more compact compared to conventional lead-acid batteries. This weight reduction is crucial for two-wheelers as lighter vehicles are easier to handle and offer increased efficiency, thereby enhancing the overall performance and ride quality.
The compact design of lithium-ion batteries enables improved integration in the design of electric motorcycles, thereby allowing businesses to design sleek and aesthetically appealing EV two wheelers. These batteries have faster charging times which is particularly important for electric two wheelers as efficient charging is essential for daily use in urban areas.
Lithium-ion batteries usually last 2-3 times longer compared to lead-acid batteries, offering a lifespan of 5-8 years depending on use and maintenance.
Technological innovations play a crucial role in driving the adoption of electric-two wheelers. These technological advancements are making EV scooters more appealing to consumers. As manufacturers integrate EV motorcycles with features like smart connectivity, enhanced range, and improved safety features, the demand for electric bikes is further estimated to propel.
Several EV scooters are now equipped with advanced telematics systems which enables riders to connect their vehicles to smartphones or other devices. Companies have enrolled smartphone applications that can be connected to their EV two wheelers to get real-time information on the battery status, range estimation, and vehicle diagnostics, and location of charging stations. This connectivity not only offers convenience but also contributes to an engaging and user-friendly ownership experience.
The global electric two wheelers market witnessed a steady growth during the historical period at a CAGR of 9.9%. The industry was gaining much traction in 2019, specifically in the Asia-pacific region. Rising fuel prices and elevating environmental concerns coupled with government incentives and technological advancements emerged as the primary drivers of growth for the market.
The COVID-19 pandemic, however, impacted the expansion as all activity was stalled due to the worldwide lockdowns. Factory closures and restrictions impacted production. There were also disruptions in the global supply chains which resulted in delays in manufacturing and shipping. Uncertainty during the pandemic led to a slowdown in consumer spending, thereby resulting in dropped demand in key markets like Europe and India. Financial insecurity led potential consumers to postpone their purchases.
The pandemic resulted in a substantial shift in consumer behavior, particularly for urban mobility. Several people turned to personal electric vehicles due to social distancing norms and as these scooters provided a safer and sustainable mode of transport.
Individuals are Adopting EV Scooter Due to Social Influence
Social influence plays a vital role in the growth of the global electric two-wheelers market. Influential factors include changing social attitudes, impact of social media, peer pressure, and environmental consciousness. As an increasing number of people adopt electric scooters, other people also purchase these e-motorcycles under the influence of their peers, resulting in the “social proof” effect.
The rising visibility of these e-bikes is pushing individuals to make similar purchases. Several e2w brands are targeting particular lifestyles and communities to appear as relatable to them, thereby accelerating expansion. The rise of social media platforms including Instagram, Tik Tok, YouTube, and Twitter has enabled e-scooter manufacturers to promote and market their products through influencers in order to reach individuals of all demographics.
Increasing Traffic Congestion in Urban Areas is Facilitating the Adoption of E-scooters
The Ever-increasing traffic congestion, especially in developed countries and urban areas is significantly contributing to the rising demand for e2ws. As the urban areas become crowded with vehicles, frustration regarding traffic congestion has substantially intensified. Electric scooters are witnessing a rising demand as they offer a practical solution to consumers to efficiently navigate the congested streets.
Electric two wheelers are highly maneuverable and compact, enabling risers to weave through traffic and easily find alternative routes. These scooters can seamlessly bypass long lines of stationary vehicles to swiftly reach their destination, thereby making them an appealing choice for urban commuters looking to avoid delays due to traffic congestion. The convenience and agility of these e-bikes assist in reducing commuting times.
Range Anxiety coupled with Lack of Charging Infrastructure in Developing Nations to Deter Potential Consumers
Lack of charging infrastructure in Developing countries is one of the key challenges for the growth of electric two-wheeler market. Even though the adoption of EV scooters is on the rise across the globe, the charging infrastructure gap is particularly pronounced in emerging countries. Lack of widespread coverage of charging infrastructure results in EV owners struggling to find convenient locations to charge their scooters, especially on long-distance travel.
Sometimes, charging stations are not strategically placed near areas where commuters park their electric vehicles. This deters potential consumers who are concerned about the hassle of finding charging points.
Fear of running out of power before reaching a charging station is a valid challenge among consumers. This concern is further amplified in regions having insufficient charging stations or a lack of reliable charging network. The transition to electric two wheelers is particularly challenging in such environments as there’s no assurance of convenient and accessible charging options.
Individuals Turning to Cycling to Maintain their Fitness
Cycling is being increasingly utilized in fitness and recreational activities owing to its numerous health benefits and the increasing focus on leading an active lifestyle. Electric two-wheelers including electric bicycles are an attractive option for people who wish to engage in cycling but may face challenges like physical fitness limitations.
Electric assistance offered by these e-bikes enables riders to overcome physical exertion barriers while easily tackling challenging routes. Electric scooters offer the flexibility to adjust the motor’s level of assistance while enabling riders to customize their workout intensity. This versatility can perfectly fulfil varying requirements, thereby appealing people to incorporate cycling in their fitness routines.
Enhancements in range and battery life have expanded the utilization of electric two-wheelers for recreational activities. These e-scooters have enabled riders to explore longer distances and engage in outdoor adventures without excessive physical exertion or worry about fatigue.
Focus on Smart Technologies Positions E2W Market at the Forefront of Modern Transportation Solutions
The global electric two-wheelers market is witnessing a global trend of integration of smart technologies and connectivity features. These smart features often include smartphone connectivity, GPS navigation, and real-time battery monitoring systems. These innovations assist in improving user experience while offering valuable data for manufacturers to enhance future product iterations.
The integration of internet-of-things (IoT) technology enables remote diagnostics and over-the-air software updates, thereby ensuring optimal performance and safety of e-two-wheelers. This focus on smart technology integration positions electric two-wheelers at the forefront of modern transportation solutions, potentially attracting a tech-savvy consumer segment.
The electric two-wheeler market is moderately competitive with the presence of a large number of players operating across the landscape. Prominent market players are focusing on expanding their reach and share. Improvements in the global economic situation and expanding auto industry, especially in emerging economies, are predicted to drive market growth, encouraging players to launch new products across regional markets.
Manufacturers are implementing rigorous quality control measures for their products. They are also optimizing their supply chain management systems and establishing strategic partnerships with other companies to maintain a competitive edge in the market.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
Available upon request |
To know more about delivery timeline for this report Contact Sales
The market is set to reach US$ 58.6 Bn by 2031.
Ola Electric continues to top the e-scooter manufacturer in India.
The market is estimated to record a CAGR of 11.6% through 2031.
The lifespan of EV two-wheeler can range between 800 to 1000 charge cycles.
The cost of operating a electric scooter is merely 3.4 rupees per kilometer.
