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The low-powered electric motorcycle and scooter market size is estimated to grow by USD 23.74 billion at a CAGR of 17.96% between 2023 and 2028. Electric vehicles (EVs) have gained significant traction in recent years due to a confluence of factors. Government incentives, such as tax credits and subsidies, have made EVs more affordable for consumers. Regulatory initiatives, including emissions standards and zero-emission vehicle mandates, have also driven demand. Moreover, growing awareness about environmental issues and the negative impacts of traditional internal combustion engines on air quality have increased the appeal of EVs. Furthermore, fluctuating fuel prices have made the long-term cost savings of EVs more compelling. These factors have combined to create a favorable market environment for EVs, with sales continuing to rise and the technology becoming increasingly mainstream.
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The market is witnessing significant growth due to increasing environmental concerns and rising fuel prices. The market is driven by the demand for eco-friendly transportation solutions and the need for cost-effective commuting options. The market is expected to grow at a steady pace in the coming years, with demand forecasts indicating a positive outlook. Product demand is primarily driven by pricing dynamics and profitability margins. Manufacturers are focusing on reducing the cost of production by using efficient raw materials and optimizing manufacturing processes. Competitive positioning is also a key factor, with companies constantly striving to offer innovative features and improved performance to gain a competitive edge. Regulatory changes are also influencing the market, with governments around the world implementing policies to promote the adoption of electric vehicles. This is creating new opportunities for players in the market, particularly in emerging economies. Primary opportunities include the development of advanced battery technologies, the integration of smart features, and the expansion of charging infrastructure. Overall, the low-powered electric motorcycle and scooter market is poised for growth, offering significant potential for investors and stakeholders. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The government incentives and regulations that promote use of EVs is notably driving market growth. The low-powered electric motorcycle and scooter market is experiencing significant growth due to changing consumer preferences towards sustainable transportation, regulatory environment, and economic conditions. Governments worldwide are promoting the adoption of electric vehicles (EVs) through incentives such as subsidies, tax credits, rebates, and grants, making these options more accessible to consumers. Technological disruptions, including advancements in battery technology like the use of battery-grade lithium and lithium hydroxide in Li-ion batteries, are driving product innovation and demand. Sustainability initiatives and consumer behavior are also influencing strategic developments, pricing strategies, and distribution channels in the market. Globalization and rising environmental concerns are further expanding the market's reach, with emerging global trends favoring shared mobility solutions. Product demand is influenced by pricing dynamics, profitability margins, and competitive positioning, with motorcycle manufacturers expanding their product portfolios to include electric scooters and off-road motorcycles and scooters for the adventure segment. Regulatory changes and primary opportunities for entry strategies are shaping the market's future growth analysis, with a focus on vehicle production efficiency and raw material availability. Thus, such factors are driving the growth of the market during the forecast period.
Advances in battery technology used in electric motorcycles and scooters is the key trend in the market. The global market for low-powered electric motorcycles and scooters is experiencing significant growth due to advancements in battery technology, particularly in lithium-ion batteries. These technological innovations offer enhanced energy density, longer range, and shorter charging times, addressing the primary concern of range anxiety among consumers. This, in turn, is driving the acceptance and adoption of electric motorcycles and scooters. The regulatory environment, economic conditions, and changing consumer preferences are also influencing the market's growth. Sustainability initiatives and consumer behavior are shifting towards eco-friendly transportation options, and globalization is expanding the market's reach. Strategic developments, pricing strategies, and distribution channels are key areas of focus for motorcycle manufacturers. Raw material costs, particularly for battery-grade lithium and lithium hydroxide, are a significant factor in revenue generation and profitability margins. Emerging global trends include the rise of shared mobility and the increasing popularity of electric vehicles in the off-road segment, including off-road motorcycles and adventure motorcycles. Product demand and pricing dynamics are influenced by regulatory changes and competitive positioning. Recommendations for market entry include careful risk management and consideration of vehicle production efficiency. Thus, such trends will shape the growth of the market during the forecast period.
The limited range of low-powered electric motorcycles and scooters is the major challenge that affects the growth of the market. The low-powered electric motorcycle and scooter market face challenges due to consumer preferences leaning towards vehicles with extended ranges for daily commuting needs. Regulatory environments and economic conditions influence market growth, with sustainability initiatives driving demand for eco-friendly transportation options. Technological disruptions, such as advancements in Li-ion batteries using raw materials like battery-grade lithium and lithium hydroxide, aim to address range limitations. Consumer behavior and globalization impact distribution, strategic developments, and pricing strategies. Risk management, growth analysis, and profitability margins are crucial for market players. Emerging global trends, demand forecasts, and product demand analysis are essential for competitive positioning and entry strategies. Vehicle production efficiency, scooters, and motorcycles in the off-road segment, including off-road motorcycles and adventure motorcycles, are part of manufacturers' product portfolios. However, rising environmental concerns and off-roading recreational activities contribute to the need for addressing regulatory changes and primary opportunities. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ather Energy Pvt. Ltd. - The company offers low powered electric motorcycle and scooter such as Ather 450S, Ather 450X, and Ather 450 Apex.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The electric scooters segment is estimated to witness significant growth during the forecast period. The Low-Powered Electric Motorcycle and Scooter market is experiencing significant shifts due to changing consumer preferences towards sustainable transportation, regulatory environment, economic conditions, and technological disruptions. Sustainability initiatives and consumer behavior are driving the demand for electric two-wheelers, with globalization facilitating the spread of this trend. Risk management and growth analysis are crucial for manufacturers as they navigate regulatory changes and competitive positioning.
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The electric scooters segment accounted for USD 9.12 billion in 2018. Distribution channels and strategic developments, including pricing strategies, are essential factors influencing market revenue generation. Raw material costs, particularly for battery-grade lithium, lithium hydroxide, and Li-ion batteries, significantly impact profitability margins. Modern electric vehicles, including scooters and motorcycles, are gaining popularity in various segments, such as off-road motorcycles and adventure motorcycles. Motorcycle manufacturers are expanding their product portfolios to meet the rising demand for electric vehicles. Emerging global trends, such as shared mobility and the off-roading recreational segment, offer primary opportunities for market entry.
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APAC is estimated to contribute 86% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market for low-powered electric motorcycles and scooters is gaining traction due to increasing environmental concerns and technological advancements. As governments worldwide push for reduced carbon emissions, the demand for sustainable transportation options is on the rise. Electric two-wheelers offer a viable solution, emitting zero tailpipe emissions and consuming less energy than their gasoline counterparts. Moreover, technological innovations in battery technology, motor efficiency, and charging infrastructure are driving down costs and improving performance. These factors are expected to fuel the growth of the low-powered electric motorcycle and scooter market in the coming years. The market is poised for significant expansion, offering manufacturers and investors attractive opportunities for growth.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing significant growth due to changing consumer preferences towards sustainable transportation and increasing regulatory support for electric vehicles (EVs). Economic conditions and technological disruptions are also driving the market, with advancements in battery technology, such as the use of lithium hydroxide in Li-ion batteries, improving vehicle production efficiency. Scooters are particularly popular due to their affordability and ease of use, while motorcycles, including off-road and adventure models, are gaining traction due to their longer range and improved performance. Sustainability initiatives and consumer behavior are key factors influencing market growth. Globalization and distribution channels are expanding, enabling manufacturers to reach new markets and customers. Strategic developments, such as pricing strategies and entry into new segments, are also shaping the competitive landscape. Raw material availability and pricing dynamics are important considerations for revenue generation and profitability margins. Emerging global trends include the adoption of modern electric vehicles, shared mobility services, and regulatory changes. Risk management and vehicle production efficiency are also critical for market success. The off-road segment, including off-road motorcycles and scooters, is expected to see significant growth due to the popularity of off-roading recreational activities. Recommendations for market participants include expanding product portfolios, investing in research and development, and implementing effective risk management strategies.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.96% |
Market growth 2024-2028 |
USD 23.74 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
16.01 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 86% |
Key countries |
China, India, Japan, US, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ather Energy Pvt. Ltd., BMW AG, Electrotherm Ltd., Energica Motor Company Spa, Evoke Electric Motorcycles HK Ltd., Gogoro Inc., Greaves Cotton Ltd., Harley Davidson Inc., Hero Electric Vehicles Pvt. Ltd., Lightning Motors Corp, Mahindra and Mahindra Ltd., Niu Technologies, Okinawa Autotech Internationall Pvt. Ltd., Piaggio and C. Spa, PIERER Mobility AG, Revolt Motors, SONGUO MOTORS Co. Ltd., TVS Motor Co. Ltd., Z Electric Vehicle Corp., Zero Motorcycles Inc., and Zhejiang Luyuan Electric Vehicle Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Battery Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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