Electric Two-Wheeler Market Analysis APAC,Europe,North America,South America,Middle East and Africa - US,China,India,Japan,UK - Size and Forecast 2023-2027

Electric Two-Wheeler Market Size 2023-2027

The electric two-wheeler market size is estimated to grow by USD 36.60 billion at a CAGR of 15.72% between 2022 and 2027. The market's growth hinges on several key factors, including the surging demand for electric two-wheelers, advancements in battery technology, and the widespread adoption of battery-swapping technology. These factors collectively drive market expansion, reflecting a broader trend toward sustainable and energy-efficient transportation solutions. The increasing demand signifies a shift towards cleaner and greener mobility options, driven by environmental concerns and the need to reduce carbon emissions. Moreover, advancements in battery technology have significantly improved the performance and range of electric vehicles, making them more attractive to consumers. The implementation of battery-swapping technology further enhances the convenience and usability of electric two-wheelers, addressing concerns about charging infrastructure and range anxiety.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by battery type (lithium-ion battery, sealed-lead acid battery, and others), vehicle type (e-scooter and e-bike), and geography (APAC, Europe, North America, South America, and Middle East and Africa).

By Type

The market share growth by the lithium-ion battery segment will be significant during the forecast period. Lithium-ion batteries have several advantages over other types of batteries, such as lead-acid batteries, such as high energy density, long life, and minimal maintenance costs. One of the main growth drivers for the market is the increasing awareness of environmental issues and the need to reduce CO2 emissions. Lithium-ion batteries are more environmentally friendly than other types of batteries because they do not contain harmful substances such as lead or cadmium. 

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The lithium-ion battery segment was valued at USD 8.98 billion in 2017. Lithium-ion batteries offer superior performance and reliability over other battery technologies. Higher energy density means more power and a longer range than traditional lead-acid batteries. Lithium-ion batteries also last longer than lead-acid batteries and offer a more sustainable and cost-effective solution. The market is expected to grow rapidly in the coming years due to increasing demand from urban areas and increasing interest in sustainability. This growth is underpinned by the prevalence of lithium-ion batteries, which are becoming increasingly affordable and widely available. Improvements in battery technology, such as shorter charging times and increased durability, will help accelerate global adoption during the forecast period. Therefore, the above factors are expected to increase the demand for lithium-ion batteries across the globe, boosting the growth of the market during the forecast period. 

By Region

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APAC is estimated to contribute 70% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Asia-Pacific region has emerged as a major player in the market. Rapid population growth and increasing urbanization have significantly increased the demand for two-wheeled transportation in the region. Additionally, government initiatives to promote electric vehicles and reduce air pollution are further driving the adoption of electric two-wheelers. Countries such as China, India, and Japan are leading the growth of the market in the region. China has the largest market share due to its large population and government support for electric vehicles. Meanwhile, India is making strides towards electrification with an ambitious target of 100% electric vehicle sales by 2030. The Government of India has also introduced initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) program to boost the adoption of electric two-wheelers.  Therefore, the factors mentioned above are expected to increase the demand, which is likely to spur the growth of the market during the forecast period. 

Market Dynamics and Customer Landscape

The market is witnessing significant growth, driven by a variety of factors. Consumers are increasingly opting for electric vehicles due to rising petrol prices and a growing focus on environmental sustainability. Budget-conscious individuals and businesses are also contributing to this trend. Technological advancements, including innovations by companies like Ola Electric in lowspeed E2W, are reshaping the market. Government initiatives such as the PLI Scheme and EV policy are further boosting the market. However, challenges remain, including battery life and the need for charging infrastructure. Despite this, the market is poised for substantial growth, driven by the evolving mobility consumer landscape and the push towards sustainable transportation in alignment with global climate policies. Our researchers analyzed the data with 2022 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.

Key Market Driver

An increase in demand for electric two-wheelers is notably driving the market growth. In recent years, the demand for electric motorcycles has increased rapidly. People are becoming more aware of their environment and the impact of their actions on it. With this realization, they are switching to eco-friendly alternatives such as electric two-wheelers. A major reason why consumers choose electric motorcycles is, indeed, their low running costs. This choice is further supported by technological advancements that have made electric vehicles (EVs) more accessible and affordable, appealing to budget-conscious individuals. Additionally, the growing EV ecosystem and focus on environmental sustainability are driving the adoption of electric motorcycles as a greener transportation option. In contrast to gasoline vehicles, they do not need to buy fuel, which can be expensive in the long run. Instead, it is powered by a battery that can be recharged with electricity from a socket. As such, the operating costs are significantly lower than those of gasoline motorcycles. Another factor contributing to the increased demand is government incentives and subsidies. Many governments around the world offer incentives for people to purchase electric two-wheelers to promote clean energy adoption. 

The environmental benefits of electric two-wheelers are also playing an important role in increasing demand. Electric motorcycles are environmentally friendly as they emit no pollutants, reduce air pollution and protect the environment. In addition, electric motorcycles do not require oil or other petroleum-based lubricants, so they do not contribute to oil spills that pose a serious threat to the environment. These factors make electric two-wheelers more attractive to buyers, leading to a surge in demand. Therefore, the factors mentioned above are expected to increase the demand for electric two-wheelers across the globe, which is likely to drive the growth of the market during the forecast period. 

Significant Market Trends

The use of the Internet of Things and smart infrastructure in electric two-wheeler charging stations for load management is a key trend influencing the market growth. IoT and intelligent infrastructure can play a key role in modern electric two-wheeler charging stations. Using advanced technology, these stations can effectively handle load management. Load management is important as many e-bikes charge their batteries at the same time. This increases the load on the charging station infrastructure. IoT technologies and intelligent infrastructure can be deployed to address these and many other challenges.

IoT can be used to monitor and collect data from each charging station in real-time. Collected data can be analyzed to identify load patterns, peak and off-peak hours, and other trends. This information helps US make optimal use of our charging station infrastructure and reduce overloads and power shortages. Intelligent infrastructure with IoT can help ensure charging station security. Create integrated security systems that can recognize people based on their faces and other biometrics. Unauthorized access can be denied and an alert can be issued if an unregistered facial pattern is detected accessing the station. For example,  some cities such as Amsterdam and Barcelona already have smart charging systems in which charging stations are connected to a central control system and can be monitored and managed remotely. This allows stations to operate more efficiently, provide real-time data on energy consumption, and enable peak load management. Therefore, the above factors are expected to boost the growth of the market during the forecast period.  

Major Market Challenge

The high cost of electric two-wheelers is challenging the market growth. They are being hailed as the future of personal mobility as they reduce pollution and have the potential to reduce our dependence on fossil fuels. However, one of the biggest challenges with these vehicles is their high cost, which limits their accessibility for most people. By contrast, gas-powered scooters like the Honda Activa 6G made by Honda Motor Co., Ltd. (Honda) are made for around USD 920.

The initial cost of ownership may seem low, but it's important to note that the replacement cost of the lithium-ion battery, which makes up the majority of the cost, ranges from USD 275 to USD 345. The cost of a petrol scooter engine is negligible. This means that the running costs of electric scooters will be significantly higher in the long run. 

Key Market Customer Landscape

The 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 growth strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

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.

Aima Technology Group Co. Ltd: The company offers electric tricycles, sightseeing cars, electric four-wheelers, recreational vehicles, and other types of vehicles.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ANI Technologies Pvt. Ltd.
• Ather Energy Pvt. Ltd.
• Bayerische Motoren Werke AG
• Bounce Infinity
• Cake 0 Emission AB
• Damon Motors Inc.
• Energica Motor Company Spa
• Gogoro Inc.
• GOVECS AG
• Hero Electric Vehicles Pvt. Ltd
• Jiangsu Xinri E Vehicle Co. Ltd.
• Mahindra and Mahindra Ltd.
• Piaggio and C. Spa
• Terra Motors Corp.
• VinFast LLC
• Vmoto Ltd.
• Yadea Group Holdings Ltd
• Zero Motorcycles Inc.
• Harley Davidson Inc.

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.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Battery Type Outlook 
  • Lithium-ion battery
  • Sealed-lead acid battery
  • Others

• Vehicle Type Outlook
  • E-scooter
  • E-bike

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is evolving rapidly, driven by various factors. Manufacturers are focusing on enhancing motor efficiency and introducing connectivity features to attract consumers. The use of lightweight materials is increasing to improve longer ranges and faster charging times. The market is segmented based on Motor Placement, Motor Power, and Motor Speed, offering a wide range of options to consumers. Despite these advancements, challenges such as high initial costs and limited vehicle range persist. However, the market is witnessing a shift towards personal mobility solutions due to concerns about urban congestion and health. Shared mobility services and advancements in smartphone apps are also influencing consumer choices.

Furthermore, the market is influenced by various factors, such as transportation options and traffic conditions. OEMs are focusing on innovations like Advanced Chemistry Cell and battery swapping to enhance vehicle safety and comply with battery safety norms. These efforts are reshaping the automotive sector and driving growth in the market. Manufacturers like Ryvid and Anthem are introducing innovative features such as adjustable seats and convenient charging to cater to diverse consumer demands. As the market matures, it is expected to witness further growth, driven by advancements in battery safety, charging speed, and public charging infrastructure.

 

Market Scope
Report Coverage	Details
Page number	158
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.72%
Market growth 2023-2027	USD 36.60 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	13.24
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 70%
Key countries	US, China, India, Japan, and UK
Competitive landscape	Leading companies, market positioning of companies, competitive strategies, and industry risks
Key companies profiled	Aima Technology Group Co. Ltd., ANI Technologies Pvt. Ltd., Ather Energy Pvt. Ltd., Bayerische Motoren Werke AG, Bounce Infinity, Cake 0 Emission AB, Damon Motors Inc., Energica Motor Company Spa, Gogoro Inc., GOVECS AG, Hero Electric Vehicles Pvt. Ltd, Jiangsu Xinri E Vehicle Co. Ltd., Mahindra and Mahindra Ltd., Piaggio and C. Spa, Terra Motors Corp., VinFast LLC, Vmoto Ltd., Yadea Group Holdings Ltd, Zero Motorcycles Inc., Harley Davidson Inc., Hero MotoCorp Ltd., Honda Motor Co. Ltd., Okinawa Autotech Internationall Pvt. Ltd., and Yulu Bikes Pvt. Ltd.
Market dynamics	Parent market analysis, Market Forecasting, 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 market forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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