Electric Two-Wheeler Motor Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, Taiwan, Germany - Size and Forecast 2024-2028

Electric Two-Wheeler Motor Market Size 2024-2028 

The electric two-wheeler motor market size is forecast to increase by USD 5.25 billion at a CAGR of 8.9% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. One major factor is the increasing demand for clean energy vehicles, with governments and organizations such as the Clean Energy Ministerial promoting their adoption. Another trend is the rising popularity of e-scooters and other electric two-wheelers as convenient and eco-friendly transportation options. However, challenges remain, including the high cost of motor manufacturing and the need for advanced battery technology with greater energy density. Sealed Lead Acid batteries are currently used, but there is a push for more efficient Lithium-ion batteries to improve performance and reduce charging times. Charging platforms are also being developed to address the infrastructure gap and make electric two-wheelers a more practical option for commuters. Overall, the market is poised for continued growth as technology advances and sustainability becomes a priority.

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

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The market is witnessing significant advancements driven by the increasing demand for eco-friendly transportation solutions in the US. The market growth can be attributed to several factors, including the evolution of battery technology and motor efficiency. Battery technology plays a crucial role in the market. The adoption of lithium-ion batteries is on the rise due to their high energy density, long cycle life, and fast charging capabilities. However, challenges such as battery heating issues and thermal runaway remain areas of focus for manufacturers. Motor efficiency is another critical factor influencing the market's growth.

Moreover, electric two-wheelers, including electric scooters, e-bikes, and electric motorcycles, are becoming increasingly popular for short trips and last-mile connectivity. The ability to cover greater distances with less energy consumption is a significant advantage for these vehicles. Charging infrastructure is a key consideration in the electric two-wheelers market. The availability of charging stations and the ease of charging are essential factors influencing consumer adoption. Shared mobility services, such as electric scooter rental programs, are gaining popularity due to their convenience and affordability. Urban mobility is a significant application area for electric two-wheelers. These vehicles offer an efficient and eco-friendly alternative to traditional modes of transportation, particularly in densely populated areas.

In addition, the reduction of emissions from these vehicles is a significant contribution to pollution reduction efforts. Cargo e-bikes are another segment of the electric two-wheelers market that is gaining traction. The ability to transport goods efficiently and cost-effectively is a significant advantage for businesses and consumers alike. Government initiatives, such as tax relaxations and incentives for electric vehicles (EVs), are driving the adoption of electric two-wheelers. The EV initiative (EVI) is an example of such efforts aimed at promoting the use of new energy vehicles (NEVs) and reducing dependence on traditional energy resources. In conclusion, the electric two-wheelers market is experiencing steady growth due to the increasing demand for eco-friendly transportation solutions and advancements in battery technology and motor efficiency. The availability of charging infrastructure and government initiatives are also significant factors influencing market growth. However, challenges such as battery heating issues and thermal runaway remain areas of focus for manufacturers.

Market Segmentation

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.

• Type
  • Permanent magnet synchronous motor
  • Brushless DC motor
  • Brushed DC motor
  • Synchronous reluctance motor (SRM)
• End-user
  • Moped and scooters
  • Motorcycle
• Geography
  • APAC
    • China
  • North America
    • US
  • Europe
    • Germany
  • Middle East and Africa
  • South America

By Type Insights

The permanent magnet synchronous motor segment is estimated to witness significant growth during the forecast period. The market is divided into motor types, with Permanent Magnet Synchronous Motors (PMSMs) leading the way due to their superior performance attributes. PMSMs are advanced AC electric motors that utilize permanent magnets to generate a magnetic field, effectively transforming electrical energy into mechanical energy. Known for their high efficiency, PMSMs can deliver up to 15% more efficiency than conventional induction motors. This efficiency is essential for electric two-wheelers as it enhances energy utilization, extending the vehicle's range on a single charge. PMSMs are preferred for high-performance and energy-efficient motor drives. In the realm of shared mobility services, electric two-wheelers equipped with PMSMs are gaining popularity.

Furthermore, as the demand for eco-friendly and efficient transportation solutions increases, the market is poised for significant growth. In the US market, the trend towards electric two-wheelers is gaining momentum.

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The permanent magnet synchronous motor segment accounted for USD 2.75 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 52% 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.

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The market in Asia-Pacific is experiencing significant growth due to increasing consumer preference for energy-efficient transportation solutions and substantial investments by Original Equipment Manufacturers (OEMs). For instance, Oben Electric, a leading Indian electric two-wheeler manufacturer, announced plans to launch four new models by March 2025, demonstrating their commitment to innovation and market leadership in the electric mobility sector. Asia-Pacific is a significant market for electric two-wheelers due to several factors. Urbanization is rapid, disposable incomes are rising, and there is a growing consciousness towards environmental issues, leading to a shift towards sustainable transportation. The availability of charging infrastructure is also improving, making electric two-wheelers a more viable option for consumers.

In addition, energy efficiency is a key selling point for electric two-wheelers, as they offer significant cost savings over traditional gasoline-powered alternatives. Moreover, the use of electric two-wheelers can help reduce pollution and reliance on non-renewable energy resources. With continued investments in research and development and expanding charging infrastructure, the electric two-wheeler market in Asia-Pacific is expected to grow substantially in the coming years. In conclusion, the electric two-wheeler market in Asia-Pacific is witnessing strong growth due to increasing consumer demand for energy-efficient transportation solutions, investments by OEMs, and the availability of charging infrastructure. The commitment of companies like Oben Electric to innovation and leadership in the electric mobility sector is further fueling this growth. The region's rapid urbanization, rising disposable incomes, and growing environmental consciousness are also driving the shift toward electric mobility.

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.

Market Driver

High sales of electric two-wheelers is the key driver of the market. The market in the global arena is witnessing a notable expansion due to the escalating sales volume. In India, during the initial ten months of the year 2024, there was a sale of 954,164 electric two-wheelers, representing a substantial 38% rise compared to the corresponding period in the preceding year, which recorded 692,363 units. This notable increase in sales signifies the burgeoning consumer interest in electric mobility alternatives. The factors fueling this trend include escalating fuel prices, mounting environmental concerns, and government incentives. The shift towards electric vehicles (EVs) is a broader global trend as consumers increasingly seek eco-friendly and cost-effective transportation solutions.

In addition, the affordability of electric two-wheelers, coupled with advancements in battery technology that enhance range and performance, is making these vehicles more desirable to a broader audience. Government initiatives, such as the Electric Vehicles Initiative (EVI), offer tax relaxations to incentivize the adoption of electric vehicles. The reduction in emissions and the alleviation of traffic congestion are additional benefits that make electric two-wheelers a compelling choice for consumers. Cargo e-bikes are also gaining popularity due to their efficiency and cost-effectiveness, further propelling the market growth. In conclusion, the electric two-wheelers market is poised for significant expansion as consumers increasingly opt for eco-friendly and cost-effective transportation alternatives. The market growth is driven by a combination of factors, including government incentives, environmental concerns, and advancements in battery technology. The affordability and versatility of electric two-wheelers make them an attractive option for both personal and commercial use.

Market Trends

Partnerships and collaborations is the upcoming trend in the market. The market in the United States is experiencing a notable shift towards strategic collaborations and partnerships. These alliances are proving instrumental in fostering market expansion and technological innovation.

Moreover, this partnership entails the supply of essential components, including ignition switches, motors, and latches, to OLA Electric's production facilities in India. Such collaborations enable companies to expand their product portfolios, optimize supply chains, and accelerate technological advancements in the market. This trend is expected to continue as the demand for electric mobility solutions gains momentum, reducing carbon emissions and decreasing reliance on fossil fuels.

Market Challenge

High cost of motor manufacturing is a key challenge affecting the market growth. The market is currently confronted with a major issue: the high cost of manufacturing. The escalating prices of essential components, including rare earth magnets, copper, and electrical steel, are squeezing the profit margins of manufacturers and driving up production costs. This financial predicament is particularly burdensome as companies aim to keep prices competitive while also investing in technological innovations. The situation is compounded by supply chain disruptions and intensified competition for raw materials from other sectors of the electric vehicle industry. To address these hurdles, motor manufacturers are pursuing multiple strategies. One approach is to research and develop alternative materials that can deliver comparable performance at a more affordable price.

In addition, by focusing on cost reduction, companies can remain competitive while continuing to invest in technological advancements. Additionally, the implementation of charging platforms and the increasing adoption of clean energy policies, such as those advocated by the Clean Energy Ministerial, are expected to drive demand for electric two-wheelers and provide opportunities for market growth.  In summary, the market faces significant challenges due to rising production costs and raw material prices. To overcome these obstacles, manufacturers are exploring alternative materials and collaborating with charging platform providers. Staying informed about market trends and consumer preferences through reputable market research sources is crucial for success in this dynamic industry.

Exclusive Customer Landscape

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

Key Companies & Market Insights

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.

Ananda Drive Techniques Shanghai Co. Ltd. - The company offers electric two-wheeler motors such as m60 motor, and m81.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Bafang Electric Suzhou Co. Ltd.
• Brose Fahrzeugteile SE and Co. KG
• CHANGZHOU MXUS IMP and EXP CO. LTD.
• Giant Manufacturing Co. Ltd.
• Heinzmann GmbH and Co. KG
• MAHLE GmbH
• Nidec Corp.
• Panasonic Industry Europe GmbH
• Polini Motori Spa
• Robokits India
• SHIMANO INC.
• Suzhou Tongsheng Electric Appliances Co Ltd.
• TQ Systems GmbH
• Tranzx
• TRUCKRUN

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.

Research Analyst Overview

The market is witnessing significant growth due to the increasing demand for eco-friendly transportation solutions. Battery technology and motor efficiency are key factors driving the market's expansion. Electric scooters and electric motorcycles are popular choices for urban mobility, offering short-term solutions for last-mile connectivity. The adoption of new energy vehicles (NEVs), including electric two-wheelers, is increasing as governments and organizations push for pollution reduction. Li-ion batteries are the preferred choice for electric two-wheelers due to their high energy density and long life. However, challenges such as battery heating issues, charging time, and safety concerns, including thermal runaway, need to be addressed.

Moreover, OEMs are focusing on lightweight materials and energy efficiency to improve the performance and appeal of electric two-wheelers. Charging infrastructure is a crucial element of the electric two-wheelers market. Charging networks are being established to support the growing number of electric scooters, motorcycles, e-bikes, and cargo e-bikes. Governments are offering tax relaxations and incentives to promote the use of electric vehicles (EVs) and reduce reliance on fossil fuels. The electric two-wheelers market is expected to grow significantly in the coming years, offering opportunities for innovation and collaboration among stakeholders. Pollution reduction, clean energy initiatives, and the EVI (Electric Vehicles Initiative) under the Clean Energy Ministerial are some of the key drivers of this market's growth.

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

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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