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The electric two-wheeler market size is estimated to grow at a CAGR of 15.72% between 2022 and 2027. The market size is forecast to increase by USD 36,605.79 million. The growth of the market depends on several factors, including the increase in demand for electric two-wheelers, the advancements in battery technology, and the implementation of battery-swapping technology.
This electric two-wheeler 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). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increase in demand for electric two-wheelers is notably driving the market growth, although factors such as the high cost of electric two-wheelers may impede the market growth. 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.
An increase in demand for electric two-wheelers is notably driving the electric two-wheeler 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 electric motorcycles are chosen is their low running costs. In contrast to gasoline vehicles, electric two-wheelers 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 of electric motorcycles are significantly lower than those of gasoline motorcycles. Another factor contributing to the increased demand for electric two-wheelers 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.
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 electric two-wheeler 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.
The high cost of electric two-wheelers is challenging the electric two-wheeler market growth. Electric two-wheelers 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 of an electric scooter 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 of an electric scooter, 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.
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 Electric Two-Wheeler Market Customer Landscape
Vendors 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 electric two-wheeler 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 8,981.15 million in 2017 and continued to grow until 2021. 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 the global adoption of electric two-wheelers 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.
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APAC is estimated to contribute 70% to the growth of the global electric two-wheeler 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 electric two-wheeler 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 for electric two-wheelers, which is likely to spur the growth of the market during the forecast period.
In 2020, the rising number of COVID-19 cases negatively impacted the market. As a result, governments imposed lockdowns across the world. This led to the temporary closure of many two-wheeler manufacturing facilities globally, disrupting the supply chain for electric two-wheeler production in 2020. However, in 2021, electric two-wheeler manufacturing plants reopened due to a successful vaccination campaign and a surge in investment in the two-wheeler industry. The lifting of lockdown restrictions has also contributed to the resumption of travel in 2021. This will boost the demand for electric two-wheelers during the forecast period.
The electric two-wheeler 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.
Technavio categorizes the global electric two-wheeler market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories market includes manufacturing auto parts and accessories for passenger cars, electric vehicles (EV), commercial vehicles (CV), heavy-duty vehicles, ATVs, motorcycles, scooters, quad bikes, tricycles, etc.
Electric Two-Wheeler 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 36605.79 million |
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 vendors, market positioning of vendors, 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 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Battery Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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