Electric Two Wheelers Market Forecasted to Grow at 11.6% CAGR, Reaching USD 58.6 Billion by 2031 from USD 19.6 Billion in 2024 | Persistence Market Research

The global electric two-wheelers market is poised for exponential growth as the world increasingly shifts toward sustainable transportation solutions. Electric two-wheelers, including electric motorcycles and scooters, offer a clean, eco-friendly alternative to traditional gasoline-powered vehicles. As governments and consumers alike prioritize reducing carbon footprints and improving air quality, the demand for electric two-wheelers is witnessing a dramatic surge. The market is predicted to reach a value of USD 19.6 billion by 2024 and is anticipated to expand at a compound annual growth rate (CAGR) of 11.6%, reaching USD 58.6 billion by 2031. This article explores the key growth drivers, market segmentation, regional trends, and opportunities within the electric two-wheelers market.

✅ Overview of the Market, Market Statistics, Key Growth Drivers, and Leading Segments

The electric two-wheelers market is experiencing rapid expansion, driven by increasing urbanization, the need for energy-efficient transportation, and advancements in battery technology. Electric motorcycles and scooters are particularly appealing for urban commuters looking for a convenient and eco-friendly alternative to cars. These vehicles are not only more sustainable but also cost-effective in the long run, as they require lower maintenance and offer savings on fuel costs.

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By 2024, the electric two-wheelers market is predicted to reach a market size of USD 19.6 billion, with a robust growth trajectory. Over the forecast period from 2024 to 2031, the market is expected to grow at a CAGR of 11.6%, reaching an estimated USD 58.6 billion by the end of 2031. The key drivers behind this growth include increasing environmental awareness, government incentives and policies promoting electric vehicle adoption, and advancements in charging infrastructure. Moreover, the decreasing cost of lithium-ion batteries, the most commonly used energy source for electric two-wheelers, is also playing a significant role in reducing the overall cost of these vehicles.

The leading segment in the electric two-wheelers market is electric scooters, which are increasingly popular in densely populated urban areas due to their affordability, ease of use, and practicality. In terms of geographical regions, Asia-Pacific is currently the leading market for electric two-wheelers, owing to countries like China and India, where the adoption of electric scooters and motorcycles is rising at a rapid pace.

✅ Key Highlights from the Report:

➤ The electric two-wheelers market is predicted to reach USD 19.6 billion by 2024.
➤ The market is expected to grow at a CAGR of 11.6% during the forecast period, reaching USD 58.6 billion by 2031.
➤ Electric scooters are the leading segment in the electric two-wheelers market.
➤ The Asia-Pacific region holds the largest market share for electric two-wheelers.
➤ Government policies and incentives are boosting the adoption of electric two-wheelers.
➤ Advancements in battery technology and infrastructure are accelerating market growth.

📊 Market Segmentation

The electric two-wheelers market is segmented based on product type, battery type, end-user, and region. By product type, the market is primarily divided into electric motorcycles and electric scooters. Electric scooters are the most widely adopted type, particularly in urban areas where they offer a low-cost, efficient, and convenient mode of transportation. These vehicles are particularly popular among younger consumers and those in need of a quick and affordable way to commute.

By battery type, the market is segmented into lead-acid batteries, lithium-ion batteries, and others. Lithium-ion batteries dominate the market due to their higher energy density, longer life, and lighter weight compared to lead-acid batteries. The increasing adoption of lithium-ion batteries is directly driving the growth of electric two-wheelers, as it improves their overall performance, range, and charging times.

In terms of end-users, electric two-wheelers cater to both individual consumers and commercial users. For individual consumers, these vehicles offer an affordable, sustainable, and efficient way to travel short distances. On the other hand, commercial users, such as delivery services, are increasingly adopting electric motorcycles and scooters due to their cost-effectiveness, lower maintenance, and ability to navigate through congested city streets.

📊 Regional Insights

The Asia-Pacific region is currently the largest market for electric two-wheelers, driven by high demand in countries such as China and India. China is the global leader in electric vehicle adoption, including two-wheelers, thanks to government policies, incentives, and a robust manufacturing ecosystem. Additionally, the increasing awareness of pollution and traffic congestion in urban areas has prompted consumers to shift toward electric two-wheelers as a sustainable transportation solution.

In Europe, electric two-wheelers are also gaining traction, particularly in countries like the Netherlands and Germany, where government initiatives and policies are promoting the use of electric vehicles. The European market is expected to witness steady growth, driven by environmental regulations, subsidies for electric vehicles, and consumer preference for eco-friendly transportation options. North America is also poised to see growth, particularly in urban areas where electric scooters are becoming an increasingly popular mode of transport for short-distance travel.

✅ Market Drivers

Several key drivers are contributing to the rapid growth of the electric two-wheelers market. A primary driver is the rising concern over environmental pollution and the need for cleaner, more sustainable transportation options. Electric two-wheelers produce zero emissions, making them a significant part of the solution to reducing urban air pollution. As governments around the world continue to set stricter emissions regulations, the demand for electric vehicles, including two-wheelers, is increasing.

Another major driver is the rising cost of fuel, which is prompting consumers to seek more cost-effective alternatives. Electric two-wheelers are cheaper to maintain and operate compared to traditional gasoline-powered vehicles, and they offer substantial savings on fuel. With the global rise in fuel prices, consumers are looking for more economical ways to travel, and electric two-wheelers provide a perfect solution.

Government policies and incentives are also playing a crucial role in boosting the adoption of electric two-wheelers. Many countries are offering subsidies, tax rebates, and incentives for consumers to purchase electric vehicles. Additionally, governments are investing in electric vehicle infrastructure, such as charging stations, which further supports the growth of the market. The increasing focus on urban mobility and the need for clean transportation options in metropolitan areas are further driving the adoption of electric two-wheelers.

Market Restraints

Despite the promising growth projections, there are several challenges facing the electric two-wheelers market. One of the main restraints is the high initial cost of electric two-wheelers. While these vehicles are more cost-effective in the long run, the upfront cost remains a barrier for many potential consumers, particularly in developing markets where affordability is a key factor in purchasing decisions. Though the cost of electric two-wheelers is gradually decreasing, it still remains higher than traditional gasoline-powered motorcycles and scooters.

Another restraint is the limited charging infrastructure, particularly in rural or less-developed areas. While urban areas are seeing an increase in charging stations, many regions still lack the necessary infrastructure to support widespread electric vehicle adoption. This limitation poses a challenge for consumers who may hesitate to purchase an electric two-wheeler due to concerns about the availability and accessibility of charging stations.

Finally, the range anxiety associated with electric two-wheelers remains a concern for consumers. Although advancements in battery technology are improving the range of electric two-wheelers, many potential buyers still worry about running out of battery power during long trips, especially in areas where charging infrastructure is lacking.

Market Opportunities

The electric two-wheelers market presents numerous opportunities for growth, particularly in the area of technological advancements. As battery technology continues to improve, the range, efficiency, and affordability of electric two-wheelers will continue to increase. The development of faster-charging batteries and more durable solutions will alleviate concerns about range anxiety and charging time, making electric two-wheelers more attractive to consumers.

The growing demand for last-mile delivery solutions also presents a significant opportunity for the electric two-wheelers market. E-commerce and food delivery services are increasingly adopting electric motorcycles and scooters due to their low operating costs, ability to navigate traffic, and eco-friendliness. With the rise of on-demand services and urban logistics, electric two-wheelers are well-positioned to meet the needs of the delivery industry, creating a substantial market opportunity.

Moreover, governments worldwide are ramping up investments in electric vehicle infrastructure, including charging stations and battery swapping stations. This growing support for the development of EV infrastructure will contribute to the widespread adoption of electric two-wheelers and reduce the challenges associated with charging. Furthermore, the growing interest in smart, connected vehicles presents an opportunity for manufacturers to integrate technology, such as GPS navigation, IoT connectivity, and smart features, into electric two-wheelers.

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👉 Frequently Asked Questions (FAQs)

➤ How Big is the Electric Two-Wheelers Market?
➤ Who are the Key Players in the Global Electric Two-Wheelers Market?
➤ What is the Projected Growth Rate of the Electric Two-Wheelers Market?
➤ What is the Market Forecast for Electric Two-Wheelers in 2031?
➤ Which Region is Estimated to Dominate the Electric Two-Wheelers Market through the Forecast Period?

📌 Key Players

✦ Honda Motor Co. Ltd.
✦ Yadea Technology Group Co. Ltd.
✦ Hero Electric
✦ Gogoro Inc.
✦ NIU Technologies

■ In 2023, Honda launched a new electric scooter model with enhanced range and faster charging times.
■ In 2022, NIU Technologies expanded its presence in Europe by launching a new electric scooter line targeted at urban commuters.

As electric two-wheelers continue to gain popularity, technological advancements, government support, and growing consumer awareness will drive market growth. The future of electric mobility looks bright, with electric two-wheelers positioned as a major solution to urban transportation challenges.

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