Global Electric Two-Wheeler Powertrain Market Set to Reach USD 44.5 Bn by 2035, Driven by Urban Electrification and Sustainability Push

The global electric two-wheeler powertrain market is entering a strong growth phase, supported by accelerating electrification of urban mobility, supportive government policies, and rapid technological advancements in electric propulsion systems. Valued at US$ 14.5 Bn in 2024, the market is projected to reach US$ 44.5 Bn by 2035, expanding at a robust CAGR of 10.7% from 2025 to 2035.

Electric two-wheeler powertrains form the technological backbone of electric scooters, motorcycles, and e-bikes, converting stored electrical energy into mechanical motion with high efficiency, instant torque delivery, and zero tailpipe emissions. As cities worldwide seek cleaner, quieter, and more cost-efficient transportation solutions, electric two-wheelers-and the powertrain systems that drive them-are emerging as a cornerstone of future urban mobility.

Access important conclusions and data points from our Report in this sample - https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=86909

Market Overview: Electric two-wheeler powertrains comprise electric motors, controllers, traction inverters, on-board chargers, battery packs, and transmission systems that work together to deliver reliable and efficient propulsion. Compared to conventional internal combustion engine systems, electric powertrains offer lower maintenance costs, reduced noise pollution, and significantly improved energy efficiency.

The market encompasses multiple powertrain architectures, including hub motor systems, mid-drive motor systems, and integrated powertrain units. Hub motors dominate mass-market electric scooters due to their affordability and simplicity, while mid-drive and integrated systems are increasingly adopted in premium and high-performance models for superior balance, torque control, and modularity.

Market Size & Key Highlights

• The electric two-wheeler powertrain market reached US$ 14.5 Bn in 2024
• Expected to climb to US$ 44.5 Bn by 2035
• Forecast to expand at a CAGR of 10.7% (2025-2035)
• Electric scooters accounted for 86.3% of total revenue in 2024
• Asia Pacific dominated the market with 89.2% revenue share
• Major players include Robert Bosch, YAMAHA Motor, MAHLE Powertrain, Valeo, and T&D

Key Market Growth Drivers

Government Push Toward Low-Emission and Sustainable Transportation
Governments across major economies are actively promoting electric mobility to reduce greenhouse gas emissions, urban air pollution, and dependence on fossil fuels. Strict emission regulations, EV adoption incentives, tax benefits, and subsidies have accelerated the demand for electric two-wheelers, particularly in densely populated urban regions.

Electric two-wheelers align closely with national sustainability and net-zero roadmaps due to their efficiency in short-distance commuting. As a result, manufacturers and suppliers are investing heavily in advanced electric powertrain technologies that deliver higher efficiency, durability, and scalability.
In November 2024, Honda reaffirmed its commitment to carbon neutrality through expanded electrification strategies, highlighting the growing influence of regulatory frameworks on OEM product development and powertrain innovation.

Rising Adoption of Electric Two-Wheelers for Urban Mobility
Rapid urbanization, rising fuel prices, and traffic congestion are driving consumers toward compact, cost-effective, and environmentally friendly mobility solutions. Electric two-wheelers have emerged as an ideal option for daily commuting, last-mile delivery, and shared mobility platforms.
Lower operating and maintenance costs, ease of use, and expanding model availability across price segments are further boosting adoption. In April 2025, Revolt Motors emphasized the role of electric two-wheelers in reducing emissions and noise pollution, reinforcing their position as a sustainable alternative for urban transportation.

Electric Scooters Segment Dominates the Market
By vehicle type, electric scooters led the global electric two-wheeler powertrain market, accounting for 86.3% revenue share in 2024. Their dominance is driven by strong global sales volumes, especially in Asia Pacific, and high demand for compact, efficient, and affordable powertrain systems.
Advancements in battery technology, integrated motor-controller units, and cost-effective power electronics have significantly improved range, charging speed, and ride quality. Continuous innovation in scooter-specific powertrain solutions is expected to sustain segment leadership throughout the forecast period.

Analysis of Key Players

The electric two-wheeler powertrain market is moderately consolidated, with leading players focusing on efficiency, compact design, and system integration. Companies are investing heavily in R&D to improve motor efficiency, thermal management, and power electronics performance while reducing weight and space requirements.

Prominent players include:
• Robert Bosch GmbH
• MAHLE Powertrain Ltd
• YAMAHA Motor Pvt. Ltd.
• NIDEC CORPORATION
• T&D
• Delta Electronics, Inc.
• FUKUTA ELEC. & MACH. CO, LTD.
• Valeo
• Magna International Inc.
• Dana Limited
• ZF Friedrichshafen AG
• Schaeffler AG
• AISIN CORPORATION
• TECO Electric & Machinery Co., Ltd
• Other Prominent Players

Each company is profiled in detail based on business strategy, product portfolio, financial performance, and recent developments.

Key Player Strategies

• Development of compact, high-efficiency integrated powertrain systems
• Focus on modular and scalable designs to support multiple vehicle platforms
• Strategic partnerships with battery manufacturers, electronics suppliers, and software developers
• Investment in software-driven energy management, connectivity, and smart diagnostics
• Expansion of localized manufacturing and supply chains in high-growth regions

Market Challenges & Opportunities

Challenges
• High upfront costs of advanced powertrain systems
• Dependence on battery raw material supply chains
• Need for standardization across components and platforms

Opportunities
• Rapid growth of shared mobility and last-mile delivery services
• Advancements in battery chemistry and power electronics
• Increasing demand for connected and software-defined powertrains
• Expansion into emerging markets with strong two-wheeler usage

Buy this Premium Research Report to stay informed with key insights - https://www.transparencymarketresearch.com/checkout.php?rep_id=86909<ype=S

Recent Developments

• In November 2025, the automotive industry adopted a wider electrification strategy which extended past battery electric vehicles to incorporate hybrid systems, hydrogen fuel cells, advanced semiconductor technology, scalable platforms, and software-defined systems. The original equipment manufacturers together with their suppliers demonstrated that open technology systems and modular designs serve as fundamental approaches which enhance operational efficiency and sustainability. Market adaptability throughout worldwide markets.

• In October 2024, Delta demonstrated the fast expansion of green transportation through its presentation of compact high-performance electric two-wheel powertrains which serve e-bikes and e-scooters. The solutions concentrate on unified design elements with strong torque performance, long-lasting durability, and adaptable integration methods which promote electric two-wheeler expansion for sustainable city transportation systems.

Investment Landscape and ROI Outlook

The electric two-wheeler powertrain market presents a compelling investment opportunity, supported by long-term regulatory support, expanding urban mobility demand, and continuous technological innovation. High growth rates, especially in Asia Pacific, combined with scalable manufacturing and modular system designs, are expected to deliver attractive returns for investors, OEMs, and component suppliers over the forecast period.

Market Segmentation Overview

By Component Type:
Motor, Traction Inverter, On-board Charger, Battery Pack, Others

By Vehicle Type:
Electric Scooters, Electric Motorcycles, Electric Bikes, Others

By Motor Type:
Mid Drive Motor, Hub Motor, Brushless DC Motor, Others

By Battery Type:
Lithium-ion, Lithium Iron Phosphate, Lead-Acid, Others

By Power Output:
10 kW

By End User:
Individual Consumers, Commercial Users, Rental Platforms

By Region:
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Why Buy This Report?

• In-depth market size, growth, and forecast analysis (2020-2035)
• Detailed segmentation and regional insights
• Comprehensive competitive landscape and company profiles
• Strategic insights into trends, drivers, challenges, and opportunities
• Actionable intelligence for decision-makers, investors, and OEMs

Frequently Asked Questions (FAQs)

1. How big was the electric two-wheeler powertrain market in 2024?
The market was valued at US$ 14.5 Bn in 2024.

2. How big will the electric two-wheeler powertrain market be by 2035?
It is projected to reach US$ 44.5 Bn by the end of 2035.

3. What factors are driving market growth?
Government support for low-emission transportation and rising adoption of electric two-wheelers for urban mobility.

4. What is the expected CAGR during 2025-2035?
The market is expected to grow at a CAGR of 10.7%.

5. Which region will dominate the market?
Asia Pacific is expected to account for the largest share throughout the forecast period.

Explore Latest Research Reports by Transparency Market Research:

Intelligent Steering System Market: https://www.transparencymarketresearch.com/intelligent-steering-system-market.html

Diesel Particulate Filter Market: https://www.transparencymarketresearch.com/diesel-particulate-filter-market.html

EV Charging Connector Market: https://www.transparencymarketresearch.com/electric-vehicle-ev-charging-connector-market.html

Bidirectional Electric Vehicle Charger Market: https://www.transparencymarketresearch.com/bidirectional-electric-vehicle-charger-market.html

About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

Contact Us:

Transparency Market Research Inc.
CORPORATE HEADQUARTER DOWNTOWN,
1000 N. West Street,
Suite 1200, Wilmington, Delaware 19801 USA
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453

This release was published on openPR.