Australia Electric Two-Wheeler Market Projected to Reach USD 2,256.6 Million by 2034

Australia Electric Two-Wheeler Market Overview:
Australia's electric two-wheeler market is surging as urban congestion, rising fuel costs, and growing environmental consciousness drive consumers toward electric motorcycles, scooters, and mopeds. The market encompasses a diverse range of vehicles from lightweight electric scooters for urban commuting to high-performance electric motorcycles for enthusiast riders. Progressive state-level legalisation of e-scooters - with Queensland, Victoria, South Australia, and Western Australia now permitting private e-scooter use on public roads - is dramatically expanding the addressable market. Government e-bike rebate programs, including Queensland's million-dollar E-Mobility Rebate Scheme launched in September 2024, are further stimulating adoption. Global OEMs like Can-Am, Zero Motorcycles, and Piaggio are entering or expanding in the Australian market alongside local manufacturers such as Savic Motorcycles and Vmoto. According to IMARC Group's latest report, the Australia electric two-wheeler market size reached USD 408.6 Million in 2025. Looking forward, the market is expected to reach USD 2,256.6 Million by 2034, exhibiting a growth rate (CAGR) of 20.28% during 2026-2034.

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Australia Electric Two-Wheeler Market Summary:
• Electric scooters dominate the Australian electric two-wheeler landscape, driven by the progressive legalisation of private e-scooters across multiple states. Around 3.6 million Australian adults have used e-scooters, reflecting rapid consumer adoption of micro-mobility solutions for urban commuting and last-mile transportation needs.

• Electric motorcycles are gaining significant traction as performance capabilities improve and more brands enter the Australian market. Zero Motorcycles has returned to Australia through a partnership with the Peter Stevens Group, enabling nationwide distribution, servicing, and parts availability for the first time across the country.

• The lithium-ion battery segment leads the market owing to superior energy density, longer cycle life, and declining production costs. Advances in battery technology are extending range capabilities and reducing charging times, addressing two of the most significant consumer barriers to electric two-wheeler adoption in Australia.

• Queensland has emerged as a leading state for electric two-wheeler adoption, legalising private e-scooters on footpaths and bike lanes and launching the million-dollar E-Mobility Rebate Scheme in September 2024. The program received over 860 applications in its first three days, prompting an additional million dollars in government investment.

• Victoria legalised private e-scooters meeting PMD definitions for use on public roads and paths from July 2025, significantly expanding the addressable market. Riders must be at least 16 years old and wear helmets, with speed limits of 20 km/h applying to ensure safe integration with existing traffic.

• The commercial application segment is growing as last-mile delivery operators and logistics companies adopt electric two-wheelers for urban deliveries. The lower operating costs, zero emissions, and ability to navigate congested city streets make electric scooters and mopeds ideal for food delivery and parcel distribution services.

• New market entrants are rapidly expanding consumer choice. Can-Am announced its entry into the Australian market in 2025 with the Pulse and Origin electric motorcycles, while Farizon, Horwin, and multiple Chinese manufacturers are establishing distribution networks through local importers and dealers across Australian states.

• Charging infrastructure for electric two-wheelers is developing through a combination of home charging solutions and public EV charging networks. ARENA allocated AU$2.4 million for the installation of 250 public EV chargers across Victoria, New South Wales, and South Australia in February 2025, supporting broader electric vehicle ecosystem growth.

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Key Trends Shaping the Australia Electric Two-Wheeler Market:

• Progressive State-Level E-Scooter Legalisation: Australian states are progressively legalising private e-scooter use, with Queensland, Victoria, South Australia, and Western Australia now permitting riders on public roads and paths. NSW is implementing updated regulations with safety standards required by August 2025 and full regulatory implementation scheduled for February 2026, creating a nationally expanding market.

• Government E-Bike Rebate Programs Stimulating Adoption: Multiple state governments are offering financial incentives for electric two-wheeler purchases. Queensland's E-Mobility Rebate provides $500 subsidies per e-bike, Tasmania offers no-interest loans, South Australia's City of West Torrens provides up to $400 rebates, and Adelaide subsidizes 20% of e-bike purchases up to $1,000.

• Global OEM Market Entry Acceleration: Established global manufacturers are accelerating their Australian market entry. Can-Am is launching the Pulse and Origin electric motorcycles in 2025, Zero Motorcycles has partnered with Peter Stevens Group for nationwide distribution, and Piaggio continues expanding its Vespa Elettrica presence - intensifying competition and expanding consumer choice.

• Local Manufacturing and Innovation: Australian-born electric two-wheeler manufacturers are establishing themselves in the market. Melbourne-based Savic Motorcycles produces high-performance electric motorcycles locally, while Perth-based Vmoto Limited (parent of Super SOCO) has become a globally recognized electric scooter brand with strong domestic presence and international exports.

• Micro-Mobility Integration with Public Transport: Electric two-wheelers are increasingly being positioned as first-and-last-mile solutions that complement existing public transport networks. The ACT Government invited new e-scooter and e-bike operators to apply for multi-year shared mobility permits beginning July 2025, formalizing the integration of electric micro-mobility into urban transport planning.

Australia Electric Two-Wheeler Market Growth Factors:

Progressive Regulatory Framework and Government Incentives
Australia's evolving regulatory landscape is a primary growth catalyst for the electric two-wheeler market. The progressive legalisation of private e-scooters across Queensland, Victoria, South Australia, and Western Australia has dramatically expanded the addressable market. Queensland's million-dollar E-Mobility Rebate Scheme - which received over 860 applications in its first three days and prompted additional government investment - demonstrates the latent demand that financial incentives can unlock. Tasmania's no-interest e-bike loan program and South Australia's purchase subsidies of up to $1,000 further reduce adoption barriers. As NSW completes its regulatory framework by February 2026, the national market will be substantially unified.

Urban Congestion and Rising Transportation Costs
Australia's major cities face growing traffic congestion challenges, with average commute times increasing across Sydney, Melbourne, and Brisbane. Electric two-wheelers offer a compelling alternative with significantly lower operating costs compared to cars - electric scooters cost approximately $0.01 per kilometer in electricity versus $0.10-0.15 for petrol vehicles. The combination of rising fuel prices, parking costs in C B Ds, and increasing toll road charges makes electric two-wheelers an economically attractive urban commuting solution. Around 3.6 million Australian adults have already used e-scooters, indicating strong consumer acceptance of two-wheeled electric mobility for daily transportation needs.

Expanding Product Range and Declining Battery Costs
The electric two-wheeler market is benefiting from a rapidly expanding product portfolio as global and local manufacturers introduce new models across all price points. Lithium-ion battery costs have declined significantly, improving the price-performance ratio for electric two-wheelers. Can-Am's 2025 market entry with the Pulse and Origin models, Zero Motorcycles' nationwide distribution through Peter Stevens Group, and Savic Motorcycles' locally manufactured performance bikes demonstrate the breadth of options now available. This expanding choice - from sub-$1,000 e-scooters to premium electric motorcycles - is converting a wider demographic of Australian riders.

Australia Electric Two-Wheeler Market Segmentation:

By Vehicle Type:
• Electric Motorcycles
• Electric Scooters
• Electric Mopeds
• Others

By Battery Type:
• Lithium-Ion
• Lead-Acid
• Others

By Charging Type:
• Plug-In
• Swappable Battery

By Application:
• Personal
• Commercial

By Region:
• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Australia Electric Two-Wheeler Market Key Players:

Zero Motorcycles Inc., Savic Motorcycles Pty Ltd., NIU Technologies, Vmoto Limited, Segway-Ninebot, Super SOCO (Vmoto), Fonzarelli, Horwin, Can-Am (BRP Inc.), and Piaggio & C. S.p.A.. These companies are driving market evolution through electric motorcycle innovation, e-scooter technology advancement, battery performance improvements, nationwide distribution network expansion, and strategic partnerships that strengthen their Australian market presence.

Key Aspects Required for the Australia Electric Two-Wheeler Market:

• Understanding the market size and growth trajectory for electric two-wheelers across Australia's vehicle type segments and applications

• Analyzing the impact of state-by-state e-scooter legalisation on market expansion and consumer adoption rates

• Evaluating government incentive programs including e-bike rebates and subsidies across Queensland, Tasmania, and South Australia

• Assessing competitive dynamics between global OEMs and local manufacturers in the Australian electric two-wheeler space

• Identifying growth opportunities in the commercial last-mile delivery segment for electric scooters and mopeds

• Understanding lithium-ion battery technology advancements and their impact on range, pricing, and consumer adoption

• Tracking charging infrastructure development and its role in supporting electric two-wheeler market growth

• Evaluating regulatory harmonization across Australian states and its potential to create a unified national market

Recent News:

• May 2026: The Australian government allocated an additional AUD 6.6 million in the 2026 federal budget to improve safety standards, product recalls, and national regulations for e-bikes and e-scooters, reflecting growing adoption of electric two-wheelers and rising safety concerns nationwide.

• May 2026: Australia Post received a AUD 40.5 million federal funding boost to accelerate electrification of its vehicle fleet and charging infrastructure, supporting broader adoption of electric mobility solutions across Australia.

• April 2026: Queensland proposed new legislation to regulate high-powered e-bikes and electric motorbikes, including stricter compliance requirements and public safety measures amid increasing accident rates associated with electric two-wheelers.

• April 2026: Australia's EV industry recorded a sharp increase in electric vehicle adoption, with EV sales rising nearly 89% year-on-year in March 2026, supported by rising fuel prices and increasing consumer preference for sustainable transportation solutions.

• February 2026: Rental e-bike programs expanded rapidly across major Australian cities including Sydney, Melbourne, Canberra, and Adelaide, as operators such as Lime, HelloRide, and Ario increased fleet deployments amid declining shared e-scooter usage due to safety concerns and regulatory restrictions.

• February 2026: Australia faced growing public debate over e-bike safety after authorities reported hundreds of injury cases and multiple fatalities linked to electric bikes and e-motorcycles, prompting calls for stricter enforcement and regulatory oversight.

• January 2026: Australia recorded nearly 157,000 electric vehicle sales in 2025, representing a 38% annual increase, as government incentives, improving charging infrastructure, and growing environmental awareness continued to accelerate EV adoption across the country.

• January 2026: Electrified vehicles, including battery electric and plug-in hybrid models, outsold petrol-powered vehicles for the first time in Australia during December 2025, highlighting a major shift in consumer transportation preferences toward electric mobility solutions.

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