PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1546299
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1546299
Global electric two-wheeler market is projected to observe a CAGR of 13.48% during the forecast period 2024-2031, growing from USD 76.01 billion in 2023 to USD 209.03 billion in 2031. The market has experienced significant growth in present years and is expected to maintain a strong pace of expansion in the coming years owing to a growing number of incentives to promote electric vehicle adoption, a significant increase in demand for efficient, affordable, and sustainable modes of transportation, rising consumer preference for environmentally friendly vehicles, and extensive expansion in charging infrastructure. The global market for electric two-wheeler (E2W) vehicles is also increasing due to rapid technological advancements, a shift toward green transportation, the rising production of electric two-wheelers, and the surging demand for efficient personal transportation choices. In addition, the governments of emerging and developed countries are providing different subsidies and incentives to promote the adoption rate of E2W and accomplish the goals of net zero carbon emissions.
Companies in the global electric two-wheeler market are efficiently integrating lightweight components in E2Ws to contribute to net zero carbon emissions and offer road and vehicle safety. Governments in emerging countries efficiently compel companies to produce vehicles that produce less noise pollution and contribute to carbon emissions, catering to a wide series of consumer preferences. Companies are launching new E2Ws in the global market to address the rising demand for sustainable modes of transportation and improve the electric two-wheeler ecosystem.
For instance, in August 2023, TVS Motors Company announced the launch of its electric two-wheeler TVS-X in the UAE to expand its market presence and reduce carbon footprint across the UAE.
Rising Awareness Concerning Environmental Sustainability Drives Market Demand
Rising awareness concerning environmental sustainability and the rapid shift towards electric vehicles are projected to drive the global electric two-wheeler market demand in the forecast period. Electric two-wheelers produce zero direct emissions, which can help reduce pollution and carbon footprint and enhance air quality, propelling the demand for E2Ws across the globe. In addition, governments globally are planning to establish EV charging stations to promote the usage of electric vehicles and address the demand for sustainable and convenient transportation. Furthermore, companies in the global market plan to launch E2Ws and build partnerships to address the demand for sustainable transportation, lower carbon footprint, and protect the environment by reducing air pollution and smog.
For instance, in May 2023, Gogoro Inc. announced a partnership with Bike Bank Co., Ltd. to introduce Gogoro Smartscooters and batter-swapping services in South Korea.
Rapid Establishment of E2W Manufacturing Facilities Propels Market Growth
The significant increase in fuel prices, rising environmental concerns, surge in technological advancements, and growing government incentives are estimated to propel the growth of the global market for E2Ws in the forecast period, which further forces companies to establish manufacturing facilities for E2Ws. Private companies and legal authorities are planning to invest in expanding EV charging platforms, precisely in emerging countries. Subsidies and incentives can promote the setups for private charging stations. To produce hybrid models, companies are establishing manufacturing facilities and designing electric two-wheelers with swappable and removable batteries, enabling riders to charge their batteries at the workplace or home. In addition, companies are establishing manufacturing facilities to produce E2Ws to be more accessible to their customers and contribute to governments' pledge to be zero-emission by the coming years.
For instance, in June 2023, Yadea Group Holdings Limited announced an investment of USD 1 billion in an e-motorcycle factory in the Philippines. This strategic move is aimed at developing nearly 3-5 million e-motorcycles per year to address domestic demand.
Government Policies and Regulations Drive the Market Growth
Governments of emerging countries are planning to frame different regulations and policies to promote the adoption rate of electric two-wheelers and cut down the cost of EVs. The future of mobility requires progress, with a reduction in its initial costs. To accomplish this, both the government and different companies are functioning on several different strategies. In addition, governments are offering different subsidies and incentives to promote the purchase and sale of electric two-wheelers. Furthermore, governments are compelling companies to integrate lightweight vehicles and raw materials to achieve the goal of net-zero carbon emissions and ensure the prices of electric two-wheelers are reduced.
For instance, the Indian government is offering subsidies through the FAME II (Faster Adoption and Manufacture of EVs) scheme and separate state EV policies to encourage the adoption of electric two-wheelers and other vehicles more quickly. Further, the government has plans to launch FAME-III, with a USD 1.2 billion budget, providing financial incentives for electric two-wheelers, three-wheelers, and government-owned buses.
Scooter Segment Dominates with the Largest Global Electric Two-Wheeler Market Share
The scooter segment holds the largest market share in the global market owing to an increase in per capita income, increase in fuel prices, surging requirement for motorcycles, and advancements in battery technology. Technological advancements, including a shift from analog to digital, advanced braking systems, intelligent connectivity, electrification, and sustainable mobility, are projected to drive the market growth in the forecast period. Companies in the market are considerably investing in the development of advanced electric scooters that provide comparable or high performance compared to gasoline models.
For instance, in November 2023, Dat Bike Vietnam Co., Ltd introduced a mass-market electric scooter to boost the adoption of green mobility in Vietnam.
Asia-Pacific Registers the Largest Market Size
Asia-Pacific registers the largest market size in the global market for electric two-wheelers owing to high urbanization, large population, and increased demand for efficient, affordable, and eco-friendly transportation options. Asia-Pacific electric two-wheeler market's demand is rising due to strong government support for environmentally friendly transportation, increased consumer preference for eco-friendly vehicles, and extensive charging infrastructure. China leads the market growth in Asia-Pacific due to the significant presence of giant market players, large population, and efficient personal transportation choices. Companies in the Asia-Pacific electric two-wheeler market are launching advanced electric two-wheelers to create a new generation of green travel lifestyles.
For instance, in October 2023, Honda Motor Co., Ltd. announced the launch of the Honda SC e: electric scooter concept at the Japan Mobility Show, powered by two removable batteries with a total capacity of nearly 2.6kWh.
Future Market Scenario (2024-2031F)
The rise in demand for eco-friendly transportation is estimated to drive the global electric two-wheeler market growth in the forecast period.
Integration of lightweight components and incentives by the government on the purchase and sale of E2Ws are expected to boost the global electric two-wheeler market demand.
Investment by companies in advancing the performance and reliability of E2Ws and increase in per capita income are projected to propel global market growth for E2Ws.
Rising awareness concerning sustainable transportation and the launch of E2Ws by companies will foster the global E2Ws market growth shortly.
Key Players Landscape and Outlook
Companies in the global market for electric two-wheelers are efficiently planning to launch new electric two-wheelers to expand their product portfolio. Key companies in the global market are investing in different research and development activities to enhance the performance of E2Ws and offer a better overall driving experience. In addition, companies are planning to adopt different growth strategies, including joint ventures, mergers and acquisitions, partnerships, amalgamations, and others, to expand their market presence.
For instance, in August 2024, Ola Electric Mobility Ltd. announced the launch of its first electric motorcycle to compete with both entry-level and high-performance electric motorcycles across India.
In May 2024, TVS Motor Company announced the launch of new two-wheelers at various price points to serve customers and address the rising demand for E2Ws.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.