Electric Two Wheelers Market

Market Study on Electric Two Wheelers: Battery-powered Vehicles to Account for Major Market Share

Electric Two Wheelers Market Segmented By Electric Scooters, Electric Motorcycles, Electric Bicycles Product Type with Lithium-Ion, Lead-based, NiMH battery type in Plug-in Electric Two Wheelers and Battery-operated Electric Two Wheelers Category

  • April-2022
  • PMRREP33028
  • 318 Pages
  • Automotive
  • PPT, PDF, WORD, EXCEL

Electric Two Wheelers Market Outlook (2022-2032)

Worldwide sales of electric two wheelers reached a market valuation of US$ 17.69 Bn in 2021. Going forward, the global electric two wheelers market is expected to surge at a CAGR of 11.6% to reach US$ 58.66 Bn by 2032-end.

Electric Two Wheelers Market Size (2021A)

US$ 19.66 Mn

Projected Market Value (2032F)

US$ 58.66 Bn

Value CAGR (2022-2032)

11.6%

Collective Value Share: Top 3 Countries (2021)

68%

Electric bicycles currently account for more than 67% share in the sales of electric two wheelers in the global market. Also, at present, electric two wheeler consumption accounts for a share of 7.3% in the global two wheeler market.

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Companies

  • Hero Electric Vehicles Private Limited
  • Gogoro Inc.
  • GOVECS AG
  • Vmoto Limited
  • Honda Motor Co. Ltd.
  • Terra Motors Corp.
  • Bayerische Motoren Werke AG (BMW)
  • Jiangsu Xinri E-Vehicle Co. Ltd.
  • Piaggio & C. SpA
  • Giant Manufacturing Co. Ltd.
  • Accell Group
  • Derby Cycle Holding GmbH
  • Pedego Electric
  • VOLT E BYK
  • Energica Motor Co SpA
  • Zero Motorcycles Inc.
  • ECCITY Motorcycles

Sales Analysis of Electric Two Wheelers from 2017 to 2021 Vs Market Projections for 2022 to 2032

From 2017 to 2021, electric two wheeler sales increased at 9.9% CAGR, which was slower than expected because of massive production shutdowns in 2020 due to COVID-19. China, the United States, Germany, Spain, Australia & New Zealand, and Japan accounted for a large share in the global demand for electric two wheelers.

Important developments in the electric two wheelers business will be related to battery technology. Improvements in Li-ion batteries, for example, have resulted in lighter and longer-lasting electric two wheel vehicles than NiMH and lead-based batteries.

As a consequence of increased concerns among electric two wheeler producers regarding the development of superior battery technologies with longer shelf lives, further research & development will drive demand growth of electric-based two wheelers.

E-two wheelers are increasingly being used for ride-sharing and deliveries that demand high-performance and long-range services. Several additional features introduced by both, established and developing firms, are expected to attract more delivery and ride-sharing companies, which will drive the demand and sales of electric two wheelers.

From 2022 to 2032, the global market for electric two wheelers is predicted to expand at a high CAGR of 11.6%.

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What Market Developments Can Electric Two Wheeler Suppliers Expect?

“Need to Move Away from Fossil Fuel to Aid Market Expansion” 

Rising fuel prices, depleting fossil reserves, and stringent pollution regulations by various government are boosting demand for zero-emission vehicles globally, thereby influencing demand for electric battery vehicles.

“Preference for Lithium-ion Battery Vehicles to Surge”

Electric two wheeler prices vary depending on the type of battery installed in them. Currently, lead acid battery-powered electric two wheelers are preferred in developing economies such as China and India due to the higher price of lithium-ion batteries. However, lithium-ion batteries are anticipated to enjoy a larger market share going forward due to their light weight and larger capacity.

Additionally, lithium-ion battery-powered electric two wheelers are highly efficient because of their faster charging capacity and longer durability. With rising supply of raw materials, the cost of lithium-ion batteries is anticipated to reduce, resulting in lower cost of battery packs and increasing demand over the projection period.

“Introduction of Range Extenders for Longer Rides”

Surge in the electrification of road transport has resulted in major increase in the demand for electric batteries. Due to increasing preference for recreational activities, customers are more inclined toward electric two wheelers for longer rides. Increasing longer rides using electric mobility solutions will drive demand for battery packs.

Manufacturers have developed battery range extenders for customers who want to enjoy longer rides, and this also has an easy installation process.

For instance, Giant manufacturing Co. Ltd. introduced the lightweight EnergyPak Plus E-Bike Range Extender for e-bike users, which acts as a compact battery backup.

Increasing demand for e-bicycles and e-bikes will also drive demand for range extenders on a global level.

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What Roadblocks Do Electric Two Wheeler Suppliers Need to Overcome?

Availability of charging stations is critical to the growth of the plug-in electric two wheelers market. On that note, availability of gasoline stations is much higher at present as compared to battery charging stations, which is a huge barrier to market growth.

Though manufacturers supply charging systems for use in a house or business, public battery charging stations are significantly less and not so readily available for customers in the event of a low battery emergency.

  • For instance, in the United States, only around 32,000 charging ports are available from 12,700 charging stations in its road network.

The EV market might face challenges due to its huge dependency on charging stations and its infrastructure. To create an electric vehicle-friendly world is by far the biggest challenge for manufacturers and government authorities.

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Country-wise Insights

What’s Driving High Sales of Electric Two Wheelers in China?

The China electric two wheelers market is likely to expand at CAGR of 11.3%, with an absolute dollar opportunity in market value of US$ 21.25 Bn.

Due to high demand for electric two wheelers in China, several market players have introduced new dimensions and designs with additional features in recent years. Manufacturers are releasing bikes that are built to last long, require less maintenance, and are eco-friendly.

Product development, production facility investments, and research & development are all priorities for electric two wheeler producers in China. The country also boasts an increasing number of developing and top electric two wheeler manufacturers, indicating that the market for electric two wheelers is growing steadily.

What are the Market Projections for the U.S.?

Over the next several years, the United States is expected to become one of the most attractive markets for electric two-wheelers, rising at a CAGR of 10.5% with an estimated absolute potential of US$ 783.3 million.

Strong collaboration and cooperation between sales, service, R&D, and workshop management are priorities for companies in the country. As a result of these shifting market conditions, the United States is anticipated to see significant market expansion in the future.

How is the Indian Market for Electric Two Wheelers Performing?

India has been rapidly incorporating contemporary digital technologies into its manufacturing process in order to maximize the potential of its manufacturing sector.

Moreover, increased investments in the e-mobility industry, as well as continuous developments in battery technology, such as better miles per charge and energy efficiency, are likely to drive the sales of electric two wheelers in the nation.

As infrastructure expands and people increase, economic rules in terms of pollution management will change. As such, India is likely to become a highly-valuable market for electric two wheelers over the coming years.

What Makes Germany and the U.K. Lucrative Markets for Electric Two Wheeler Manufacturers?

Amongst the countries in Europe, Germany and the U.K. resemble fast-growing markets for electric two wheelers, projected to expand at CAGR of around 10.9% and 9.6%, respectively, with estimated absolute dollar opportunity in market value of US$ 1.28 Bn and US$ 712.8 Mn respectively, over the forecast period.

Electric two wheeler suppliers from China are putting in their best efforts to develop their network and distribution channels in Europe through strategic collaborations and service support. Thus, Germany and the U.K. are expected to emerge as lucrative markets for electric two wheeler providers in the new phase of globalization.

Category-wise Insights

Which Type of Electric Two Wheelers Will Lead Market Expansion?

The electric two wheelers industry is divided into product type as electric scooters, electric motorcycles, and electric bicycles.

The electric bicycles segment is majorly responsible for demand growth of e-mobility transportation. The main reason is linked with end use and application in large numbers for delivery and ride sharing purposes, and the market is likely to see an upward trend over the coming years.

What Kind of Battery is Preferred by Electric Two Wheeler Producers?

Lithium-ion and lead-acid batteries dominate the market due to their early acceptance in the electric two wheelers industry.

Because of high energy density, longer charge cycle, and low self-discharge rates, these batteries last for a long time. These batteries give superior performance, less maintenance, and are environmentally beneficial, which is why they are commonly used in e-bikes and are likely to see increased sales over the next few years.

Impact of COVID-19 Crisis

Production and supply chain activity slowed as a result of COVID-19. With a large number of end consumers affected in nations such as the United States, China, and Japan, considerable decline in Y-O-Y growth was experienced.

Nonetheless, when the economy recovers from the pandemic, demand for electric bikes will rise rapidly. The sector is gradually rebounding as numerous production facilities reopen, resulting in favorable sales of electric two wheelers.

Competitive Landscape

The worldwide electric two wheelers market is moderately competitive in nature with the presence of a large number of players operating across the landscape. Major market players are expanding their reach and market share as well.

Over the years ahead, international market players are set to expand their presence through acquisitions. Better global economic situation and rising auto industry, especially in emerging economies, are anticipated to drive market growth, encouraging players to launch new products across regional markets.

  • In March 2022, Gogoro Inc. introduced the new SSmartcore technology platform for its two wheeler vehicle - Gogoro SuperSport.
  • In September 2020, Sparta, a brand of Accell Group, launched a new electric bicycle - Sparta d-Burst - with speed pedelec and improved design.

Electric Two Wheelers Industry Report Scope

Attribute

Details

Forecast Period

2022-2032

Historical Data Available for

2017-2021

Market Analysis

  • USD Million for Value
  • ‘000 Units for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • The Middle East & Africa

Key Countries Covered

  • U.S.
  • Canada
  • Mexico
  • Brazil
  • Germany
  • France
  • Italy
  • Spain
  • U.K.
  • BENELUX
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Oceania
  • GCC
  • Turkey
  • South Africa
  • Northern Africa

Key Market Segments Covered

  • Product Type
  • Battery Type
  • Category
  • Region

Key Companies Profiled

  • Hero Electric Vehicles Private Limited
  • Gogoro Inc.
  • GOVECS AG
  • Vmoto Limited
  • Honda Motor Co. Ltd.
  • Terra Motors Corp.
  • Bayerische Motoren Werke AG (BMW)
  • Jiangsu Xinri E-Vehicle Co. Ltd.
  • Piaggio & C. SpA
  • Giant Manufacturing Co. Ltd.
  • Accell Group
  • Derby Cycle Holding GmbH
  • Pedego Electric
  • VOLT E BYK
  • Energica Motor Co SpA
  • Zero Motorcycles Inc.
  • ECCITY Motorcycles

Report Coverage

  • Market Forecast
  • Brand Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Segments Covered in Electric Two Wheelers Industry Analysis

Electric Two Wheelers Market by Product Type:

  • Electric Scooters
  • Electric Motorcycles
  • Electric Bicycles
    • Pedelec
    • Throttle-assisted

Electric Two Wheelers Market by Battery Type:

  • Lithium-Ion
  • Lead-based
  • NiMH

Electric Two Wheelers Market by Category:

  • Plug-in Electric Two Wheelers
  • Battery-operated Electric Two Wheelers

Electric Two Wheelers Market by Region:

  • North America Electric Two Wheelers Market
  • Latin America Electric Two Wheelers Market
  • Europe Electric Two Wheelers Market
  • East Asia Electric Two Wheelers Market
  • South Asia & Pacific Electric Two Wheelers Market
  • Middle East & Africa Electric Two Wheelers Market

- FAQs -

The global electric two wheelers market size is currently valued at close to US$ 19.66 Bn.

Electric two wheeler sales are set to surge at a CAGR of around 11.6% from 2022 to 2032.

China, Germany, the United States, U.K., and India are set to be the most lucrative markets for electric two wheeler manufacturers, with East Asia projected to hold the highest market share of more than 64.5%.

Tier-1 firms such as Accell Group N.V., Giant Bicycles Inc., Yadea Group Holdings Ltd., Zero Motorcycles Inc., and Dongguan Tailing Electric Vehicle Co., Ltd. accounted for around 26% of worldwide revenue in 2021.

The China electric two wheelers market is expected to surge at 11.3% CAGR through 2032.

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