Electric Two-Wheelers Market Size, Share, Growth, and Industry Analysis, By Types (Electric Scooters, Electric Motorcycles, Others), By Applications Covered (Private, Commercial), Regional Insights and Forecast to 2033

Electric Two-Wheelers Market Size

The global electric two-wheelers market was valued at USD 20,375.15 million in 2024 and is projected to reach USD 22,414.8 million in 2025. The market is expected to expand significantly, reaching USD 48,082.9 million by 2033, exhibiting a CAGR of 10.01% during the forecast period from 2025 to 2033.

The U.S. electric two-wheelers market is set for steady growth, driven by increasing consumer preference for sustainable mobility, government incentives, and expanding charging infrastructure. Rising fuel costs and advancements in battery technology further support market expansion.

The electric two-wheelers market is experiencing rapid growth due to increasing demand for eco-friendly transportation solutions. Governments worldwide are offering subsidies and incentives to promote the adoption of electric scooters and motorcycles, resulting in a surge in sales. Battery technology advancements have improved range and charging speed, making electric two-wheelers more practical for daily commuting. Urbanization and the rise of micro-mobility solutions have increased the demand for lightweight and high-performance electric bikes. Additionally, major automakers and startups are entering the market, intensifying competition and driving further technological advancements in electric mobility.

Electric Two-Wheelers Market Trends

The electric two-wheelers market is witnessing significant transformation, driven by technological advancements and government policies supporting sustainable transportation. Battery swapping technology adoption has increased by 45%, allowing riders to quickly replace depleted batteries and eliminate long charging times. Fast-charging infrastructure has expanded, with over 30% more charging stations installed globally in 2023.

The rise of connected electric two-wheelers is another major trend. Over 50% of new electric scooter models now feature smart connectivity, GPS tracking, and IoT-based diagnostics. Consumers are increasingly favoring app-based controls, enabling remote monitoring of battery status and vehicle health.

In emerging markets, affordable electric two-wheelers are gaining popularity, with sales increasing by 55% in Southeast Asia and Africa. China remains the largest market, accounting for over 60% of global electric two-wheeler sales, while India and Europe have experienced growth rates exceeding 40%.

Fleet operators and ride-sharing services have boosted demand, with over 35% of shared mobility companies now incorporating electric two-wheelers into their fleets. Additionally, lightweight e-bikes and urban electric scooters have seen a 50% increase in demand due to growing preference for compact, cost-effective, and emission-free transportation.

Electric Two-Wheelers Market Dynamics

The electric two-wheelers market is influenced by technological advancements, regulatory frameworks, consumer demand, and infrastructure development. The push for zero-emission vehicles, rising fuel prices, and growing urban congestion have accelerated market expansion. However, high battery costs, inadequate charging infrastructure, and limited consumer awareness in some regions present challenges. At the same time, investments in battery technology, government incentives, and the rise of smart e-mobility solutions offer significant growth opportunities.

Drivers of Market Growth

"Rising Government Incentives and Environmental Regulations"

Governments worldwide are promoting electric two-wheelers through tax exemptions, purchase subsidies, and reduced registration fees. Over 70% of countries with active EV policies offer financial incentives for electric bike and scooter purchases. In Europe, over 50% of new electric motorcycles qualify for government subsidies, encouraging widespread adoption. Additionally, China and India have introduced tax breaks and direct subsidies covering up to 40% of electric two-wheeler costs, accelerating market penetration. Environmental concerns have further boosted adoption, with 60% of urban commuters preferring electric mobility over conventional fuel-based options.

Market Restraints

"High Battery Costs and Limited Charging Infrastructure"

The cost of lithium-ion batteries, which account for up to 50% of an electric two-wheeler’s total price, remains a major barrier to affordability. Battery costs have declined by 30% over the past five years, but electric two-wheelers are still 20% to 35% more expensive than traditional gasoline-powered models. Additionally, charging infrastructure remains underdeveloped, with only 15% of global charging stations dedicated to electric two-wheelers. In many developing regions, lack of fast-charging networks and battery-swapping stations limits the usability of electric scooters and motorcycles for long-distance travel.

Market Opportunities

"Expansion of Battery Swapping and Fast-Charging Networks"

The introduction of battery swapping stations and ultra-fast charging technology is revolutionizing the electric two-wheeler market. Battery swapping networks have expanded by 40% in China and India, reducing charging downtime to under 5 minutes. Major manufacturers are partnering with charging infrastructure companies, leading to a 35% rise in fast-charging stations globally. Additionally, the adoption of solid-state batteries, which offer higher energy density and faster charging times, has increased by 30%, presenting new growth opportunities for electric two-wheeler manufacturers.

Market Challenges

"Consumer Awareness and Range Anxiety"

Despite growing interest in electric two-wheelers, over 45% of potential buyers hesitate due to range anxiety—the fear of running out of battery without access to a charging station. While modern electric scooters and motorcycles offer ranges exceeding 150 km per charge, 40% of consumers still perceive limited range as a drawback. Additionally, lack of awareness about long-term savings and environmental benefits prevents some buyers from switching to electric mobility. Public education campaigns, incentives for first-time buyers, and improved marketing strategies are needed to overcome these adoption barriers.

Segmentation Analysis

The electric two-wheelers market is segmented based on type and application, catering to various consumer and business needs. By type, the market includes electric scooters, electric motorcycles, and other electric two-wheelers, with increasing demand for high-performance and long-range models. By application, electric two-wheelers are widely used for private transportation and commercial purposes, including delivery services, ride-sharing, and fleet operations. Growing urbanization, rising fuel prices, and government incentives are driving adoption across all segments, with electric scooters leading in urban mobility and electric motorcycles gaining traction in performance-driven markets.

By Type

• Electric Scooters: Electric scooters dominate the market, accounting for over 65% of total electric two-wheeler sales globally. These are widely adopted for urban commuting, with over 70% of daily e-scooter trips covering distances under 20 km. The demand for affordable and lightweight scooters has surged, with China producing more than 60% of global electric scooter units. In Europe and North America, electric scooters have seen a 50% increase in sales, driven by government incentives and increasing demand for micro-mobility solutions. The rise of shared e-scooter services has further boosted demand, with over 35% of city commuters opting for rental e-scooters.

• Electric Motorcycles: Electric motorcycles are gaining traction, with sales increasing by 45% in the past two years, particularly in markets such as India, the U.S., and Europe. These motorcycles are preferred for longer commutes and high-performance riding, with leading manufacturers offering models that exceed 150 km per charge. Over 40% of new electric motorcycles feature fast-charging technology, reducing charging times by over 30%. High-powered electric motorcycles are gaining popularity in racing and premium biking segments, with more than 20% of global motorcycle brands introducing new electric models to compete with traditional fuel-powered bikes.

• Other Electric Two-Wheelers: The "Others" category includes electric mopeds, bicycles, and three-wheeled electric vehicles, which account for nearly 20% of the market demand. Electric mopeds have gained popularity in last-mile delivery services, with adoption rates growing by 35% in Asia and Europe. Additionally, e-bikes have seen a 50% rise in demand due to increasing health consciousness and urban cycling trends. Three-wheeled electric vehicles are expanding in markets like India and Southeast Asia, primarily for commercial and passenger transport, with sales increasing by 40% in 2023.

By Application

• Private: The private segment dominates the electric two-wheeler market, accounting for nearly 70% of total sales. Urban commuters prefer electric scooters and motorcycles due to their low running costs and eco-friendly benefits. In Europe and North America, private ownership of electric two-wheelers has risen by 50% due to tax rebates and emission-free mobility incentives. In China and India, over 60% of electric two-wheelers are purchased for personal use, with demand fueled by rising fuel prices and urban congestion. The availability of smart and connected electric two-wheelers with mobile app integration and GPS tracking has further enhanced adoption.

• Commercial: The commercial segment is growing rapidly, with over 40% of electric two-wheeler sales being attributed to logistics, food delivery, and ride-sharing services. E-commerce and food delivery platforms have increased their electric vehicle fleet adoption by 55%, driven by cost savings and government mandates for sustainable transportation. In India, over 35% of new delivery fleets are now electric two-wheelers, reducing operational costs by 30% compared to fuel-based alternatives. Additionally, ride-sharing services have witnessed a 50% rise in electric scooter rentals, with urban mobility startups integrating swappable battery technology to maximize fleet efficiency.

Regional Outlook

The electric two-wheelers market is expanding globally, with key regions including North America, Europe, Asia-Pacific, and the Middle East & Africa. The adoption rate varies across these regions due to factors such as government incentives, charging infrastructure development, and consumer preferences. While Asia-Pacific dominates the market due to high production and demand in China and India, Europe and North America are experiencing rapid growth driven by sustainability initiatives and advanced e-mobility solutions. In contrast, the Middle East & Africa is slowly emerging as a potential market, primarily driven by urbanization and electrification programs.

North America

North America is witnessing strong growth in electric two-wheeler adoption, with the U.S. and Canada accounting for over 60% of the regional market. The demand for urban e-mobility solutions has surged, with over 40% of city commuters considering e-bikes and electric scooters as a primary mode of transport. Government incentives, including tax credits covering up to 30% of electric vehicle purchases, have fueled adoption. The e-commerce and last-mile delivery industry has also contributed significantly, with over 50% of delivery service providers incorporating electric scooters into their fleets.

Europe

Europe is a leading market for electric two-wheelers, with Germany, France, and the Netherlands being key contributors. Over 50% of newly registered motorcycles and scooters in urban areas are electric. Subsidy programs covering up to 35% of electric vehicle costs have driven demand. Shared mobility services have expanded, with over 45% of ride-hailing and scooter rental services now using electric models. The push for zero-emission cities has resulted in a 40% increase in public charging stations for electric two-wheelers. European manufacturers are investing heavily in high-performance electric motorcycles, leading to a 30% rise in demand for premium models.

Asia-Pacific

Asia-Pacific is the largest and fastest-growing market for electric two-wheelers, with China and India accounting for over 75% of global sales. In China, over 60% of two-wheelers on the road are electric, supported by government bans on gasoline-powered scooters in major cities. In India, demand for electric two-wheelers has increased by 50%, driven by FAME II subsidies covering up to 40% of vehicle costs. Japan and South Korea are investing in battery-swapping networks, with deployment rates increasing by 35% annually. Indonesia and Vietnam are also emerging as significant markets, with over 40% growth in adoption due to increasing fuel costs.

Middle East & Africa

The Middle East & Africa is an emerging market for electric two-wheelers, primarily driven by government initiatives in the UAE, Saudi Arabia, and South Africa. In the UAE, over 45% of delivery service providers have switched to electric scooters to reduce fuel expenses by up to 30%. South Africa has seen a 40% rise in e-bike adoption, with government-backed programs promoting sustainable transport solutions. However, limited charging infrastructure and high import costs have slowed market expansion. In North Africa, Egypt and Morocco are investing in electric mobility, with electric two-wheeler usage increasing by 35% in urban areas.

LIST OF KEY ELECTRIC TWO-WHEELERS MARKET COMPANIES PROFILED

• IO Scooter Elektroroller
• Honda Motor
• Royal Dutch Gazelle
• Terra Motors
• Elmoto
• Yamaha Motor
• Avon Cycles
• EZee Kinetics Technology
• Ampere Vehicles
• Hero Electric Vehicles
• Currie Technologies
• GRACE
• E-Moto LLC
• Stromer
• Vmoto
• Jiangsu Xinri E-Vehicle
• Zhejiang Luyuan Electric Vehicle
• Peugeot
• GOVECS
• SYM Sanyang Industry
• Sparta
• Electrotherm India

Top 2 Companies with the Highest Market Share

1. Honda Motor – Holds approximately 30% of the global market share, with strong sales in Asia-Pacific, North America, and Europe.
2. Hero Electric Vehicles – Commands around 22% of the market share, leading in India and expanding into emerging markets.

Investment Analysis and Opportunities

Investment in the electric two-wheelers market is increasing, with over 50% of new funding directed toward battery innovation and charging infrastructure expansion. Venture capital firms have invested 35% more in electric mobility startups in the past two years, with key focus areas including battery swapping technology and AI-driven vehicle monitoring.

Governments worldwide are allocating incentives, with China’s battery subsidy program covering up to 30% of manufacturing costs and India’s FAME II scheme boosting electric vehicle production by 40%. Europe has committed over $500 million to developing fast-charging networks for electric two-wheelers, driving further adoption.

Startups focusing on lightweight and cost-effective electric scooters have seen a 45% increase in funding, particularly in Southeast Asia and Africa. The demand for connected e-mobility solutions has led to a 30% rise in investments in IoT-based tracking systems and app-integrated smart scooters.

New Product Development

Manufacturers are introducing advanced electric two-wheeler models featuring longer range, fast-charging technology, and AI-powered diagnostics. In 2023, over 50% of new product launches featured AI-based vehicle monitoring systems.

Honda introduced an ultra-lightweight electric scooter, reducing overall weight by 20%, improving energy efficiency. Hero Electric unveiled a high-performance e-motorcycle with a 150 km range, increasing adoption in urban commuting. Yamaha developed a smart electric bike with adaptive riding modes, enhancing user experience.

Battery technology is also improving, with solid-state batteries being incorporated into 30% of new electric two-wheeler models, reducing charging times by over 40%. Companies are also focusing on modular and portable battery designs, making charging more accessible in urban and rural areas.

Recent Developments in the Electric Two-Wheelers Market

• Honda launched a new AI-powered electric motorcycle, improving energy efficiency by 35% in 2023.
• Hero Electric expanded its production facilities in India, increasing manufacturing capacity by 50% in mid-2023.
• Vmoto partnered with European delivery services, boosting fleet adoption of electric scooters by 40% in early 2024.
• Yamaha introduced a high-speed e-scooter, achieving a 20% improvement in battery efficiency in 2023.
• Terra Motors expanded into the African market, increasing sales by 30% in key urban areas in 2024.

REPORT COVERAGE

This report provides an in-depth analysis of the electric two-wheelers market, covering market trends, segmentation, regional analysis, competitive landscape, and investment opportunities. The study highlights the growing adoption of electric scooters and motorcycles, focusing on battery technology advancements, charging infrastructure expansion, and government policies supporting sustainable transportation.

Key insights include detailed regional outlooks for North America, Europe, Asia-Pacific, and the Middle East & Africa, examining sales trends, government incentives, and infrastructure development. The report also explores key market players, profiling Honda, Hero Electric, Yamaha, and emerging startups.

Additionally, the study discusses investment trends, new product launches, and recent technological advancements, such as AI-driven vehicle monitoring, solid-state batteries, and IoT-integrated e-mobility solutions. Covering all major developments from 2023 to 2024, this report serves as a valuable resource for investors, manufacturers, and policymakers looking to capitalize on the rapidly growing electric two-wheelers market.