Electric Motorcycles Market

Increasing government initiatives toward electric mobility to boost the market growth

Due to growing awareness of the dangers associated with operating fossil fuel-powered vehicles, governments from many nations are decreasing their carbon footprints by promoting electric bikes, scooters, and bicycles. Additionally, governments are building bicycle-friendly roadways, which encourage people to use bicycles as their primary form of transportation. 

Many governments are paying close attention to electric bicycles, scooters, and motorcycles as dependable, effective types of light motor vehicles (LMVs) that contribute to lowering carbon emissions. For instance, the Indian government announced a plan in June 2019 to reduce the goods and service tax (GST) on electric vehicles from 12% to 5% to promote their adoption more quickly.

The Electric two-wheelers is more affordable than a car, does not need a license, and can be used on the current road system. Governments from different nations are also concentrating on creating an infrastructure for an Electric two-wheelers. For instance, Pittsburgh unveiled a 10-year plan in June 2020 that calls for adding more than 120 miles of new trails, bicycle lanes, and other roadway upgrades to the city's bike infrastructure. 

Additionally, two solar parking lots in Tokyo were opened by Sanyo (Japan), where about 100 electric bikes could be recharged using solar energy. Therefore, it is projected that rising government initiatives for the construction of electric motorcycle infrastructure and the spread of smart cities around the world would present the electric motorcycle market with attractive growth prospects, enhancing the electric motorcycle market CAGR across the globe in recent years.

Companies are now concentrating on online sales platforms to improve their commercial presence due to the rise in dealerships. With the help of governments and automakers, the carbon emissions gap is dramatically closed by achieving zero emissions criteria. People are switching to Plug-in motorcyclesdue to the exponentially rising cost of fuel around the world, which will accelerate the expansion of the Electric Motorcycle Market, another factor driving the growth of the electric motorcycle market revenue.

The Global Electric Motorcycle Market Industry is poised for substantial growth, with projections indicating a market value of 9.09 USD Billion in 2024 and an anticipated increase to 30.2 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 11.53% from 2025 to 2035, reflecting the increasing adoption of electric motorcycles across various demographics. Factors such as technological advancements, government incentives, and rising consumer awareness are likely to contribute to this expansion. The market's evolution is indicative of a broader shift towards sustainable transportation solutions, positioning electric motorcycles as a key player in the future of mobility.

Urbanization and increasing traffic congestion are driving the Global Electric Motorcycle Market Industry. As cities expand and populations grow, the need for efficient and compact transportation solutions becomes more pressing. Electric motorcycles offer a practical alternative to traditional vehicles, allowing for easier navigation through congested urban environments. Their smaller size and lower emissions make them particularly appealing to city dwellers. This trend is expected to contribute to the market's growth, as urban consumers seek convenient and environmentally friendly commuting options. The rise in urban populations is likely to further bolster the demand for electric motorcycles in the coming years.

Government initiatives and incentives play a crucial role in the Global Electric Motorcycle Market Industry. Many countries are implementing policies aimed at reducing carbon emissions and promoting electric mobility. These initiatives often include tax rebates, grants, and subsidies for electric motorcycle purchases, making them more accessible to consumers. For example, several European nations have introduced programs that significantly lower the cost of electric motorcycles, thereby stimulating demand. Such supportive measures are likely to contribute to the projected compound annual growth rate of 11.53% from 2025 to 2035, indicating a strong commitment to fostering the electric motorcycle market.

Consumer awareness and changing preferences are pivotal factors influencing the Global Electric Motorcycle Market Industry. As more individuals become informed about the environmental impact of their transportation choices, there is a noticeable shift towards electric motorcycles. This heightened awareness is accompanied by a growing acceptance of electric vehicles as viable alternatives to traditional motorcycles. Manufacturers are responding to this trend by offering a wider range of electric motorcycle models that cater to diverse consumer needs. This evolution in consumer preferences is expected to support the market's growth trajectory, aligning with the projected increase in market value to 30.2 USD Billion by 2035.

The Global Electric Motorcycle Market Industry is experiencing a notable surge in demand for sustainable transportation solutions. As environmental concerns escalate, consumers increasingly seek eco-friendly alternatives to traditional gasoline-powered vehicles. This shift is reflected in the projected market value of 9.09 USD Billion in 2024, indicating a robust interest in electric motorcycles. Governments worldwide are implementing policies to promote electric mobility, further driving this trend. For instance, incentives and subsidies for electric vehicle purchases are becoming commonplace, encouraging consumers to transition to electric motorcycles. This growing awareness of sustainability is likely to propel the market forward.

Technological advancements in battery technology are significantly influencing the Global Electric Motorcycle Market Industry. Innovations such as improved lithium-ion batteries and solid-state batteries are enhancing the performance and range of electric motorcycles. These developments not only increase the appeal of electric motorcycles but also address consumer concerns regarding range anxiety. As battery efficiency improves, manufacturers are able to produce lighter and more powerful electric motorcycles, making them more competitive with traditional models. The anticipated growth of the market to 30.2 USD Billion by 2035 underscores the importance of these advancements in shaping consumer preferences and driving market expansion.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Electric Motorcycle market accounted for USD 3.05 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. Since the major companies in the region are extensively investing in electric vehicles by creating cutting-edge electric infrastructure to encourage the acceptance of such vehicles, it is anticipated that the market for an electric motorcycle in the Asia-Pacific region will experience considerable growth.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Electric Motorcycle Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America electric motorcycle market accounts for the second-largest market share. Strict pollution restrictions and an increase in EV manufacturers drive the region's rise. The enhanced infrastructure for the electric motorcycle in nations like Canada and the USA is anticipated to fuel industry expansion. Further, the US electric motorcycle market held the largest market share, and the Canada electric motorcycle market was the fastest-growing market in the North America region.

The Europe Electric Motorcycle Market is expected to grow at the fastest CAGR from 2024 to 2030. The EU is working together to reduce rising air pollution levels and is supporting the production and sale of electric motorcycle by offering incentives, subsidies, and other programs. Throughout the forecast period, the government's ongoing efforts to reduce gas emissions are anticipated to increase demand for the electric motorcycle in Europe. Moreover, Germany electric motorcycle market held the largest market share, and the UK electric motorcycle market was the fastest-growing market in the European region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the electric motorcycle market grow even more. Market participants are also taking various strategic initiatives to grow their global footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the electric motorcycle industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the global electric motorcycle industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the electric motorcycle industry has provided some of the most significant benefits. The electric motorcycle market major player such as Blacksmith Electric (India), Electric Motion (France), Johammer e-mobility GmbH (Germany), Husqvarna Motorcycles GmbH (Austria), and others are working on expanding the market demand by investing in research and development activities.

American motorcycle manufacturer Harley-Davidson, Inc. (abbreviated H-D or simply Harley) is based in Milwaukee, Wisconsin. It was established in 1903, and along with its illustrious rival, Indian Motorcycles, it is one of just two significant American motorcycle producers to have survived the Great Depression. In August 2021, Livewire One, the first item from the all-electric Live Wire brand, was introduced by Harley-Davidson, Inc. These electric bikes are designed for urban use but have the power and range to go further.

Also, Husqvarna Motorcycles GmbH, an Austrian company with Swedish roots that manufactures and distributes motocross, enduro, supermoto, and street motorcycles, is known by the brand name Husqvarna. In May 2021, Husqvarna Motorcycles introduced the electric motorcycle E-Pilen Concept to meet the needs of urban riders.