As per MRFR Analysis, the Electric Two-Wheeler Market was valued at 26.94 USD Billion in 2023 and is projected to grow to 100 USD Billion by 2035, with a CAGR of 11.55% from 2025 to 2035. The market is driven by increasing environmental awareness, government incentives, and advancements in battery technology. The Asia Pacific region leads the market, followed by Europe and North America.
The Electric Two-Wheeler Market is experiencing rapid growth due to several key trends.
Key Companies include Ather Energy, Fuell, Gogoro, TVS Motor Company, Niu Technologies, Okinawa Autotech, Ampere Vehicles, Sondors, Hero Electric, and Piaggio.
Several important market factors are causing the Electric Two-Wheeler Market to develop quickly. There is much demand for electric two-wheelers because people are more worried about the environment, and the government is making rules that make it harder to pollute the air. To encourage people to buy electric cars, several governments are giving them tax breaks and other benefits. This is helping the industry develop even more. Battery technology has also come a long way, which has made electric two-wheelers work better and go further. This makes them a better choice for customers. The Electric Two-Wheeler Market has much interesting potential, particularly in emerging areas where urbanization and growing disposable incomes are driving up demand for personal mobility solutions.
Companies may get a piece of this booming industry by making cheap electric two-wheelers and building charging stations. Electric two-wheelers are also a good choice for those who care about the environment and want to find eco-friendly ways to go about it. Recently, electric two-wheelers have been getting more and more connection capabilities, such as the ability to link to smartphones and smart navigation systems. This shows that people are moving towards better ways to get around. Also, as shared mobility services become more popular, electric two-wheelers have a new way to go about it. Rental and subscription models are becoming more popular in cities all over the globe.
The future of the Electric Two-Wheeler Market will be shaped by better cooperation between IT companies and manufacturers to develop smart mobility solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Two-Wheeler Market Industry is experiencing significant growth driven by an increase in environmental awareness among consumers. Reports indicate that over 70% of global consumers are now more inclined towards sustainable modes of transportation, which leads to a substantial shift towards electric vehicles. According to a European Commission survey, 79% of Europeans believe that government policies should promote green vehicles to combat climate change.
Organizations such as the United Nations have been advocating for a reduction in carbon emissions, which aligns with the transition to electric mobility. This growing trend fosters demand in the Electric Two-Wheeler Market as consumers seek eco-friendly commuting options, impacting manufacturer strategies and increasing production capacities in various regions worldwide.
The Electric Two-Wheeler Market Industry is propelled by various government initiatives and incentives aimed at promoting electric vehicles. For instance, countries like India and China have introduced substantial subsidies for electric vehicle purchases, aiming to boost sales and enhance pollution reduction efforts. In India, the Faster Adoption and Manufacturing of Electric Vehicles scheme expects to fund approximately USD 1.4 billion towards electric vehicle empowerment to reduce reliance on fossil fuels.
Such initiatives can lead to a decrease in vehicle ownership costs that may rise by 30% for electric two-wheelers. Initiatives from governmental bodies are essential to establish a strong market foundation, resulting in increased consumer interest and investment opportunities in the Electric Two-Wheeler Market.
Advancements in battery technology represent a major driver for the Electric Two-Wheeler Market Industry, enhancing the performance and affordability of electric two-wheelers. Research and Development collaborations among major manufacturers, such as Bosch and Panasonic, have led to breakthroughs in lithium-ion battery technology, notably increasing energy density and reducing charging times. A report from the International Energy Agency indicates that battery costs have declined by about 89% since 2010, making electric vehicles more accessible to consumers.
The continuous innovation in battery design and efficiency is essential in attracting consumers to adopt electric two-wheelers, thereby accelerating market growth, while manufacturers also benefit from economies of scale in production.
The surge in urbanization globally has created a pressing need for efficient urban mobility solutions, thereby driving growth in the Electric Two-Wheeler Market Industry. It is projected that by 2050, approximately 68% of the world's population will reside in urban areas according to the United Nations. Urban centers are increasingly facing severe traffic congestion, prompting consumers to seek alternative and convenient modes of transportation, such as electric two-wheelers.
In cities like Jakarta and Manila, the reliance on electric scooters has surged due to their ability to navigate congested streets. This demand for flexible, quick commuting options is increasing the production and sales of electric two-wheelers, reflecting a shift in consumer behavior towards urban mobility solutions.
The Electric Two-Wheeler Market has been categorized based on Type into various segments, demonstrating significant growth in recent years. In 2024, the overall market is set to be valued at 30.05 USD Billion, reflecting a robust shift towards electrification in the transportation sector. Scooters stand out as a leading segment, projected to hold a market value of 10.8 USD Billion in 2024 and anticipate reaching 36.0 USD Billion by 2035. This dominance can primarily be attributed to the increasing preference of urban commuters for eco-friendly and cost-effective transportation options, thereby solidifying scooters as a preferred choice in densely populated cities.
Motorcycles also represent a substantial sector within the Electric Two-Wheeler Market, with a 2024 valuation of 10.6 USD Billion, expected to grow to 35.0 USD Billion in 2035. Their appeal lies in a blend of performance and sustainability, catering to customers looking for both speed and responsible consumption. The Moped segment, with a valuation of 3.2 USD Billion in 2024, is projected to grow to 10.67 USD Billion by 2035. Mopeds provide a practical solution for short-distance travel, appealing to budget-conscious consumers seeking efficient urban mobility solutions.
E-Bikes, valued at 5.45 USD Billion in 2024 and anticipated to rise to 18.33 USD Billion in 2035, are gaining traction due to their versatility and promotion as a sustainable alternative to traditional bicycles, making them significant for recreation and commuting. The Electric Two-Wheeler Market segmentation demonstrates the varied access and growing consumer base for electric vehicles, driven by technological advancements, government initiatives promoting clean energy, and a rising focus on reducing carbon emissions across the globe. The diverse preferences within the scooter, motorcycle, moped, and e-bike segments highlight vast opportunities for businesses to cater to distinct market needs while aligning with global sustainability goals.
As cities continue to strengthen infrastructure for electric mobility, the electric two-wheeler market will likely see further advancements, leading to a transformation in urban transportation dynamics worldwide.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Electric Two-Wheeler Market, with its projected valuation of 30.05 USD Billion in 2024, showcases a diverse segmentation in terms of battery type, which is crucial in determining performance and adoption rates. Lithium-Ion Batteries are increasingly favored due to their higher energy density and longer lifespan, making them a pivotal element in the market. Lead-Acid Batteries, although less efficient, continue to play a significant role especially in cost-sensitive regions, offering some affordability for entry-level electric two-wheelers.
Nickel-Metal Hydride Batteries hold a smaller, yet noteworthy position, known for environmental safety and ease of recycling. The market is driven by the demand for eco-friendly transportation solutions, government initiatives for electric mobility, and advancements in battery technology. However, the industry faces challenges, including the recycling of battery materials and supply chain constraints. Overall, the battery type segmentation reflects the trends and shifts in consumer preferences and technological advancements that are shaping the Electric Two-Wheeler Market landscape.
The Electric Two-Wheeler Market has experienced considerable growth, particularly in the Voltage Capacity segment, reflecting diverse consumer preferences and technological advancements. The market is expected to achieve a valuation of 30.05 USD Billion in 2024, with the potential to reach 100.0 USD Billion by 2035. The vast landscape includes capacity divisions such as Below 48V, 48V to 72V, and Above 72V, each addressing unique user requirements. The Below 48V segment offers affordability and efficiency, making it popular among commuters seeking cost-effective solutions.
The 48V to 72V range is particularly significant as it balances performance and range, making it a favorite for urban riders and delivery services. Meanwhile, the Above 72V category is crucial for high-performance solutions, appealing to enthusiasts looking for speed and greater autonomy. Market growth is driven by rising environmental awareness, urbanization, and government incentives for electric vehicles. The Electric Two-Wheeler Market data indicates a robust trend towards integration of smart technology and connectivity features, enhancing the user experience.
However, challenges such as charging infrastructure and battery longevity need addressing as the industry evolves, positioning the market for substantial opportunities ahead.
The Electric Two-Wheeler Market has displayed notable growth, particularly influenced by the End Use segment that encompasses Personal Transportation, Commercial Delivery, and Shared Mobility. As of 2024, the market is projected to be valued at 30.05 USD Billion, reflecting a significant demand shift towards sustainable transport solutions. Personal Transportation has captivated a major audience due to increasing urbanization and a growing emphasis on eco-friendly vehicles, driving many consumers to opt for electric two-wheelers. Meanwhile, the Commercial Delivery segment is becoming more significant, particularly with the rise of e-commerce and the need for efficient delivery systems that are economical and environmentally conscious.
Shared Mobility is also gaining traction, especially in densely populated cities, where traditional vehicles are being traded for sustainable two-wheeled options, promoting shared riding experiences. As the industry evolves, rising fuel prices and regulatory support for electric mobility are fueling the market growth, presenting unparalleled opportunities while also facing challenges such as infrastructure development and market penetration. This multifaceted approach to End Use is critical in shaping the future landscape of the Electric Two-Wheeler Market, with an impressive CAGR of 11.55 expected from 2025 to 2035.
The Electric Two-Wheeler Market presents a diverse landscape across different regions, with a total market value expected at 30.05 USD Billion in 2024. The Asia Pacific region dominates, showcasing a valuation of 12.0 USD Billion in 2024, driven by robust demand for eco-friendly transportation solutions and the rapid expansion of charging infrastructure. Europe follows closely, valued at 10.0 USD Billion in the same year, reflecting strong government incentives and environmental regulations that favor electric mobility. North America holds a significant stake at 4.5 USD Billion, supported by increasing consumer awareness and innovative product offerings.
In contrast, South America poses a smaller valuation of 1.5 USD Billion, driven by emerging market dynamics and improving economic conditions. The Middle East and Africa encompasses a valuation of 1.05 USD Billion, facing challenges such as limited infrastructure but showing growth potential due to rising urbanization. This regional segmentation illustrates the diversity in adoption rates and market strategies, with Asia Pacific leading the market growth trajectory, contributing to overall Electric Two-Wheeler Market dynamics.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Electric Two-Wheeler Market has witnessed significant growth in recent years, driven by increasing environmental concerns, supportive government policies, and advancements in battery technology. Competitive dynamics in this market revolve around innovation, product differentiation, pricing strategies, and consumer preferences towards sustainable transport solutions. The emergence of various players, including startups and established automotive manufacturers, has intensified the competition as companies strive for market share and brand loyalty. Economies of scale and supply chain efficiencies are becoming essential for companies aiming to reduce production costs and enhance their competitiveness. The market landscape is also characterized by technological advancements, such as improved battery range and charging infrastructure, which are critical in attracting consumers and establishing a robust market presence.
Ather Energy has positioned itself as a strong competitor in the Electric Two-Wheeler Market, leveraging its focus on technology and consumer-centric designs. The company has carved a niche in the premium electric scooter segment, emphasizing performance and smart features that resonate with tech-savvy consumers. Ather Energy has established a solid market presence through its well-planned distribution channels and an extensive network of charging stations that enhance customer convenience. Its strengths lie in its innovative approach to product development and marketing, which articulates a vision for sustainable urban mobility, appealing to environmentally conscious consumers. The company's commitment to R&D is evident in its consistent introduction of high-performance electric vehicles, which further solidifies its position in this competitive market.
Fuell is another notable player in the Electric Two-Wheeler Market, focusing on designing and manufacturing innovative electric scooters that cater to the needs of urban commuters. The company’s key products include stylish, high-performance electric two-wheelers that reflect contemporary design while prioritizing efficiency and affordability. Fuell's market presence is bolstered by strategic partnerships aimed at expanding its distribution and charging infrastructure, making it convenient for customers to adopt electric mobility. Strengths of Fuell include its commitment to sustainability, enhanced riding experience through user-friendly technology, and robust customer service, all contributing to customer satisfaction and retention. Additionally, Fuell has engaged in mergers and acquisitions to strengthen its market position and expand its product portfolio, allowing it to respond rapidly to market dynamics and consumer demands on a global scale. This strategic approach enables Fuell to maintain a competitive edge in the increasingly crowded electric two-wheeler marketplace.
Recent developments in the Electric Two-Wheeler Market have seen significant activity. Ather Energy expanded its operations by entering new markets and launching upgraded models, while Gogoro continued to innovate with its battery-swapping technology, enhancing convenience for users. TVS Motor Company also ramped up its investments in electric mobility, aiming to boost production capacity. Additionally, Niu Technologies has reported increased sales, reflecting growing consumer interest in electric scooters, particularly in urban areas. In terms of mergers and acquisitions, Okinawa Autotech announced a strategic partnership with another automaker in March 2023 to enhance its electric vehicle offerings. Between 2021 and 2023, the market saw a surge, particularly in Europe and Asia, driven by government incentives and consumer demand for sustainable transportation options. As of October 2023, the focus remains on advancing technology and expanding infrastructure to support electric two-wheelers globally, with key players positioning themselves for further growth in this dynamic sector.
| Report Attribute/Metric | Details |
| Market Size 2023 | 26.94 (USD Billion) |
| Market Size 2024 | 30.05 (USD Billion) |
| Market Size 2035 | 100.0 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 11.55% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Ather Energy, Fuell, Gogoro, TVS Motor Company, Niu Technologies, Okinawa Autotech, Ampere Vehicles, Sondors, Hero Electric, Piaggio |
| Segments Covered | Type, Battery Type, Voltage Capacity, End Use, Regional |
| Key Market Opportunities | Rising environmental concerns, Government incentives and subsidies, Expanding urban commuting, Technological advancements in batteries, Growing demand for smart mobility solutions |
| Key Market Dynamics | growing environmental concerns, government incentives and subsidies, advancements in battery technology, increasing urbanization and traffic congestion, rising fuel prices |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Electric two-wheeler Market Highlights:
Frequently Asked Questions (FAQ) :
The Electric Two-Wheeler Market is expected to be valued at 30.05 USD Billion in 2024.
By 2035, the Electric Two-Wheeler Market is projected to reach a value of 100.0 USD Billion.
The expected CAGR for the Electric Two-Wheeler Market from 2025 to 2035 is 11.55%.
The Asia Pacific region is anticipated to hold the largest market share, valued at 42.5 USD Billion in 2035.
The market size forecast for electric scooters is expected to reach 36.0 USD Billion by 2035.
Major players in the market include Ather Energy, Gogoro, TVS Motor Company, and Fuell among others.
Electric motorcycles are expected to have a market size of 10.6 USD Billion in 2024.
The anticipated market size for electric mopeds is expected to be 10.67 USD Billion in 2035.
The market size for electric e-bikes is projected to be 5.45 USD Billion in 2024.
South America is projected to have the lowest market size forecast at 5.0 USD Billion in 2035.
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Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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