Electric Scooter and Motorcycle Market Report By Type (Electric Scooters , Electric Motorcycles), By Battery Type (Lithium-ion Battery , Lead Acid Battery , Others), By Voltage Segment (24V , 36V , 48V , Above 48V), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Market Overview

The Global Electric Scooter and Motorcycle Market size is expected to be worth around USD 197.1 Billion by 2033, from USD 35.8 Billion in 2023, growing at a CAGR of 18.60% during the forecast period from 2024 to 2033.

The Electric Scooter and Motorcycle Market encompasses a wide range of electrically powered two-wheel vehicles, including scooters and motorcycles. This market has witnessed significant growth due to increasing environmental awareness, advancements in battery technology, and supportive government policies.

Electric scooters and motorcycles are gaining popularity for their efficiency, low operating costs, and reduced carbon footprint. Key components of this market include vehicle design, battery capacity, range, and charging infrastructure. Stakeholders are focusing on enhancing user experience, extending battery life, and expanding charging networks to drive growth.

The Electric Scooter and Motorcycle Market is positioned at the forefront of the urban mobility revolution, catalyzed by evolving consumer preferences, environmental considerations, and regulatory pressures.

In the U.S. alone, the market’s momentum is underscored by the anticipated sale of over 1 million e-bikes this year, a figure that astonishingly surpasses the sales of electric cars. This trend not only highlights the shifting consumer appetite towards more sustainable and efficient modes of transportation but also signals a broader acceptance of electric mobility solutions.

Amidst this evolving landscape, the Environmental Protection Agency (EPA)’s recent proposal to introduce more stringent auto emission rules emerges as a pivotal factor. The proposed regulations, aiming for a 56% reduction in emissions by 2032 relative to the targets set for 2026, underscore a decisive move towards cleaner transportation options.

Such regulatory initiatives are expected to further fuel the growth of the electric scooter and motorcycle market, as manufacturers and consumers alike navigate towards greener alternatives to meet these new standards.

The convergence of increasing e-bike sales and stringent emission regulations presents a unique opportunity for market expansion and innovation within the electric scooter and motorcycle sector. Companies operating within this space are now tasked with not only aligning with these environmental mandates but also capitalizing on the growing consumer demand for electric vehicles (EVs).

Strategic investments in battery technology, charging infrastructure, and product development are pivotal for stakeholders aiming to secure a competitive edge in this rapidly evolving market. Consequently, the electric scooter and motorcycle market is projected to witness substantial growth, driven by a synergy of consumer trends, technological advancements, and regulatory support.

Key Takeaways

• Market Growth: The Electric Scooter and Motorcycle Market exhibits exponential growth, projected to surge from USD 35.8 billion in 2023 to USD 197.1 billion in 2033, showcasing an impressive Compound Annual Growth Rate (CAGR) of 18.6%.
• Regional Dominance: Asia-Pacific (APAC) emerges as the dominant region, commanding a substantial 74.6% share, signifying significant demand and market presence for electric scooters and motorcycles in the APAC region.
• Segmentation Insights:
  • Type Preference: Electric Scooters dominate with a notable 75.6% share, reflecting the widespread adoption of scooters for urban commuting and short-distance travel.
  • Battery Type Emphasis: Lithium-ion batteries lead with an impressive 87.4% share, highlighting the preference for high-performance and lightweight battery technology.
  • Voltage Specification: Vehicles with a voltage above 48V constitute a significant 80.6% share, underlining the trend toward higher voltage systems for increased power and range.

Market Dynamics and Industry Analysis

• Explosive Market Expansion: The market demonstrates explosive and sustained growth, driven by the increasing demand for sustainable and efficient urban transportation solutions, coupled with advancements in battery technology.
• APAC Market Dominance: APAC’s dominance underscores the region’s technological advancements, burgeoning urbanization, and the widespread adoption of electric two-wheelers as a practical and eco-friendly means of commuting.
• Preference for Electric Scooters, Lithium-ion Batteries, and High Voltage: The dominance of electric scooters, lithium-ion batteries, and high voltage systems signifies consumer preferences for lightweight, high-performance electric vehicles with extended range capabilities.

Driving Factors

Environmental Consciousness and Sustainability Initiatives Drive Market Growth

The increasing global focus on environmental preservation and sustainable development practices has emerged as a pivotal factor propelling the electric scooter and motorcycle market. Governments worldwide, alongside a growing segment of environmentally conscious consumers, are actively seeking alternatives to fossil fuel-dependent modes of transport, aiming to reduce carbon footprints and mitigate the impacts of climate change. This collective shift towards eco-friendliness has rendered electric scooters and motorcycles as preferred choices for both personal and shared mobility solutions.

Notably, urban centers such as Paris, Madrid, and Taipei have introduced incentives and policies designed to promote the adoption of electric two-wheelers. These measures are part of broader strategies to combat air pollution and slash greenhouse gas emissions. Statistics indicate a positive correlation between the enactment of these policies and increased sales of electric scooters and motorcycles, underscoring the significant role of environmental awareness and sustainability initiatives in market growth.

Urban Mobility and Traffic Congestion Drive Market Growth

Urbanization trends and the escalating issue of traffic congestion in cities worldwide have significantly bolstered the demand for electric scooters and motorcycles. As urban areas become denser and traffic congestion worsens, the appeal of compact, agile electric two-wheelers as a solution for daily commuting and short-distance travels has surged. These vehicles offer a convenient escape from the time-consuming traffic jams that plague many cities, providing an efficient mode of transportation capable of maneuvering through crowded urban landscapes with ease.

Manufacturers have recognized and capitalized on this demand by crafting electric scooters and motorcycles specifically designed for urban environments. This market segment has witnessed rapid growth, driven by the dual forces of urban mobility needs and the inherent benefits of electric propulsion, such as lower operating costs and reduced environmental impact. The uptick in urban population density directly correlates with increased adoption rates of electric two-wheelers, further validating their importance in addressing contemporary urban mobility challenges.

Advancements in Battery Technology and Range Drive Market Growth

The electric scooter and motorcycle market has seen remarkable growth, largely fueled by breakthroughs in battery technology. Lithium-ion batteries, known for their high energy density and quick charging times, have evolved to offer longer ranges and more reliable performance for electric two-wheelers. This advancement addresses one of the most significant hurdles previously facing electric vehicles: range anxiety. With the latest battery technologies, electric motorcycles and scooters now boast ranges that exceed 200 miles on a single charge, making them viable for not only short trips but also longer commutes.

Companies like Zero Motorcycles and Energica have been at the forefront of leveraging these technological advancements, producing vehicles that meet the demands of a wider range of consumers. As battery technology continues to advance, the electric scooter and motorcycle market is expected to expand further, driven by the increasing feasibility of these vehicles for a broad spectrum of travel needs. This progression not only enhances the appeal of electric two-wheelers but also contributes to the industry’s overall growth by aligning with consumer demands for sustainable, efficient, and versatile modes of transportation.

Restraining Factors

Range Anxiety and Charging Infrastructure Availability Restrains Market Growth

Range anxiety and the sparse availability of charging stations significantly impede the electric scooter and motorcycle market’s expansion. Despite advancements in battery technology, potential buyers remain apprehensive about the limited distance electric two-wheelers can travel on a single charge. This concern is compounded by an insufficient charging network, particularly in less urbanized areas, creating a significant barrier to widespread adoption.

The fear of being stranded without a nearby charging point discourages many consumers from considering electric vehicles (EVs) as viable alternatives to traditional gasoline-powered scooters and motorcycles. Addressing these challenges is critical for market growth, as the development of more extensive and accessible charging infrastructure, alongside improvements in vehicle range, can mitigate consumer concerns and foster a more conducive environment for the adoption of electric two-wheelers.

High Upfront Costs and Perceived Value Restrains Market Growth

The initial purchase price of electric scooters and motorcycles, which is often higher than that of their gasoline counterparts, serves as a substantial deterrent for many potential buyers. This barrier is especially pronounced in price-sensitive segments of the market, where the high upfront cost overshadows the long-term savings associated with lower operational and maintenance expenses of electric vehicles. Additionally, the perceived value of these vehicles can be low among consumers who are unfamiliar with the benefits of electric transportation, such as reduced environmental impact, lower running costs, and incentives offered by various governments.

Convincing potential customers of the electric two-wheelers’ value proposition is essential for overcoming this obstacle. Market growth could be significantly accelerated by initiatives aimed at reducing purchase prices, through subsidies or technological advancements, and by increasing consumer awareness of the long-term economic and environmental advantages of electric scooters and motorcycles.

Electric Scooters Analysis

Electric Scooters Command 75.6% Market Share, Driven by Urban Mobility and Environmental Awareness

In electric scooter and motorcycle market, electric scooters have emerged as the dominant segment, commanding a significant share of 75.6%. This dominance is rooted in a confluence of factors that include urbanization, increasing environmental awareness, advancements in battery technology, and supportive government policies. Electric scooters have become synonymous with urban mobility, offering a convenient, cost-effective, and eco-friendly alternative to traditional internal combustion engine vehicles. The proliferation of electric scooters in cities around the globe can be attributed to their ease of use, lower operational costs, and minimal maintenance requirements, making them an attractive option for daily commuters.

The surge in demand for electric scooters is further bolstered by the global push towards sustainable transportation. As cities grapple with pollution and congestion, electric scooters offer a viable solution that aligns with environmental objectives. This shift is supported by advancements in battery technology, which have significantly improved the range and performance of electric scooters, addressing one of the key concerns of potential users.

Moreover, governments worldwide are implementing policies that promote the adoption of electric vehicles (EVs), including incentives like tax rebates, subsidies, and the development of EV charging infrastructure. Such measures have not only made electric scooters more accessible but have also encouraged manufacturers to invest in research and development, leading to rapid technological advancements.

While electric scooters dominate the market, electric motorcycles also play a crucial role in the industry’s growth. Although they occupy a smaller market share, electric motorcycles are gaining traction, especially among enthusiasts and professionals seeking higher performance and longer range. This segment benefits from similar drivers as electric scooters, such as environmental concerns and technological advancements. However, electric motorcycles cater to a different consumer base, one that values speed, power, and the ability to undertake longer journeys.

Battery Analysis

Lithium-Ion Batteries Dominate Electric Scooter Market with 87.4% Share, Offering Superior Performance

Lithium-ion batteries have cemented their dominance in the electric scooter and motorcycle market, holding a significant market share of 87.4%. This dominance is not incidental but a result of several compelling advantages that lithium-ion batteries offer over their counterparts, such as lead-acid batteries and other types. The paramount factors driving the preference for lithium-ion batteries include higher energy density, longer lifespan, reduced weight, and faster charging capabilities. These characteristics are critically important in electric scooters and motorcycles, as they directly influence the vehicle’s range, performance, and convenience.

The higher energy density of lithium-ion batteries means that they can store more energy in a smaller package, which is vital for electric scooters and motorcycles where space and weight are at a premium. This leads to lighter vehicles with longer ranges, making them more appealing to consumers. Furthermore, lithium-ion batteries have a significantly longer lifespan compared to lead-acid batteries. This not only reduces the frequency of battery replacements but also offers better long-term value for consumers, contributing to the growth of electric scooters and motorcycles equipped with these batteries.

While lithium-ion batteries dominate, lead-acid batteries and other types still have roles in the market. Lead-acid batteries, being more cost-effective, are preferred in markets where cost considerations outweigh performance requirements. However, their heavier weight, lower energy density, and shorter lifespan limit their appeal in high-performance or long-range electric scooters and motorcycles. Other battery technologies, including emerging ones like solid-state batteries, offer future growth opportunities with the potential for even higher energy densities and safety features.

Voltage Analysis

Above 48V Voltage Segment Leads Electric Scooter Market with 80.6% Share, Catering to High-Performance Needs

The “Above 48V” voltage segment dominates the electric scooter and motorcycle market, with a commanding share of 80.6%. This segment’s dominance is primarily attributed to the growing consumer demand for higher performance and longer range electric scooters and motorcycles. Vehicles in this voltage category offer superior acceleration, higher top speeds, and greater range per charge compared to those in lower voltage classes, making them more suitable for a wider variety of uses, from urban commuting to longer-distance travel.

The shift towards higher voltage systems is also driven by advancements in battery and motor technology. Higher voltage systems are more efficient, resulting in less energy loss during transmission and better overall vehicle performance. This efficiency translates into longer battery life and lower operating costs, both of which are key considerations for consumers. Moreover, as the infrastructure for electric vehicles, including charging stations, continues to expand and improve, the practicality of owning and operating an electric scooter or motorcycle with a higher voltage system increases.

While the “Above 48V” segment leads the market, lower voltage categories such as 24V, 36V, and 48V still play important roles, particularly in entry-level and lightweight electric scooters designed for short-distance urban commuting. These lower voltage vehicles offer affordability and ease of use, catering to consumers seeking convenient and economical transportation options for daily use. However, as consumer preferences evolve and demand for higher performance and longer range grows, the market is shifting towards higher voltage electric scooters and motorcycles, underscoring the importance of the “Above 48V” segment in driving market growth and innovation.

Key Market Segments

By Type

• Electric Scooters
• Electric Motorcycles

By Battery Type

• Lithium-ion Battery
• Lead Acid Battery
• Others

By Voltage Segment

• 24V
• 36V
• 48V
• Above 48V

Growth Opportunities

Fleet Electrification and Commercial Applications Offer Growth Opportunity

The move towards fleet electrification and the increasing adoption of electric two-wheelers for commercial use represent a significant growth avenue for the electric scooter and motorcycle market. Businesses engaged in last-mile delivery, food delivery, and urban logistics are turning to electric vehicles (EVs) to enhance efficiency, cut down on emissions, and reduce operational costs. This shift not only aligns with global sustainability goals but also opens up a new, lucrative market segment for electric two-wheeler manufacturers.

By designing vehicles that meet the specific needs of these businesses, such as increased durability and longer range, manufacturers can secure a foothold in this expanding niche. Statistics indicate a rising demand for electric delivery vehicles, driven by the e-commerce boom and heightened environmental awareness, suggesting a robust growth trajectory for manufacturers who can effectively serve this sector.

Integration with Micro-mobility Solutions Offers Growth Opportunity

The integration of electric scooters and motorcycles with micro-mobility solutions is paving the way for expanded market opportunities. As cities worldwide embrace micro-mobility to alleviate traffic congestion and reduce pollution, the demand for electric-powered two-wheelers is on the rise. This trend is particularly evident in urban areas, where shared electric scooters and bicycles offer a convenient and sustainable alternative for short-distance travel.

Manufacturers that can innovate and offer a range of electric micro-mobility products stand to gain significantly, as they can attract a diverse customer base looking for flexible and eco-friendly transportation options. The growing popularity of micro-mobility solutions, coupled with increasing investments in shared transportation platforms, underscores the potential for electric scooter and motorcycle manufacturers to broaden their market reach and tap into new revenue streams.

Trending Factors

Swappable Battery Technologies Are Trending Factors

The advent of swappable battery technologies is revolutionizing the electric scooter and motorcycle market by effectively addressing range anxiety. This innovative solution allows users to exchange a depleted battery for a fully charged one within minutes at designated swapping stations, drastically reducing downtime and enhancing convenience.

Companies are at the forefront of this trend, showcasing the technology’s potential to eliminate one of the major hurdles facing the adoption of electric two-wheelers. As the network of battery-swapping stations expands and becomes more accessible, the attractiveness of electric scooters and motorcycles is significantly boosted. This trend is poised to accelerate market growth as consumers recognize the practical benefits of swappable batteries, making electric two-wheelers a more viable and appealing option for a broader audience.

Advanced Safety Features Are Trending Factors

The incorporation of advanced safety features into electric scooters and motorcycles marks a significant trend in the market, driven by growing consumer demand for safer vehicles. Manufacturers are embedding cutting-edge technologies such as anti-lock braking systems (ABS), traction control, and collision detection systems to protect riders better.

Additionally, connectivity features that offer smartphone integration and real-time diagnostics are becoming standard, providing riders with immediate access to crucial safety information and alerts. This trend towards enhanced safety and connectivity is changing consumer expectations and influencing buying decisions, as riders prioritize their safety on the road. The focus on integrating advanced safety features is expected to spur market expansion, attracting a demographic that values safety enhancements as essential components of their transportation choices.

Regional Analysis

APAC Dominates with 74.6% Market Share

The Asia-Pacific (APAC) region’s commanding 74.6% share of the electric scooter and motorcycle market is attributed to several key factors. High population density, increasing urbanization, and growing environmental concerns drive demand for efficient and sustainable transportation solutions.

APAC countries like China, India, and Vietnam have seen rapid adoption due to supportive government policies, including incentives for electric vehicle (EV) purchases and investments in charging infrastructure. Additionally, the presence of leading electric two-wheeler manufacturers and technology providers in this region further strengthens its market position.

APAC’s regional dynamics, characterized by congested cities and the necessity for affordable commuting options, align well with the value proposition of electric two-wheelers. The region’s commitment to reducing carbon emissions and improving air quality has also led to stringent regulations on gasoline-powered vehicles, pushing consumers and businesses towards electric alternatives.

The local production capabilities, coupled with technological advancements, have made electric scooters and motorcycles an increasingly attractive option for the mass market.

Regional Market Share and Growth Rates:

• North America: Holding a market share of approximately 10%, North America is experiencing steady growth due to increasing consumer awareness and favorable government policies towards electric vehicles.
• Europe: Europe accounts for around 9% of the market share, with growth driven by stringent environmental regulations, high fuel prices, and growing consumer interest in sustainable mobility solutions.
• Middle East & Africa (MEA): The MEA region has a smaller market share of about 4%, with growth potential limited by infrastructural and regulatory challenges.
• Latin America: Holding around 3% of the market share, Latin America’s growth is hindered by economic volatility but shows promise due to increasing urbanization and interest in sustainable transportation.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

In the electric scooter and motorcycle market, a diverse array of key players shapes the competitive landscape, each with its strategic positioning and market influence. Companies like Xiaomi and Niu Technologies have carved out significant niches by offering affordable, high-tech electric scooters that appeal to urban commuters and eco-conscious consumers alike. They leverage advanced connectivity features and stylish designs to attract a younger demographic.

Segway Inc. and Gogoro Inc. stand out for their innovative approaches to battery technology and urban mobility solutions, with Gogoro emphasizing its battery-swapping network to address range anxiety. Vespa and BMW Motorrad bring heritage and luxury to the electric two-wheeler market, offering premium scooters and motorcycles that combine traditional aesthetics with modern electric powertrains.

Harley-Davidson and KTM are transitioning their iconic brands into the electric era, aiming to capture loyal enthusiasts and new riders looking for performance-oriented electric motorcycles. Zero Motorcycles, Evoke Motorcycles, and Energica Motor Company focus on high-performance electric motorcycles, pushing the boundaries of speed, range, and technology.

On the more utilitarian end, Mahindra GenZe, Okinawa Autotech, and Hero Electric focus on practical, affordable electric vehicles designed for mass adoption, particularly in markets with high-density populations and growing concerns over air quality. These companies, through a mix of innovation, strategic market positioning, and responsiveness to consumer needs, collectively drive the electric scooter and motorcycle market forward, shaping the future of urban mobility.

Market Key Players

• Xiaomi
• Niu Technologies
• Segway Inc.
• Gogoro Inc.
• Vespa
• BMW Motorrad
• Harley-Davidson
• KTM
• Zero Motorcycles
• Evoke Motorcycles
• Energica Motor Company
• Mahindra GenZe
• Okinawa Autotech
• Hero Electric

Recent Developments

• On April 2024, Smartech, a Thailand-based electric vehicle manufacturer, unveiled the Felo Tooz electric touring motorcycle at the 45th Bangkok Motor Show. This impressive cruiser boasts a remarkable claimed battery range of 720km, setting a new standard in the electric vehicle industry.
• On March 2024, Ola Electric introduced a new variant of the S1 X scooter with a larger battery and increased range, further enhancing its electric scooter lineup. This four-kilowatt-hour version of the S1 X aims to offer improved affordability, efficiency, and performance to cater to the needs of users and enthusiasts in India.
• On January 2024, Bajaj introduced significant technological and performance enhancements to the Chetak electric scooter for the 2024 model year. These improvements include a new five-inch TFT screen, providing a modern touch to the scooter.
• On November 2023, Scorpio Electric, Singapore’s pioneering electric motorcycle manufacturer, unveiled the highly anticipated Scorpio Electric X1 maxi-scooter at the Esposizione Internazionale Ciclo Motociclo e Accessori (EICMA) in Milan, Italy

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