Electric Two-Wheeler Market Set to Surge, Expected to Reach US$80 Billion by 2030

The global electric two-wheeler market is poised for remarkable growth, with a projected Compound Annual Growth Rate (CAGR) of approximately 12% during the period from 2023 to 2030. The market is expected to attain a staggering market value of over US$80 billion by the close of 2030.

Market Insights

Electric two-wheelers, often likened to scooters or motorcycles, are rapidly gaining traction due to their environmentally friendly attributes. These vehicles operate solely on battery power, eliminating local tailpipe emissions and minimizing air and noise pollution. Key drivers of this growth include technological advancements in battery management systems and government-backed tax incentives for both manufacturers and consumers. Furthermore, the volatile nature of petrol prices has led consumers to seek more predictable and cost-effective alternatives.

Key Findings

The electric scooter segment is witnessing a surge in demand within the electric two-wheeler market.
Hub motors remain the preferred choice for electric two-wheelers.
The 48V category dominated the electric two-wheeler market revenue in 2022.
Lithium-ion batteries accounted for the highest market revenue share in 2022.
Asia Pacific continues to lead the market, while North America experiences robust growth.

Growth Drivers

Growing Use of Battery Swapping Technology: The introduction of battery swapping technology has revolutionized electric vehicle ownership. This breakthrough offers convenience for long-distance travel by enabling drivers to replace depleted batteries with fully charged ones swiftly. Government policies and investments in battery-swapping stations are set to further boost adoption, eliminating range anxiety and making electric two-wheelers a more attractive choice.

Mounting Sales of Electric Motorbikes and E-bikes: Urban commuters are increasingly turning to lightweight electric vehicles, such as electric motorbikes and e-bikes, to tackle traffic congestion and long commutes. The Indian government's favorable tax policies for electric motorcycles, including additional tax advantages and reduced GST, have fueled their popularity for urban commuting.

Market Challenges

Performance, Range, and Design Limitations: While electric two-wheelers offer environmental benefits, they are still evolving in terms of performance and design compared to conventional counterparts. Challenges include limited power output and range, with most electric two-wheelers offering ranges of up to 100-120 miles. Overcoming these limitations remains a priority for manufacturers.

Key Segments

E-scooter Sales Highest: E-scooters and mopeds are projected to dominate the electric two-wheeler market due to their affordability and suitability for daily commuting. Leading manufacturers, such as Nexzu Mobility, are driving growth with stylish and eco-friendly offerings.

Lithium-ion Battery Type Dominant: Lithium-ion batteries are expected to maintain their dominance in the electric two-wheeler market, offering higher energy density, lighter weight, longer lifespan, and rapid charging capabilities.

Growth Opportunities Across Regions

e-Mobility Adoption Soars in Key Asian Countries: Asia Pacific remains the epicenter of electric two-wheeler adoption, driven by environmental concerns and government incentives. Major players in the region include Hero Electric, Okinawa Autotech, Jiangsu Xinri, Niu International, and Yadea Technology Group.

North America Witnesses Escalating Sales: North America is experiencing a significant CAGR, with the US leading the way in electric two-wheeler sales. Falling battery prices, increased investments, and efforts by major companies to introduce electric two-wheelers contribute to this growth.

Competitive Landscape

Leading players in the electric two-wheeler market include Yadea Group Holdings, Silence Urban Ecomobility, Niu Technologies, Segway Inc., Hero Electric Pvt. Ltd., Okinawa Autotech Pvt. Ltd., Ather Energy Pvt. Ltd., AIMA Technology Co., Ltd., Ola Electric Mobility Pvt Ltd., Pure Electric, Piaggio & C. SpA, and BMW North America, LLC.

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