Sustainable Mobility Drives Electric Two-Wheeler Market Growth at 11.1% CAGR

Explore key trends, challenges, and opportunities shaping the electric two-wheeler market, from battery innovations to infrastructure growth.

ROCKVILLE, MD, UNITED STATES, March 12, 2025 /EINPresswire.com/ -- The global electric two-wheeler market is poised for substantial growth, with projections indicating an increase from US$ 70,880.2 million in 2024 to a remarkable US$ 203,078.7 million by 2034, according to a comprehensive report by Fact.MR. This anticipated growth reflects a compound annual growth rate (CAGR) of 11.1% over the forecast period.

The surge in the electric two-wheeler market is primarily attributed to continuous technological advancements and the rapid urbanization witnessed globally. Innovations in battery technology, particularly the development of high energy density lithium-ion batteries, have been pivotal in enhancing the range and efficiency of electric scooters, motorcycles, and bicycles. These advancements have addressed previous consumer concerns regarding range limitations, making electric two-wheelers a more viable and attractive option for daily commuting.

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Urbanization has led to increased traffic congestion in metropolitan areas, prompting a shift towards more efficient and eco-friendly modes of transportation. Electric two-wheelers offer a practical solution to navigate crowded city streets, providing an affordable and sustainable alternative to traditional gasoline-powered vehicles. The integration of smart connectivity features, such as real-time battery status monitoring and navigation assistance, has further enhanced the appeal of electric two-wheelers among tech-savvy consumers.

Key Takeaways from the Market Study:

According to Fact.MR, North America is expected to hold a 29.2% share of the global electric two-wheeler market by 2034, driven by strong government incentives and favorable policies. In the United States, which is projected to account for 72.0% of the North American market, government subsidies, tax credits, and state-level incentives are fostering the adoption of electric two-wheelers. The U.S. market is anticipated to grow from US$ 13,119.1 million in 2024 to US$ 42,695.3 million by 2034 at a CAGR of 12.5%. Additionally, expanding charging infrastructure, including residential and public stations, is mitigating range anxiety, making electric two-wheelers more practical for daily commuting.

China, the largest market in East Asia, is projected to hold a 69.3% revenue share in the region by 2034. Valued at US$ 17,757.9 million in 2024, the market is expected to grow at a 12.0% CAGR to reach US$ 55,026.8 million by 2034. Affordability, government incentives, and lower operational costs make electric two-wheelers a popular choice among Chinese consumers. Moreover, domestic manufacturers are driving innovation and competitive pricing, further propelling market growth. The increasing need for efficient last-mile delivery solutions has also contributed to the surge in demand, as many logistics companies rely on electric scooters for cost-effective and eco-friendly transportation.

Japan, holding a 19.5% share of the East Asian market by 2034, is set to grow from US$ 5,066.4 million in 2024 to US$ 15,483.7 million by 2034 at an 11.8% CAGR. Collaborations between electric vehicle manufacturers, technology firms, and government agencies are fostering innovation and infrastructure development. Government policies supporting domestic manufacturers enhance competition and product quality. Additionally, consumer education campaigns and incentives for businesses to integrate electric two-wheelers into corporate fleets are positively influencing adoption rates in Japan.

Key players in Stationary Electric Two Wheeler Market:

Key players in the electric two wheeler market are AIMA Technology Co., Ltd; Ather Energy Pvt. Ltd.; Energica Motor Company SPA; Gogoro Limited; Govecs AG; Hero Electric Vehicles Pvt. Ltd; Jiangsu Xinri E-Vehicle Co. Ltd.; Piaggio & C. SpA; Vmoto Limited; Zero Motorcycles Inc.

“Advancements in battery technology, urbanization, and rising fuel costs will drive electric two-wheeler adoption, despite high initial costs being a key restraint.,” says a Fact.MR analyst.

Growing Demand for E-Scooters & Lithium-Ion Batteries in Two-Wheelers:

The electric scooters segment is poised to dominate the global electric two-wheeler market, projected to account for 62.2% of total sales by 2034. In 2024, the segment is valued at US$ 43,378.7 million and is anticipated to grow at an 11.3% CAGR to reach US$ 126,314.9 million by 2034. The increasing preference for electric scooters is driven by their user-friendly design, simple controls, and easy maneuverability, making them accessible to a broad consumer base, including first-time riders. Their compact size and agility make them ideal for navigating congested urban streets, addressing the rising demand for efficient mobility solutions. Furthermore, electric scooters have a lower upfront cost compared to electric motorcycles and other electric vehicles, increasing their affordability and adoption among cost-conscious consumers. Their suitability for last-mile connectivity between transportation hubs, workplaces, and residential areas further solidifies their role in urban transportation.

Lithium-ion batteries are expected to dominate the electric two-wheeler battery market, holding an 82.3% share by 2034. The segment, valued at US$ 56,845.9 million in 2024, is set to rise at an 11.4% CAGR, reaching US$ 167,133.7 million by 2034. Lithium-ion batteries offer high energy density, allowing electric two-wheelers to achieve longer travel ranges per charge, addressing a major concern for consumers. Their lightweight and compact design enhances efficiency and handling, making them ideal for integration into electric scooters and motorcycles. Additionally, lithium-ion batteries support fast-charging technologies, improving convenience for urban commuters who rely on quick, frequent charging for daily travel needs. These advantages position lithium-ion batteries as the preferred choice for powering electric two-wheelers.

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Competitive Landscape

Key players in the electric two-wheeler industry are adopting various strategies to achieve their goals, including fostering innovation, ensuring strict quality control, forming strategic partnerships, optimizing supply chain management, and continuously improving their products and technologies. For instance, in 2022, Gogoro Inc. introduced its advanced battery swapping system and Smart scooters in the Tel Aviv metropolitan area. Partnering with Metro Motor and Paz Group, the company aims to expand this launch to other cities in Israel in the coming years. Additionally, HERO Electric formed a strategic alliance with Jio-BP in 2022 to collaborate on electric vehicle charging and battery solutions, a move expected to significantly enhance its after-sales service capabilities.

Explore More Related Studies Published by Fact.MR Research:

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Hybrid Electric Vehicle Sales in Europe and Opportunity Analysis: As revealed in a recently updated market analysis by Fact.MR, revenue from the sales of hybrid electric vehicles in Europe is projected to reach US$ 5.09 billion in 2024. The market has been forecasted to expand at a CAGR of 14.2% and reach US$ 19.21 billion by the end of 2034.

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