The global market for electric two-wheelers market is anticipated to experience significant growth from 2022 to 2032, with a projected compound annual growth rate (CAGR) of 11.6%. This surge is expected to propel the market valuation from US$ 17.69 billion in 2021 to US$ 58.66 billion by the end of 2032.
The slower growth rate observed from 2017 to 2021, at a 9.9% CAGR, was attributed to production shutdowns in 2020 caused by the COVID-19 pandemic. Notably, key contributors to the global demand for electric two-wheelers include China, the United States, Germany, Spain, Australia & New Zealand, and Japan.
A crucial factor influencing the electric two-wheeler industry is advancements in battery technology, particularly improvements in Li-ion batteries. These advancements have led to the development of lighter and longer-lasting electric two-wheel vehicles compared to NiMH and lead-based batteries. Manufacturers are increasingly focused on research and development to create superior battery technologies with extended shelf lives, reflecting heightened concerns in the industry.
Furthermore, the rising adoption of electric two-wheelers for ride-sharing and delivery services, which demand high performance and long-range capabilities, is contributing to increased market demand. Both established and emerging companies are introducing additional features to attract more delivery and ride-sharing businesses, further stimulating the growth of electric two-wheeler sales.
Key Market Growth Factors and Dynamics Electric Two Wheelers Market:
Technological Advancements in Battery Technology: Continuous improvements in lithium-ion (Li-ion) batteries contribute to the development of electric two-wheelers with enhanced performance, longer range, and lighter weights compared to alternative battery technologies.
Research and Development Initiatives: Ongoing research and development efforts in the electric two-wheeler industry focus on creating superior battery technologies with extended shelf lives. This pursuit reflects the industrys commitment to addressing concerns related to battery efficiency and longevity.
Increasing Environmental Awareness: Growing environmental consciousness and a desire to reduce carbon footprints drive consumer interest in electric vehicles, including two-wheelers. Governments and regulatory bodies worldwide are implementing policies to encourage the adoption of eco-friendly transportation solutions.
Ride-Sharing and Delivery Services: The utilization of electric two-wheelers for ride-sharing and delivery services is on the rise. The demand for high-performance and long-range electric two-wheelers in these sectors is boosting overall market growth.
Global Urbanization Trends: The ongoing trend of urbanization, especially in densely populated areas, is a significant factor. Electric two-wheelers are well-suited for navigating congested urban environments, offering a convenient and efficient mode of transportation.
Government Incentives and Subsidies: Many governments around the world are offering incentives and subsidies to promote the adoption of electric vehicles, including two-wheelers. These policy measures aim to accelerate the transition to sustainable and clean transportation options.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2032 – By Product Type, Application, End-user, and Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa): https://www.persistencemarketresearch.com/market-research/electric-two-wheelers-market.asp
Market Restraints and Challenges Electric Two Wheelers Market:
High Initial Cost: The upfront cost of electric two-wheelers is often higher than traditional gasoline-powered counterparts. This initial cost can be a barrier for potential buyers, even though the operating costs over the vehicles lifespan may be lower.
Limited Charging Infrastructure: The availability of charging infrastructure is a significant challenge. Range anxiety, or the fear of running out of battery without access to charging, can deter potential buyers from opting for electric two-wheelers.
Charging Time: While charging technology is advancing, the charging time for electric two-wheelers is still longer compared to refueling a traditional vehicle with gasoline. This inconvenience can affect the overall user experience.
Battery Technology Constraints: Despite advancements, limitations in battery technology, such as energy density and manufacturing costs, can impact the performance and affordability of electric two-wheelers. Improving these aspects is crucial for market growth.
Perceived Limited Range: The perceived limited range of electric two-wheelers, especially in comparison to traditional motorcycles and scooters, remains a concern for some consumers. Educating the public about the actual capabilities of electric vehicles is crucial.
Resale Value Concerns: Uncertainty about the resale value of electric two-wheelers can be a deterrent for potential buyers. Establishing a robust resale market for used electric vehicles is essential for overcoming this challenge.
Lack of Model Variety: Limited model variety in the electric two-wheeler market may restrict consumer choice. Offering a diverse range of models that cater to different preferences and use cases can enhance market acceptance.
Market Mergers & Acquisitions:
The electric two-wheelers market has witnessed a notable trend of mergers and acquisitions, signaling a dynamic phase of industry consolidation and strategic partnerships. In an effort to gain a competitive edge and capitalize on the growing demand for electric mobility solutions, major players in the sector have engaged in mergers and acquisitions.
These strategic moves often involve established electric vehicle manufacturers acquiring innovative startups with expertise in battery technology, connectivity, or design. Additionally, traditional motorcycle and scooter manufacturers have entered the electric space through acquisitions to diversify their product portfolios and stay abreast of the evolving market trends. Such consolidation activities are not only reshaping the competitive landscape but also fostering synergies in research and development, manufacturing capabilities, and market reach. As the electric two-wheelers market continues to expand, these mergers and acquisitions are likely to play a pivotal role in shaping the industrys trajectory, driving innovation, and creating more robust and comprehensive offerings for consumers.
Future outlook Development:
Technological Innovations: Ongoing advancements in battery technology, such as improvements in energy density and charging efficiency, are expected to enhance the performance and range of electric two-wheelers. Innovations in materials and design will likely lead to lighter and more efficient vehicles.
Smart and Connected Features: The integration of smart and connected features in electric two-wheelers is anticipated to rise. Connectivity technologies, including IoT (Internet of Things) capabilities, will enable features such as remote monitoring, over-the-air updates, and enhanced safety systems, contributing to a more sophisticated user experience.
Increased Model Variety: Manufacturers are likely to introduce a broader range of electric two-wheeler models, catering to diverse consumer preferences and specific use cases. This expansion of choices will contribute to wider market acceptance.
Infrastructure Development: Continued efforts to expand charging infrastructure will address one of the key challenges for electric vehicle adoption. Governments and private entities are expected to invest in building a more extensive and accessible network of charging stations.
Economic Incentives: Governments worldwide are likely to introduce and expand economic incentives to encourage the adoption of electric vehicles. Subsidies, tax credits, and other financial incentives can play a crucial role in making electric two-wheelers more affordable for consumers.
Ride-Sharing and Delivery Integration: The integration of electric two-wheelers into ride-sharing and delivery services is expected to grow. As urbanization continues, the demand for efficient and environmentally friendly last-mile transportation solutions is likely to drive the adoption of electric two-wheelers in these sectors.
Environmental Regulations: Stringent environmental regulations aimed at reducing emissions are anticipated to favor the adoption of electric vehicles. Governments may implement policies that incentivize the use of electric two-wheelers as part of broader sustainability initiatives.
Global Expansion: Manufacturers are likely to expand their market presence globally, entering new regions and capitalizing on emerging markets. This expansion will be facilitated by partnerships, distribution agreements, and investments in localized manufacturing.
Key Players: Hero Electric Vehicles Private Limited, Gogoro Inc., GOVECS AG, Vmoto Limited, Honda Motor Co. Ltd., Terra Motors Corp., Bayerische Motoren Werke AG (BMW), Jiangsu Xinri E-Vehicle Co. Ltd., Piaggio & C. SpA, Giant Manufacturing Co. Ltd., Accell Group, Derby Cycle Holding GmbH
Key Segments Covered in Electric Two Wheelers Industry Analysis:
Electric Two Wheelers Market by Product Type:
Electric Two Wheelers Market by Battery Type:
Electric Two Wheelers Market by Category:
Plug-in Electric Two Wheelers
Battery-operated Electric Two Wheelers
Electric Two Wheelers Market by Region:
North America Electric Two Wheelers Market
Latin America Electric Two Wheelers Market
Europe Electric Two Wheelers Market
East Asia Electric Two Wheelers Market
South Asia & Pacific Electric Two Wheelers Market
Middle East & Africa Electric Two Wheelers Market
FAQ’s Answered In our Report:
What is the current market size of the global electric two-wheelers market, and what is the expected growth trajectory in the coming years?
What are the key factors driving the adoption of electric two-wheelers worldwide?
Which regions or countries are leading in the adoption of electric two-wheelers, and what factors contribute to their market dominance?
What are the major challenges faced by the electric two-wheeler industry, and how are manufacturers addressing these challenges?
About Persistence Market Research:
Business intelligence is the foundation of every business model employed by Persistence Market Research. Multi-dimensional sources are being put to work, which include big data, customer experience analytics, and real-time data collection. Thus, working on “micros” by Persistence Market Research helps companies overcome their “macro” business challenges.
Persistence Market Research is always way ahead of its time. In other words, it tables market solutions by stepping into the companies’/clients’ shoes much before they themselves have a sneak pick into the market. The pro-active approach followed by experts at Persistence Market Research helps companies/clients lay their hands on techno-commercial insights beforehand, so that the subsequent course of action could be simplified on their part.
Persistence Market Research
Teerth Techno space, Unit B-704
Survey Number 103, Baner
Mumbai Bangalore Highway
Pune 411045 India
This press release first seen on Brilad