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Base Year: 2024
Companies covered: 20
Tables & Figures: 200
Countries covered: 21
Pages: 240
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Electric Two-wheeler Market
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Electric Two-wheeler Market Size
The global electric two-wheeler market size was valued at USD 74.9 billion in 2024 and is projected to grow at a CAGR of 8.7% between 2025 and 2034. Government support through subsidies, tax benefits, and policy frameworks has been a major driver for the electric two-wheeler industry. Many countries, especially in Asia and Europe, have introduced schemes to encourage the adoption of electric vehicles (EVs) by reducing upfront costs.
For example, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme in India provides subsidies for electric two-wheelers. Additionally, strict emission regulations and bans on internal combustion engine (ICE) vehicles in some regions have further incentivized the shift to EVs. Such measures not only make EVs more affordable but also help build necessary infrastructure, such as charging stations, to support widespread adoption.
The rising cost of traditional fuels such as petrol and diesel has made electric two-wheelers an attractive alternative. Electric vehicles offer significantly lower operating and maintenance costs due to simpler drivetrains and reduced dependency on fluctuating fuel markets. The affordability of electricity as a fuel source compared to conventional fuels is driving demand, especially in countries where fuel prices are high. For daily commuters and delivery services, the cost savings over the vehicle's lifespan make electric two-wheelers a more economical choice.
Rapid urbanization has led to increased traffic congestion, making compact and efficient transportation modes a necessity. Electric two-wheelers are ideal for navigating crowded urban areas due to their compact size and low noise levels. They have also become popular for last-mile connectivity, where commuters use them to travel short distances between home, workplaces, or public transit hubs. Additionally, the growing popularity of shared mobility services like electric scooters and bike rentals in urban settings has further fueled demand. These vehicles provide a convenient, eco-friendly, and cost-effective solution for urban mobility, aligning with the goals of sustainable city development.
Electric Two-wheeler Market Trends
Growing demand for high-performance models, driven by advancements in battery technology and consumer preference for superior speed, range, and acceleration. Premium electric motorcycles catering to enthusiasts and performance-oriented riders are gaining traction in both developed and emerging markets. Companies are launching models with advanced features such as regenerative braking, connected technologies, and extended range. For example, brands like Ultraviolette and Zero Motorcycles are focusing on high-powered bikes, blending innovation and design. This trend indicates a maturing market where consumer expectations are moving beyond affordability and utility, pushing manufacturers to focus on performance and innovation.
Battery-swapping technology is becoming a transformative trend in the electric two-wheeler market, particularly in regions with limited charging infrastructure. This solution eliminates long charging times and reduces range anxiety, making EVs more convenient for consumers and fleet operators. Companies like Gogoro and Ola Electric have started implementing battery-swapping networks, allowing users to replace depleted batteries with fully charged ones in minutes. This trend is particularly appealing for commercial segments, such as delivery services, where downtime directly impacts profitability. As this model gains traction, it is expected to enhance the adoption of electric two-wheelers, especially in densely populated urban areas.
Electric Two-wheeler Market Analysis
Based on motor power, the market is segmented into below 3.5 kW, 3.5 kW – 6.5 kW, above 6.5 kW. In 2024, the below 3.5 kW segment accounted for over 54% of the market share and is expected to exceed USD 87.7 billion by 2034, due to its affordability, practicality, and suitability for daily commuting. These vehicles are designed for urban and semi-urban areas, where speed and power are less critical than cost efficiency and convenience.
With lower production and maintenance costs, they appeal to cost-sensitive consumers, particularly in developing countries like India and China. Governments further support this segment with subsidies and incentives for low-powered electric vehicles, making them even more accessible. Additionally, these models are lightweight, easy to handle, and ideal for short-distance travel, which aligns with the needs of urban commuters and last-mile delivery services.
Based on the vehicle, the electric two-wheeler market is divided into electric motorcycle, electric scooter, e-bikes and electric kick scooter. The e-bikes segment held around 49% of the market share in 2024, due to its versatility, affordability, and growing popularity as a sustainable mode of transportation. E-bikes cater to a wide range of consumers, from urban commuters seeking efficient, eco-friendly travel to recreational users and fitness enthusiasts.
Their relatively low cost compared to electric scooters and motorcycles, coupled with minimal operational expenses, makes them accessible to a broader audience. Additionally, e-bikes benefit from flexible usage options, allowing riders to switch between manual pedaling and electric assistance, enhancing their appeal. Governments worldwide promote e-bikes through subsidies and dedicated infrastructure, further driving their adoption in both developed and developing regions.
China electric two-wheeler market held 48% revenue share in 2024 and is expected to exceed USD 68.5 billion by 2034, due to majority of global production and consumption. This leadership stems from its robust manufacturing ecosystem, government support, and consumer demand for affordable transportation. With favorable policies like subsidies, tax exemptions, and infrastructure investment, China has fostered the growth of domestic players like Yadea and Niu Technologies.
The country’s focus on reducing urban pollution and reliance on imported oil has further driven EV adoption. Additionally, the widespread availability of battery-swapping stations and affordable e-bike models has made electric two-wheelers a popular choice among urban and rural consumers for commuting and delivery services.
Governments in countries like Germany, France, and the Netherlands offer significant incentives for EV adoption, including subsidies and tax breaks, while simultaneously imposing bans on internal combustion engine (ICE) vehicles in many cities. Europe also boasts extensive charging infrastructure, bolstered by investments from both public and private sectors. The region’s focus on micromobility solutions, coupled with the rising popularity of shared e-scooter and e-bike services, has fueled demand. Additionally, European consumers prioritize high-quality, performance-oriented vehicles, driving innovation in the premium e-motorcycle and e-scooter segments.
Cities in the United States and Canada are adopting e-bikes and e-scooters as part of their micromobility strategies to reduce traffic congestion and emissions. Shared mobility platforms like Lime and Bird have gained significant traction, introducing consumers to electric two-wheelers as an affordable and convenient transportation option. Additionally, the region’s emphasis on fitness and recreation has boosted demand for e-bikes. Federal and state-level incentives, along with the integration of renewable energy in charging infrastructure, further support market growth in this region.
Electric Two-wheeler Market Share
Yadea Group and Yamaha Motor Company collectively held a substantial market share of over 8% in the electric two-wheeler industry in 2024, due to their strong global presence, diverse product portfolios, and strategic investments in innovation and expansion. Yadea Group, as a leading manufacturer in China, benefited from its dominance in the world’s largest electric two-wheeler industry, leveraging high-volume production, cost efficiency, and a wide range of affordable and premium models. Its focus on battery-swapping technology and international expansion further bolstered its market share.
Yamaha Motor Company, on the other hand, capitalized on its established reputation for quality and reliability, offering performance-oriented electric two-wheelers tailored to urban commuters and recreational riders. Yamaha's investment in advanced battery technology, coupled with its strong distribution network in Asia, Europe, and North America, enabled it to capture significant demand across diverse consumer segments.
Electric Two-wheeler Market Companies
Major players operating in the electric two-wheeler industry are:
Electric Two-wheeler Industry News
The electric two-wheeler market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) & shipment (Units) from 2021 to 2034, for the following segments:
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Market, By Vehicle
Market, By Battery
Market, By Motor Power
Market, By Voltage
The above information is provided for the following regions and countries: