Low-Powered Electric Motorcycle and Scooter Market Size

The global low-powered electric motorcycle and scooter market size was valued at USD 14.4 billion in 2024 and is projected to grow at a CAGR of 6.3% between 2025 and 2034. Government initiatives, incentives, and subsidies are essential in driving the growth of the low-powered electric motorcycle and scooter industry. To reduce emissions and achieve sustainability targets, many governments actively promote the adoption of electric vehicles (EVs). Policies such as tax credits, rebates, and purchase incentives lower the initial cost for consumers, making these vehicles more accessible.

Additionally, governments invest in charging infrastructure development, addressing range anxiety and enhancing user convenience. In some regions, subsidies extend to manufacturers, encouraging innovation and reducing production costs. These measures not only boost consumer adoption but also attract new players to the market, accelerating overall growth. For instance, the Indian government gives financial incentives for electric vehicles (EVs) in India, primarily under the FAME (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles) scheme. The current incentive offered for two-wheelers is ?15,000 per kWh, up to 40% of the vehicle cost (for batteries around 2 kWh).

Moreover, rising urbanization and increasing traffic congestion are key drivers of the low-powered electric motorcycle and scooter market. As cities become more densely populated, traffic congestion worsens, particularly in urban areas. This has led to a growing demand for compact, agile, and eco-friendly transportation solutions like electric scooters and motorcycles, which can easily maneuver through crowded streets and reduce commute times.

These vehicles are ideal for short-distance urban travel, offering a cost-effective and efficient alternative to cars. Additionally, the lower noise levels and zero emissions of electric two-wheelers make them an attractive option for cities looking to reduce pollution and improve air quality. This shift aligns with the growing preference for sustainable urban mobility solutions.

Low-Powered Electric Motorcycle and Scooter Market Trends

Low-powered electric motorcycles and scooters are witnessing significant technological advancements in battery technology. Recent innovations have produced batteries with higher energy density, faster charging times, and longer life cycles, making electric scooters and motorcycles more practical for everyday use. The development of lithium-ion and solid-state batteries has significantly improved range and performance, addressing concerns about limited driving distances and frequent recharges.

These improvements also lower the overall cost of ownership, as efficient batteries require less frequent replacement and reduced maintenance. Additionally, advancements in battery management systems enhance safety and reliability, further boosting consumer confidence. As battery technology continues to evolve, the market is poised to benefit from increased adoption rates and wider acceptance.

For instance, in October 2024, Honda unveiled two new electric personal computer models, the CUV e: and ICON e: in Indonesia, marking significant steps in its strategy to expand its electric vehicle (EV) lineup. These models are part of Honda's ambitious plan to introduce 30 electric models globally by 2030. The CUV e: is powered by two Honda Mobile Power Pack e: swappable batteries, designed for urban commuting.

This model is equivalent to a 110cc scooter and features a sleek design aimed at city riders. The ICON e: utilizes a fixed ternary lithium-ion battery, classified as a Class 1 moped in Japan. It provides a cruising range of over 50 km per charge. Both models will be manufactured in Indonesia, with plans to expand their availability to other global markets.

The high initial cost of low-powered electric motorcycles and scooters presents a significant market barrier. Despite lower long-term operating costs, the upfront price of these vehicles remains high due to expensive battery technology and electronic components. This makes them less accessible to price-sensitive consumers, particularly in developing regions where affordability is crucial.

Additionally, limited economies of scale and high research and development costs further drive-up prices, slowing the market’s adoption rate. Although government subsidies and incentives exist, they may not always sufficiently offset the initial investment to attract budget-conscious buyers. This price disparity compared to traditional gasoline scooters remains a challenge in expanding market penetration.

Low-Powered Electric Motorcycle and Scooter Market Analysis

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Based on battery, the market is segmented into lithium-ion batteries, lead-acid batteries, and nickel-metal hydride (NiMH) batteries. In 2024, the lithium-ion batteries segment accounted for over 70% of the market share and is expected to exceed USD 17 billion by 2034. Lithium-ion batteries lead the low-powered electric motorcycle and scooter market due to their superior performance characteristics. These batteries provide higher energy density, allowing vehicles to achieve longer ranges on a single charge, which is essential for urban commuters.

Additionally, lithium-ion batteries are lighter and more compact, enhancing vehicle efficiency and handling. Their faster charging capabilities compared to traditional lead-acid batteries reduce downtime, making them more attractive for personal and shared mobility use. Moreover, these batteries have a longer lifespan, lowering the total cost of ownership despite a higher initial investment. Government emphasis on reducing carbon emissions and advancements in lithium-ion technology, including improved safety features, further drive their adoption in electric motorcycles and scooters, solidifying their market dominance.

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Based on the distribution channel, the low-powered electric motorcycle and scooter market is divided into online and offline. The offline segment held around 70% of the market share in 2024. The offline distribution channel holds the largest market share in the low-powered electric motorcycle and scooter industry due to the necessity of a tangible experience before purchasing these vehicles. Consumers prefer visiting physical stores or authorized dealerships to test drive, evaluate features, and understand product specifications before making a purchase.

Since electric two-wheelers represent a significant investment, buyers often seek in-person guidance from sales representatives to make informed decisions. Additionally, authorized dealerships provide crucial after-sales services, warranty support, and maintenance facilities. The offline channel also offers easier financing options through partnerships with local banks and lenders, making it more accessible for buyers. Consequently, this segment remains dominant, especially in regions where online vehicle sales are still emerging.

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Asia Pacific low-powered electric motorcycle and scooter market accounted for 55% share in 2024 and is expected to exceed USD 14 billion by 2034. China leads the market in the Asia Pacific region and is expected to exceed USD 8 billion by 2034, driven by a robust manufacturing infrastructure, substantial government support, and increasing consumer demand for eco-friendly transportation.

Government initiatives to reduce carbon emissions, coupled with incentives for electric vehicle adoption, have accelerated market growth. Additionally, the dense populations and traffic congestion in China's urban areas heighten the need for efficient electric two-wheelers. Leading domestic companies leverage advanced technologies and extensive distribution networks to meet local demand, while ongoing investments in battery technology further support market expansion.

The North American market for low-powered electric motorcycles and scooters is steadily growing, driven by a focus on sustainable urban mobility and increased environmental awareness. Urban centers in the U.S. and Canada are adopting these vehicles as eco-friendly solutions to reduce congestion and pollution. Government incentives and subsidies for electric vehicles, along with advancements in battery technology, are boosting consumer interest. Additionally, the popularity of shared mobility services and last-mile delivery solutions is driving demand, as these vehicles offer a practical and efficient alternative for short-distance travel.

In Europe, robust governmental support for sustainable transportation and stringent carbon emission regulations drives the low-powered electric motorcycle and scooter market. Urban centers increasingly adopt these electric two-wheelers to reduce traffic congestion and improve air quality. Countries such as Germany, France, Spain, and Italy lead the market, driven by eco-conscious consumers and incentives like tax breaks and subsidies. Additionally, the region's focus on expanding charging infrastructure and supporting urban mobility solutions has fueled growth. The rise of shared mobility services and last-mile delivery solutions also contributes to the increasing adoption of low-powered electric scooters and motorcycles.

In the MEA region, rising fuel costs and increasing awareness of sustainable transportation are driving market growth, particularly in the UAE and South Africa. However, limited charging infrastructure remains a challenge. In Latin America, urban congestion and government incentives are fostering gradual adoption in countries like Brazil and Mexico. Nevertheless, high import taxes and limited local manufacturing capabilities are slowing widespread adoption across the region.

Low-Powered Electric Motorcycle and Scooter Market Share

Honda Motor Co., Ltd., Yadea Group Holdings Ltd., and TVS Motor Company collectively held a substantial market share of over 11% in the low-powered electric motorcycle and scooter industry in 2024. Honda is advancing its position in the low-powered electric motorcycle and scooter industry by focusing on developing affordable and efficient e-scooters with advanced battery technology. Concurrently, the company is enhancing its global EV infrastructure and strengthening its product lineup, including the Honda PCX Electric. Additionally, Honda is collaborating with local partners to enter emerging markets.

Yadea emphasizes innovation, high-quality manufacturing, and environmental sustainability in its electric scooter offerings. The company is expanding its global presence and prioritizing partnerships to enhance its research and development capabilities. Yadea promotes the energy efficiency and smart features of its products, focusing on urban mobility solutions and providing strong after-sales services in key markets.

TVS Motor Company is investing in electric mobility with the launch of models like the iQube, which combine innovative features with performance. The company focuses on integrating advanced technology, including IoT connectivity and battery swapping infrastructure. TVS aims to expand its electric vehicle range, improve product quality, and leverage strategic partnerships to grow in both domestic and international markets.

Low-Powered Electric Motorcycle and Scooter Market Companies

Major players operating in the low-powered electric motorcycle and scooter industry are:

• Ather Energy
• Bajaj Auto
• Gogoro
• Hero Electric Vehicles
• Honda Motor
• KTM AG
• NIU Technologies
• Ola Electric Mobility
• TVS Motor Company
• Yadea Group Holdings
  

Low-Powered Electric Motorcycle and Scooter Industry News

• In November 2024, Zero Motorcycles introduced a new electric motorcycle that is priced competitively, making it cheaper than many scooters on the market. This development is part of Zero's ongoing efforts to broaden its appeal and accessibility within the electric vehicle segment. The new model is positioned as an affordable option in the electric motorcycle market, targeting consumers who may find traditional scooters more accessible in terms of price.
  
• In November 2024, KYMCO announced that its upcoming RevoNEX electric motorcycle will be built on the S2 Arrow platform developed by LiveWire, marking a significant step in their collaboration. This announcement was made during the 2024 EICMA Milan Motorcycle Show, where KYMCO's Chairman, Allen Ko, showcased the motorcycle in a dramatic unveiling.
  

The low-powered electric motorcycle and scooter market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (Units) and from 2021 to 2034, for the following segments:

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Market, By Product

• Electric motorcycles
• Electric scooters

Market, By Battery

• Lithium-ion batteries
• Lead-acid batteries
• Nickel-metal hydride (NiMH) batteries

Market, By Speed

• Up to 25 km/h
• 25 to 50 km/h
• 50 to 70 km/h

Market, By Application

• Personal commuting
• Shared mobility services
• Delivery services

Market, By Distribution Channel

• Online
• Offline

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa