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.