Global Electric Two-Wheelers Market to Reach US$36.8 Billion by 2030

The global market for Electric Two-Wheelers estimated at US$19.0 Billion in the year 2024, is expected to reach US$36.8 Billion by 2030, growing at a CAGR of 11.6% over the analysis period 2024-2030. Electric Motorcycle, one of the segments analyzed in the report, is expected to record a 12.6% CAGR and reach US$23.3 Billion by the end of the analysis period. Growth in the Electric Scooter segment is estimated at 10.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.2 Billion While China is Forecast to Grow at 15.8% CAGR

The Electric Two-Wheelers market in the U.S. is estimated at US$5.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.7 Billion by the year 2030 trailing a CAGR of 15.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.3% and 10.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.2% CAGR.

Global Electric Two-Wheelers Market – Key Trends & Drivers Summarized

Why Are Electric Two-Wheelers Gaining Unstoppable Momentum Globally?

Electric two-wheelers—comprising electric scooters, mopeds, and motorcycles—have moved beyond early adoption phases to become a mainstream mobility solution in several global markets. What began as a niche segment, driven by environmental concerns and cost advantages, has now evolved into a multi-billion-dollar industry supported by a convergence of urban mobility needs, government policy, battery technology, and changing consumer preferences. These vehicles are fast becoming essential in congested urban centers, last-mile logistics operations, and the evolving personal mobility landscape.

Factors such as skyrocketing fuel prices, growing awareness about air pollution, and tightening emission norms have propelled both governments and consumers to explore non-ICE alternatives. Electric two-wheelers offer zero tailpipe emissions, lower operating costs, and quieter operations, aligning well with the sustainable transport goals of smart cities and carbon-neutral transportation networks. The appeal is particularly strong in countries with dense urban populations and underdeveloped public transport infrastructure, where two-wheelers dominate the vehicle landscape.

What Are the Technology Shifts Reshaping Electric Two-Wheelers?

Technological innovation sits at the core of the electric two-wheeler revolution. Key developments are being witnessed in drivetrain configurations, battery systems, motor efficiency, software integration, and vehicle intelligence. Motor technology has seen a shift from brushed to brushless DC motors (BLDC), and more recently to Permanent Magnet Synchronous Motors (PMSM), due to their higher efficiency and torque density. Some OEMs are exploring hub motor versus mid-motor configurations depending on performance and maintenance priorities. Battery advancements are perhaps the most transformative. Lithium-ion batteries—particularly LFP (Lithium Iron Phosphate) and NMC (Nickel Manganese Cobalt)—dominate due to their favorable energy density, thermal stability, and lifespan. Battery management systems (BMS) now feature active thermal monitoring, real-time cell balancing, and wireless diagnostics. The rise of battery swapping, pioneered by firms like Gogoro and Ather, is unlocking new user models in fleet and shared mobility ecosystems, eliminating charging downtime and boosting vehicle availability.

The infusion of software in electric two-wheelers has elevated them to connected mobility platforms. Smart dashboards, GPS tracking, over-the-air (OTA) updates, anti-theft systems, and predictive maintenance features are rapidly becoming standard. Ride analytics apps, regenerative braking systems, and user behavior profiling are being integrated to refine driving experience and optimize range. These enhancements not only create user delight but also enable OEMs to gather data and offer value-added services such as insurance, navigation, and remote diagnostics.

How Are Different Regions Adopting Electric Two-Wheelers at Scale?

Asia-Pacific dominates the electric two-wheeler market in volume terms, with China leading the charge through its long-standing policy push, extensive charging infrastructure, and dominance in EV manufacturing. Over 80% of the world’s electric two-wheelers are currently sold in China, supported by decades of industrial policy aimed at phasing out ICE mopeds and building export-ready EV platforms. India, driven by the FAME II subsidy scheme, state-level incentives, and rising fuel costs, has emerged as a fast-growing market with numerous homegrown OEMs such as Ola Electric, Ather Energy, and TVS Motor entering the fray. In Europe, the market is growing steadily, particularly in France, Germany, the Netherlands, and Spain. These regions are focusing on high-quality e-mopeds and e-motorcycles targeted at urban professionals and delivery fleets. Incentives such as purchase subsidies, tax exemptions, free parking, and access to low-emission zones are making EV adoption more attractive. Additionally, Europe’s preference for safety, design quality, and stringent certification is driving demand for high-specification models with premium build and advanced connectivity. North America, historically dominated by four-wheelers, is showing signs of gradual two-wheeler electrification. Urban micro-mobility solutions such as electric mopeds, scooters, and bikes are becoming popular among commuters, gig economy workers, and delivery personnel. Federal and state tax credits, plus incentives from cities aiming to reduce congestion, are pushing the segment forward. Latin America, Southeast Asia, and Africa are still early in their adoption curves but present strong long-term potential due to two-wheeler-centric transport systems.

What Are the Key Forces Propelling Long-Term Growth in This Market?

The growth in the electric two-wheelers market is driven by several factors including government policy, technological advancements, consumer demand shifts, and the evolving urban mobility ecosystem. Electrification mandates, such as the EU’s Fit for 55, India’s target of 30% EV sales by 2030, and zero-emission mobility goals in California and Japan, are creating a regulatory backbone that favors electric two-wheelers over traditional ICE models. These mandates are not only stimulating demand but also forcing OEMs and component manufacturers to retool and adapt to the EV paradigm. Urbanization and infrastructure stress are making compact, efficient vehicles increasingly attractive. Electric two-wheelers excel in city use cases, where range anxiety is minimal and mobility constraints are high. Ride-sharing companies and last-mile delivery operators are aggressively investing in e-scooters and mopeds due to their low operational costs, quiet operation, and suitability for frequent short trips. Companies like Uber, Swiggy, and DoorDash are partnering with e-mobility startups to electrify their delivery fleets, catalyzing demand in the fleet segment.

Private capital inflow and startup activity are also reshaping the competitive landscape. From China’s Yadea and NIU to India’s Bounce and Simple Energy, startups are challenging legacy players with data-driven, consumer-centric models. OEMs are increasingly bundling financing, insurance, service plans, and accessories to offer holistic ownership experiences. Financing innovations such as battery leasing, pay-as-you-ride models, and micro-credit for low-income buyers are reducing the entry barrier and boosting mass-market adoption. On the supply chain front, the localization of battery packs, power electronics, and motor manufacturing is reducing dependency on imports, especially in countries like India, Vietnam, and Indonesia. This is improving cost structures and enabling faster lead times. The development of EV-only manufacturing plants, smart assembly lines, and end-of-life recycling programs is maturing the industry value chain. Consumer awareness and preferences are evolving as well. Younger consumers increasingly associate electric mobility with tech-forward living, environmental consciousness, and economic prudence. Aesthetics, range, brand image, and software features are becoming key purchase drivers, alongside traditional parameters like price and warranty. The next wave of demand will likely be fueled by integrated ecosystems where vehicles, charging infrastructure, user apps, and energy providers interact in a seamless loop.

Looking forward, several growth inflection points are on the horizon. These include widespread adoption of fast charging, breakthroughs in solid-state batteries, scaling of battery swap networks, and rollout of 5G-powered telematics. Regulation around battery recycling and extended producer responsibility (EPR) will shape sustainability narratives and influence procurement decisions, especially in fleet deployments. Advanced rider assistance systems (ARAS), digital locks, and haptic feedback controls may become mainstream, further blurring the line between electric two-wheelers and smart devices.

Overall, the electric two-wheeler market stands at the intersection of innovation, policy, and evolving mobility behaviors. Its growth is expected to remain resilient across economic cycles, driven by a combination of structural trends and tactical execution by stakeholders. With the groundwork already laid in leading markets and ecosystem momentum building in others, electric two-wheelers are set to become a dominant force in the global mobility mix for decades to come.