The Electric Two-Wheeler Market: A Surge in Investments and Technological Advancements

December 13, 2023
Recent investments in the sector underscore this upward trend. Velca, a Spanish electric motorcycle and bicycle manufacturer, has raised EURO 5.3 million for international expansion and new vehicle launches. The funding, led by Sherry Ventures, Noso Capital, and BeHappy Investments, underscores the company's ambition to become a leading electric motorcycle brand in Europe​. Similarly, EMotorad, an Indian electric bike manufacturer, secured USD 20 million in Series B funding, indicating robust market confidence. EMotorad's expansion aims to disrupt China's market dominance and establish a strong global presence, focusing on quality, technology, and after-sale services​​.

The global electric scooter and motorcycle market is witnessing a transformative phase marked by significant investments and technological advancements. Estimated at USD 4.9 billion in 2023, the market is projected to reach USD 14.7 billion by 2028, growing at a CAGR of 24.8%. This growth is fueled by rising emission levels, increasing fuel prices, and limited availability of petroleum, driving demand for zero-emission alternative fuel vehicles like electric two-wheelers​.

Implementing battery-swapping technology is a significant driver, addressing range anxiety among users and reducing the need for long charging times​​.

The e-scooter/moped segment is projected to be the largest during the forecast period, driven by lower initial prices and growing demand for affordable commuting​​. Asia Pacific is expected to hold the largest market share by 2028, driven by government initiatives and the increasing adoption of electric two-wheelers for short distance commuting​​.

Key market players include Yadea Technology Group Co., Ltd (China), Jiangsu Xinri E-Vehicle Co., Ltd (China), NIU International (China), Hero Electric (India), and Okinawa Autotech Internationall Private Limited (India), all of which are investing heavily in R&D to develop new products​.

Market Growth Insights: The electric two-wheeler market is growing at a CAGR of 24.8%, driven by increasing demand for zero-emission vehicles and technological advancements. Key players like Yadea, Jiangsu Xinri, NIU International, Hero Electric, and Okinawa Autotech are leading the charge with significant investments in R&D. Despite the opportunities presented by battery swapping technology and IoT integration, the market faces challenges such as high initial costs and limited range of electric vehicles​.

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Electric Scooter and Motorcycle Market

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2023
$14.7 BN
2028

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Implementing battery-swapping technology is a significant driver, addressing range anxiety among users and reducing the need for long charging times.

Asia Pacific is expected to hold the largest market share by 2028, driven by government initiatives

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