Electric Two-Wheeler Market to Grow with a CAGR of 13.09% in ASEAN through to 2029

Increasing urbanization and traffic congestion, leading to a rising demand for eco-friendly and efficient urban mobility solutions, coupled with government incentives and initiatives promoting electric vehicles and expanding middle-class population are the factors driving the ASEAN Electric Two-Wheeler Market in the forecast period 2025-2029.

According to TechSci Research report, “ASEAN Electric Two-Wheeler Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029”, the ASEAN Electric Two-Wheeler Market stood at USD 954.65 Million in 2023 and is anticipated to grow with a CAGR of 13.09% in the forecast period, 2025-2029. The ASEAN electric two-wheeler market is experiencing rapid growth and transformation, driven by a convergence of factors including urbanization, environmental concerns, technological advancements, and government initiatives. Spanning across ten diverse member countries, ASEAN presents a dynamic landscape for electric two-wheelers, with unique challenges and opportunities in each market. In this comprehensive overview, we will delve into the dynamics of the ASEAN electric two-wheeler market, examining the key drivers, challenges, market trends, and future prospects.

Urbanization is a defining trend across the ASEAN region, with a significant portion of the population residing in densely populated urban areas. As cities expand and populations swell, so do challenges related to transportation and mobility. Traffic congestion, air pollution, and limited access to public transit are pressing issues in major cities across ASEAN, impacting quality of life and economic productivity. Electric two-wheelers offer a promising solution to these challenges, providing a cost-effective, efficient, and environmentally friendly mode of transportation for urban commuters. With their agility and compact size, electric scooters and motorcycles are well-suited to navigate congested city streets, offering a viable alternative to traditional gasoline-powered vehicles.

Government policies and incentives play a crucial role in shaping the adoption of electric vehicles, including two-wheelers, across ASEAN. Recognizing the importance of reducing greenhouse gas emissions and improving air quality, governments have implemented various measures to promote electric vehicle adoption. These measures include tax incentives, subsidies, rebates, and exemptions for electric vehicles. For example, countries like Indonesia, Thailand, and Malaysia offer tax breaks and incentives to manufacturers and consumers to encourage the production and purchase of electric vehicles. Additionally, initiatives such as the Singapore Green Plan 2030 and the Philippines' Electric Vehicle Roadmap aim to accelerate the adoption of electric vehicles, including two-wheelers, as part of broader sustainability and environmental goals.

Technological advancements in battery technology have been instrumental in driving the adoption of electric two-wheelers across ASEAN. Lithium-ion batteries, in particular, have undergone significant improvements in energy density, charging efficiency, and cost reduction, making them the preferred choice for electric vehicle manufacturers. These advancements have led to longer ranges, faster charging times, and improved performance for electric two-wheelers, addressing concerns related to range anxiety and charging infrastructure. Additionally, advancements in electric motor technology, regenerative braking systems, and lightweight materials have further enhanced the efficiency and performance of electric two-wheelers, making them increasingly competitive with their internal combustion engine counterparts.

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The availability of charging infrastructure is critical to the widespread adoption of electric two-wheelers in ASEAN. Governments, private stakeholders, and electric utility companies are investing in the development of charging infrastructure to support the growing fleet of electric vehicles. Charging stations are being installed in urban areas, commercial centers, and along major transportation corridors to provide convenient access to charging facilities for electric two-wheeler users. Moreover, innovative solutions such as battery swapping stations and mobile charging units are being explored to address the challenges of charging infrastructure deployment in densely populated urban areas. Collaborative efforts between governments, industry players, and electric utility companies are essential to accelerate the deployment of charging infrastructure and facilitate the transition to electric mobility in ASEAN.

The commercial sector, particularly delivery and logistics companies, is increasingly adopting electric two-wheelers for last-mile delivery services across ASEAN. With the rapid growth of e-commerce and online shopping, there is a growing demand for efficient and environmentally friendly delivery solutions. Electric two-wheelers offer several advantages for last-mile delivery, including lower operating costs, reduced maintenance requirements, and zero emissions. Companies like Grab, Gojek, and Ninja Van are deploying electric scooters and motorcycles for food delivery, parcel delivery, and courier services in urban areas across ASEAN. Moreover, governments are incentivizing the adoption of electric delivery vehicles through subsidies, tax incentives, and preferential treatment in urban delivery zones, further driving the adoption of electric two-wheelers in the commercial sector.

Despite the promising prospects, the adoption of electric two-wheelers in ASEAN faces several challenges and barriers. Limited awareness and understanding of electric vehicles, concerns about battery range and charging infrastructure, and the high upfront cost of electric two-wheelers are among the key challenges hindering widespread adoption. Moreover, the lack of supportive policies, regulatory frameworks, and standardized charging infrastructure pose additional barriers to market growth. Addressing these challenges will require concerted efforts from governments, industry stakeholders, and the public to foster awareness, enhance infrastructure, and incentivize adoption. Collaboration between governments, industry players, electric utility companies, and other stakeholders will be essential to overcome these barriers and realize the full potential of electric two-wheelers in ASEAN.

Looking ahead, the future outlook for the ASEAN electric two-wheeler market is promising, driven by continued urbanization, governmental support, technological advancements, and shifting consumer preferences. As awareness grows, infrastructure improves, and consumer preferences evolve, electric two-wheelers are poised to play a central role in shaping the future of mobility in ASEAN. With the right policies, investments, and collaborations, the ASEAN electric two-wheeler market has the potential to revolutionize urban transportation, reduce emissions, and enhance the quality of life for millions of people across the region. Continued innovation, research, and development in battery technology, charging infrastructure, and electric vehicle manufacturing will be essential to unlock the full potential of electric two-wheelers and accelerate the transition to sustainable mobility in ASEAN.

Major companies operating in ASEAN Electric Two-Wheeler Market are:

• Zero Motorcycles Inc.
• Hero Electric Vehicles Pvt. Ltd
• Vmoto Limited
• AIMA Technology Group Co. Ltd
• Dongguan Tailing Electric Vehicle Co. Ltd
• Piaggio & C. SpA
• Ather Energy Pvt. Ltd
• Energica Motor Company
• Honda Motor Co. Ltd
• Gogoro Inc.   

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“The ASEAN Electric Two-Wheeler Market is witnessing remarkable growth and transformation driven by shifting consumer preferences, urbanization, and environmental awareness. With the region's rapidly growing urban centers and mounting traffic congestion, electric scooters and motorcycles are becoming favored modes of eco-friendly and cost-effective urban transportation. Government initiatives promoting green mobility further boost the market. The affordability and efficiency of electric two-wheelers make them a practical choice for daily commuting, appealing to a diverse consumer base. The market's expansion is also facilitated by the emergence of local manufacturing, offering consumers a range of options tailored to their specific needs.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“ASEAN Electric Two-Wheeler Market Segmented By Vehicle Type (Scooter/Moped, Motorcycle), By Battery Type (Lead Acid and Li-ion), By Battery Capacity (<25 Ah and >25 Ah), By Range (Less than 50 Km, 50–100 Km, 101–150 Km, Above 150 Km), By Country, Competition, Forecast & Opportunities,”, has evaluated the future growth potential of ASEAN Electric Two-Wheeler Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in ASEAN Electric Two-Wheeler Market.

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