|
Forecast Period
|
2025-2029
|
|
Market Size (2023)
|
USD 3.02 Billion
|
|
CAGR (2024-2029)
|
11.31%
|
|
Fastest Growing Segment
|
Electric Motorcycle
|
|
Largest Market
|
United State of America
|
|
Market Size (2029)
|
USD 5.71 Billion
|
Market
Overview
The
North America Electric Two-Wheeler Market was valued at USD 3.02 Billion in
2023 and is expected to reach USD 5.71 Billion by 2029 with a CAGR of 11.31%
during the forecast period.The
North America Electric Two-Wheeler Market is witnessing robust growth, driven
by increasing consumer preference for sustainable and cost-efficient mobility
solutions. Rising awareness of environmental issues and stringent government
regulations on carbon emissions have propelled the adoption of electric
two-wheelers, particularly among urban commuters. Technological advancements in
battery systems, including improved energy density, faster charging
capabilities, and extended life cycles, have enhanced vehicle performance and
reduced operational costs. These factors, combined with growing investments in
electric vehicle infrastructure, are making electric scooters and motorcycles a
practical alternative to conventional vehicles.
Trends
in the market highlight a shift towards innovative and user-friendly designs,
with manufacturers incorporating features like smart connectivity, regenerative
braking, and lightweight frames to improve user experience. The integration of
IoT and app-based controls in electric two-wheelers is gaining traction,
enabling riders to monitor battery health, range, and navigation in real-time.
The emergence of subscription-based ownership models and sharing services is
also contributing to market growth, particularly in urban areas with dense
populations. The focus on expanding charging networks and integrating renewable
energy sources into these systems is further solidifying the market's long-term
prospects.
The
positive outlook, the market faces challenges such as high initial costs
associated with electric two-wheelers and the lack of standardized charging
infrastructure. Limited range and extended charging times remain barriers to
mass adoption, particularly for long-distance commuters. However, ongoing
research and development efforts aimed at enhancing battery performance and
reducing costs are expected to address these issues. Competitive dynamics
within the industry are pushing manufacturers to differentiate their offerings,
fostering innovation and creating opportunities for new entrants. These
developments are shaping the future of the North America Electric Two-Wheeler
Market, making it a dynamic and evolving sector poised for significant growth.
Market
Drivers
Technological
Advancements in Battery Systems
The evolution
of battery technology is a primary driver of the North America Electric
Two-Wheeler Market. Innovations such as lithium-ion batteries with higher
energy densities, rapid charging capabilities, and extended lifespans have
significantly improved vehicle performance. These advancements have reduced
operational costs and addressed concerns around range anxiety, making electric
two-wheelers more appealing to consumers. Enhanced battery efficiency also
contributes to lower environmental impacts, aligning with the growing emphasis
on sustainability. For instance, in June 2024 Clean Electric, a Pune-based
developer of lithium-ion batteries, recently unveiled its revolutionary rapid
recharging battery technology. The new technology enables electric two- and
three-wheelers to be fully charged in approximately 12 minutes, a significant
improvement over the current charging time of 60 to 120 minutes. This
innovation is set to transform the electric mobility sector by offering faster,
more efficient charging solutions. Clean Electric's advancement underscores its
commitment to enhancing the convenience and adoption of electric vehicles.
Rising
Demand for Sustainable Urban Mobility
The push for
eco-friendly transportation solutions is reshaping urban mobility trends across
North America. Electric two-wheelers provide an efficient and sustainable
alternative to traditional fuel-based vehicles, especially for short-distance
commuting. Governments and municipalities are promoting adoption through
subsidies, tax incentives, and the development of charging infrastructure.
These initiatives, combined with rising environmental awareness, are driving a
shift towards cleaner, more sustainable mobility solutions.
Expansion of
Smart Connectivity Features
The integration
of smart features in electric two-wheelers is reshaping the consumer
experience. IoT-enabled systems and app-based connectivity offer riders
enhanced control over vehicle performance, such as monitoring battery levels,
tracking location, and managing diagnostics in real-time. These technological
advancements cater to the tech-savvy consumer base and boost the overall appeal
of electric two-wheelers. The focus on connectivity is also paving the way for
autonomous capabilities in the future, further driving market interest.
Key
Market Challenges
High
Initial Purchase Cost
A
significant challenge facing the North America Electric Two-Wheeler Market is
the high initial purchase cost of electric scooters and motorcycles compared to
their traditional internal combustion engine (ICE) counterparts. Despite the
lower operational and maintenance costs over the long term, the upfront price
of electric two-wheelers remains a major barrier for potential buyers. This is
largely due to the expensive battery systems, electric drivetrains, and
advanced technologies incorporated in these vehicles. Although government
incentives, rebates, and subsidies can help mitigate the price difference, the
initial investment remains a deterrent, especially for cost-conscious consumers
who are used to the relatively lower upfront costs of ICE vehicles. This issue
is further exacerbated for the mass adoption of electric two-wheelers in
lower-income regions and among budget-conscious buyers. For electric vehicles
to gain widespread acceptance, manufacturers and governments must continue to
work on reducing costs through economies of scale and innovations in battery
technology.
Insufficient
Charging Infrastructure
The
availability and accessibility of charging stations pose a significant
challenge to the adoption of electric two-wheelers in North America. Unlike
conventional fuel stations that are widespread across urban and rural areas,
charging infrastructure for electric vehicles is still limited, especially in
smaller cities and suburban regions. This lack of infrastructure creates a
barrier for potential electric two-wheeler buyers, who are concerned about
range anxiety — the fear that their vehicles will run out of battery before
reaching a charging station. While major cities like New York, Los Angeles, and
Toronto have made progress in expanding their electric vehicle infrastructure,
smaller towns and rural areas are still underserved. To encourage wider adoption
of electric two-wheelers, governments and private companies must invest in
expanding the charging network, ensuring more coverage, and reducing charging
times. Without a comprehensive and easily accessible charging infrastructure,
consumers may remain hesitant to fully embrace electric two-wheelers.
Limited
Range and Performance Issues
Another
challenge facing the electric two-wheeler market in North America is the
limited range and performance capabilities of certain models. While
advancements in battery technology have extended the range of electric
vehicles, many electric two-wheelers still face performance limitations
compared to their gasoline-powered counterparts. For daily commuters and
long-distance travellers, range anxiety is a critical issue, especially when
battery capacities are not sufficient for longer rides or when chargers are not
readily available. Electric motorcycles may struggle to offer the same power
output and top speed as their gasoline counterparts, limiting their appeal to
certain market segments. While improvements in battery technology are helping
address some of these concerns, many models still struggle to meet the diverse
needs of consumers who require more versatility in their vehicles. To fully
overcome these barriers, manufacturers must continue to focus on advancing
battery technologies, reducing charging time, and enhancing the performance
capabilities of electric two-wheelers to ensure they can meet the demands of
both short and long-distance riders.
Key
Market Trends
Growth of Electric Motorcycle
Segment
The electric motorcycle segment
is emerging as a significant trend in the North America Electric Two-Wheeler
Market. Increasing consumer interest in high-performance electric vehicles,
especially among younger riders and urban commuters, is driving this segment.
Electric motorcycles now offer improved acceleration, extended range, and
advanced battery technology, making them viable alternatives to traditional
motorcycles. Their appeal is further boosted by lower operational costs and the
availability of premium models catering to enthusiasts. The rising focus on
reducing greenhouse gas emissions has also made electric motorcycles a popular
choice for eco-conscious consumers.
Integration of Smart Features and
Connectivity
The adoption of IoT and advanced
connectivity features in electric two-wheelers is reshaping the market
landscape. Manufacturers are increasingly equipping vehicles with real-time
monitoring systems, GPS navigation, remote diagnostics, and app-based controls
to enhance user experience. These smart features allow riders to track
performance metrics, manage battery health, and access maintenance alerts,
improving convenience and reliability. This trend is particularly appealing to
tech-savvy consumers who prioritize modern, connected solutions. The emphasis
on connectivity is also paving the way for future innovations, such as
autonomous electric two-wheelers and integration with smart city
infrastructure. For example, in 2023 WardWizard recently unveiled its
high-speed electric scooter, the "MIHOS," featuring advanced
technology. The scooter is designed to offer enhanced performance, superior
speed, and efficiency, catering to the growing demand for high-performance
electric two-wheelers. With cutting-edge features and a sleek design, MIHOS
aims to set a new standard in the electric scooter market. The launch marks a
significant step for WardWizard in expanding its portfolio of innovative
electric mobility solutions.
Expansion of Electric Two-Wheeler
Sharing Services
Shared mobility services
featuring electric two-wheelers are gaining traction in urban areas across
North America. Companies offering electric scooters and bikes for short-term
rentals are capitalizing on the growing demand for affordable, eco-friendly transportation
options. This trend is driven by urbanization, traffic congestion, and an
increasing preference for sustainable travel. Electric two-wheeler sharing
services provide an economical alternative to car ownership and public
transport, encouraging adoption among city dwellers. The rise of
subscription-based ownership models further complements this trend, allowing
users to access electric two-wheelers without the financial commitment of
purchasing. These services are expected to play a pivotal role in the market’s
growth trajectory.
Segmental
Insights
The North America Electric Two-Wheeler
Market is segmented into two main vehicle types: scooters/mopeds and electric
motorcycles, each serving different consumer needs and preferences. Electric
scooters and mopeds are popular in urban areas, where short distance commuting
and ease of maneuverability are key considerations. These vehicles typically
feature smaller battery capacities and lower top speeds, making them ideal for
daily commutes in congested city environments. The compact design,
affordability, and ease of use make electric scooters and mopeds attractive to
city dwellers looking for a cost-effective and eco-friendly alternative to
traditional gasoline-powered vehicles. They are increasingly seen as a solution
to reduce urban traffic congestion and lower carbon emissions.
Electric motorcycles, on the other hand,
cater to consumers seeking higher performance and longer-range capabilities.
These vehicles are designed for riders who require more power, greater speed,
and extended travel distances, making them suitable for a variety of use cases,
including longer daily commutes and recreational riding. Electric motorcycles
are equipped with larger batteries and more advanced drivetrain systems that
provide enhanced performance, but they also come with a higher price point. As
consumer interest in more powerful electric two-wheelers rises, this segment is
attracting both motorcycle enthusiasts and those looking for an environmentally
friendly alternative to traditional motorcycles.
Both segments benefit from growing
awareness of sustainability, environmental concerns, and the push toward
reducing carbon footprints in transportation. Government incentives and
subsidies are also making electric two-wheelers more accessible to a wider
audience, though the specific incentives may vary for scooters/mopeds and
electric motorcycles. While electric scooters and mopeds are often favoured by
first-time electric vehicle users due to their lower price point and
suitability for short-distance travel, electric motorcycles appeal to more
experienced riders who demand higher performance and versatility. The market
for both types of electric two-wheelers is expected to evolve as advancements
in battery technology, charging infrastructure, and consumer education continue
to progress, leading to broader adoption across diverse customer segments.
Region Insights
In 2023, North America
dominated the Electric Two-Wheeler Market, driven by the United States. The
increasing demand for sustainable transportation, combined with strong
governmental incentives and support for electric vehicle adoption, fueled
growth across the region. The U.S. saw a rise in consumer awareness surrounding
environmental issues, leading to a shift toward cleaner, more eco-friendly
alternatives to traditional vehicles. Cities across the country are expanding
their charging infrastructure, making electric two-wheelers a more viable
option for urban and suburban commuters. The integration of electric
two-wheelers into the urban mobility ecosystem has been encouraged by both
private and public sectors, making them an attractive solution for reducing
traffic congestion and minimizing carbon footprints.
U.S. government policies
have played a crucial role in this expansion. Federal and state-level rebates,
tax incentives, and subsidies have made electric two-wheelers more affordable,
reducing the cost barrier for consumers. Urban areas, particularly large
cities, have witnessed growth in electric two-wheeler sharing services, which
provide users with easy access to electric scooters and motorcycles. These
shared services are part of the broader trend toward mobility as a service
(MaaS), where consumers prefer short-term vehicle access rather than ownership.
This trend has further propelled the adoption of electric two-wheelers,
particularly in metropolitan areas with high population density.
The technological
advancements in battery systems and electric drivetrains have also contributed
to the market's growth. Consumers now have access to electric scooters and
motorcycles that offer longer ranges, faster charging times, and improved
performance compared to earlier models. The push for reducing
transportation-related emissions and adopting more sustainable practices is
expected to continue driving the market, with North America remaining at the
forefront of this shift. As consumer demand for eco-friendly alternatives
increases, North America is set to remain the dominant region in the electric
two-wheeler market in the years to come.
Recent
Developments
- In March 2024, Motovolt recently unveiled its new
multi-utility e-scooter, the M7, developed using advanced German technology.
The e-scooter is designed to offer versatile functionality, catering to a wide
range of consumer needs. With a focus on performance and efficiency, the M7
aims to enhance the electric mobility experience. This launch marks a
significant step in Motovolt’s commitment to innovation and sustainable
transportation solutions.
- In December 2023, TAILG, a global leader in
electric two-wheelers, recently launched its advanced sodium-ion battery
technology in China, setting a new standard for the industry. The new
technology boasts exceptional long-range capabilities, extended warranties,
improved low-temperature resistance, and enhanced safety features. TAILG’s
luxury e-bikes will be the first models to incorporate this innovative battery,
initially available to consumers in China. This release marks a significant
milestone in the company’s commitment to advancing electric mobility solutions.
- In October 2024, Royal
Enfield recently announced the upcoming launch of its first-ever range of
electric bikes, marking a significant milestone in the company’s expansion into
the electric mobility sector. The new electric bikes are expected to combine
the brand’s signature style with advanced electric technology, catering to the
growing demand for sustainable transportation. This launch underscores Royal
Enfield's commitment to innovation and meeting the evolving needs of
eco-conscious consumers. The electric bike range is anticipated to be available
in select markets soon.
Key
Market Players
- KTM
AG
- Daymak
Inc.
- Rad
Power Bikes Inc.
- Motovolt
- Evoke
Electric Motorcycles (HK) Ltd.
- Zero
Motorcycles, Inc.
- Harley-Davidson,
Inc.
- Juiced
Bikes
- Gogoro
Inc.
- Ather
Energy Limited
|
By Vehicle
Type
|
By Battery
Type
|
By Range
Type
|
By Region
|
- Scooter/Moped
- Electric Motorcycle
|
|
- Less than 50 Km
- 51-100 Km
- Above 101 Km
|
- United
States
- Canada
- Mexico
|
Report Scope:
In this report,
the North America Electric Two-Wheeler Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
·
North America Electric Two-Wheeler Market, By Vehicle
Type:
o
Scooter/Moped
o
Electric Motorcycle
·
North America Electric Two-Wheeler Market, By Battery
Type:
o
Lead Acid
o
Li-ion
·
North America Electric Two-Wheeler Market, By Range
Type:
o
Less than 50 Km
o
51-100 Km
o
Above 101 Km
·
North America Electric Two-Wheeler Market, By Country:
o
United States
o
Canada
o
Mexico
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies presents in the North
America Electric Two-Wheeler Market.
Available
Customizations:
North America Electric
Two-Wheeler Market report with the given market data, Tech Sci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
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Two-Wheeler Market is an upcoming report to be released soon. If you wish an
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