North America Electric Two-Wheeler Market By Vehicle Type (Scooter/Moped, Electric Motorcycle), By Battery Type (Lead Acid, Li-ion), By Range Type (Less than 50 Km, 51- 100 Km, above 101 Km), By Country, Competition, Forecast & Opportunities, 2019-2029F

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

Based on vehicle type, In the North America electric two-wheeler market, scooters/mopeds lead as the dominant segment, outperforming electric motorcycles in terms of adoption and market share. This leadership is driven by their affordability, practicality, and suitability for short-distance urban commuting. Electric scooters and mopeds cater primarily to city dwellers, who prioritize cost-effective and eco-friendly solutions to navigate traffic congestion and reduce commuting time. Their compact design and ease of use make them ideal for individuals seeking convenient transportation options, especially in densely populated urban areas. Another factor contributing to the prominence of electric scooters/mopeds is their lower initial cost compared to electric motorcycles. These vehicles typically require less powerful batteries, translating to reduced production costs, which makes them accessible to a broader audience, including students, young professionals, and budget-conscious consumers. Additionally, the operational simplicity of scooters, such as automatic transmissions, attracts first-time users and those less experienced with two-wheelers.

Scooters/mopeds also benefit from advancements in battery technology, which have improved range and reduced charging times, addressing earlier limitations. Their versatility has made them a popular choice for last-mile delivery services, which are increasingly opting for electric two-wheelers to reduce operational costs and meet sustainability goals. This trend further strengthens their market position. In contrast, electric motorcycles primarily target a niche market of enthusiasts and long-distance riders. While they offer higher speeds and greater performance, their higher costs and less frequent applicability to urban commuting have limited their adoption. As a result, electric motorcycles currently cater to a smaller, premium consumer base. With urbanization on the rise and a growing emphasis on sustainable, cost-effective mobility, electric scooters and mopeds are expected to maintain their leadership in the North America electric two-wheeler market, driven by their practicality and affordability.

In the North America electric two-wheeler market, the United States stands out as the leading country, driving the majority of adoption and innovation in the region. This dominance is fueled by several key factors, including a robust economy, growing environmental awareness, and a strong focus on developing sustainable transportation infrastructure. The U.S. has witnessed significant investments in electric vehicle technology, including two-wheelers, as both private companies and government bodies push for a cleaner transportation future. Federal incentives, tax credits, and state-level policies promoting electric vehicles have further encouraged the adoption of electric two-wheelers. Urban areas in the U.S., such as New York City, Los Angeles, and San Francisco, are at the forefront of this growth. These densely populated cities face challenges like traffic congestion and air pollution, making electric scooters and mopeds particularly attractive for short-distance commuting and last-mile delivery services. Shared mobility platforms and delivery companies in these urban centers are increasingly integrating electric two-wheelers into their fleets to lower operational costs and meet sustainability goals. The U.S. benefits from a burgeoning startup ecosystem and the presence of global electric vehicle manufacturers. Companies are focusing on innovative designs, advanced features such as IoT connectivity, and battery improvements to cater to a tech-savvy and environmentally conscious consumer base. The availability of charging infrastructure, though still developing, is more advanced in the U.S. compared to other countries in the region, further supporting market growth. While Canada and Mexico also contribute to the regional market, their adoption rates are comparatively lower due to factors such as harsher climatic conditions and less widespread charging infrastructure. As a result, the U.S. remains the primary growth engine for the electric two-wheeler market in North America, setting trends and influencing the country outlook..

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 irst-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 Sportmotorcycle GmbH
• Daymak Inc.
• Rad Power Bikes Inc.
• Motovolt
• Evoke Electric Motorcycles (HK) Ltd.
• Zero Motorcycles, Inc.
• Harley-­Davidson, Inc.
• Juiced Riders, Inc.
• Gogoro Inc.
• Ather Energy Limited

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, TechSci 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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