The market for electric two-wheelers is changing quickly as manufacturers and consumers support the movement toward more environmentally friendly modes of transportation. Electric two-wheelers are becoming a more appealing option to conventional gasoline-powered cars as environmental concerns and urban mobility demands change. The transition to cleaner, more efficient forms of transportation is being accelerated by advancements in battery technology, government incentives, and rising consumer awareness. This market is anticipated to expand significantly by 2025 as electric two-wheelers become a crucial component of urban mobility.
A Rapidly Growing Market
Persistence Market Research projects that by 2024, the global market for electric two-wheelers would be worth US$ 19.6 billion. Over the course of the projection period, it is expected to increase at a compound annual growth rate (CAGR) of 11.6%, reaching a market size of US$58.6 billion by 2031. This increase reflects the growing trend toward electric mobility as businesses and consumers look for more affordable, environmentally friendly alternatives to conventional forms of transportation.
This remarkable market expansion is being driven by a number of important causes, with trends and developments significantly influencing the electric two-wheeler environment. In 2025 and beyond, the market is anticipated to be dominated by a few key trends.
1. Improved Battery Technology
Developments in battery technology are among the key elements impacting the market for electric two-wheelers. Since electric vehicles (EVs) are only as good as their batteries, advancements in battery capacity and cost-effectiveness have a significant impact on the performance, range, and general affordability of electric two-wheelers.
Lithium-ion batteries have dominated the market in recent years because of their efficiency, energy density, and falling costs. The performance and range of electric two-wheelers could be further enhanced by continued research into alternate battery technologies, such as solid-state and lithium-sulfur batteries. These batteries are perfect for two-wheeled vehicles because they can store more energy in a lighter and more compact design.
The cost of producing and acquiring electric two-wheelers will continue to decline as battery technology advances, opening up the market to a larger spectrum of buyers. Customers may anticipate improved energy management systems, quicker charging times, and longer battery life by 2025, which will increase the allure of electric two-wheelers even more.
2. Government Incentives and Policies
The market for electric two-wheelers has grown significantly thanks in large part to government funding. In an attempt to lower carbon emissions and fight climate change, numerous nations are putting laws and incentives in place to promote the use of electric vehicles (EVs).
In an attempt to lower the cost of electric two-wheelers and incentivize manufacturers to invest in EV technology, governments are providing grants, tax breaks, and subsidies to both users and manufacturers. To encourage the use of electric two-wheelers, many communities are investing in the construction of EV infrastructure, like as charging stations, in addition to offering financial incentives.
For example, electric two-wheelers are viewed as a way to alleviate traffic congestion and lower air quality problems in nations like China and India where pollution is a significant problem. Government programs are anticipated to keep boosting the market for electric two-wheelers by 2025, increasing adoption rates and facilitating the shift to more environmentally friendly modes of transportation.
3. Urban Mobility and Traffic Congestion
Unprecedented levels of traffic congestion are plaguing urban regions worldwide, resulting in inefficiency, pollution, and longer commutes. Conventional automobiles are less appropriate for contemporary urban settings since they frequently exacerbate these problems. However, electric two-wheelers provide a special remedy for this issue.
Electric two-wheelers are perfect for short-distance travel because of their agility and compact size, which allow them to maneuver through congested city streets. They also need less parking space, which makes them a desirable choice for customers who live in crowded cities. Electric two-wheelers are gaining popularity as a practical, effective, and eco-friendly substitute for cars and motorbikes as cities continue to expand.
The market for electric two-wheelers will continue to be shaped by the need for urban mobility solutions and the rising demand for last-mile connectivity by 2025. The use of electric two-wheelers in cities will also increase due to ride-sharing services, which are already starting to add them to their fleets.
4. Cost-Effectiveness and Low Operating Costs
The fact that electric two-wheelers are less expensive to operate than conventional cars is one of their main benefits. Because they have fewer moving parts and simpler mechanics than gasoline-powered motorbikes, electric two-wheelers are far less expensive to operate and repair. Electric two-wheelers are a more economical choice for daily commutes because power is significantly less expensive than gasoline.
Government incentives and subsidies are also available for electric two-wheelers, which lowers the initial cost of buying these vehicles. The cost of electric two-wheelers will become even more competitive with that of conventional motorbikes and scooters as production increases and battery costs continue to decline.
Customers will be more aware of the long-term financial advantages of owning an electric two-wheeler by 2025, especially as more accessible and reasonably priced energy-efficient models become available.
5. Design Innovations and Performance Improvements
The market for electric two-wheelers is expanding as a result of design advances that improve the vehicles’ overall performance and appeal in addition to developments in battery and motor technology. Electric two-wheelers that are lighter, more aerodynamic, faster, and have a longer range are being developed by manufacturers.
Along with increased performance, electric two-wheelers are also become more fashionable and adaptable. To appeal to a wider range of consumers, manufacturers are using streamlined designs, clever features, and improved safety systems. Electric two-wheelers are becoming increasingly technologically sophisticated and user-friendly with features like GPS navigation, smartphone connectivity, sophisticated braking systems, and integrated lighting.
Expect to see a wider range of electric two-wheelers on the market by 2025, from high-performance electric motorcycles to electric scooters, each designed to satisfy the demands and tastes of distinct customer segments.
6. Rise of Shared Mobility Services
Electric two-wheelers are becoming more and more significant in the transformation of urban transportation brought about by shared mobility services. Electric scooters have already been brought to cities by ride-sharing services like Lime, Bird, and others, and this trend is predicted to grow over the next several years.
Due to their ease of use, compact size, and environmental friendliness, electric two-wheelers are perfect for shared mobility services. Electric two-wheelers will grow in popularity as shared mobility becomes more common among consumers looking for convenient, reasonably priced, and short-term transportation solutions.
Electric two-wheelers will probably continue to be incorporated into shared mobility fleets by 2025 as more people use these services for urban commuting and last-mile connection.
Conclusion
The market for electric two-wheelers is expected to grow significantly by 2025, and factors like advancements in battery technology, government assistance, the need for urban mobility, affordability, design advancements, and the emergence of shared mobility services will all have a significant impact on how the market develops in the future. Electric two-wheelers will continue to grow in favor among consumers looking for convenient and environmentally friendly transportation solutions as they become more effective, reasonably priced, and widely available.
The electric two-wheeler industry is anticipated to grow at a compound annual growth rate (CAGR) of 11.6% to reach a size of US$58.6 billion by 2031, which would be a major milestone in the shift to a more sustainable and greener future. Electric two-wheelers will play a crucial role in the global transportation ecology as these trends develop further, providing a more effective and environmentally friendly alternative to urban mobility challenges.
