Increasing fuel prices, adoption of emission-free vehicles, and favourable government policies like subsidies & tax rebates are factors that drive growth for the adoption of electric scooters and motorcycle market, driving to account for 6.19 million units by 2027.
According to the new market research report -Electric Scooter and Motorcycle Marketby vehicle type, battery, distance, voltage, technology, usage, vehicle class and region - global forecast to 2027,published by MarketsandMarkets, the global Electric Scooter and Motorcycle Market size is expected to grow at a CAGR of 33.1% till 2027.
The research firm said that to attract and encourage people to buy electric two-wheelers, government bodies of different countries are introducing lucrative schemes and incentives that include formidable discounts, free electricity (initially), and free public charging stations.
Governments are also working with manufacturers to build charging and manufacturing facilities, exempting them from taxation. These factors are expected to drive the Electric Scooter and Motorcycle Market in the future.
The government across the globe has realised the potential of electric mobility that can offer multiple benefits in terms of prevention of environmental damage, reduction of global warming, and reduced dependence on oil-producing countries, which provides a tremendous reduction in import bills and helps in managing foreign exchange risks. These incentives offered by the governments will be critical in driving the market.
Europe is expected to be the second-largest market during the forecast, the report said.The Electric Scooter and Motorcycle Market in Europe is projected to be the second-largest during the forecast period. Belgium is estimated to be the largest market in Europe in 2022, and countries such as France, Italy and the Netherlands also offer enormous opportunities. Europe presents an ample growth opportunity for the Electric Scooter and Motorcycle Market as the regulations related to environmental issues have become stringent. These changes are propelling the market to test and develop electric two-wheelers, further increasing the demand for electric scooters and motorcycles.
Many European countries have pledged to increase EV penetration in the automobile market and reduce emissions in the next 15 years. Thus, there is a big opportunity for OEMs in the region.
Moreover, Europe is home to many leading electric two-wheeler manufacturing companies, such as Piaggio (Italy), Energica Motor Company (Italy), KTM (Austria), Silence (Spain), GOVECS (Germany), and Askoll (Italy).
Below 75 Miles Segment
According to MarketsandMarkets, the below 75 miles segment is estimated to dominate the global Electric Scooter and Motorcycle Market, as the majority of the electric scooters/mopeds have a range of up to 75 miles.
The Asia Pacific is estimated to be the largest market for the below 75 miles range in 2027 due to the dominance of electric scooters/mopeds over electric motorcycles, especially in China. These scooters/mopeds are used daily to commute and range below 75 miles on a single full charge. Yadea, NIU, and Xinri are major manufacturers of electric two-wheelers in China, providing electric scooters with a travelling range of below 75 miles. Hero Electric and Okinawa (India) offer electric scooters in this range. This range is most suited for electric scooters/mopeds, which are mainly popular in India and China.
Other than established players, there are new players across the globe which offer models such as Hero Electric Dash, Bounce Infinity E1, and TVS i- Qube. These are a few models that have a range of fewer than 75 miles on a single charge. There are newer models to be launched, including Hero Electric AE-8, Hero Electric AE-29, TVS Creon, etc. So, rising demand from the Asia Pacific and the availability of new models would play a key role in driving the demand for this market, the research firm noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Ampere.