Electric Scooter and Motorcycle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Electric Scooter & Motorcycle Market Analysis

The Electric Scooter and Motorcycle Market size is estimated at USD 1.10 billion in 2025, and is expected to reach USD 1.50 billion by 2030, at a CAGR of 6.43% during the forecast period (2025-2030).

The electric motorcycle industry is experiencing significant transformation through substantial investments and manufacturing expansions. Major industry players are actively scaling their operations to meet growing demand, as evidenced by Hero Electric's announcement in November 2022 to invest USD 312 million for expanding its production capacity to 4 million electric two-wheelers annually by 2026. This expansion trend is further reinforced by successful fundraising activities, such as Ather Energy securing USD 50 million in investment led by Caladium Investments in October 2022. These developments reflect the industry's robust growth trajectory and increasing investor confidence in the electric two-wheeler market.

Battery technology innovation has emerged as a crucial differentiator in the electric motorcycle market, with manufacturers focusing on developing advanced power solutions. Continental Engineering Services' strategic collaboration with battery specialist Varta has led to the development of a revolutionary 48-volt battery pack for electric two-wheelers, capable of delivering power exceeding 10 kW. This partnership exemplifies the industry's push toward enhanced battery performance, with the new technology enabling doubled range capabilities up to 100 km through multiple battery connectivity options. The advancement in battery management systems has become a key focus area, driving improvements in vehicle range and performance capabilities.

Manufacturing capabilities are evolving rapidly with companies investing in integrated production facilities. Companies like Ola Electric are vertically integrating their operations by establishing dedicated cell manufacturing facilities for their Li-ion batteries, demonstrating the industry's move toward self-sufficiency in critical components. The trend toward localized production is gaining momentum as manufacturers seek to optimize their supply chains and reduce dependence on imports, particularly in key markets across Asia-Pacific and Europe.

The electric scooter industry is witnessing a significant shift in battery technology development, with companies introducing innovative solutions to address range and charging limitations. Log 9's introduction of new battery technology capable of achieving full charge in 15 minutes, with a claimed effective life of 15 years, represents a significant advancement in addressing consumer concerns about charging time and battery longevity. Zero Motorcycles' development of new battery architecture offering 20% additional capacity while reducing weight by 6 lbs demonstrates the industry's commitment to continuous innovation in power storage solutions, focusing on both performance and efficiency improvements.

Electric Scooter & Motorcycle Market Trends

Increasing Demand for Lightweight, Technologically Advanced, and Energy-Efficient Vehicles

The rising demand for technologically advanced and energy-efficient vehicles is primarily driven by continuous innovations in battery technology and vehicle design. Manufacturers are focusing on developing lightweight materials and advanced battery systems to improve vehicle performance and efficiency. For instance, Continental Engineering Services collaborated with battery specialist Varta in 2023 to develop a 48-volt battery pack for electric motorcycles and scooters with power exceeding 10 kW. This innovative battery pack features V4Drive high-performance cell technology, offering benefits such as fast charging capability, low-temperature resistance, and compact design. The battery can be easily detached for external charging, and multiple packs can be connected to double the range to 100 km.

The industry is witnessing significant investments in charging infrastructure and battery technology development. Companies like Bolt have invested over EUR 150 million in 2023 to expand their electric bike and scooter fleet across European cities, while London-based Dott secured USD 70 million for fleet expansion and service enhancement. These investments are complemented by innovations in battery technology, such as Log 9's rapid charging battery that can achieve full charge in 15 minutes and offers an effective life of 15 years. The integration of smart features and improved aesthetics through design innovation and lightweight materials like carbon fiber is further driving consumer interest in electric motorcycles and scooters, making them more appealing for daily commuting and last-mile delivery services.

Evolving Emission Regulations Driving Market Demand

Governments worldwide are implementing increasingly stringent emission regulations and providing incentives to accelerate the transition to electric mobility. The European Union's "Fit for 55" program aims to reduce net greenhouse gas emissions by at least 55% by 2030, while the US Department of Transportation has set a 50% EV target for 2030. These regulations are complemented by substantial incentives and support programs. For example, Taiwan has implemented subsidies of up to USD 900-1,000 for new electric motorcycle and scooter purchases, which has resulted in electric scooters capturing 11.9% of the total scooter market in 2021, with ambitious plans to increase this share to 70% by 2035.

The regulatory landscape is further strengthened by specific timelines for phasing out internal combustion engines. Indonesia has announced plans to outlaw the sale of internal combustion engine motorcycles by 2050, while Singapore has committed to phasing out internal combustion engine vehicles by 2040. These regulations are supported by comprehensive infrastructure development initiatives, such as the British government's legislation requiring all newly built homes and offices to include electric vehicle charging facilities. The combination of regulatory pressure and infrastructure development has encouraged major manufacturers to invest in the electric two-wheeler market, with companies like Amazon India partnering with TVS Motor Co. to induct 1,000 electric two and three-wheelers by 2025 for their last-mile delivery operations.

Segment Analysis: By Vehicle Type

E-Scooters Segment in Electric Scooter and Motorcycle Market

The e-scooters segment dominates the global electric scooter and motorcycle market, commanding approximately 96% market share in 2024, with a market value of over USD 16 billion. This overwhelming market dominance can be attributed to several factors, including the lower upfront costs compared to e-motorcycles and the wider availability of models providing diverse options for consumers. The segment's popularity is particularly evident in urban areas where e-scooters serve as an efficient solution for last-mile connectivity and short-distance commuting. The success of e-scooters has attracted significant investment from both established automotive manufacturers and new startups, leading to continuous innovation in battery technology, design, and features. The segment has also benefited from supportive government policies and incentives across various regions, particularly in Asia-Pacific countries where urbanization and environmental concerns drive adoption.

E-Motorcycles Segment in Electric Scooter and Motorcycle Market

The e-motorcycles segment represents an emerging opportunity in the electric two-wheeler market, with manufacturers focusing on developing high-performance models that can compete with traditional motorcycles. The segment is witnessing increased innovation in battery technology and power delivery systems, with many companies introducing models featuring extended range capabilities and faster charging times. Major motorcycle manufacturers are investing heavily in electric motorcycle scooter development, recognizing the growing consumer demand for sustainable transportation options that don't compromise on performance. The segment is particularly gaining traction in developed markets where consumers are increasingly looking for powerful, zero-emission alternatives to conventional motorcycles. Recent advancements in motor efficiency and battery management systems have significantly improved the performance capabilities of e-motorcycles, making them more appealing to traditional motorcycle enthusiasts.

Segment Analysis: By Battery Type

Lithium-ion Segment in Electric Scooter and Motorcycle Market

The lithium-ion battery segment dominates the electric scooter and motorcycle market, commanding approximately 99% of the market share in 2024. This overwhelming dominance can be attributed to several key advantages that lithium-ion batteries offer over other battery types. These batteries significantly reduce maintenance and replacement costs over time, maintaining around 75% efficiency even after 3 years of use or 800 cycles, compared to other battery types that show much faster degradation. The introduction of advanced battery management systems has further enhanced the longevity and performance of lithium-ion batteries by monitoring performance metrics and detecting potential faults early. The segment's growth is also being driven by continuous innovations in battery technology, including the development of lightweight cells, enhanced safety features, and significant improvements in power delivery capabilities. Major manufacturers are increasingly focusing on lithium-ion batteries due to their superior performance characteristics, including shorter charging times, higher energy density, and better overall efficiency.

Sealed Lead Acid Segment in Electric Scooter and Motorcycle Market

The sealed lead acid battery segment represents a smaller but still significant portion of the electric scooter and motorcycle market, particularly in developing nations where cost considerations play a crucial role in purchase decisions. Despite their limitations in terms of range and performance compared to lithium-ion batteries, sealed lead acid batteries continue to maintain a presence in certain market segments due to their lower initial cost. However, environmental concerns regarding lead exposure during the manufacturing and recycling processes, combined with the growing focus on sustainability and performance, have led many manufacturers to phase out sealed lead acid batteries in favor of more advanced battery technologies. The segment's market presence is primarily sustained in regions where price sensitivity outweighs performance considerations, though this dynamic is gradually shifting as lithium-ion battery costs continue to decrease and environmental regulations become more stringent.

Electric Scooter and Motorcycle Market Geography Segment Analysis

Electric Scooter and Motorcycle Market in North America

The North American electric scooter market and electric motorcycle market are experiencing growing adoption of electric two-wheelers, driven by increasing environmental consciousness and supportive government policies. The United States and Canada represent the key markets in this region, with both countries showing significant developments in charging infrastructure and consumer acceptance. Federal and state-level incentives, including tax benefits and rebates, play a crucial role in accelerating market growth. The region is also witnessing increased participation from both established automotive manufacturers and innovative startups, contributing to a diverse product portfolio ranging from urban commuter scooters to high-performance electric motorcycles.

Electric Scooter and Motorcycle Market in United States

The United States leads the North American market with approximately 87% market share in 2024. The country's market is characterized by a strong presence of premium electric motorcycle manufacturers and a growing network of charging infrastructure. Federal tax credits covering up to 10% of purchase prices on new zero-emission motorcycles have significantly boosted electric motorcycle sales. Major cities are increasingly embracing electric two-wheelers as sustainable urban mobility solutions, with several municipalities implementing dedicated lanes and parking spaces. The market is also benefiting from rising fuel prices and growing environmental awareness among younger consumers who prefer sustainable transportation options.

Electric Scooter and Motorcycle Market Growth Trends in United States

The United States is experiencing the fastest growth in North America, with an expected CAGR of approximately 20% during 2024-2029. This rapid growth is attributed to increasing investments in electric vehicle infrastructure, technological advancements in battery technology, and growing consumer preference for eco-friendly transportation options. The country's robust charging infrastructure development, coupled with state-level initiatives promoting electric vehicle adoption, is creating favorable conditions for market expansion. The presence of multiple manufacturers offering diverse product ranges, from urban commuter scooters to high-performance motorcycles, is further driving market growth.

Electric Scooter and Motorcycle Market in Europe

The European electric scooter and motorcycle market is characterized by strong environmental regulations and comprehensive support for electric mobility solutions. Key markets include Germany, the United Kingdom, and France, each with distinct characteristics and growth patterns. The region benefits from well-developed charging infrastructure and strong government support through incentives and subsidies. Urban mobility challenges and increasing environmental consciousness among European consumers are driving the adoption of electric two-wheelers. The market is also seeing increased participation from both traditional motorcycle manufacturers and new electric vehicle startups.

Electric Scooter and Motorcycle Market in France

France dominates the European market with approximately 16% market share in 2024. The country's leadership position is supported by strong government initiatives promoting electric mobility and well-developed urban infrastructure suitable for electric two-wheelers. French cities have been particularly proactive in developing dedicated lanes and charging stations for electric vehicles. The market benefits from a combination of environmental consciousness among consumers and practical urban mobility needs. Local manufacturers and international brands are actively expanding their presence in the French market, offering a wide range of products from urban scooters to high-performance motorcycles.

Electric Scooter and Motorcycle Market Growth Trends in France

France is experiencing the highest growth rate in Europe, with an expected CAGR of approximately 21% during 2024-2029. The country's rapid market expansion is driven by strong government support, including substantial incentives for electric vehicle purchases and investments in charging infrastructure. Urban mobility challenges in major French cities are encouraging the adoption of electric two-wheelers as a sustainable transportation solution. The market is also benefiting from increasing environmental awareness and the presence of innovative mobility service providers offering electric two-wheeler sharing services.

Electric Scooter and Motorcycle Market in Asia-Pacific

The Asia-Pacific region represents the largest market for electric scooters and motorcycles globally, with diverse market dynamics across countries including China, India, Japan, and South Korea. The region benefits from strong manufacturing capabilities, established supply chains, and high consumer acceptance of two-wheelers as primary transportation modes. Government initiatives promoting electric mobility, particularly in urban areas, are driving market growth. The region also leads in battery technology development and production, giving it a competitive advantage in the global market.

Electric Scooter and Motorcycle Market in China

China maintains its position as the dominant force in the Asia-Pacific electric scooter and motorcycle market. The country's leadership is supported by extensive manufacturing capabilities, strong supply chain networks, and significant government support for electric mobility. Chinese cities have widely adopted electric two-wheelers as a primary mode of urban transportation, supported by well-developed charging infrastructure. The market benefits from the presence of numerous domestic manufacturers offering a wide range of products at competitive prices, while also serving as a major export hub for electric two-wheelers globally.

Electric Scooter and Motorcycle Market Growth Trends in India

India emerges as the fastest-growing market in the Asia-Pacific region, driven by rapid urbanization and increasing demand for affordable electric mobility solutions. The country's growth is supported by government initiatives promoting electric vehicle adoption, including substantial subsidies and tax benefits under various schemes. Major domestic and international manufacturers are establishing production facilities in India, attracted by the market's growth potential. The country is also witnessing significant investments in charging infrastructure and battery technology development, creating a conducive environment for market expansion. The electric scooter market share in India is expected to grow significantly, reflecting the country's increasing preference for sustainable transportation.

Electric Scooter and Motorcycle Market in Rest of the World

The Rest of the World market, encompassing South America and the Middle East & Africa, shows emerging potential for electric scooters and motorcycles. These regions are gradually adopting electric two-wheelers, driven by increasing urbanization and growing environmental awareness. While the market is still in its early stages compared to other regions, government initiatives and private sector investments are creating opportunities for growth. In South America, Brazil emerges as the largest market, while in the Middle East & Africa, South Africa leads in terms of market size. The regions are witnessing increasing interest from international manufacturers and growing investments in charging infrastructure, setting the stage for future market expansion.