Electric Scooter and Motorcycle Market Size

Electric Scooter & Motorcycle Market Analysis

The Electric Scooter and Motorcycle Market size is estimated at USD 1.03 billion in 2024, and is expected to reach USD 1.40 billion by 2029, growing at a CAGR of 6.43% during the forecast period (2024-2029).

The COVID-19 pandemic had a negative impact on the electric scooter and motorcycle market. The global lockdown restrictions halted the production and sales of new vehicles, including electric scooters and motorcycles.

Also, due to disruptions in the supply chain, the raw materials required to produce different parts of the scooters and motorcycles were unavailable, causing production delays. However, with the growing inclination toward cleaner mobility worldwide, the market is looking forward to an economic revival post the COVID-19 pandemic. Furthermore, the fall in automotive production and lack of labor significantly impacted the market. As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. In addition, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry. 

Over the long term, the market growth is primarily due to the growing need for sustainable transportation. Increasing environmental concerns and favorable government initiatives are some of the major factors driving the market's growth. Rising energy costs and competition among emerging energy-efficient technologies are also expected to fuel the market's growth.

The Asia-Pacific region is expected to dominate the market owing to growing awareness about the environmental benefits of electric vehicles and increasing petrol and diesel prices across the region. Moreover, government initiatives related to e-mobility are expected to further increase regional demand during the forecast period.

The market is also anticipated to be driven by capacity expansions by key players and startup fundraising. For instance

• November, 2022 : Hero Electric Ltd. announced to invest INR 2600 crore (USD 312 million) to expand its production capacity to 4 million electric two-wheelers per annum by 2026, which includes setting up a manufacturing facility in the state of Rajasthan in India.
• October, 2022 : Bengaluru-based Indian electric two-wheeler manufacturer Ather Energy announced that it had raised USD 50 million in an investment round led by Caladium Investments. The investment round also included participation from Herald Square Ventures.