Electric Two-Wheeler Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Geography Analysis

The Asia Pacific region commanded 66.08% of the global volume in 2025, accounting for the majority of the total volume. This was largely driven by China's significant installed base and India's notable sales in 2024. While China's market showed signs of maturation with modest growth in 2024, it led industry leaders like Yadea to pivot, redirecting a portion of their production towards exports by mid-2025. On the other hand, buoyed by FAME-II incentives and state-level top-ups that substantially reduced purchase prices, India witnessed robust expansion in 2024. Southeast Asian countries, notably Indonesia, Vietnam, and Thailand, have set their sights on achieving a substantial number of electric two-wheelers by 2030, driven by domestic-assembly mandates aimed at safeguarding local jobs.

Europe, holding a significant share in 2025, is grappling with momentum dampened by subsidy rollbacks. A halt to Germany’s Umweltbonus in late 2023 led to a notable decline in registrations during the early months of 2024. Meanwhile, France’s reduction in bonuses shrank the market considerably. The UK mandates compliance with a zero-emission quota, yet consumer enthusiasm lags. However, the Netherlands and Spain shine brighter, buoyed by urban designs favoring cycling and supportive EV policies. Notably, Amsterdam's ban on petrol scooters propelled electric vehicles to a dominant share of new registrations in 2025.

North America, the Middle East, and Africa each contributed a small portion to the 2025 volume, yet their trajectories diverged. In the U.S., adoption leans heavily towards recreational use, with LiveWire and Zero managing modest unit sales in 2024. In Canada, a rebate is spurring sales in British Columbia and Quebec, though cold weather-induced range losses cast a shadow on resale values. The Middle East and Africa offer the fastest regional CAGR at 11.65% amid Saudi and UAE government fleet targets. South Africa’s off-peak charging tariff, set at ZAR 0.90 per kWh, encourages adoption, though load-shedding disrupts reliability. Brazil and Argentina remain subscale, limited by import duties and scant local assembly, but Brazil’s Rota 2030 is opening IPI tax relief for domestically built units.

Segment Analysis

By Vehicle Type: Scooters Retain Scale, Motorcycles Capture Performance-Minded Buyers

Scooters dominated the electric two-wheeler market with 94.71% of global volume in 2025. Their step-through design, under-seat storage, and lightweight frames suit congested urban trips and courier stops. Delivery platforms prefer scooters because riders can mount and dismount quickly, lowering service times. Motorcycles, although a residual share, are expanding at 11.61% CAGR as performance-oriented riders seek highway-legal speed ceilings and aggressive styling. Revolt’s RV400 and Emflux’s liquid-cooled ONE exemplify this transition toward higher power figures.

Momentum around motorcycles suggests a bifurcation of the electric two-wheeler market. Mass-market adoption will remain scooter-centric through 2031; however, premium customers are willing to pay for acceleration under four seconds and 100 km-plus real-world range. Brands with combustion heritage in sport and touring categories hold latent brand equity that they can leverage once battery cost curves allow. Conversely, scooter incumbents risk losing aspirational buyers unless they extend line-ups into motorcycle silhouettes. Segment innovation, therefore, revolves around expanding form factors rather than incremental range gains.

By Motor Power: Mid-Range Dominates, High-Power Gains Traction

Models in the 1.1–3.0 kW bracket accounted for 39.78% of sales in 2025, balancing cost, curb weight, and city-grade performance. They suit daily commutes under 60 km and remain the default for price-sensitive buyers. Yet the above-5.0 kW class is the fastest-growing, logging an 11.67% CAGR as ASEAN and Latin American regulators align licensing norms so higher-output scooters can share arterial roads with cars. Ather’s 450 Apex demonstrates the appeal of near-instant torque at traffic lights without sacrificing range.

The low-power less than or equal to 1.0 kW sub-segment, once popular in China’s rural regions, is losing relevance because dropping battery prices erode the savings that justified limited performance. Conversely, the mid-power 3.1–5.0 kW tier is becoming a transitional step for riders upgrading from entry scooters but not yet ready to absorb the price premium or added weight of larger batteries. Power-class distribution will keep tilting upward as the cost per kWh settles below USD 90, enabling OEMs to ship larger packs without overshooting mass-market price bands.

By Voltage Platform: Sixty-Volt Leads, Seventy-Two-Volt Surges on Fast Charging

Sixty-volt systems held 37.73% of the electric two-wheeler market share in 2025, largely because their component ecosystem—controllers, chargers, and battery modules—is mature and cost-optimized. Seventy-two-volt platforms, however, are growing at an 11.71% CAGR, aided by DC fast-chargers that deliver 3 kW and reduce minimal charge times to around 90 minutes. Gogoro uses 50.4 V packs in series to reach 100.8 V for high-duty cycles, demonstrating the flexibility of modular configurations.

Growing public-charging density influences voltage selection more than intrinsic efficiency because owners now cross-shop vehicles against the availability of compatible hardware. Forty-eight-volt architectures, once dominant in lead-acid conversions, are sliding as lithium chemistries eliminate past voltage ceilings. Experimental 96-V and 120-V prototypes will remain niche until standards emerge. OEMs therefore face a strategic trade-off: align with prevailing grid voltage norms or risk orphaning customers when traveling outside urban centers.

By Battery Configuration: Fixed Packs Stay Mainstream, Dual-Swappable Earn Fleet Preference

Fixed batteries accounted for 67.37% of units in 2025 owing to lower bill-of-materials cost and straightforward assembly. Dual-swappable formats, although under a minimal total volume, are climbing at 11.79% CAGR because courier fleets prize uptime over sticker price. Zypp Electric alone deployed 25,000 dual-pack scooters across three Indian metros by mid-2025.

Single-swappable solutions appeal to individual riders lacking dense swap infrastructure but wanting occasional rapid turnaround. India’s AIS-156 Phase 2 standard now enforces mechanical and electrical interoperability for swappable kits, a move expected to widen OEM participation. Fixed-pack advocates argue that upcoming sodium-ion chemistries could deliver an acceptable range at even lower cost, extending the lifecycle of fixed architectures. Configuration choice thus maps to business model: fleets chase operational uptime, while consumers still value simplified ownership.

Note: Segment shares of all individual segments available upon report purchase

By Motor Type: BLDC Dominates Cost Curve, PMSM Targets Premium Efficiency

Brushless DC units claimed 68.71% of shipments in 2025 due to lower magnet material content and simpler control electronics. Permanent-magnet synchronous motors are expanding at an 11.63% CAGR by delivering better efficiency, extending range for the same battery capacity. Ather’s 450 range leverages PMSM to extract 26 Nm of peak torque from a 7.2 kW motor.

Rare-earth supply concentration in China is a strategic risk for PMSM scale-up, prompting brands like Bajaj to dual-source. Switched-reluctance and induction types remain fringe because of audible noise and control complexity. Motor choice increasingly tracks price band: sub-USD 1,500 scooters default to BLDC, while premium models standardize PMSM to justify higher MSRPs through superior acceleration and hill-climb capability.

By Price Band: Mid-Segment Leads, Premium Bracket Accelerates

Scooters priced USD 1,001–1,500 captured 34.46% of global sales in 2025, aligning with the median disposable income in major Asian economies. The USD 3,001–5,000 segment, although just a few in volume, is growing at 11.78% CAGR as urban professionals pay for longer warranties, smartphone-grade displays, and advanced safety aids. Ola’s S1 Pro sits in the sweet spot at USD 1,350 and bundles a 3.97 kWh battery good for 181 km of claimed range.

Sub-USD 1,000 units are being commoditized out of profitability because falling battery expenses enable better-spec models for only modest extra cost. In Europe and North America, the premium above-USD 5,000 band remains niche but profitable, anchored by brands that bundle ABS, traction control, and 70 km/h top speeds. Rising GDP per capita in Asia will nudge buyers toward higher brackets, flattening the steepness of the current price pyramid.

By End User: B2C Retains Volume, Fleets Drive Incremental Growth

Individual consumers owned 73.37% of the electric two-wheeler market size in 2025, attracted by reduced maintenance and avoidance of fuel price volatility. Delivery fleets, however, are posting an 11.72% CAGR because high mileage amplifies operating savings. Zomato, Swiggy, and Amazon Fresh now require eight-year battery warranties and real-time state-of-health telemetry before signing supply contracts.

Ride-hail, rental, and corporate security fleets form a strategic niche, often benefiting from bulk discounts and shared charging infrastructure. Government procurement is small in unit terms yet symbolically influential; India’s postal service ordered numerous electric scooters in March 2025, signaling rural deployment potential. The future share balance hinges on the pace at which gig-economy platforms electrify and on policy directives that link license renewals to emission targets.

Note: Segment shares of all individual segments available upon report purchase

By Sales Channel: Physical Stores Dominate, Digital Direct Gains Momentum

Offline dealers processed 66.61% of transactions in 2025 because many buyers demand test rides and in-person financing assistance. Online direct-to-consumer models are expanding at 11.75% CAGR, especially in markets with mature digital-payment systems such as India, where UPI handled numerous transactions in March 2025. Ola sells exclusively through its app and website, shipping scooters directly to customers' homes.

Hybrid approaches are emerging: Ather operates multiple experience centers while fulfilling almost half of orders online, blending tactile engagement with digital convenience. Offline share will erode gradually, but will not vanish because after-sales perception remains tied to physical service centers. Eventually, omnichannel models will dominate as OEMs recognize that discovery often happens online, even when the final payment occurs in a showroom.