Electric Scooter and Motorcycle Market Outlook

The global electric scooter and motorcycle market was valued at approximately USD 24 billion in 2023 and is projected to grow at a CAGR of around 8.5% from 2025 to 2035. This robust growth trajectory is primarily fueled by the increasing demand for eco-friendly transportation solutions, as urban areas continue to grapple with traffic congestion and air pollution. Consumers are increasingly leaning toward electric options due to rising fuel costs and a growing emphasis on sustainability. Additionally, government initiatives and incentives aimed at promoting electric vehicles (EVs) significantly contribute to market expansion. The proliferation of advanced battery technologies is also paving the way for enhanced performance and user experience, further stimulating market growth.

Growth Factor of the Market

Several factors are contributing to the growth of the electric scooter and motorcycle market. One significant aspect is the increasing environmental awareness among consumers, leading to a shift towards more sustainable modes of transportation that do not emit harmful gases. Additionally, urbanization and the need for efficient last-mile connectivity are driving the demand for electric two-wheelers, which are often more maneuverable and convenient in crowded city environments. Technological advancements, particularly in battery life and charging infrastructures, play a crucial role in enhancing the appeal of electric scooters and motorcycles. The rise of smart mobility solutions and the integration of IoT technologies into electric vehicles are further amplifying the attractiveness of these products. Moreover, favorable government policies aimed at reducing carbon footprints and promoting electric mobility are expected to bolster the market significantly over the forecast period.

Key Highlights of the Market

• The global electric scooter and motorcycle market is expected to witness a CAGR of 8.5% from 2025 to 2035.
• Increased urbanization and traffic congestion drive the demand for electric two-wheelers.
• Technological advancements in battery efficiency and charging infrastructure are improving user experience.
• Government incentives and regulations are promoting the adoption of electric vehicles.
• Rising environmental concerns and fuel prices are steering consumers towards eco-friendly transportation options.

By Product Type

Electric Scooter:

Electric scooters are becoming increasingly popular due to their ease of use and eco-friendly nature. These vehicles are designed primarily for urban commuting, offering an efficient and affordable alternative to traditional scooters and motorcycles. The lightweight construction and compact design of electric scooters make them ideal for navigating through dense traffic and narrow streets. Furthermore, many electric scooter models come equipped with smart features such as GPS tracking, app integration, and anti-theft systems, enhancing their appeal among tech-savvy consumers. As cities focus more on sustainable transportation solutions, the adoption of electric scooters is expected to rise significantly, contributing to the overall growth of the electric two-wheeler market.

Electric Motorcycle:

Electric motorcycles represent a significant segment within the electric two-wheeler market, appealing to both performance enthusiasts and eco-conscious consumers. These motorcycles often mirror the design and functionality of traditional gas-powered bikes but come with the benefits of lower operating costs, quieter rides, and zero emissions. With advancements in battery technology, electric motorcycles now offer competitive ranges and acceleration, making them a viable alternative for longer commutes and leisure rides. As more manufacturers enter the market, the diversity in design and price points will cater to a broader audience, ultimately enhancing market growth.

Electric Kick Scooter:

Electric kick scooters are gaining traction, particularly in urban environments, where they provide a flexible and fun mode of transport. These scooters are portable, making them easy to carry and store, thus appealing to users who prioritize convenience. The rise of shared mobility solutions has also contributed to the popularity of electric kick scooters, with many cities implementing rental services to reduce car usage. Additionally, their affordable pricing relative to electric motorcycles and scooters makes them accessible to a wider demographic, further driving market penetration and adoption.

Electric Moped:

Electric mopeds serve as an excellent midway option between traditional scooters and electric motorcycles, combining the benefits of both. They typically feature a more comfortable riding position and can accommodate passengers, making them suitable for personal transportation and small deliveries. The ease of operation and lower maintenance costs compared to conventional mopeds are significant factors that enhance their appeal. As urban commuting trends shift towards more versatile and user-friendly options, electric mopeds are expected to carve out a substantial market share, appealing to both individuals and businesses alike.

Electric Bike:

Electric bikes (e-bikes) have surged in popularity as an alternative for commuting and recreational riding, providing a sustainable mode of transport without requiring a license or registration in many jurisdictions. These bikes offer pedal-assist features that help riders engage in longer journeys with less physical exertion, making them suitable for a wide range of users, from fitness enthusiasts to casual riders. The scalability of e-bikes, with various models tailored to different user needs, along with their adaptability to a range of terrains, positions them as a strong segment in the electric two-wheeler market. The growing focus on fitness and wellness further boosts e-bike adoption, leading to an anticipated increase in market demand.

By Application

Personal Use:

The personal use segment of the electric scooter and motorcycle market is characterized by the growing trend of consumers opting for electric vehicles for daily commuting. With the rising costs of fuel and increasing traffic congestion in urban areas, many individuals are looking for economical and sustainable alternatives. Electric scooters and motorcycles offer the perfect solution, providing a convenient mode of transport that is both budget-friendly and environmentally friendly. This segment is expected to grow as more people adopt electric vehicles into their daily lives, driven by the desire for lower transportation costs and a reduced carbon footprint.

Commercial Use:

Commercial use of electric scooters and motorcycles is gaining momentum as businesses seek efficient and cost-effective delivery solutions. With the rise of e-commerce and demand for faster delivery services, electric two-wheelers are becoming increasingly popular for last-mile delivery. Companies are recognizing the advantages of using electric vehicles, including lower operating costs, less maintenance, and improved environmental impact compared to traditional delivery methods. As urban areas continue to implement stringent regulations on emissions, the commercial sector is likely to invest more in electric vehicles, driving further growth in this segment.

Sharing Services:

Electric scooters and motorcycles are increasingly being utilized in sharing services, enabling users to rent these vehicles for short periods. This trend is particularly prevalent in urban areas where transportation options are limited, and users prefer to avoid the hassle of owning a vehicle. Sharing services contribute to reducing traffic congestion and promoting sustainable transportation as they allow multiple users to share a single vehicle. The growth of digital platforms and mobile applications has facilitated the rise of electric scooter and motorcycle sharing services, making it easier for consumers to access these vehicles on demand. This segment is anticipated to expand further as cities invest in shared mobility solutions and infrastructure.

Rental Services:

Rental services for electric scooters and motorcycles provide an alternative transportation option for tourists and residents alike, particularly in urban centers. These services allow users to rent electric vehicles to explore cities at their own pace, significantly reducing the hassle of traditional car rentals. With the incorporation of user-friendly apps and systems for tracking and unlocking rented vehicles, the rental segment has made electric scooters and motorcycles more accessible. As tourism continues to rebound post-pandemic, the demand for electric rental services is projected to grow, enhancing the overall market for electric two-wheelers.

Police/Military:

The use of electric scooters and motorcycles in police and military applications is a niche but growing segment of the market. Many law enforcement agencies are adopting electric vehicles for patrolling urban areas because of their stealthy operation and environmental benefits. The reduced noise levels of electric two-wheelers make them ideal for covert operations and surveillance activities. Additionally, the cost savings from lower fuel and maintenance expenses attract public sector organizations looking to optimize their operational budgets. As the need for sustainable practices increases within government agencies, the adoption of electric vehicles in police and military functions is expected to rise.

By Distribution Channel

Online Retail:

Online retail has emerged as a dominant distribution channel for electric scooters and motorcycles, driven by the convenience and accessibility it offers to consumers. E-commerce platforms provide a wide range of options for buyers, allowing them to compare prices, read reviews, and make informed decisions from the comfort of their homes. The rise of digital marketing and targeted advertising further enhances the visibility of electric two-wheelers, attracting a broader audience. With the ongoing trend of online shopping, especially post-pandemic, the online retail segment is expected to continue its growth trajectory, significantly impacting overall market dynamics.

Offline Retail:

Despite the rise of online shopping, offline retail remains a crucial distribution channel for electric scooters and motorcycles. Physical showrooms allow customers to experience the products firsthand, providing them with the opportunity to test rides and receive personalized consultations from knowledgeable sales staff. This face-to-face interaction builds customer trust and aids in the decision-making process. Additionally, many buyers still prefer to make significant purchases in-store to ensure they receive proper assistance with financing and after-sales service. As such, offline retail will continue to play a vital role in the market landscape.

Direct Sales:

Direct sales, wherein manufacturers sell their products directly to consumers, is gaining traction as a distribution model in the electric scooter and motorcycle market. This approach allows companies to establish a direct relationship with their customers, providing personalized service and experiences that can enhance customer loyalty. By eliminating intermediaries, manufacturers can offer competitive prices and potentially better warranty and service options. As consumers increasingly seek transparency and value, direct sales are expected to become a more prominent channel in the market.

E-commerce:

E-commerce platforms dedicated to specific niches, including electric scooters and motorcycles, are thriving as they cater to a growing market of environmentally conscious consumers. These platforms specialize in offering a curated selection of electric vehicles and related accessories, often providing detailed product descriptions, customer reviews, and comparison tools. The convenience of online shopping, coupled with the potential for lower prices and exclusive deals, makes e-commerce an appealing option for tech-savvy buyers. This segment is anticipated to flourish as more consumers opt for the convenience and efficiency of online purchasing.

Rental Services:

Rental services for electric scooters and motorcycles are a rapidly growing distribution channel, particularly in urban areas and tourist destinations. These services allow users to rent vehicles for short periods, offering flexibility and convenience without the commitment of ownership. As cities continue to roll out shared mobility initiatives, the availability of rental options for electric two-wheelers is expanding. The ease of accessing rental vehicles through mobile applications makes this channel especially appealing to younger and more mobile consumers, contributing to its substantial growth within the overall market.

By Battery Type

Lithium-ion:

Lithium-ion batteries are the most widely used type of battery in electric scooters and motorcycles, known for their high energy density and longevity. These batteries offer numerous advantages, including faster charging times, lighter weight, and a longer lifespan compared to other battery types. The efficiency of lithium-ion batteries significantly enhances the performance of electric two-wheelers, allowing for longer ranges and improved acceleration. As technology continues to evolve, lithium-ion batteries are becoming more affordable and accessible, further cementing their dominance in the electric vehicle market.

Lead-acid:

Lead-acid batteries have historically been used in various electric vehicles, including scooters and motorcycles, due to their low cost and availability. However, their heavier weight and shorter lifespan compared to lithium-ion batteries make them less favorable in the current market. Despite this, lead-acid batteries are still utilized in entry-level electric scooters and mopeds where cost considerations are paramount. As manufacturers continue to innovate, the use of lead-acid batteries may decline in favor of more advanced battery technologies.

Nickel-metal Hydride:

Nickel-metal hydride (NiMH) batteries are another type of battery used in some electric scooters and motorcycles. While they offer a decent energy density and are less toxic than lead-acid batteries, they have been largely overshadowed by the superior performance of lithium-ion technologies. NiMH batteries provide a practical alternative in specific applications where cost and environmental considerations are prioritized. Their gradual phase-out in favor of lithium-ion solutions indicates a shift in industry standards towards efficiency and sustainability.

Sodium-ion:

Sodium-ion batteries are an emerging technology in the electric vehicle sector, gaining attention due to the abundance and low cost of sodium compared to lithium. While still in development stages, sodium-ion batteries promise to offer similar performance levels to lithium-ion batteries with potentially lower environmental impacts. The adoption of sodium-ion batteries could revolutionize the market, particularly in regions where lithium supply is limited. As research and development in this area continue, sodium-ion batteries could play a significant role in the future of electric two-wheelers.

Solid-state:

Solid-state batteries represent the next frontier in battery technology for electric scooters and motorcycles. These batteries utilize solid electrolytes instead of liquid ones, offering enhanced safety, energy density, and longevity. Solid-state batteries are expected to provide faster charging times and greater ranges, making them an attractive option for electric vehicles. While the technology is still in its nascent stages and faces scalability challenges, advancements in solid-state battery development could lead to their widespread adoption in the near future, driving further growth in the electric two-wheeler market.

By Region

In North America, the electric scooter and motorcycle market is poised for significant expansion, driven by rising consumer awareness of electric mobility and favorable government policies supporting green transportation. The market in this region is projected to grow at a CAGR of around 7% from 2025 to 2035, with cities like Los Angeles and New York leading the charge in electric vehicle adoption. The presence of established manufacturers and favorable infrastructure development, such as charging stations, further facilitate market growth. Moreover, with the increasing focus on reducing carbon footprints, more consumers are gravitating toward electric two-wheelers as an efficient means of transport.

Europe also plays a pivotal role in the electric scooter and motorcycle market, with countries like Germany, France, and the Netherlands at the forefront of electric vehicle adoption. The European market is characterized by stringent emissions regulations and significant government incentives for electric vehicle users. As a result, the market is expected to experience substantial growth, driven by both personal usage and commercial applications. Furthermore, EuropeÔÇÖs emphasis on sustainability and urban mobility solutions will continue to propel the demand for electric two-wheelers in the coming years. However, the growth in this region must align with the evolving regulatory frameworks and infrastructure development for electric vehicles.

Opportunities

The electric scooter and motorcycle market is ripe with opportunities for growth and innovation. One of the most significant opportunities lies in the development of new battery technologies that enhance performance and reduce environmental impacts. As manufacturers invest in research and development for advanced battery solutions, the market could experience a surge in electric vehicle adoption, driven by enhanced range, shorter charging times, and overall better user experience. Additionally, the rise of smart mobility solutions, including apps for ride-sharing and rental services, presents a lucrative opportunity to capture the growing interest in eco-friendly transportation options. Companies that can integrate technology into their electric two-wheelers will have a competitive edge in appealing to tech-savvy consumers.

Furthermore, the expansion of government initiatives aimed at promoting electric vehicles presents significant opportunities. Many countries are introducing various incentives, such as tax breaks, subsidies, and infrastructure investments, to encourage consumers to shift from traditional vehicles to electric alternatives. This trend is particularly evident in urban areas where emissions regulations are becoming stricter, encouraging businesses and individuals to adopt electric scooters and motorcycles. As cities continue to invest in charging infrastructure and other supportive measures, the market is likely to witness increased competition and innovation, driving further growth in the electric two-wheeler sector.

Threats

Despite the promising growth prospects of the electric scooter and motorcycle market, several threats could hinder its expansion. One of the primary concerns is the volatility in battery raw material prices, which can lead to increased manufacturing costs and impact the overall pricing of electric two-wheelers. Fluctuations in lithium and cobalt prices, in particular, pose a significant risk to manufacturers, potentially making electric vehicles less affordable for consumers. Additionally, competition from traditional scooters and motorcycles may slow the adoption of electric alternatives, as many consumers remain loyal to their existing vehicles due to perceived reliability and performance. Concerns about charging infrastructure and battery disposal can also deter potential buyers, highlighting the importance of addressing these issues for sustained market growth.

Another critical threat comes from the ever-evolving competitive landscape within the electric two-wheeler market. With numerous startups and established manufacturers entering the space, the market is becoming increasingly crowded. This heightened competition can lead to price wars and reduced profit margins, affecting the financial viability of some players. Moreover, regulatory changes and the implementation of stricter safety standards could impose additional costs and challenges for manufacturers, potentially hampering growth. Companies must remain agile and innovative to navigate these threats while capitalizing on market opportunities.

Competitor Outlook

• Segway-Ninebot
• Honda Motor Co., Ltd.
• Yamaha Motor Co., Ltd.
• Tesla, Inc.
• Gogoro Inc.
• BMW Motorrad
• Energica Motor Company
• Super Soco
• Vmoto Limited
• Vespa (Piaggio Group)
• Zero Motorcycles
• Harley-Davidson, Inc.
• Clectran
• Razor USA LLC
• Giant Manufacturing Co., Ltd.

The electric scooter and motorcycle market is characterized by a diverse competitive landscape, featuring both established manufacturers and new entrants striving to make their mark. Major companies such as Honda, Yamaha, and BMW are leveraging their extensive experience and resources to develop innovative electric two-wheelers that cater to the evolving needs of consumers. These manufacturers are focusing on quality, performance, and enhanced features to differentiate themselves in a crowded market. Additionally, the emergence of startups like Gogoro and Super Soco signifies a trend towards specialized offerings, producing electric scooters and motorcycles tailored for urban commuting and environmentally conscious consumers.

Recent developments in the market highlight the increasing collaboration between companies and tech firms to integrate smart technologies into electric scooters and motorcycles. Companies such as Tesla and Energica are leading the charge in incorporating advanced features like autopilot systems, connectivity, and enhanced safety measures into their electric vehicles. This integration of technology not only elevates user experiences but also sets a benchmark for competitors to follow. As the market continues to expand, the need for these innovations will become increasingly critical in attracting consumers and retaining market share.

As manufacturers continually adapt to shifting consumer preferences, they are also exploring various strategies, including direct sales and rental services, to enhance their market presence. Brands like Razor and Vmoto are capitalizing on the growing trend of shared mobility, offering rental options that cater to urban commuters and tourists alike. The competitive dynamics of the electric scooter and motorcycle market will likely evolve as key players refine their strategies, invest in R&D, and collaborate across sectors to harness the potential of electric mobility. This ongoing evolution presents both challenges and opportunities, necessitating vigilance and adaptability among competitors in this fast-paced market.