Electric Motorcycle Market Summary
The global electric motorcycle market size was estimated at USD 30.11 billion in 2022 and is projected to reach USD 121.07 billion by 2030, growing at a CAGR of 19.9% from 2023 to 2030. The market is expected to grow due to increasing demand for energy-efficient commuting options, rising concern for carbon emission by ICE-based two-wheelers, and increasing fossil fuel prices worldwide coupled with depleting reserves contributing to market growth.
Key Market Trends & Insights
- Asia Pacific region accumulated revenue of over 82% in 2022 and the fastest CAGR throughout the projection period.
- Based on drive type, hub motor segment has accumulated the highest market share of over 48% in 2022.
- Based on end-use type, personal segment has the largest market share of over 70 % in 2022.
- Based on the battery type, lithium-ion based battery segment is anticipated to continue growing at the largest market share rate of more than 90% in 2022.
Market Size & Forecast
- 2022 Market Size: USD 30.11 Billion
- 2030 Projected Market Size: USD 121.07 Billion
- CAGR (2023-2030): 19.9%
- Asia Pacific: Largest market in 2022
Furthermore, an increasing interest of established two-wheeler market players entering electric motorcycle space and an advent of electric motorcycle startups providing technologically advanced vehicles also supports the market growth. Introduction of charging station ecosystems, declining battery costs, and development of battery management technologies by major market players is contributing to the electric motorcycle industry growth. Additionally, inclusion of telematics, cellular connectivity, and improvement in aerodynamic characteristics of vehicles, are creating new opportunity avenues for electric motorcycle industry development within the forecast period.
The market has gained significant traction over the years owing to active advocacy from government authorities worldwide. In emerging economies such as India and Indonesia, governments are introducing incentives and schemes for purchasing and manufacturing electric motorcycles. For instance, in January 2023, Indonesian government announced by 2024, Indonesia would provide public funds amounting to USD 455.88 million (7 trillion rupiah) to subsidize a purchase of electric motorcycles. The government anticipates increasing vehicle count by 2024. The shift towards electric vehicles will contribute to a decrease in the usage of fossil fuels and development of EV production facilities to use nation's abundant nickel sources, which are crucial for a production of batteries. Similarly, on June 2021, Indian government increased subsidy for electric two-wheelers under second phase of the FAME India scheme by 50%, making them more affordable-a decision that will significantly benefit customers of electric motorcycles. According to the Ministry of Heavy Industries and Public Enterprises, under FAME India phase II, the subsidy for electric two-wheelers will now be USD 17.96 (Rs 15,000) per kWh.
