Electric Scooter and Motorcycle Market to Reach USD 197.1 Billion by 2033

Introduction

The Global Electric Scooter and Motorcycle Market is projected to reach USD 197.1 billion by 2033, up from USD 35.8 billion in 2023, reflecting a robust compound annual growth rate (CAGR) of 18.6% over the forecast period from 2024 to 2033.

Electric scooters and motorcycles are two-wheeled vehicles powered entirely by electric motors, utilizing rechargeable batteries rather than internal combustion engines. These vehicles are designed for urban and short-distance travel, providing an eco-friendly, efficient alternative to conventional gasoline-powered scooters and motorcycles.

Electric scooters typically have a smaller form factor, intended for use in congested urban environments, while electric motorcycles, with their larger engines and more robust designs, are suitable for longer distances and higher speeds. Both types are part of the broader electric mobility movement, offering significant environmental benefits by reducing carbon emissions and dependence on fossil fuels.

The electric scooter and motorcycle market refers to the global industry encompassing the manufacturing, sale, and adoption of electric two-wheelers. It includes both consumer and commercial segments, with applications ranging from personal transportation to delivery and shared mobility services. This market also covers a variety of products, from lightweight electric scooters aimed at urban commuters to more powerful electric motorcycles designed for higher-performance and longer-range applications.

The rise of electric mobility, coupled with technological advancements in battery life and efficiency, has contributed to the rapid growth of this market in recent years, particularly in regions with high urbanization and government support for green transportation solutions.

Several factors are driving the growth of the electric scooter and motorcycle market. Increasing environmental concerns, particularly in urban areas facing high pollution levels, have created strong demand for electric alternatives that offer a cleaner mode of transportation. Government policies and incentives, including tax breaks, subsidies, and the establishment of charging infrastructure, have also provided a significant boost.

The rise in fuel prices and the global push towards reducing carbon footprints are further motivating consumers to adopt electric vehicles. Additionally, technological advancements in battery efficiency, cost reduction, and the development of more durable and faster electric motors have enhanced the appeal of electric scooters and motorcycles. The growing trend of shared mobility services and micro-mobility solutions in major cities worldwide is another contributing factor to market growth.

The demand for electric scooters and motorcycles is being fueled by the need for cost-effective and sustainable transportation solutions in urban environments. Rising traffic congestion and the growing need for last-mile delivery solutions are pushing demand, especially for electric scooters, which are nimble, cost-effective, and well-suited for navigating crowded streets.

Meanwhile, the demand for electric motorcycles is being driven by a more environmentally conscious and performance-driven consumer base, including those seeking longer-range, higher-speed alternatives for commuting or leisure. Furthermore, electric scooters and motorcycles are seen as increasingly viable solutions for businesses looking to reduce operational costs in areas such as delivery logistics, further boosting demand.

The electric scooter and motorcycle market presents numerous opportunities for both existing players and new entrants. One of the key opportunities lies in the expansion of charging infrastructure to support the growing fleet of electric vehicles, which will enhance convenience and customer adoption. Additionally, the market is ripe for innovation, particularly in terms of battery technology, smart features (e.g., IoT integration, autonomous driving), and vehicle design. As urbanization continues globally, particularly in emerging markets where urban infrastructure is developing rapidly, the demand for compact, cost-effective, and eco-friendly transportation solutions will continue to increase.

For businesses, this creates significant opportunities in manufacturing, fleet management, and after-market services. Furthermore, the growing trend toward sustainability and green consumerism presents a unique market positioning opportunity for companies committed to environmentally friendly solutions. As consumer preferences shift towards greener, more efficient alternatives, the electric scooter and motorcycle market is poised for substantial expansion.

Key Takeaways

• The Electric Scooter and Motorcycle market is growing rapidly, expected to rise from USD 35.8 billion in 2023 to USD 197.1 billion by 2033, with a strong annual growth rate (CAGR) of 18.6%.
• Electric scooters lead the market, making up 75.6% of sales, popular for urban commuting and short-distance travel.
• Lithium-ion batteries dominate with an 87.4% share, favored for their light weight and high performance.
• Vehicles with voltages above 48V represent 80.6% of the market, offering better power and range.
• Asia-Pacific (APAC) holds the largest share, accounting for 74.6% of the global market, driven by high demand and strong market presence.

Electric Scooter and Motorcycle Statistics

• Men account for 75% of electric scooter trips in the United States.
• Bird has invested $2 billion in electric scooters to date.
• As of 2024, there are 252 electric scooter systems in operation in the U.S.
• Injuries from e-scooters, e-bikes, and hoverboards have risen by 70% over the last four years.
• By 2028, it’s projected that 129 million electric scooters and motorcycles will be on the roads.
• In 2023, 8% of all two-wheelers on the road are electric.
• 23.9% of electric scooter owners earn less than $15,000 annually.
• The average age of electric scooter riders is 31 years.
• 70% of U.S. respondents have a positive view of electric scooters.
• Lime secured $335 million in funding from Google and Uber.
• Motorcycle riders are 28 times more likely to die in accidents and four times more likely to be injured compared to other road users.
• Motorcycle accidents account for 14% of all traffic deaths in the U.S.
• 2,251 motorcycle accident deaths occurred in the U.S. due to riders not wearing helmets.
• Speeding is involved in 34% of motorcycle fatalities.
• 54% of people find electric scooters enjoyable to ride.
• 69% of people consider electric scooters a great mode of transportation.
• 71% of people have tried an electric scooter, and 75% of them have used one more than once.
• Around 70% of people agree that electric scooters are a good transportation option.
• Nearly 50% of scooter users use them for errands or social gatherings.
• In 2023, electric scooters represented 8% of all two-wheelers.
• According to Lime’s survey, 60% of San Diego riders are Hispanic, with 54% having an annual household income
• of $50,000 or less.
• One in four Lime riders are 36 years or older.
• 16.5% of Lime e-scooter riders have served in the U.S. military.

Emerging Trends

• Battery Innovation: Advancements in battery technology, including lithium-ion and solid-state batteries, are increasing energy density and reducing charging times. This is contributing to longer-range electric scooters and motorcycles, with some models now offering up to 200 miles on a single charge.
• Integration of Smart Technologies: Many electric scooters and motorcycles are now equipped with IoT-enabled features, such as GPS tracking, anti-theft systems, and real-time performance monitoring. These features enhance the user experience and improve overall safety.
• Expansion of Charging Infrastructure: As electric vehicles become more mainstream, the development of charging stations is accelerating. Governments and private players are expanding fast-charging networks, which is key to addressing “range anxiety” for users of electric two-wheelers.
• Cost Reductions: Economies of scale and improvements in production efficiency are helping to lower the prices of electric scooters and motorcycles. This is making them more accessible to a broader consumer base, with some models now starting below $1,500.
• Eco-Friendly Materials and Design: Manufacturers are shifting towards using recyclable and sustainable materials in the design and construction of electric scooters and motorcycles. This trend is aligned with the growing demand for environmentally responsible products.

Top Use Cases

• Urban Commuting: With traffic congestion in cities, electric scooters and motorcycles are increasingly being used for short commutes. They offer a quick and efficient alternative, with some models able to reach speeds of 60-70 mph while maintaining low operational costs.
• Last-Mile Delivery: Electric two-wheelers are gaining popularity in last-mile delivery services due to their cost-effectiveness, flexibility, and eco-friendly nature. They are particularly favored in crowded urban environments, where traditional delivery vehicles face limitations.
• Shared Mobility Services: The rise of electric scooter-sharing platforms, especially in metropolitan areas, has become a key use case. Companies are deploying fleets of e-scooters to provide convenient, on-demand transportation for short-distance travel.
• Recreational Riding: With improvements in design and battery life, electric motorcycles are being used for recreational purposes, offering riders a quieter, more eco-friendly alternative to traditional gas-powered motorcycles. Some models now provide a range of over 100 miles per charge.
• Eco-conscious Travel: As consumers become more environmentally conscious, electric scooters and motorcycles are seen as sustainable alternatives for personal transportation, contributing to reduced carbon emissions and a smaller overall ecological footprint.

Major Challenges

• Limited Range: Despite battery advancements, the range of electric scooters and motorcycles remains a key limitation. Most electric scooters offer a range between 30-60 miles per charge, which may not be sufficient for long-distance travel or heavy usage.
• High Initial Cost: While prices are decreasing, the upfront cost of electric two-wheelers remains relatively high compared to traditional gasoline-powered models, making them less accessible to price-sensitive customers.
• Charging Infrastructure Shortage: In many regions, the charging infrastructure for electric scooters and motorcycles is still underdeveloped. This leads to concerns over “charging anxiety” for users, particularly in rural or less-developed areas.
• Long Charging Times: Even with improvements in fast-charging technology, electric scooters and motorcycles can take several hours to fully charge, which is significantly longer than refueling a gasoline-powered vehicle.
• Durability and Maintenance: The long-term durability of electric scooters and motorcycles, particularly in terms of battery life, remains a concern. Over time, batteries degrade, reducing performance, and there are fewer service centers specializing in electric vehicle maintenance.

Top Opportunities

• Government Incentives and Subsidies: Various governments around the world are offering incentives, such as tax credits and rebates, to promote the adoption of electric two-wheelers. These policies help offset the high initial cost and encourage widespread adoption.
• Integration with Public Transport: Electric scooters and motorcycles can serve as an extension of existing public transport networks, particularly for last-mile connectivity. Strategic partnerships with public transport authorities can open up new opportunities for growth.
• Growing Environmental Awareness: With increasing awareness about environmental issues and the need for sustainable transportation, electric scooters and motorcycles stand to benefit from a growing consumer shift towards eco-friendly alternatives.
• Technological Advancements: Continued research in battery life, charging speeds, and lightweight materials could further improve the performance and affordability of electric scooters and motorcycles, making them more competitive with traditional vehicles.
• Expansion in Emerging Markets: As electric mobility becomes more mainstream, there is significant potential for market growth in emerging economies. Urbanization and rising incomes in regions like Southeast Asia, Latin America, and Africa provide a fertile ground for the adoption of electric two-wheelers.

Key Player Analysis

• Xiaomi has emerged as a major player in the electric scooter market, particularly known for its urban mobility solutions. The company’s Mi Electric Scooters, including models like the Mi Electric Scooter Pro 2, have gained widespread popularity worldwide due to their affordability and smart features. Xiaomi’s smart hardware segment, which includes electric scooters, contributed significantly to its total revenue, generating approximately $3.9 billion from its ecosystem of devices in 2022. This underscores Xiaomi’s strong position in the electric scooter segment, especially in Asia and Europe.
• Niu Technologies is a leading electric scooter manufacturer with a robust presence in China and expanding global reach. The company specializes in smart electric scooters and is known for its NQi, UQi, and MQi series, which combine cutting-edge technology with sustainable transportation solutions. Niu Technologies reported $358.5 million in revenue for 2022, marking steady growth. The company’s focus on innovation and high-quality electric vehicles positions it as a major competitor in the industry.
• Segway Inc., a renowned name in personal electric transportation, has evolved into a significant player in the electric scooter market with its Segway-Ninebot range. The company offers popular models such as the Segway-Ninebot MAX and ES series, which are known for their reliability and performance. After merging with Ninebot, Segway-Ninebot reported $1.16 billion in revenue for 2022, highlighting its strength in the e-mobility sector. Their diverse product line and global presence make Segway a key player in the industry.
• Gogoro Inc. is a Taiwanese company that has revolutionized the electric scooter market with its innovative battery swapping infrastructure, alongside its electric scooters like the Gogoro S2 and VIVA. Gogoro’s unique approach to battery swapping has attracted a large customer base, particularly in Taiwan, where the company has a dominant market share. Gogoro reported $342 million in revenue for 2022, showcasing significant growth and expanding influence in international markets. Their innovative business model and growing product portfolio are setting trends in the electric vehicle space.
• Vespa (Piaggio Group) is one of the most iconic names in the scooter industry and has been transitioning towards electric mobility with the launch of the Vespa Elettrica. The Piaggio Group, Vespa’s parent company, reported €1.75 billion in revenue for 2022, with electric vehicles gradually contributing an increasing share of that revenue. Vespa’s legacy of stylish scooters combined with its shift to electric models positions the brand as a key player in the transition to sustainable transportation.

Regional Analysis

Asia Pacific Leads Electric Scooter and Motorcycle Market with Largest Market Share of 74.6% in 2023

The electric scooter and motorcycle market is experiencing robust growth across the globe, with significant regional variations driven by consumer preferences, government policies, and infrastructure investments. In 2023, the Asia Pacific region dominates the market, accounting for a remarkable 74.6% of the total market share, valued at approximately USD 26.7 billion.

This dominance is primarily due to the rapid adoption of electric vehicles (EVs) in countries like China and India, where government incentives, urban congestion, and a growing focus on sustainability are driving strong demand. Additionally, the region benefits from a well-established manufacturing base, with leading electric scooter and motorcycle brands in China and India offering affordable and efficient models for both urban and rural consumers. The adoption of electric two-wheelers is further bolstered by the expansion of charging infrastructure and favorable policies promoting clean energy.

In North America, the electric scooter and motorcycle market is growing steadily, although it holds a smaller share compared to Asia Pacific. The market is valued at around USD 3.2 billion in 2023, with increasing consumer interest in sustainable transportation solutions, particularly in urban areas.

The U.S. and Canada are leading this growth, supported by government tax incentives for electric vehicles and a rise in eco-consciousness among consumers. However, the market remains limited by factors such as high initial costs and the relatively lower penetration of electric two-wheelers compared to conventional gasoline-powered vehicles.

Europe is also witnessing substantial growth, with the market valued at USD 4.7 billion in 2023. The European market is driven by a combination of stringent environmental regulations, government subsidies, and a growing shift toward eco-friendly mobility. Countries like the Netherlands, Germany, and the UK are at the forefront of this transition, with strong demand for electric scooters and motorcycles, especially in metropolitan areas where urban mobility solutions are in high demand. The European Union’s commitment to reducing carbon emissions further supports market growth in the region.

In the Middle East & Africa, the electric scooter and motorcycle market is still in its nascent stages, valued at USD 0.9 billion in 2023. Despite the region’s reliance on fossil fuels, there is growing interest in electric two-wheelers as a solution for urban congestion and air pollution.

Countries like the UAE and South Africa are leading the way in adopting EV technology, driven by government efforts to diversify energy sources and improve air quality. However, the market is hampered by relatively high costs and limited charging infrastructure, which could delay widespread adoption.

Finally, Latin America is a relatively smaller but emerging market, valued at USD 1.2 billion in 2023. The region’s growth is primarily driven by the increasing demand for affordable, sustainable urban mobility solutions, especially in countries like Brazil, Argentina, and Mexico. The expansion of electric vehicle infrastructure and local government incentives are expected to further stimulate market growth, although challenges such as economic instability and lower disposable incomes may slow the pace of adoption.

Recent Developments

• In March 13, 2023, Gogoro Inc., a leader in sustainable mobility solutions, announced that its new JEGO Smartscooter achieved impressive sales in its first week on the market. The sales were nearly eight times higher than Gogoro’s typical weekly L1 vehicle category sales for 2024 and more than triple the sales compared to February 2023. Gogoro is set to begin deliveries of the JEGO by the end of March 2023.
• In September 6, 2024, VinFast, the Vietnamese electric vehicle manufacturer, continues to navigate an uncertain geopolitical and economic environment with a strategy focused on diversification. By offering a wide array of products and entering multiple markets, VinFast is positioning itself to capture significant opportunities within the rapidly changing automotive industry.
• In 2024, Infosys announced a strategic partnership with Polestar, the Swedish electric performance car brand, to establish a global technology hub in Bengaluru. This hub will focus on the development and validation of electric vehicle (EV) software, including key areas such as infotainment, Advanced Driver Assistance Systems (ADAS), and telematics.
• In 2023, Bajaj Auto Ltd. made significant strides in its two-wheeler EV business, restructuring its supply chain and advancing development programs with key vendors. These efforts will ensure the availability of over 10,000 Chetak units per month while reducing costs, making the Chetak more accessible to a broader customer base.
• In 2024, BMW Motorrad India launched its first premium electric scooter, the BMW CE 04, marking a major milestone in the Indian EV market. The urban electric scooter, available as a Completely Built-up Unit (CBU), is set to be delivered in select metropolitan cities starting September 2024. With its advanced electric drive and futuristic design, the CE 04 offers an innovative urban mobility solution.

Conclusion

The electric scooter and motorcycle market is poised for significant growth, driven by the increasing demand for sustainable, cost-effective, and efficient transportation solutions in urban environments. With advancements in battery technology, smart features, and a growing emphasis on eco-consciousness, electric two-wheelers are becoming a viable alternative to traditional gasoline-powered vehicles. Government incentives, along with the expansion of charging infrastructure, are further accelerating adoption.

As cities continue to urbanize and consumer preferences shift towards greener options, the market offers ample opportunities for innovation, expansion, and investment. However, challenges such as range limitations, high initial costs, and underdeveloped charging networks remain key factors that stakeholders must address to fully unlock the potential of this rapidly evolving sector.

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