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What's Driving the Growth of Electric Two-Wheeler Market?
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People living in urban areas are realizing the importance of making a transition to electric vehicles, owing to fluctuating oil and gas prices and rising global carbon emissions levels from vehicular pollution.

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People living in urban areas are realizing the importance of making a transition to electric vehicles, owing to fluctuating oil and gas prices and rising global carbon emissions levels from vehicular pollution. Electric two-wheelers have been predominantly gaining a lot of traction due to cost-effectiveness and low maintenance, which is attributing to their booming sales. Besides, increasing monetary and non-monetary incentives and enhanced desire for sustainable urban mobility and modern transportation are boosting the global electric two-wheeler market growth. The rise of the e-commerce industry has led to greater adoption of two-wheelers by logistics organizations for making last-mile deliveries, thereby increasing the market penetration. Moreover, the increasing installation of electric vehicle charging stations by government and private players to boost electric mobility is contributing to the global electric two-wheeler market growth. 


Here are some of the factors positively influencing the adoption of electric two-wheelers. 




Lithium-ion is the dominant battery technology in electric vehicles, but it has some shortfalls. Thus, battery manufacturers are finding alternative cell chemistry and introducing innovative battery technologies that are cheaper and more energy-efficient compared to the existing ones. In March 2022, Gogoro unveiled a solid-state lithium-ceramic battery for two-wheelers to deliver high energy density, low charging time, and greater range. These batteries utilize solid electrodes and electrolytes instead of traditional liquid or polymer gel found in lithium-polymer batteries, which are more vulnerable to fires and chemical leaks. Furthermore, battery swapping has become a popular alternative to charging stations as not everybody can afford 7 to 8 hours of charging time per 500 miles. The battery swapping can help reduce charging time, consumer anxiety for maintaining battery life, and increase the range of the e-vehicle. Battery swapping stations have been successfully set up in countries like China and Taiwan to allow vehicle owners to swap their batteries in a few minutes.


As gas prices are skyrocketing due to increased energy demands across the globe, people are increasingly shifting to electric-two wheelers as they are cheaper than ICE vehicles over the entire life of the vehicle. Although EVs are priced slightly higher than vehicles running on fuel, the cost associated with oil change, engine maintenance, etc., add up to be significantly higher than the margin. Electric two-wheelers do not require frequent maintenance, and the only cost incurred would be to replace the battery after using the vehicle for 2-6 years. Besides, electric manufacturers are introducing affordable EV two-wheeler options, adding to the market growth. Moreover, the government of various countries is also providing subsidies for the purchase of electric vehicles to promote the adoption of electric vehicles, which is projected to boost their demand in the coming years.


EV manufacturers are constantly innovating and introducing new models to boost their sales and stay relevant in the market. As the world is digitally transforming, EV developers are reforming towards adopting hi-end technology to produce vehicles that are digitally connected. For instance, OLA introduced unique features like reverse mode incorporating revolutionary reverse technology to facilitate parking, navigation function, geolocation, digital cluster, Bluetooth, etc., to enhance riding experience and comfort. 

According to TechSci Research report on “Electric Two-Wheeler Market - Global Industry Size, Share, Trends, Competition, Opportunity and Forecast, 2017-2027, Segmented By Vehicle Type (Scooter/Mopeds, Motorcycle), By Range (Less than 50Km, 50-100Km, 101-150Km, Above 150Km), By Battery Capacity (<25Ah, >25Ah), By Battery Type (Lead Acid, Li-ion), By Region”, the global electric two-wheeler market is expected to grow at a CAGR of 14% during the forecast period. The market growth can be attributed to the fluctuating fuel prices, growing availability of affordable models, and expanding electric vehicle charging infrastructure.


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