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

Introduction

The Global Electric Scooter and Motorcycle Market is expected to grow from USD 35.8 billion in 2023 to USD 197.1 billion by 2033, registering a CAGR of 18.60% during the forecast period (2024–2033).

Electric scooters and motorcycles are two-wheeled vehicles powered by electric motors and rechargeable batteries. Unlike traditional models that rely on internal combustion engines, these vehicles offer a cleaner and quieter alternative for personal and commercial transportation.

They range from compact scooters designed for urban commuting to high-performance electric motorcycles capable of long-distance travel and high speeds. Their appeal lies in their reduced environmental impact, lower operational costs, and innovative features such as smart connectivity and regenerative braking systems.

The Electric Scooter and Motorcycle Market refers to the global industry encompassing the production, distribution, and sale of these electric two-wheelers. This market includes various segments categorized by vehicle type, battery type, power output, and end-use applications.

Key stakeholders range from established automotive manufacturers to emerging startups specializing in electric mobility solutions. The market also involves infrastructure players such as battery manufacturers and charging station providers. Growth in this market is closely linked to advancements in battery technology, regulatory incentives, and shifts in consumer preferences toward sustainable transportation options.

Several factors are driving the growth of the Electric Scooter and Motorcycle Market. First, rising environmental awareness and government initiatives to reduce carbon emissions have spurred the adoption of electric vehicles (EVs). Subsidies, tax benefits, and incentives for EV buyers further encourage market growth.

Second, advancements in battery technology—resulting in longer ranges, reduced charging times, and improved durability—enhance the appeal of electric two-wheelers. Additionally, urbanization and increasing traffic congestion in metropolitan areas boost the demand for compact, efficient, and eco-friendly transportation solutions.

The demand for electric scooters and motorcycles is escalating due to a combination of environmental, economic, and lifestyle factors. Urban consumers are increasingly prioritizing convenience and sustainability, making electric two-wheelers a popular choice for daily commuting.

Commercial sectors, such as delivery services and ride-sharing platforms, are also adopting these vehicles to lower operating costs and meet sustainability goals. Moreover, the rising cost of fuel and maintenance for traditional vehicles makes electric options more financially attractive in both developed and developing regions.

The Electric Scooter and Motorcycle Market presents significant opportunities for growth and innovation. Emerging markets in Asia-Pacific, Latin America, and Africa offer untapped potential due to rising middle-class populations and inadequate public transportation systems.

Moreover, technological advancements such as battery swapping, wireless charging, and the integration of IoT for vehicle monitoring and management are expected to revolutionize the market. Collaboration between automakers, technology firms, and governments in building robust charging infrastructure and enhancing vehicle affordability will be critical to unlocking the full potential of this market.

Key Takeaways

• The Electric Scooter and Motorcycle Market is set to grow from USD 35.8 billion in 2023 to USD 197.1 billion by 2033, with a CAGR of 18.6%.
• Electric scooters hold a 75.6% share, favored for urban commuting and short trips.
• Lithium-ion batteries command 87.4% of the market due to their lightweight and high performance.
• High-voltage vehicles (above 48V) make up 80.6% of the market, reflecting the demand for greater power and range.
• APAC leads with a dominant 74.6% market share, driven by high demand and adoption rates.

Electric Scooter and Motorcycle Statistics

• Electric scooters typically travel 15-30 miles on a single charge.
• Most electric scooters have a top speed of 15-30 mph.
• 50% of electric scooter riders are aged 25-34.
• Electric scooters reduce urban traffic congestion by 18%.
• They cut air pollution in metropolitan areas by 50%.
• Riders can save around $2,000 annually compared to owning a car.
• The average electric scooter lifespan is 2-4 years with proper care.
• Maintaining an electric scooter costs $100-$200 per year.
• In dense cities, scooters reduce travel time by up to 30%.
• Over its lifetime, an electric scooter can save riders an average of $8,000.
• 71% of motorcycle accident fatalities are male.
• 35% of motorcycle drivers now use bikes with over 1400cc engines, up from 10% two decades ago.
• Helmets lower the risk of death by 37% and head injuries by 69%.
• In 2023, U.S. motorcycle sales hit 430,000 units, worth $5.13 billion.
• There are 9.2 million registered motorcycles in the U.S.
• Men account for 75% of electric scooter trips in the U.S.
• As of 2024, 252 electric scooter systems operate in the U.S.
• Injuries from e-scooters, e-bikes, and hoverboards have risen by 70% in four years.
• By 2028, 129 million electric scooters and motorcycles are expected on roads.
• In 2023, 8% of two-wheelers on the road are electric.
• 50% of scooter users ride them for commuting; 29% use them to connect with public transit.
• 23% of Bird rides replaced ride-hail or taxi trips.
• 74.5% of respondents support electric scooter-sharing programs.
• 67% of respondents have used electric scooters, with many finding them useful.
• 69% believe scooters are an excellent transportation option.
• 58% agree that scooters improve city connectivity.
• 54% find riding scooters enjoyable.
• 44% of public transit users used Lime scooters to connect to other transport last month.
• 18.7% of Lime riders replaced car trips with scooters.
• 29.2% of Lime users commute to work or school by scooter; 37.5% use them for dining or entertainment.
• 71% of people who tried scooters used them more than once.
• Repetitive users replaced 28% of trips by other vehicles and created 7% new trips.
• 15% believe scooters help reduce car use.
• 50% of users ride scooters for errands and social gatherings.

Emerging Trends

• Technological Advancements: Innovations in battery technology, such as the development of lithium-ion NMC and LFP batteries, are enhancing energy density and reducing charging times. These advancements are addressing range anxiety and improving the overall user experience.
• Government Incentives and Policies: Governments worldwide are implementing supportive policies and subsidies to promote the adoption of electric two-wheelers. For instance, India’s government has launched subsidy schemes to accelerate the transition to electric vehicles and attract global manufacturers.
• Expansion of Charging Infrastructure: The establishment of extensive charging networks, including battery-swapping stations, is facilitating the adoption of electric scooters and motorcycles. Companies are deploying modular battery-swapping infrastructure in cities, enhancing the convenience of electric refueling.
• Increased Urbanization and Environmental Awareness: Rising urban populations and growing concerns over environmental sustainability are driving demand for eco-friendly transportation options, positioning electric scooters and motorcycles as viable alternatives to traditional vehicles.
• Integration of Smart Features: The incorporation of smart technologies, such as IoT connectivity and advanced safety features, is enhancing the appeal of electric two-wheelers by offering improved user experiences and operational efficiencies.

Top Use Cases

• Urban Commuting: In cities like Havana, electric scooters have become a practical solution for daily travel, especially amid fuel shortages. The increased production of electric vehicles has facilitated this shift, offering residents a reliable alternative to traditional transportation.
• Last-Mile Delivery Services: Companies are integrating electric scooters into their delivery fleets to reduce emissions and operational costs. This transition supports environmental sustainability and enhances efficiency in urban logistics.
• Tourism and Recreation: Tourists are increasingly using electric scooters for city exploration, providing a convenient and eco-friendly alternative to traditional transportation. This trend reflects a growing consumer interest in sustainable travel options.
• Law Enforcement and Security: Police and security agencies are deploying electric scooters for patrolling urban areas, benefiting from their maneuverability and low operational noise. This application enhances mobility in congested environments and supports community safety initiatives.
• Corporate and Campus Mobility: Organizations and educational institutions are adopting electric scooters to facilitate on-site transportation, improving efficiency and reducing reliance on traditional vehicles. This trend supports sustainable mobility initiatives within large campuses.

Major Challenges

• Safety Concerns and Rising Injury Rates : The increasing popularity of electric scooters and motorcycles has been accompanied by a surge in accident rates. In the United States, e-scooter injuries escalated by 22% in 2022 compared to 2021. Notably, e-bike injuries surged by 293% between 2019 and 2022, while powered scooter injuries increased by 88% during the same period. These statistics highlight the urgent need for enhanced safety measures, including rider education, infrastructure improvements, and stricter enforcement of traffic regulations.
• Regulatory and Infrastructure Challenges: The rapid deployment of electric scooters and motorcycles has outpaced the development of appropriate regulatory frameworks and infrastructure. Many urban areas lack dedicated lanes and parking spaces for these vehicles, leading to safety hazards and public nuisance. For instance, Melbourne’s city council voted to ban rental e-scooters following a 28-month trial marred by numerous accidents and illegal riding.
• Battery Safety and Fire Risks: The lithium-ion batteries powering electric scooters and motorcycles pose fire hazards if not properly managed. In 2023, the London Fire Brigade reported 143 e-bike fires, with 82 additional incidents recorded in 2024. Similarly, Fire and Rescue NSW reported 61 e-bike and e-scooter fires across the state in 2023, up from just 22 the year before. These incidents underscore the necessity for stringent safety standards and public awareness regarding battery maintenance and charging practices.
• Market Competition and Quality Control: The electric scooter and motorcycle market is becoming increasingly competitive, with numerous manufacturers entering the space. This competition can lead to variability in product quality and safety. For example, the U.S. Consumer Product Safety Commission (CPSC) issued warnings in October 2024 for consumers to immediately stop using certain electric scooters due to fire and burn hazards, highlighting the importance of rigorous quality control and adherence to safety standards to maintain consumer trust.
• Environmental and Disposal Concerns: While electric scooters and motorcycles are promoted as environmentally friendly alternatives, concerns have been raised about their environmental impact, particularly regarding battery disposal and the lifecycle of the vehicles. Improper disposal of batteries can lead to environmental pollution, and the short lifespan of some e-scooters contributes to electronic waste. Addressing these issues requires the development of sustainable manufacturing practices and effective recycling programs to minimize the environmental footprint of these vehicles.

Top Opportunities

• Government Incentives and Policy Support: Governments worldwide are implementing policies to promote electric vehicle (EV) adoption. For instance, in 2023, the Indian government allocated substantial subsidies for electric two-wheelers, aiming to increase their market share. Similarly, Indonesia set aside $455 million in March 2023 to subsidize electric motorcycle sales, targeting 800,000 new electric motorcycles and 200,000 conversions of existing ones by 2024.
• Expansion of Charging and Battery-Swapping Infrastructure: The development of charging and battery-swapping networks is crucial for EV adoption. Companies like Gogoro have expanded their battery-swapping stations across Asia, including partnerships in India and Indonesia. In January 2023, Gogoro announced a $2.5 billion investment in Maharashtra, India, to build a battery-swapping network, enhancing the feasibility of electric scooters and motorcycles for daily use.
• Technological Advancements in Battery Efficiency: Advancements in battery technology are extending the range and reducing charging times for electric two-wheelers. In 2023, several manufacturers introduced models with improved lithium-ion batteries, offering ranges exceeding 100 kilometers per charge. These developments address range anxiety and make electric scooters and motorcycles more appealing to consumers.
• Urbanization and Demand for Sustainable Mobility: Rapid urbanization is increasing the demand for efficient and eco-friendly transportation. Electric scooters and motorcycles offer a solution to congested city traffic and pollution. In 2023, cities like Paris and New York expanded their electric scooter-sharing programs, reflecting a growing trend toward sustainable urban mobility solutions.
• Entry of Established Automotive Manufacturers: Traditional automotive companies are entering the electric two-wheeler market, bringing brand recognition and extensive distribution networks. In 2023, major manufacturers like Honda and Yamaha announced plans to launch electric scooter models, leveraging their expertise to capture market share and accelerate the transition to electric mobility.

Key Player Analysis

• Gogoro Inc. : Gogoro, a Taiwanese company, has established itself as a leader in battery-swapping technology for electric scooters. As of April 2021, Gogoro managed over 175 million battery swaps through its 2,000 GoStations in Taiwan, serving approximately 370,000 riders. The company’s Powered by Gogoro Network (PBGN) program has attracted partnerships with manufacturers like Yamaha and Hero MotoCorp, expanding its influence in the electric two-wheeler market.
• Hero Electric : Hero Electric, based in India, is a prominent player in the electric scooter segment. The company has been instrumental in promoting electric mobility in India, offering a range of electric scooters tailored for urban commuting. Hero Electric’s focus on affordability and extensive service networks has contributed to its strong market presence.
• Niu Technologies: Niu Technologies, headquartered in China, specializes in smart electric scooters. The company reported revenues of RMB 1,026.5 million (approximately USD 150 million) in the second quarter of 2023, marking a 46.5% year-over-year increase. Niu’s global expansion strategy includes entering markets in Europe and North America, aiming to capitalize on the growing demand for sustainable urban mobility solutions.
• Zero Motorcycles: Zero Motorcycles, an American manufacturer, focuses on high-performance electric motorcycles. The company offers a range of models catering to both urban commuters and off-road enthusiasts. Zero’s emphasis on innovation is evident in its proprietary Z-Force® powertrain, which delivers impressive torque and efficiency. The company has expanded its global footprint, with a presence in over 30 countries.
• Vespa (Piaggio Group): Vespa, a brand under the Piaggio Group, has introduced electric versions of its iconic scooters. The Vespa Elettrica offers a range of up to 100 km and features advanced connectivity options. Piaggio’s strategic move into electric mobility aligns with its commitment to sustainability and innovation, leveraging Vespa’s strong brand heritage to attract environmentally conscious consumers.

Recent Developments

• In 2023, Bird Global, Inc. acquired Spin, a San Francisco-based e-bike and scooter operator, from Berlin’s TIER Mobility for $19 million. This deal, which included $10 million in cash, solidifies Bird’s position as North America’s top micromobility operator. Spin operates in over 50 cities and campuses, with minimal overlap in Bird’s existing markets.
• In 2024, Harley-Davidson’s LiveWire division teamed up with Taiwanese manufacturer KYMCO to develop high-performance electric maxi-scooters. These scooters, featuring LiveWire’s S2 Arrow powertrain, are expected to launch in 2026.
• On June 7, 2024, Fly-E Group, Inc. (Nasdaq: FLYE) successfully closed its initial public offering (IPO), selling 2.25 million shares at $4.00 each. The company also offered underwriters a 30-day option to purchase an additional 337,500 shares.
• In 2024, Castrol Holdings, part of the bp group, announced a $50 million investment in Gogoro Inc., a leader in battery-swapping ecosystems for urban mobility solutions.

Conclusion

The electric scooter and motorcycle market is poised for substantial growth, driven by increasing environmental awareness, technological advancements, and supportive government policies. As urbanization intensifies and consumers seek sustainable transportation options, electric two-wheelers offer a compelling solution for efficient and eco-friendly mobility. The integration of smart technologies and the expansion of charging infrastructure further enhance their appeal, positioning the market for continued expansion in the coming years.

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