Electric Motorcycle Market Size, Share, Growth, and Industry Analysis, By Type (3hp≤ Output Power <6hp, 6hp≤ Output Power <12hp, 12hp≤ Output Power <20hp, 20hp≤ Output Power <45hp, and, 45hp≤ Output Power), By Application (street market, and, off-road market), and Regional Insights and Forecast to 2035

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ELECTRIC MOTORCYCLE MARKET OVERVIEW

The global Electric Motorcycle Market size is USD 0.7 billion in 2025, is expected to rise to USD 0.77 billion in 2026, and is forecasted to reach USD 2.29 billion by 2035, expanding at a CAGR of 9.8% throughout the period 2025-2035.

Electric motorcycles are rechargeable battery operated two-wheelers with environmentally friendly advantages over their fuel operated counterparts. They emit no pollutants to the environment, meaning that fumes from vehicles will be minimized to check on pollution and carbon implant. As electric motorcycles are equipped with modern technology, they provide an instant torque rate those results in smooth acceleration & nail- biting quietness. They frequent include regenerative braking to make an improvement on the efficiency as they are in a position to recover energy. Ever before, initial costs might be relatively high but the costs of fuel and maintenance in the long run make them relatively cheap. Electric bikes have quite an expressive growth in terms of charging points and designs providing green mobility.

KEY FINDINGS

COVID-19 IMPACT

Supply Chain Interruption and Product Manufacture Stoppage during COVID-19 Pandemic Decreased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Electrical-based two-wheelers too felt the impact of COVID-19 pandemic as they being a part of the global market of electric motorcycles. Some negative effects on growth include: supply chain interruption and product manufacture stoppage which for some time brought progress to a standstill. But then people started developing awareness for their environment and shifted from public to personal transport thus people moved towards fully electric two-wheelers. Attempting to moderate the impact and spread of the virus, governments around the globe upped green mobility incentives and market attention. The markets for e-commerce and delivery services also grew and in turn accelerated the use of electric motorcycles for last mile delivery. Though, there were problems such as decreased customer demand at the beginning, the pandemic proved the value of eco-friendly transportation, promoting further development of the electric motorcycle market.

LATEST TRENDS

Slimmer Styling and Better Batteries to Drive Market Growth

A number of trends characterize the electric motorcycle industry in 2024 as companies continuously introduce innovations and focus on environment friendly products. Slimmer styling and better batteries are making electric motorcycles more attractive, giving better mileages and a faster charge. Some bike manufacturers such as Zero Motorcycles are aiming at revolving around costs, such as strategies of bringing bikes that cost less than $ 10,000. Manufacturers are also diversifying, expanding into Sections of the LiveWire maxi-scooter and Honda‘s Fun EV concept which works perfectly as an off-road or a commuter scooter. This market is precisely being driven by such partnerships such as Hero Moto-Corp with Zero where the focus is to extend the availability of electric bikes across the middleweight category.

• According to The International Energy Agency (IEA), global electric motorcycle sales surged to over 3 million units in 2023, with China being the largest market, accounting for 85% of total global sales. This growing demand is primarily driven by the increasing awareness of environmental concerns and the push toward sustainable transportation options. The preference for electric motorcycles has become more prominent in urban areas, where congestion and pollution are pressing issues.

• According to the European Commission, the European Union (EU) introduced stringent emission regulations in 2023, with plans to phase out combustion engine vehicles by 2035. In response, several EU countries have implemented incentive programs, such as tax rebates and subsidies for electric motorcycle buyers, resulting in a rise in adoption. In 2023, France reported a 30% increase in electric two-wheeler registrations, bolstered by a government-backed rebate program for electric vehicle purchases.

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ELECTRIC MOTORCYCLE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into 3hp≤ Output Power <6hp 6hp≤ Output Power <12hp, 12hp≤ Output Power <20hp, 20hp≤ Output Power <45hp, and, 45hp≤ Output Power

• 3hp ≤ Output Power < 6hp: It targets commuters using Electric motorbikes with light load in short distance covered power house or time conscious nature.

• 6hp ≤ Output Power < 12hp: Suitable for 125-400cc bikes and scooters used actively in the urban area providing adequate performance.

• 12hp ≤ Output Power < 20hp: Exhibits moderate power which is ideal for both urban commotion and brief highway travel.

• 20hp ≤ Output Power < 45hp: High-performance models for the audience of passionate drivers who wish to have vehicles with intercity dynamics.

• 45hp ≤ Output Power: These high-end electric motorcycles in this price range offer incredible speed, longer range, and the latest technology for professional riders.

By Application

Based on application, the global market can be categorized into street market, and, off-road market

• Street Market: Concentrates on electric motorcycles primarily for city use with stylish looks, excellent output and built to meet daily city use requirements.

• Off-Road Market: Specifically, aims at rugged electric motorcycle that can possess better durability, traction and power to manage adventure paths and rough terrains.

MARKET DYNAMICS

Driving Factors

Increased Environmental Concerns and the Implementation of Government Policies to Boost the Market

This market is influenced by increased environmental concerns and the implementation of government policies that require electric energy utilization. Subsidies, tax benefits and incentives for electric vehicles have also contributed to adoption of green consumers through moving from the use of traditional internal combustion engines to an adoption of EVs. Increased fuel costs put pressure on increasing the demand for electric motorcycles as a means of daily transport. The technology progresses linked to battery power, improved ranges and charging facility only add on to the enhancement of the adoption ratios of the EVs and thereby address the modern rider’s requirements. All of these factors are driving the electric motorcycle market growth.

• According to the U.S. Department of Energy, the U.S. government allocated $7.5 billion in 2023 to support electric vehicle infrastructure development, which also includes electric motorcycles. Incentive programs and tax credits for purchasing electric vehicles (EVs) are expected to play a key role in stimulating market growth. These initiatives aim to reduce the cost burden on consumers and encourage widespread adoption of electric motorcycles.

• According to The World Health Organization (WHO), over 4.2 million deaths annually are attributed to outdoor air pollution, which is a major concern in urban centers. This has led consumers to shift toward cleaner transportation options. The transition to electric motorcycles, which produce zero tailpipe emissions, is seen as an effective solution for reducing urban air pollution. In cities like New York and Los Angeles, electric motorcycles have gained traction as a cleaner, more sustainable mode of transportation.

Aging Population, and, Rising Levels of Income to Expand the Market

Aging population, rising levels of income and concerns over air pollution and traffic congestion which have led to high demand for personal transport equipment are some of the factors that foster the growth of this market. Electric motorcycles provide these needs with; low emission, noise, and reduced cost of maintenance. The market is also expanding with the ever-growing e-commerce and delivery services industries which opt for electric two-wheelers for last-mile delivery. The growth in the lower cost electric models and the availability of improved performance features guarantees increased acceptance among a larger population of consumers.

Restraining Factor

Higher Price of Electric Motorcycles Than Conventional Models Impede Market Growth

One of the most significant barriers that slow down electric motorcycle market growth is a considerably higher price than conventional models, making it challenging for low-budget consumers. However, the absence of a coherent charging network in many areas is still a drawback, especially in the countryside. A major drawback of most electric cars is range anxiety, the fear of being left stranded mid trip due to a low battery. However, as the technology advances, customers are concerned with issues such as battery backup, and its performance after a short period of time. The above factors are bringing down the electric motorcycle market share.

• According to the International Council on Clean Transportation (ICCT), the lack of an adequate charging infrastructure remains one of the main barriers to the growth of the electric motorcycle market. In many regions, especially in developing countries, the number of charging stations is still insufficient, which discourages potential buyers. As of 2023, India had only 7,000 public charging stations, a number that is inadequate for supporting a significant increase in electric two-wheelers.

• As reported by the U.S. Department of Transportation, electric motorcycles can cost up to 30% more than their traditional internal combustion engine counterparts, primarily due to the high cost of battery technology. This price gap makes it challenging for many potential consumers, particularly in developing regions, to switch to electric motorcycles. Despite long-term savings in fuel and maintenance, the initial cost remains a significant barrier.

Improvement in Battery Technology, And, Availability of Charging Infrastructure to Create Opportunity in the Market

Opportunity

The global market for electric motorcycles also remains untapped because of the growing use of environmentally friendly solutions in transportation. Given that governments from around the world continue to encourage and incentive the use of electric vehicles, there is increasing demand for environmentally sustainable goods. Improvement in battery technology, availability of charging infrastructure, and electric motor cycling’s cost take it to a new horizon of demand for manufacturers. A shift towards last-mile delivery services and a growing penchant for private transportation within metropolitan areas also help push the demand forwards making this a ripe market for further developments.

• According to The Department of Energy’s Vehicle Technologies Office, advancements in lithium-ion batteries have significantly improved the performance of electric motorcycles. As of 2023, the range of electric motorcycles has increased to 150-200 miles on a single charge, compared to just 50-70 miles a few years ago. This improvement in battery life presents an opportunity to attract a wider range of consumers, including those in regions with longer distances between charging stations.

• According to The World Bank, the number of motorcycles in Southeast Asia and Africa has been steadily increasing, with countries like Vietnam and Nigeria seeing rapid urbanization and rising income levels. These regions present significant opportunities for electric motorcycles, as they offer a more affordable and environmentally-friendly alternative to traditional motorcycles. In Vietnam, the number of electric motorcycles on the road grew by 20% in 2023, supported by government incentives and an increasing demand for cleaner transportation solutions.

High Cost of Installation and Inadequate Charging Stations to Be a Potential Challenge for Consumers

Challenge

The electric motorcycle market also has many constrains; one of them being the high prices of the electric models compared to the traditional motorcycles, which acts as a repellent to the potential buyers. High cost of installation and inadequate charging stations including in remote areas also poses a major challenge. Secondly, electric motorcycles’ lower price range compared to gasoline-powered ones compound by the perception of battery degradation creates some uncertainty among customers. These challenges have to be solved by cutting costs, improving batteries and charging infrastructure to support market development.

• According to the U.S. Environmental Protection Agency (EPA), the disposal and recycling of lithium-ion batteries, commonly used in electric motorcycles, pose significant environmental challenges. In 2023, only about 5% of lithium-ion batteries were properly recycled. The lack of effective battery recycling infrastructure increases the environmental impact of electric motorcycles, which could hinder their widespread adoption.

• According to McKinsey & Company, one of the key challenges in the electric motorcycle market is "range anxiety," where consumers fear that the vehicle’s battery will run out before they can reach a charging station. As of 2023, 40% of potential electric motorcycle buyers in markets like the U.S. and EU cited concerns about limited range as a major factor in their decision not to purchase. This perception, despite improvements in battery technology, remains a significant barrier to adoption.

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ELECTRIC MOTORCYCLE MARKET REGIONAL INSIGHTS

• North America

North America’s market is quickly growing due to the increased stringency of environmental laws and increasing EV demand in the U.S. and Canada. Higher charging infrastructure and promotion of EV are helping the market to grow.

• Europe

The demand in Europe is expected to grow at a high rate following government incentives, polices in the reduction of carbon emissions, together with investments in the EV market. Germany and United Kingdom in particular are experiencing high market growth.

• Asia-Pacific

Currently, China and India collectively dominate the electric motorcycle market for this continent that is given the largest market share globally. Some micro-factors include fast-growing trends of urbanization, relatively high pollution, and increasing number of EV manufacturers. Specifically, the Chinese authorities’ effort to fund infrastructure for electric vehicles has led to the popularization of the use of electric motorcycles.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

Key industry players are shaping the marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences. Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the market.

• Zero Motorcycles: Zero Motorcycles, headquartered in California, is a leading player in the electric motorcycle market, specializing in both street and off-road motorcycles. According to Zero Motorcycles, its FX and SR/F models have been some of the best-selling electric motorcycles in the U.S., and the company reported a 50% increase in international sales in 2023. The brand is known for its innovative use of Z-Force battery technology, which offers industry-leading performance and range

• Brutus: Brutus is a U.S.-based electric motorcycle manufacturer known for producing high-power electric motorcycles designed for long-range travel. In 2023, Brutus V9 was recognized as one of the longest-range electric motorcycles, offering up to 250 miles per charge. The brand has successfully combined high performance with sustainable features, positioning itself as a key player in the U.S. market.

List of Top Electric Motorcycle Companies

• Energica (Italy)
• Zero Motorcycles (U.S.)
• Brutus (Germany)
• Gogoro (Taiwan)
• BMW Motorrad (Germany)
• Hero (India)
• Terra Motor (Japan)
• Govecs (Germany)
• KLB Komaki (India)

KEY INDUSTRY DEVELOPMENT

February 2024: The turn of the year 2024 is a coming of significant changes to the electric motorcycle market through innovation and model release. Some of the many electric vehicle concepts that were introduced at EICMA 2024 include ‘Honda’s “EV Fun Concept” and Honda “EV Urban Concept.” The Honda EV Fun Concept is the first electric sports model from Honda to be rolled out by 2025 and Honda EV Urban Concept demonstrates the future of urban electric vehicles with sophisticated software and hardware control. Each model embodies Honda’s larger plan to electric motorcycles out its portfolio by the year 2030.

REPORT COVERAGE

SWOT analysis is presented in this work at a high level, and helpful recommendations regarding further evolvement of the market are considered. This paper takes an opportunity to review and discuss the market segments and possible applications that have the potential to influence the market growth in the future years. The work uses both, the data regarding the modern state of the market and the information on its evolution to identify the possible development trends.

 The market with better portability is expected to gain high growth rates due to better consumer adoption trends, increasing application areas, and more innovative product developments. Yet, there might be some problems like, for instance, the shortage of raw materials or higher prices for them however, the growing popularity of specialized offerings and tendencies towards enhancing quality foster the growth of the market. All of them are progressing through technology and innovative strategies in developments as well as in supply chain and market.