North America Electric Two-Wheeler Market Outlook, 2029

North America Electric Two-Wheeler Market Outlook, 2029

The North American electric two-wheeler market is experiencing a period of significant transformation. Once dominated by niche players and enthusiasts, the market is now witnessing the entry of established motorcycle manufacturers and substantial investments in product development. This shift is driven by a confluence of factors, including rising fuel costs, growing environmental awareness, and government policies promoting the adoption of electric vehicles (EVs). Looking ahead, the North American electric two-wheeler market is poised for continued growth, with analysts predicting a significant increase in market share compared to traditional gasoline-powered options. Beyond the general growth trends, the North American electric two-wheeler market presents some unique characteristics that distinguish it from other regions. One such aspect is the pronounced focus on high-performance electric motorcycles. Unlike some Asian markets dominated by electric scooters, North American consumers are showing a strong interest in electric motorcycles that deliver comparable power and performance to their gasoline counterparts. This demand is fueled by a culture of motorcycle riding and a growing segment of environmentally conscious consumers who are unwilling to compromise on performance when making the switch to electric mobility. Manufacturers are responding to this trend by developing electric motorcycles with impressive specifications, including extended range capabilities, high top speeds, and rapid acceleration. For instance, several North American brands are showcasing electric motorcycles capable of exceeding 100 miles per charge and achieving acceleration times rivaling high-performance gasoline motorcycles. This focus on high-performance electric motorcycles positions North America as a unique market within the global electric two-wheeler landscape.

According to the research report ""North America Electric Two-wheeler Market Outlook, 2029,"" published by Bonafide Research, the North America Electric Two-wheeler market was valued at more than USD 2 Billion in 2023. The North American electric two-wheeler market exhibits a unique characteristic – the growing popularity of these vehicles for recreational purposes. This stands in contrast to some other regions where electric two-wheelers are primarily seen as utilitarian transportation solutions for commuting within urban areas. In North America, electric motorcycles are increasingly viewed as a fun and sustainable alternative for leisure riding and weekend adventures. This is particularly true for lightweight electric motorcycles that offer a balance of performance and accessibility, making them appealing to a broader rider base, including those new to motorcycling. Several factors contribute to this trend. Firstly, the scenic landscapes and diverse terrains across North America offer a perfect backdrop for exploring on an electric motorcycle. Whether navigating winding mountain roads, cruising along scenic coastal highways, or venturing off-road on designated trails, electric motorcycles provide a unique way to experience the outdoors with minimal environmental impact. Furthermore, the growing popularity of adventure motorcycling in North America aligns well with the capabilities of some electric motorcycles. Several manufacturers are developing electric adventure bikes with extended range, rugged construction, and features like off-road suspension and knobby tires, allowing riders to explore remote areas without compromising on performance. The recreational appeal of electric two-wheelers extends beyond motorcycles. Electric bicycles, or e-bikes, are gaining significant traction in North America for leisure activities like cycling paths, scenic trails, and even mountain biking. E-bikes offer riders a way to extend their range and explore more challenging terrain, making them ideal for both experienced cyclists and those seeking a more casual way to enjoy the outdoors. Additionally, electric scooters are increasingly utilized for recreational purposes, particularly in coastal communities and tourist destinations. Their compact size and ease of use make them a convenient and eco-friendly way to navigate beach towns, boardwalks, and scenic areas.

Market Drivers

• Increasing Environmental Awareness and Focus on Sustainable Transportation: North America is witnessing a growing awareness of environmental concerns, with consumers becoming more conscious of the impact of their transportation choices. Electric two-wheelers offer a compelling solution in this regard, producing zero tailpipe emissions and contributing to a cleaner urban environment. Government initiatives promoting sustainable transportation practices further amplify this driver. Several cities within North America are implementing policies that prioritize electric vehicles, including designated parking spaces, tax breaks on electric two-wheeler purchases, and restrictions on gasoline-powered vehicles in specific zones. This regulatory push, coupled with a growing consumer preference for eco-friendly transportation options, is creating a favorable environment for the growth of the North American electric two-wheeler market.
• Policy Initiatives and Infrastructure Development: Government policies and infrastructure development play a crucial role in driving the North American electric two-wheeler market. Federal and state-level initiatives offering tax rebates, purchase incentives, and subsidies for electric vehicles are significantly reducing the upfront cost barrier for consumers. Additionally, some cities are investing in dedicated bike lanes and charging infrastructure specifically designed for electric two-wheelers. This focus on creating a supportive infrastructure ecosystem not only enhances the safety and convenience of electric two-wheelers but also signals a long-term commitment to sustainable transportation solutions. As these policy initiatives and infrastructure developments continue, they are expected to act as a significant catalyst for the growth of the North American electric two-wheeler market.

Market Challenges

• Regulatory Landscape and Safety Concern: The regulatory environment for electric two-wheelers varies considerably across different municipalities and states within North America. Some regions have implemented clear regulations classifying electric scooters and mopeds, while others lack a defined framework. This inconsistency can create uncertainty for manufacturers and hinder market growth. Furthermore, safety concerns remain a challenge. There have been instances of accidents involving electric two-wheelers, raising concerns about rider safety and potentially deterring some consumers from adopting this mode of transportation. Addressing these concerns requires collaboration between manufacturers, policymakers, and safety advocacy groups to develop clear regulations, promote rider education, and implement safety features on electric two-wheelers.
• Limited Public Charging Infrastructure: While the availability of charging infrastructure for electric vehicles is improving in North America, the current landscape remains a challenge for electric two-wheeler adoption. Compared to charging stations for electric cars, dedicated charging infrastructure for electric two-wheelers is still relatively limited, particularly outside major urban centers. This can lead to range anxiety for potential buyers, concerned about finding charging points during their commutes. Investing in expanding the public charging network specifically for electric two-wheelers, potentially incorporating innovative solutions like battery swapping stations, is crucial to address this challenge and incentivize wider adoption beyond urban areas.

Based on the report, the Electric Two-wheeler market is segmented into electric motorcycle and electric scooter categories on the basis of vehicle type.

Electric motorcycles hold a particular appeal for riders seeking a familiar motorcycle experience with the added benefit of electric propulsion. Within North America, this segment caters to enthusiasts drawn to the power and performance capabilities of electric motorcycles. Major motorcycle manufacturers are actively developing electric motorcycle models to compete with established gasoline-powered options. These electric motorcycles often boast impressive acceleration, high top speeds, and extended range capabilities, making them suitable for highway cruising and longer commutes. Additionally, the growing popularity of adventure motorcycle touring within North America presents an opportunity for electric motorcycle manufacturers to develop models specifically designed for off-road exploration and long-distance travel. However, the higher price point of electric motorcycles compared to electric scooters can be a barrier for some budget-conscious consumers. Furthermore, the lack of dedicated charging infrastructure for long-distance travel remains a challenge for widespread adoption of electric motorcycles for touring purposes. Electric scooters, on the other hand, represent a rapidly growing segment within the North American electric two-wheeler market. These lightweight, nimble, and fuel-efficient vehicles are ideally suited for short-distance urban commutes and recreational use. Their compact size and ease of operation make them popular choices for navigating congested city streets and finding parking in crowded urban environments. Additionally, the affordability of electric scooters compared to electric motorcycles positions them as an attractive option for budget-conscious consumers and first-time electric two-wheeler buyers. The growing popularity of electric scooter sharing services in major North American cities further contributes to the demand for these vehicles. However, the primary limitation of electric scooters lies in their range capabilities. They are typically designed for shorter trips within urban areas and might not be suitable for longer commutes or highway travel. Furthermore, safety concerns regarding electric scooter usage, particularly within shared mobility programs, remain a topic of discussion, with some cities implementing regulations regarding helmet use and designated riding zones.

According to the report, the Electric Two-wheeler market is segmented into sealed-lead acid (SLA) and lithium ion based on battery.

While SLA batteries offer a lower upfront cost compared to Li-ion batteries, their limitations are significant. They have a shorter lifespan, require more frequent replacements, and offer a lower energy density, translating into shorter range capabilities for electric two-wheelers. Additionally, SLA batteries are heavier than Li-ion batteries, which can impact the overall weight and performance of the vehicle. The presence of SLA batteries in the North American market is primarily limited to budget-conscious consumers or low-speed electric scooters where cost is a major deciding factor. However, as Li-ion battery costs continue to decline and their performance advantages become more pronounced, SLA batteries are expected to play a diminishing role in the North American electric two-wheeler market. Li-ion batteries offer a clear advantage in terms of performance, lifespan, and weight compared to SLA batteries. They boast a higher energy density, allowing for longer range capabilities on a single charge. Additionally, Li-ion batteries have a longer lifespan and require fewer replacements throughout the vehicle's life cycle. While the upfront cost of Li-ion batteries is higher than SLA batteries, their superior performance and lower long-term ownership costs make them the preferred choice for most consumers within the North American electric two-wheeler market. Furthermore, advancements in Li-ion technology are continuously improving their energy density and charging times, further solidifying their dominance in the North American electric two-wheeler market. The focus on Li-ion battery technology is a crucial factor driving the growth and adoption of electric two-wheelers in North America. As Li-ion battery technology continues to evolve, offering even greater range capabilities and faster charging times, it will play a pivotal role in overcoming range anxiety concerns and propelling the North American electric two-wheeler market towards widespread adoption.

According to the report, the Electric Two-wheeler market is segmented into 48V, 60V and 72V based on motor power.

The North American electric two-wheeler market exhibits a unique segmentation by motor power compared to other regions. While higher voltage motors offer greater power and speed, regulations and consumer preferences within North America create a space for a wider range of motor power options. 48V segment caters primarily to low-speed electric scooters and mopeds. With a maximum speed of around 30 mph (48 km/h), these vehicles are classified as mopeds in many North American jurisdictions, often requiring only a driver's license for operation. The lower motor power translates into a more affordable price point, making 48V electric two-wheelers an attractive entry point for budget-conscious consumers or those seeking a convenient option for short-distance commutes on sidewalks or bike lanes. This segment encompasses a broader range of electric two-wheeler options, including higher-performance electric scooters and some entry-level electric motorcycles. Offering a balance between affordability, speed (typically up to 40-45 mph / 65-72 km/h), and range, 60V electric two-wheelers cater to a wider demographic. They are suitable for urban commutes and recreational use, appealing to consumers seeking a more practical and environmentally friendly alternative to traditional gasoline-powered options. Electric motorcycles and high-performance electric scooters typically fall within the 72V motor power segment. These vehicles offer superior performance with higher top speeds (often exceeding 50 mph / 80 km/h) and extended range capabilities. This segment targets enthusiasts seeking a more powerful and exhilarating electric riding experience, potentially attracting existing motorcycle riders looking to transition to electric alternatives. A small segment exists for electric two-wheelers with motor power exceeding 72V. These are typically high-performance electric motorcycles designed for enthusiasts seeking maximum power and speed. However, stricter regulations and licensing requirements for these high-powered vehicles might limit their overall market share within North America.

According to the report, the Electric Two-wheeler market is segmented into commercial and private based on usage.

The commercial segment encompasses electric two-wheeler usage for business purposes. This includes applications like delivery services, rental fleets, and shared mobility programs. Delivery companies, particularly those operating within urban areas, are increasingly adopting electric two-wheelers due to their efficiency, lower operating costs compared to gasoline-powered options, and environmental benefits. Rental fleets and shared mobility programs are also recognizing the potential of electric two-wheelers to cater to short-distance urban trips and offer riders a convenient and eco-friendly transportation solution. The private segment represents the dominant usage category within the North American electric two-wheeler market. This encompasses individual consumers purchasing electric two-wheelers for personal transportation needs. Factors like rising fuel costs, growing environmental awareness, and increasing government incentives for electric vehicle adoption are driving the growth of the private electric two-wheeler market in North America. Consumers are attracted to the convenience, affordability (particularly for low-speed electric scooters), and eco-friendly aspects of electric two-wheelers for their daily commutes or leisure riding activities.

Based on the report, the major countries covered in the report include the United States, Canada, Mexico, and the rest of North America.

Within the North American Electric Two-wheeler market, the United States holds the dominant position. This leadership can be attributed to a confluence of factors specific to the US market landscape. Firstly, a growing focus on environmental sustainability is driving consumer interest in cleaner transportation options. Government initiatives like tax credits and rebates on electric vehicle purchases further incentivize adoption. However, unlike some European countries with stricter emission regulations specifically targeting two-wheelers, the US market is driven more by consumer preferences and a desire for eco-friendly transportation solutions. A unique aspect of the US Electric Two-wheeler market is the dominance of electric scooters compared to electric motorcycles. This can be attributed to several factors. Urban environments with high traffic congestion and limited parking options make electric scooters a practical and maneuverable solution for short-distance commuting. Additionally, the lower upfront cost of electric scooters compared to electric motorcycles makes them an attractive entry point for budget-conscious consumers curious about electric mobility. Furthermore, the growing popularity of electric scooter sharing services in major US cities exposes a wider audience to the benefits of these vehicles, potentially leading to personal ownership purchases down the line. However, the US Electric Two-wheeler market also faces some challenges. Range anxiety remains a concern for some consumers, particularly those in suburban or rural areas with limited access to charging infrastructure. While public charging options are expanding in major cities, a lack of widespread availability can deter potential buyers. Additionally, safety concerns regarding electric scooters, particularly in relation to interactions with pedestrians and cyclists, are being addressed through legislation and educational campaigns. Some US states are implementing regulations requiring helmets for scooter riders, while others are mandating minimum speed limits for these vehicles on designated roadways.

Recent Developments

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Electric Two-Wheeler market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type
• Electric Motorcycle
• Electric Scooter

By Battery
• Sealed Lead Acid (SLA)
• Lithium-Ion

By Motor Power
• 48 V
• 60 V
• 72 V
• Others

By Usage
• Commercial
• Private

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Two-Wheeler industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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