South Korea Electric Two-Wheeler Market Assessment, By Vehicle Type [Motorcycle, Scooter/Mopeds], By Battery Type [Lead Acid, Lithium-ion, NiMH], By Distribution Channel [Online, Offline], By Battery Voltage [Up to 24V, 25V-60V, 60V and Above], By Applica

South Korea Electric Two-Wheeler Market Assessment, By Vehicle Type [Motorcycle, Scooter/Mopeds], By Battery Type [Lead Acid, Lithium-ion, NiMH], By Distribution Channel [Online, Offline], By Battery Voltage [Up to 24V, 25V-60V, 60V and Above], By Application [Commercial, Personal], By Region, Opportunities and Forecast, 2017-2031F

South Korea electric two-wheeler market is projected to observe a CAGR of 7.23% during the forecast period 2024-2031, growing from USD 42.36 million in 2023 to USD 74.06 million in 2031. The market has witnessed significant growth in recent years and is expected to maintain an expansion in the coming years owing to an increase in demand for energy-efficient commuting choices, a considerable rise in concern for carbon emission by ICE-based two-wheelers, and growing fossil fuel prices in South Korea along with reducing reserves supporting the South Korea electric two-wheeler market growth. The South Korea electric two-wheeler market demand is surging due to the growing interest of established two-wheeler market companies entering the E2W sphere and the arrival of E2W startups offering technologically advanced vehicles. The rising awareness regarding environmental concerns and the low fuel efficiency of conventional two-wheelers are key factors propelling the requirement for E2W. South Korean governmental bodies have set up different incentive schemes for E2Ws to foster market growth for electric two-wheelers in South Korea. For instance, in 2020, incentives up to USD 15,700 were implemented to buy electric vehicles. Also, the government aims to purchase subsidies, but the real preference of electric vehicle users is the operational cost subsidies, including subsidies for electricity costs, rather than the subsidy during the purchase.

The popularity of electric scooters is surging in South Korea, leading to a noticeable increase in related accidents. As their use becomes more widespread, the need for comprehensive regulations is becoming increasingly apparent.

For instance, in September 2024, the Ministry of the Interior and Safety in South Korea announced a collaborative initiative. This effort, involving both public and private sectors, aims to enhance safety management measures and reduce the occurrence of accidents.

Advancement in E2W Technology Drives South Korea Electric Two-Wheeler Market Growth

One notable technological advancement in electric two-wheelers is the incorporation of regenerative braking systems. This cutting-edge braking technology catches a significant portion of the vehicle's kinetic energy, changing it into either electrical or mechanical energy. The generated energy can be stored in flywheels as mechanical energy or in the vehicle's battery as electrical energy, which then supports the recharge of the battery. This innovation not only increases the vehicle's range but also decreases brake wear and tear, leading to reduced maintenance expenses, further propelling South Korea electric two-wheeler market growth in the forecast period. Companies in the market are efficiently integrating advanced technologies in E2Ws to offer an overall better driving experience and improve road and vehicle safety. Moreover, with advanced technology for EVs, the country is also upgrading its charging infrastructure with new and advanced chargers.

For instance, as of 2023, more than 190,000 chargers were available for approximately 3,60,000 electric cars, translating to roughly one charger for every two EVs. Additionally, new building regulations require a designated number of parking spaces to be equipped with EV chargers, making charging more accessible for residents.

Improvement of E2W Battery Technology Pushes Market Demand

A key advancement in electric two-wheeler technology is the improvement of battery technology. Lithium-ion batteries are now the prevailing choice for these vehicles owing to their superior energy density and extended range over other battery types. Additionally, introducing fast-changing technology has significantly enhanced convenience, enabling electric two-wheelers to be charged in just a few hours and making them more practical for daily usage. Companies in the market are establishing manufacturing facilities for EV batteries to meet specific safety standards and boost consumers' confidence in electric two-wheelers.

For instance, in May 2024, Webasto Group announced an expansion of EV battery production in South Korea to address the rising demand for electric vehicles and by 2025, this will enable the facility to produce up to 300,000 battery packs annually.

Policies and Regulations by the South Korean Government Boosts Market Growth

South Korean government is efficiently planning to set up several programs to spread awareness regarding the benefits of zero carbon emissions and encourage the adoption coupled with the production of E2Ws. The government also significantly compels companies to introduce advanced E2Ws with improved technology and different safety features, propelling South Korea electric two-wheeler market growth in the forecast period. Additionally, the rising awareness relating to eco-friendly sustainability, along with different subsidies and incentives by the government, are fostering the E2Ws demand soon. Furthermore, the government aims to reduce its emissions and air pollution by framing different policies and regulations.

For instance, in May 2024, the Seoul Metropolitan Government announced an ambitious objective to reduce greenhouse gas emissions in the Seoul area by 50% compared to 2005 levels by 2033. This aims for public transportation and long-distance commercial vehicles, including delivery motorcycles, will be transformed into sustainable ones.

Scooters Dominate the South Korea Electric Two-Wheeler Market Share

Scooters dominate the electric two-wheeler market owing to increased disposable income, battery technology advancements, and rising sustainable environmental awareness. The demand for scooters in South Korea is rising owing to technological advancements, including GPS tracking, smartphone apps, Bluetooth pairing, and intelligent features, including regenerative braking. Companies in the market are introducing new and advanced scooters equipped with futuristic features such as customizable lighting, built-in display screens, and even voice-assisted navigation, driving the demand for scooters in South Korea in the forecast period. In addition, companies in South Korea are also planning to enter different countries to expand their portfolio and address the surging demand for e-scooters.

For instance, in May 2023, Gogoro Inc. announced the partnership with Bike Bank Co., Ltd. to introduce Gogoro Smartscooters and battery swapping to Korean consumers in Q3 2023 under the Dotstation brand.

Lithium-Ion is Expected to Hold the Largest Share in Electric Two-Wheeler Market

The lithium-ion battery is projected to hold the largest share owing to technological advancements, low maintenance costs, high density, and eco-friendly transportation. Lithium-ion batteries get charged easily for long trips, and there is no requirement to extend the battery’s life, which will propel the growth of lithium-ion batteries in the forecast period. In addition, technological advancements in batteries empower manufacturers to introduce more robust and reliable lithium-ion batteries, resulting in E2Ws that deliver outstanding performance and endurance. Companies in the South Korea market are producing lithium-ion batteries to offer modern fuel gauge applications and improve the scooter’s size along weight. Furthermore, the government plans to invest in advancing battery technologies and manufacture advanced products.

For instance, in February 2021, South Korea announced the launch of a four-year lithium-ion battery technology reuse scheme to ensure used batteries are either recycled or used in second-life applications.

Future Market Scenario (2024-2031F)

The South Korea electric two-wheeler market is projected to rise owing to expanding charging infrastructure, increased focus on environmental sustainability, and substantial investment in charging networks.

Rising fuel prices and an increasing requirement for energy-efficient commuting choices propel the market expansion in the forecast period.

The implementation of advanced technologies and supportive government regulations will propel South Korea electric two-wheeler market growth in the forecast period.

Government initiatives encouraging clean energy and reduced carbon emissions are promoting the adoption of EVs, further fostering the electric two-wheeler market growth in South Korea.

Key Players Landscape and Outlook

Companies in the market are efficiently planning to invest in different research and development activities to advance the performance and durability of electric two-wheelers. Companies in the market are also integrating lightweight components to address the demand for sustainable transportation. In addition, companies in the market for E2Ws are adopting different growth strategies, including joint ventures, mergers and acquisitions, partnerships, collaborations, amalgamation, and new product launches to expand their product portfolio and market presence.

Myvelo Co., Ltd., a key player in the South Korean electric two-wheeler market, is at the forefront of the industry, offering advanced e-bikes that contribute to achieving net zero carbon emissions and meet the growing demand for E2Ws.