According to the study published, the Global Electric Two & Three-Wheeler Market is projected to witness a rise in its revenue from US$ 46.61 Bn in 2021 to US$ 153.62 Bn by 2030. The market is registering growth at a CAGR of 14.2% over the forecast period 2022-2030.
In terms of volume, the market is registering a CAGR of 14.2% during the forecast period. The market is majorly driven by factors such as growing demand for energy-efficient commuting and government support through subsidies and tax rebates. Electric vehicles lead to less air pollution, less noise pollution, higher efficiency, low maintenance cost, and low fuel and operating costs when compared to other conventional vehicles. Moreover, clean and renewable energy sources like solar and wind power are being increasingly integrated into the utility grids used to charge electric vehicles, which further reduces the use of hydrocarbon-based energy sources.
The production of gas-powered vehicles is expected to decrease prominently over the next decade as gas is not a renewable source of energy and doesn’t promote sustainable development. However, electric vehicles are fuel-efficient and low emission vehicles as compared to gas-powered vehicles. Furthermore, countries like the U.S., France, Germany, and China have implemented stringent government laws and regulations regarding vehicular emission, under which it is mandatory for automobile manufacturers to use advanced technologies that help to combat high-emission levels emitted by vehicles. Governments have promoted growth in this segment by offering incentives, imposing tax rebates, and preferential policies, among others. For instance, in India, the state of Maharashtra declared its EV policy in 2021. This policy provides incentives of US$ 65.50 per kilowatt-hour of battery capacity to all types of electric vehicle buyers. However, the lack of EV charging infrastructure and poor design & performance standard of electric vehicles poses a big challenge to the market growth.
Two-wheelers leads the Global Electric Two & Three-Wheeler Market
Based on vehicle type, the market is segmented into e-bikes, electric kick scooters, two-wheelers, and three-wheelers. The e-bikes segment has the highest share in the Global Electric Two & Three-Wheeler Market in 2021 and is further estimated to continue its dominance over the projection period. Sales of electric e-bikes more than doubled in 2021 led by a sharp uptick in demand for high-speed e-bikes which are supported by state and central subsidies. The three-wheelers segment has the highest CAGR over the forecast period due to the rising focus on electrifying public transport systems in major regions like Europe, China, U.S, India and UK.
Personal usage has the highest share in the Global Electric Two & Three-Wheeler Market in 2021
In terms of usage, the electric two & three-wheeler market is divided into personal and commercial segments. Among these, the personal segment holds the highest market share in 2021. Further, the personal segment also records the highest CAGR over the forecast period 2022-2030. Electric Two & three-wheelers are predominantly used in the personal or private sector. They are being heavily used for transportation of commuting from one place to another, as they have become the most fuel-efficient transport system for long distances.
Individuals are the major end-users of the electric two & three-wheelers in 2021
Based on end-users, the market is divided into individuals and businesses segment. Individuals (B2C) are the highest-end users of the Global Electric Two & Three-Wheeler Market in 2021 and has the highest CAGR over the projection period. This is due to the increased use of electric two & three-wheelers by consumers as they are cost-efficient and environmentally friendly.
Asia Pacific has the lion’s share in the Global Electric Two & Three-Wheeler Market
Asia Pacific Electric Two & Three-Wheeler Market dominates the global marketplace in 2021 and will continue its dominance over the forecast period. China, being the world’s top EV producer and user has a stranglehold on the region’s EV market. Furthermore, Japan and South Korea have both seen rapid growth in their electric vehicle market as their governments have aided the increase of EV demand by providing EV charging stations, establishing pollution standards, and establishing deadlines for switching from ICE vehicles to full or hybrid EVs, among other things.
- Bajaj Group’s footprint stretches over a wide range of industries, such as automobiles, home appliances, lighting, iron and steel, insurance, travel and finance. The company deals in the design and manufacturing of cost-effective automotive breakthrough technologies. The company launched the electric scooter Chetak in January 2020.
- Dilli Electric or CityLife EV are the manufacturers and exporters of environment-friendly battery-operated E-Rickshaws. The company uses high-end technology and well-trained experts for the design and manufacturing of rickshaws that meet international standards. Its e-rickshaws are easy to operate have an efficient design as well as sturdy construction.
- J.S. Auto (P) Ltd. is a global exporter, manufacturer, and supplier of three-wheelers – diesel, CNG, and electric. The company has an exquisite range of 3 wheelers, which are designed for ensuring safety and efficiency of the customers. J.S. Auto majorly sells its vehicles through 2 product categories – Passenger Carrier and Load/Goods Carrier.
- Kinetic Green Energy and Power Solutions Ltd. is a part of the Firodia Group of Companies, which has a track record of successful collaborations and joint ventures from various leading manufacturing companies around the world. It is one of the leading players in battery operate vehicles – 3 wheelers, scooters, e-cycles, and buggies. These vehicles will be working with solar and electric powered batteries.
- Saera Electric Auto Pvt. Ltd. is involved in the manufacturing of various Passenger and Cargo Rickshaws, agricultural equipment, etc. The company is an entity of the Satra group of Companies and is also the parent company of Yogo Bike. The company has a vast experience in manufacturing of electric vehicles. It is also a leading manufacturer of eco-friendly and zero-emission vehicles. Along with Yogo Bikes, it also manufactures Mayuri, an electric autorickshaw brand.