The global electric scooter and motorcycle market is accelerating toward massive growth, with its valuation projected to surge from $35.3 billion in 2021 to $93.9 billion by 2031, according to a new report by Allied Market Research. Driven by a compound annual growth rate (CAGR) of 10.2%, this surge reflects the rising global demand for sustainable, efficient, and cost-effective transportation alternatives.
Green Shift Gains Momentum
Electric two-wheelers are redefining urban mobility with their zero-emission propulsion systems and rechargeable battery integration, offering a powerful alternative to internal combustion engines. Governments worldwide are supporting the green shift, introducing subsidies, tax incentives, and infrastructure support to fast-track adoption.
Notably, Taiwan’s subsidy program—offering $900–$1000 per vehicle—resulted in record-breaking sales for local brand Gogoro, which moved 145,000 units in 2019 alone. Similar initiatives are sprouting globally, underscoring the role of government backing in market expansion.
COVID-19 Catalyst
The COVID-19 pandemic initially stifled sales but soon became a growth catalyst. Health-conscious consumers began favoring individual modes of transport over crowded public transit, resulting in a boom in e-bike and e-scooter usage. In the U.S., for instance, e-bike sales surged 85% in March 2020, according to The New York Times. In China, production soared by 33.4% year-on-year in 2020, reaching 25.48 million units in just ten months.
Market Highlights & Trends
- E-Motorcycles are leading growth across vehicle types.
- Battery types beyond traditional lithium-ion are seeing the fastest growth.
- Vehicles with over 100 miles of range and more than 5kW power output are in high demand.
- The luxury and commercial segments are dominating usage trends.
Key Players
The report identifies major players shaping the market, including:
- Hero Electric
- Harley-Davidson
- Zero Motorcycles, Inc.
- Yadea Technology Group Co., Ltd.
- Vmoto Limited
- Energica Motor Co SpA
- Piaggio & C. SpA
These companies are investing in battery innovation, financing partnerships, and global expansions to strengthen their market foothold.
With rising fuel prices, tightening emissions norms, and growing environmental awareness, the electric scooter and motorcycle market is poised for sustained momentum. Battery tech advancements and infrastructure improvements are expected to unlock new growth frontiers, particularly in emerging economies where urban congestion and pollution are pressing concerns.
