|
Forecast Period
|
2025-2029
|
|
Market Size (2023)
|
USD 954.65 Million
|
|
CAGR (2024-2029)
|
13.09%
|
|
Fastest Growing Segment
|
Motorcycle
|
|
Largest Market
|
Thailand
|
Market Overview
ASEAN Electric Two-Wheeler Market was valued at USD
954.65 Million in 2023 and is anticipated to project robust growth in the forecast
period with a CAGR of 13.09%. The ASEAN electric two-wheeler market is
experiencing an unprecedented surge in demand. This growth is primarily
propelled by the increasing environmental awareness among consumers, who are
becoming more conscious of the profound impact of transportation on the planet.
As individuals prioritize sustainability in their purchasing decisions,
electric two-wheelers are emerging as a compelling and popular choice for
eco-friendly transportation.
Moreover, government support in the form of
incentives and subsidies has played a pivotal role in incentivizing the
adoption of electric two-wheelers. These forward-thinking policies, which
include tax credits, grants, and rebates, have provided financial relief to
consumers, making electric vehicles an even more attractive and affordable
option. This, in turn, has accelerated the market's exponential growth, leading
to increased demand and investment in electric two-wheelers. With the rising
concerns about environmental sustainability and the need to reduce carbon
emissions, the shift towards electric vehicles has become a global phenomenon.
As governments continue to prioritize clean energy initiatives, the future of
electric two-wheelers looks promising, with advancements in technology and
infrastructure further enhancing their appeal and convenience for consumers.
Advancements in battery technology have been
instrumental in fueling the expansion of the market. With the development of
more efficient and longer-lasting batteries, electric two-wheelers have become
a highly viable alternative to conventional vehicles. This technological
breakthrough is particularly significant in ASEAN countries, where rapid
urbanization and escalating traffic congestion have created an urgent need for
sustainable and efficient modes of transportation.
Despite challenges such as inadequate charging
infrastructure and relatively high upfront costs, the ASEAN electric
two-wheeler market is expected to continue its remarkable growth trajectory. To
meet the ever-evolving needs and preferences of consumers, manufacturers are
continually introducing new models that offer improved features and enhanced
performance. This surge in competition among both global and local players is
fostering an atmosphere of innovation and driving the market forward.
Additionally, increasing investments in
infrastructure are paving the way for further expansion of the electric
two-wheeler market in the ASEAN region. With ongoing developments and
initiatives aimed at improving charging infrastructure and addressing logistical
challenges, the market is poised for continuous growth in the coming years.
In conclusion, the remarkable growth of the ASEAN
electric two-wheeler market can be attributed to a combination of factors,
including heightened environmental awareness, strong government support,
significant advancements in battery technology, and changing consumer
preferences. With the continuous efforts to improve infrastructure and address
challenges, this market holds immense potential for further expansion,
development, and a sustainable future.
Key Market Drivers
Urbanization and Traffic Congestion
Rapid urbanization in ASEAN countries has led to
increased population density in urban areas, resulting in severe traffic
congestion and pollution. As cities become more crowded, there is a growing
need for efficient and eco-friendly urban mobility solutions. Electric
two-wheelers, such as e-scooters and e-motorcycles, offer a convenient and
sustainable mode of transportation in congested urban environments. Their small
footprint allows riders to navigate through traffic easily, reducing travel
time and alleviating congestion. These vehicles are seen as an ideal solution
for last-mile connectivity and offer an eco-friendly alternative to traditional
gasoline-powered two-wheelers.
Environmental Concerns and Air Quality
Environmental concerns and deteriorating air
quality in many ASEAN cities are driving the adoption of electric two-wheelers.
The combustion of fossil fuels in internal combustion engine (ICE) two-wheelers
contributes to air pollution, which has adverse effects on public health and
the environment. Governments and consumers alike are increasingly focused on
reducing emissions and improving air quality. Electric two-wheelers produce
zero tailpipe emissions and are considered an eco-friendly transportation option.
The reduction in noise pollution associated with electric vehicles is an
additional benefit, making them more appealing in densely populated urban
areas. The desire for cleaner air and a healthier environment is a significant
driver for the electric two-wheeler market in ASEAN.
Government Incentives and Initiatives
Government incentives and initiatives play a
pivotal role in propelling the ASEAN Electric Two-Wheeler Market. Many ASEAN
governments are actively promoting the adoption of electric vehicles (EVs),
including electric two-wheelers, to reduce pollution and dependence on fossil
fuels. These incentives may include subsidies, tax breaks, and special programs
to encourage the purchase of electric vehicles. Additionally, some governments
are developing charging infrastructure and regulations to support the growth of
the electric two-wheeler market. These initiatives are designed to make
electric two-wheelers more affordable and accessible to a broader segment of
the population, further stimulating market growth.
Affordability and Operational Cost Savings
Affordability and operational cost savings are key
drivers for the adoption of electric two-wheelers in ASEAN countries. Electric
two-wheelers are often perceived as more economical than their gasoline
counterparts. They have lower operating costs, with reduced expenses for fuel,
maintenance, and, in some cases, reduced taxation. Electric two-wheelers are
also energy-efficient, with a fraction of the cost per kilometer compared to
traditional ICE two-wheelers. Additionally, the absence of volatile fuel prices
and the stability of electricity costs make electric two-wheelers attractive to
cost-conscious consumers. The affordability and cost savings associated with
electric two-wheelers are a significant factor in their popularity and market
growth.
Innovations in Battery Technology
Ongoing innovations in battery technology are
driving the ASEAN Electric Two-Wheeler Market. Battery technology is crucial
for electric vehicles, and advancements in energy density, charging speed, and
battery life are making electric two-wheelers more practical and appealing to
consumers. These innovations result in lighter, more compact batteries that
offer longer ranges and quicker charging times. As the range anxiety associated
with electric vehicles diminishes, potential buyers become more willing to embrace
electric two-wheelers as reliable and versatile transportation options. The
continuous progress in battery technology is a fundamental driver for the
electric two-wheeler market, enabling the development of more efficient and
user-friendly electric two-wheelers in ASEAN countries.
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Key Market Challenges
Charging Infrastructure Limitations
One of the primary challenges facing the ASEAN
Electric Two-Wheeler Market is the limited availability of charging
infrastructure. Inadequate charging infrastructure can deter potential buyers
from choosing electric two-wheelers, as they worry about running out of power
during their daily commute or facing difficulties in finding charging stations.
While electric two-wheelers are well-suited for short-range urban travel, the
absence of a reliable and widespread charging network can hinder the widespread
adoption of these vehicles. Addressing this challenge requires substantial
investments in charging infrastructure development to provide convenient and
accessible charging points in urban areas and along popular commuting routes.
Consumer Awareness and Education
Consumer awareness and education represent a
significant challenge in the ASEAN Electric Two-Wheeler Market. Many potential
buyers remain unaware of the benefits and features of electric two-wheelers.
Additionally, misconceptions regarding their performance, range, and
maintenance requirements persist. Consumer education is essential to debunk
myths, clarify the advantages of electric two-wheelers, and provide information
on the availability of incentives and subsidies. Manufacturers and government
agencies must collaborate on comprehensive marketing and awareness campaigns to
ensure that consumers are well-informed and confident in their decision to
switch from traditional gasoline two-wheelers to electric alternatives.
Range Anxiety and Battery Technology
Range anxiety, or the fear of running out of
battery before reaching the destination, is a notable challenge in the ASEAN
Electric Two-Wheeler Market. Despite improvements in battery technology, there
is a perception among consumers that electric two-wheelers may not offer
sufficient range for their daily transportation needs. Innovations in battery
technology and the development of higher-capacity batteries are essential to
address this challenge. Manufacturers need to focus on offering electric two-wheelers
with longer ranges and improving the reliability and longevity of batteries to
mitigate range anxiety and increase consumer confidence in electric
two-wheelers.
Regulatory Framework and Incentives
Regulatory challenges and inconsistencies in the
ASEAN region can hinder the growth of the Electric Two-Wheeler Market. Each
country within ASEAN may have different regulations and standards related to
electric two-wheelers, including safety requirements, registration, and
licensing. While some governments offer incentives, such as subsidies or tax
breaks, to promote electric vehicle adoption, others may lack such initiatives.
The absence of a consistent and supportive regulatory framework can create uncertainty
for both manufacturers and consumers. To overcome this challenge, governments
should work collaboratively to harmonize regulations and provide incentives
that encourage the adoption of electric two-wheelers across the region.
Affordability and Initial Purchase Cost
The initial purchase cost of electric two-wheelers
can be a challenge for consumers, as these vehicles are often perceived as more
expensive than their gasoline-powered counterparts. While electric two-wheelers
offer cost savings over time through reduced operational expenses, the upfront
cost can be a significant barrier to entry. Government subsidies and incentives
are one way to address this challenge, making electric two-wheelers more
affordable. Additionally, manufacturers can explore options for reducing
production costs and passing these savings onto consumers. Affordability
remains a key consideration for consumers when making the switch to electric
two-wheelers.
Key Market Trends
Rise of E-Scooters for Urban Mobility
One prominent trend in the ASEAN Electric
Two-Wheeler Market is the increasing popularity of e-scooters as a sustainable
and convenient mode of urban mobility. With rapid urbanization and growing
traffic congestion in many ASEAN cities, consumers are turning to e-scooters
for their daily commuting needs. E-scooters are lightweight, compact, and easy
to maneuver through congested streets. They offer an eco-friendly alternative
to traditional gasoline-powered two-wheelers, addressing concerns about air
pollution and the environmental impact of transportation. E-scooter sharing
services have also gained traction in some urban areas, providing residents and
tourists with affordable and flexible transportation options.
Technological Advancements in Battery and Charging
Infrastructure
The electric two-wheeler market in ASEAN is
experiencing technological advancements in battery technology and charging
infrastructure. Innovations in lithium-ion batteries have led to improved
energy density, longer battery life, and reduced charging times. These
advancements have helped alleviate range anxiety, making electric two-wheelers
more appealing to consumers. Additionally, the development of a more robust
charging infrastructure is underway, with governments and private companies
investing in the installation of charging stations in urban areas and along
popular commuting routes. These trends are bolstering the acceptance of
electric two-wheelers and addressing practical concerns related to their use.
Growth of Local Electric Two-Wheeler Manufacturers
The ASEAN region has seen the emergence and growth
of local electric two-wheeler manufacturers, contributing to market expansion.
These manufacturers produce a wide range of electric two-wheelers, from
e-scooters to e-motorcycles, tailored to the specific needs and preferences of
the local population. They often offer competitive pricing, making electric
two-wheelers more accessible to a broader segment of consumers. The growth of
local manufacturers is driven by a combination of factors, including government
support, technological expertise, and an understanding of local market
dynamics. As these manufacturers gain market share and offer diverse product
options, they contribute to the expansion of the ASEAN Electric Two-Wheeler
Market.
Increased Government Initiatives and Incentives
Governments in ASEAN countries have been actively
promoting the adoption of electric two-wheelers by offering incentives,
subsidies, and policy support. These initiatives are driven by the desire to
reduce air pollution, congestion, and dependence on fossil fuels. Government
incentives often include tax breaks, reduced registration fees, and financial
support for the purchase of electric two-wheelers. Some governments are also
investing in charging infrastructure and implementing regulations to facilitate
the use of electric two-wheelers. As a result, consumers are encouraged to
choose electric two-wheelers as an eco-friendly and cost-effective
transportation option, driving market growth.
Increasing Use of Electric Two-Wheelers for
Delivery Services
The use of electric two-wheelers for delivery
services is a growing trend in the ASEAN region. With the expansion of
e-commerce and food delivery services, electric two-wheelers have become a
popular choice for delivery drivers. These vehicles are well-suited for
navigating through congested city streets, offering quick and efficient
deliveries. Many companies are transitioning to electric two-wheelers as a
means of reducing operating costs, contributing to environmental
sustainability, and meeting regulatory requirements related to emissions. The
adoption of electric two-wheelers for delivery services aligns with the trend
of urbanization and the shift toward more sustainable transportation solutions
in ASEAN countries.
Segmental Insights
Vehicle Type Insights
The ASEAN Electric Two-Wheeler Market is currently
undergoing a noteworthy transformation in vehicle type preferences. There is a
notable surge in the demand for electric scooters and electric bicycles, as
consumers increasingly prioritize environmentally sustainable transportation
options. This shift is propelled by a growing awareness of the need for
efficient and cost-effective means of commuting, while also minimizing carbon
footprint and promoting a greener future. As the region continues to embrace the
benefits of electric two-wheelers, this trend is expected to shape the future
of transportation in ASEAN countries.
Electric scooters have quickly gained popularity
among consumers for several reasons. Not only do they offer impressive speed,
but they also provide an extended range and increased carrying capacity
compared to electric bicycles. In addition to these advantages, the
advancements in battery technology have significantly contributed to their
rising popularity. With improved performance and longer battery life, electric
scooters have become even more appealing to riders.
Moreover, the expansion of charging infrastructure
and the support of government policies have played a crucial role in promoting
the widespread adoption of electric scooters. The availability of charging
stations and the incentives provided by governments have made it more
convenient and financially viable for people to choose electric scooters for
their urban commuting needs.
With all these factors combined, electric scooters
have emerged as a convenient, sustainable, and reliable option for urban
transportation. As more people embrace this eco-friendly mode of commuting, the
positive impact on the environment and the overall quality of life in cities is
expected to grow.
However, it is important to acknowledge that
electric bicycles still hold a considerable market share, particularly in
regions with stringent regulations on vehicle speed and license requirements.
These bicycles provide an attractive alternative for consumers, offering lower
costs and the added advantage of being used as regular bicycles when the
battery drains out. This versatility appeals to individuals who value both
eco-friendly transportation options and the flexibility to switch between
electric and manual modes.
As the ASEAN Electric Two-Wheeler Market continues
to evolve, the distinct advantages and unique features of electric scooters and
electric bicycles are driving the growth and diversification of this dynamic
market segment. Manufacturers are constantly innovating and introducing new
models to cater to the evolving needs and preferences of consumers, further
fueling the expansion of this market.
In conclusion, the ASEAN Electric Two-Wheeler
Market is witnessing a transformational shift towards electric scooters and
electric bicycles. With advancements in technology, the support of government
initiatives, and the growing demand for sustainable transportation, this market
segment is poised for continued growth and prosperity.
Battery Type Insights
The ASEAN electric two-wheeler market is incredibly
diverse, with a wide array of battery types being utilized. Among these
options, lithium-ion batteries have emerged as the frontrunners, owing to their
exceptional energy density, extended lifespan, and relatively low
self-discharge rate. Despite their higher price point compared to other battery
types, their unmatched efficiency and durability have made them the preferred
choice for numerous manufacturers and consumers alike.
On the other hand, lead-acid batteries, renowned
for their affordability and reliable performance, still maintain a significant
market share, particularly in the realm of entry-level electric two-wheelers.
However, the growing environmental concerns associated with their disposal are
driving an increasing shift towards more eco-friendly alternatives.
As the demand for electric two-wheelers continues
to surge, the market is witnessing constant innovation in battery technology.
Newer options, such as nickel-metal hydride (NiMH) batteries and emerging
solid-state batteries, are gaining attention for their potential to offer
improved performance, enhanced safety, and reduced environmental impact. These
alternatives are being explored as viable options to further propel the growth
of the ASEAN electric two-wheeler market, catering to the evolving needs and preferences
of consumers while promoting sustainability.
Furthermore, ongoing research and development
efforts are focused on exploring advanced materials and technologies for even
more efficient and sustainable batteries. For instance, researchers are
exploring the use of graphene in battery construction, which shows promising
results in terms of enhancing energy storage capacity and charging speed.
With the rapid advancements in battery technology
and the increasing focus on environmental sustainability, the ASEAN electric
two-wheeler market is poised for continuous growth and transformation, paving
the way for a cleaner and greener future of transportation in the region. This
shift towards electric mobility not only reduces carbon emissions but also
contributes to the overall reduction in air and noise pollution, creating
healthier and more livable cities.
In conclusion, the ASEAN electric two-wheeler
market is a dynamic and evolving landscape, driven by the pursuit of cleaner
and more sustainable transportation options. The availability of various
battery types and the constant innovation in the industry offer exciting
possibilities for the future, where electric two-wheelers can play a
significant role in shaping a greener and more environmentally conscious
society.
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Country Insights
The Electric Two-Wheeler market in ASEAN countries
is experiencing robust growth, fueled by various factors. The rapid
urbanization in these countries has led to an increased demand for efficient
and sustainable transportation options. As cities become more crowded and
congested, the need for compact and eco-friendly modes of transport has become
even more apparent.
Additionally, the growing environmental
consciousness among the population has prompted a shift towards cleaner modes
of transport. People are becoming more aware of the impact of traditional
gasoline-powered vehicles on air quality and climate change. This awareness has
fueled a desire for greener alternatives, such as electric bikes and scooters.
Leading the pack in this market are countries like
Indonesia, Vietnam, and Thailand. These nations have witnessed a substantial
rise in the adoption of electric two-wheelers, primarily due to the high
population density in urban areas and the government's proactive approach to
promoting cleaner transport options. Government incentives, tax benefits, and
subsidies have played a significant role in encouraging consumers to choose
electric vehicles.
However, despite the promising growth, there are
still challenges that need to be addressed to ensure the long-term
sustainability of the market. One such challenge is the lack of charging
infrastructure, which can hinder the widespread adoption of electric
two-wheelers. Building a robust network of charging stations is crucial to
alleviate range anxiety and provide convenient charging options for users.
Additionally, the high upfront costs associated
with these vehicles may pose a barrier for some potential buyers. Although the
long-term cost savings from reduced fuel and maintenance expenses can offset
the initial investment, more affordable pricing options and financing schemes
could make electric two-wheelers more accessible to a wider range of consumers.
Efforts are being made to address these challenges
and create a more conducive environment for the electric two-wheeler market.
Governments and private companies are investing in charging infrastructure,
exploring innovative battery technologies, and implementing supportive policies
to encourage adoption. By doing so, the ASEAN countries can further accelerate
the growth of this market and reap the benefits of cleaner and more sustainable
transportation.
Recent Developments
- September 2022: Gogoro Inc. announced the launch of
its industry-leading battery swapping system and Smart scooters in the Tel Aviv
metropolitan area. In partnership with market leaders Metro Motor and Paz
Group, the companies expect to launch in other cities in Israel in the future.
- October 2022: Hero MotoCorp., the world's largest
two-wheeler manufacturer, announced its entry into electric two-wheelers by
unveiling its dedicated electric two-wheeler brand Vida and launching its first
electric scooter Hero Vida 1. The scooter comes in two variants V1 Plus and V1
Pro. The company also launched Vida Services.
Key Market Players
- Zero
Motorcycles Inc.
- Hero
Electric Vehicles Pvt. Ltd
- Vmoto
Limited
- AIMA
Technology Group Co. Ltd
- Dongguan
Tailing Electric Vehicle Co. Ltd
- Piaggio
& C. SpA
- Ather
Energy Pvt. Ltd
- Energica
Motor Company
- Honda
Motor Co. Ltd
- Gogoro
Inc.
|
By Vehicle Type
|
By Battery Capacity
|
By Battery Type
|
By Range
|
By Country
|
|
|
|
|
- Less than 50 Km
- 50–100 Km
- 101–150 Km
- Above 150 Km
|
- Indonesia
- Vietnam
- Thailand
- Malaysia
- Philippines
- Singapore
- Cambodia
- Brunei
- Myanmar
- Laos
|
Report Scope:
In this report, the ASEAN Electric Two-Wheeler
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- ASEAN Electric Two-Wheeler
Market, By
Vehicle Type:
o Scooter/Moped
o Motorcycle
- ASEAN Electric Two-Wheeler
Market, By
Battery Capacity:
o <25 Ah
o >25 Ah
- ASEAN Electric Two-Wheeler
Market, By
Battery Type:
o Lead Acid
o Li-ion
- ASEAN Electric Two-Wheeler
Market, By
Range:
o Less than 50 Km
o 50–100 Km
o 101–150 Km
o Above 150 Km
- ASEAN Electric Two-Wheeler
Market, By
Country:
o Indonesia
o Vietnam
o Thailand
o Malaysia
o Philippines
o Singapore
o Cambodia
o Brunei
o Myanmar
o Laos
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the ASEAN Electric Two-Wheeler Market.
Available Customizations:
ASEAN Electric Two-Wheeler Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
ASEAN Electric Two-Wheeler Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]