Electric Two-Wheeler Components Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Vehicle Type (Motorcycle, Scooter), By Demand Category (OEM, Aftermarket), By Component Type (Battery Packs, DC-DC Converter, Controller & Inverter, Motor, On-Board Chargers, and Other Component Types), By Region and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 45.12 Billion
CAGR (2026-2031)	8.16%
Fastest Growing Segment	Motorcycle
Largest Market	Asia Pacific
Market Size (2031)	USD 72.24 Billion

Market Overview

The Global Electric Two-Wheeler Components Market will grow from USD 45.12 Billion in 2025 to USD 72.24 Billion by 2031 at a 8.16% CAGR. Electric two-wheeler components comprise the essential electrical and mechanical subsystems required for the operation of battery-powered scooters and motorcycles, specifically including traction motors, battery management systems, controllers, and charging units. The market is primarily driven by stringent government emission regulations that incentivize the transition from internal combustion engines and the increasing urbanization that necessitates efficient, low-emission personal mobility solutions. These regulatory and economic factors create a sustained demand for specialized electric powertrains and lightweight structural parts, acting as a foundational force for industry growth separate from consumer technology preferences.

However, a significant challenge impeding broader market expansion is the volatility in demand within major manufacturing hubs, which creates unpredictability for the global supply chain. This fluctuation complicates long-term production planning and inventory management for component suppliers. According to the China Chamber of Commerce for Motorcycles, in 2024, the production of electric motorcycles reached approximately 3.4 million units, a figure that reflects the ongoing market adjustments and regulatory shifts affecting the volume of components required by original equipment manufacturers.

Key Market Drivers

Implementation of Favorable Government Policies and Subsidies serves as a primary catalyst for the electric two-wheeler components market by bridging the price gap between electric and internal combustion engine vehicles. These financial incentives directly accelerate the procurement of motors, controllers, and wiring harnesses as manufacturers ramp up production to meet subsidized consumer demand. Furthermore, many of these schemes mandate domestic value addition, compelling component suppliers to localize manufacturing facilities to qualify for fiscal benefits. According to the Press Information Bureau, September 2024, in the 'Cabinet approves PM E-DRIVE Scheme' release, the Government of India allocated a specific subsidy outlay of INR 3,679 crore to support the deployment of 2.48 million electric two-wheelers, directly securing future order volumes for drivetrain and electronic component manufacturers. This regulatory support creates a stable baseline for investment in component production lines, acting as a buffer against market volatility.

Advancements in Battery Technology and Declining Pack Costs constitute the second critical driver, fundamentally altering the total cost of ownership and widening the addressable market for component suppliers. As cell chemistry evolves towards more affordable Lithium Iron Phosphate (LFP) and Sodium-ion solutions, the reduction in battery pack expenses allows OEMs to allocate budget towards higher-quality battery management systems and power electronics. According to CnEVPost, February 2024, in the 'CATL, BYD pushing battery costs down' article, major manufacturers are actively targeting battery cell costs as low as RMB 0.3 per watt-hour, a price point that significantly reduces the bill of materials for electric scooters. This cost reduction is vital for sustaining volume growth in price-sensitive regions. Highlighting the robust demand environment for these components, according to the Federation of Automobile Dealers Associations, in 2024, retail sales of electric two-wheelers in India reached approximately 947,000 units for the fiscal year, signaling a rapid uptake that necessitates a consistent supply of specialized electrical parts.

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Key Market Challenges

Volatility in demand within major manufacturing hubs represents a formidable obstacle hampering the growth of the Global Electric Two-Wheeler Components Market. This unpredictability creates severe inefficiencies across the supply chain, as component manufacturers are unable to accurately forecast production requirements. The lack of stable order volumes forces suppliers to maintain conservative inventory levels or risk accumulating dead stock, which ties up working capital and erodes profit margins. Consequently, companies become hesitant to commit to the long-term facility upgrades and research initiatives required to drive the industry forward.

The impact of this instability is highlighted by recent performance metrics from the world's largest market. According to the China Chamber of Commerce for Motorcycles, in 2024, sales of electric motorcycles recorded a year-on-year decline of approximately 28%. Such a significant contraction demonstrates the erratic nature of market demand, which undermines the confidence needed for sustained investment in the component sector and directly slows the pace of global market expansion.

Key Market Trends

The shift toward mid-drive motors for high-performance models is fundamentally restructuring the drivetrain segment, driven by consumer demand for electric scooters that offer superior gradeability and thermal management compared to entry-level hub motor variants. This transition necessitates a complex assembly of belts, pulleys, and swing-arm mounted units, moving value generation away from simple wheel-integrated motors to sophisticated transmission systems. The market viability of this trend is evidenced by the rapid expansion of premium vehicle sales which utilize these advanced powertrains. According to Hero MotoCorp, April 2025, in the 'Hero MotoCorp Fortifies Market Leadership in Financial Year 2025' press release, the company registered its highest-ever electric vehicle sales with a growth of approximately 200% over the previous fiscal year, a surge primarily attributed to the robust uptake of its high-performance VIDA platform.

Simultaneously, the integration of IoT-enabled smart battery management systems (BMS) is transforming the component landscape from hardware-centric to software-defined value chains. Manufacturers are increasingly embedding advanced microprocessors and telematics units directly into battery packs to enable real-time state-of-health monitoring, predictive thermal balancing, and over-the-air firmware updates. This focus on intelligent energy management has compelled OEMs to direct substantial capital toward software engineering and electronic architecture. According to Ather Energy Limited, April 2025, in the 'Abridged Prospectus' filed with the Registrar of Companies, the firm allocated INR 750 crore specifically for investment in research and development, underscoring the critical industry-wide pivot toward developing proprietary intelligent systems that differentiate component capabilities.

Segmental Insights

Market analysis highlights the Motorcycle segment as the fastest-growing category within the Global Electric Two-Wheeler Components Market. This expansion is primarily driven by increasing consumer demand for high-performance vehicles that offer range and speed capabilities comparable to traditional internal combustion engine models. Improvements in battery energy density and powertrain efficiency have addressed previous limitations, making electric motorcycles a practical option for longer commutes and recreational use. Consequently, the rising adoption of these vehicles, supported by global regulatory frameworks favoring zero-emission transport, is significantly bolstering the demand for specialized electric components.

Regional Insights

Asia Pacific commands the global electric two-wheeler components market due to its extensive manufacturing base and favorable government policies. China and India act as primary growth engines, supported by established supply chains and high consumer demand for personal mobility. The region benefits from specific regulatory measures, such as the localization mandates under the FAME scheme managed by the Ministry of Heavy Industries in India, which actively promote domestic component production. Consequently, the combination of industrial scale and strategic policy support secures the region's position as the global leader in this sector.

Recent Developments

• In October 2024, Schaeffler debuted a comprehensive portfolio of components for electrified two-wheelers at the EICMA trade fair in Milan. The company presented a new 48-volt drive system designed for electric scooters, which integrates a motor, a control unit, and advanced sensors into a compact powertrain solution. The showcase included a "OneBox" unit that combines the vehicle control and charging communication functions into a single module to save space and reduce complexity. This launch highlights the company's strategic commitment to developing energy-efficient drive systems and expanding its presence in the rapidly growing electric two-wheeler component market.
• In April 2024, Gogoro announced a partnership with Sumitomo Corporation and Sumitomo Mitsui Finance and Leasing Co., Ltd. to expand its global battery-swapping infrastructure. The collaboration utilizes Gogoro’s smart battery components and swapping stations to support mobility businesses and explore second-life applications for battery packs. This agreement leverages Sumitomo’s extensive industrial network to lower the upfront capital barriers for deploying electric fueling networks in new international markets. The initiative focuses on creating an asset-light expansion model that facilitates the broader integration of swappable battery technology into the global electric two-wheeler ecosystem.
• In March 2024, LG Energy Solution launched a battery-swapping ecosystem for electric two-wheelers in South Korea through its subsidiary, Kooroo. The initiative targets delivery professionals and allows riders to exchange depleted battery packs for fully charged ones in approximately 20 seconds at designated stations. The service is supported by a mobile application that enables users to locate stations and check battery availability in real time. The company announced plans to install 1,000 swapping stations across Seoul and neighboring cities by 2025, significantly enhancing the infrastructure required for the widespread adoption of electric scooters and their components.
• In February 2024, Zero Motorcycles entered into a strategic collaboration agreement with Hero MotoCorp to accelerate the development of electric mobility solutions. This partnership combines the California-based company's expertise in electric powertrain technology and components with the manufacturing scale and global distribution capabilities of the world's largest motorcycle manufacturer. The alliance focuses on co-developing high-performance electric platforms and components to serve markets in India and globally. By integrating advanced electric drive systems into mass-market vehicles, the companies aim to drive the transition toward sustainable transportation and expand their respective footprints in the electric two-wheeler sector.

Key Market Players

• Continental AG
• Robert Bosch GmbH
• Denso Corporation
• Hella GmbH & Co. KGaA
• Toyota Industries Corporation
• Hyundai Mobis
• Samsung SDI Co. Ltd
• Panasonic Corporation
• Contemporary Amperex Technology Co. Ltd. (CATL)
• BorgWarner Inc

By Vehicle Type	By Demand Category	By Component Type	By Region
Motorcycle Scooter	OEM Aftermarket	Battery Packs DC-DC Converter Controller & Inverter Motor On-Board Chargers Other Component Types	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electric Two-Wheeler Components Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electric Two-Wheeler Components Market, By Vehicle Type:

• Motorcycle
• Scooter

• Electric Two-Wheeler Components Market, By Demand Category:

• OEM
• Aftermarket

• Electric Two-Wheeler Components Market, By Component Type:

• Battery Packs
• DC-DC Converter
• Controller & Inverter
• Motor
• On-Board Chargers
• Other Component Types

• Electric Two-Wheeler Components Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE