Report Description

North America Electric Two-Wheeler market is witnessing a robust growth from the past few years, due to several reasons such as growing awareness regarding the harmful effects of greenhouse gases and other hazardous gases that are emitted from the gasoline’s engines, supportive initiatives by the governments, and rapid advancement in the battery technology. These reasons are helping in changing the notion among people regarding electric vehicles, and thus increasing their preferences for electric two wheelers.

North America Electric Two-Wheeler Market Scope

The North America electric two-wheeler market is segmented by vehicle type, by battery type, by battery capacity, by range, and by country. Based on vehicle type, the market is divided into scooter/moped and motorcycle. Based on the battery type, the market is segmented into lead-acid battery and li-ion battery. Based on the battery capacity the market is segmented into <25Ah & >25Ah. Lithium-ion batteries are made up of positively charged lithium ions. These ions are transferred from the negatively charged anode (the anode) to the positively charged cathode (the cathode) and the liquid electrolyte (the electrolyte). Though these types of batteries are lighter in weight, they offer fast charging capabilities and a slow discharge rate. However, they are pricier when compared to other traditional batteries. Lead-acid batteries are made up of a lead electrode with a negative porous covering on a plate. The electrode remains submerged in a solution of low-sulphuric acid when the electrical energy is converted into chemical energy, and vice versa. This is where the battery is charged and discharged. Nickel metal hydrides are mainly used in hybrid vehicles (i.e., electric and ICE). These batteries are designed in such a way that the nickel alloy is on one end of the battery, and the nickel oxy hydroxide is on the other. The electrolyte is potassium hydroxide. The charging and discharge of the battery takes place within the electrodes. The electrodes are made up of a special alloy that can absorb hydrogen with the help of an alkali electrolyte. Furthermore, based on the battery capacity, the market is divided into (<25Ah & >25Ah. Based on the range, the market is segmented into Less than 100 Km, 100 Km -150 km, Above 150 Km. And lastly, based on the countries, the market is divided among Canada, United States, and Mexico.

North America Electric Two-Wheeler Market Overview

The North America Electric Two-Wheeler market is expected to grow at a faster rate in the forecasted period. The market is significantly driven by the rise of urbanization, increase in share mobility market, environmental concerns of pollution emitted from gasoline, etc. Rapid urbanization is leading to an increase in traffic in cities, and therefore, two-wheelers are offering a convenient option to travel with shorter distances and a cost-effective alternative at the same time. With rising inflation, vehicles are becoming expensive along with many other amenities. So, shared mobility is gaining popularity, owing to its cost-effective benefits. Further, advancement in battery technology is helping in convincing more and more people to opt for electric vehicles. These technologies are resulting in driving the market substantially in the coming years. Moreover, the support from government in terms of incentives, subsidies, tax benefits, etc., is one of the major factors which is helping in the increase of electric two-wheelers market in North America.

North America Electric Two-Wheeler Market Drivers

The government initiatives are helping in increasing the fleet of electric two-wheelers in the North America continent. Benefits such as tax rebates, upfront payment subsidies, separate lanes during congestion, etc., are resulting in the popularity of electric two-wheelers among consumers. Furthermore, governments are imposing restrictions on the emission of vehicles which is pressurizing the vehicle manufacturers to produce a certain percentage of electric two-wheelers, out of the total vehicles manufactured.  Restrictions on emissions are also pushing the development of charging infrastructure in the countries, which is again helping in the increasing demand of electric two-wheelers in North America.

Rapid urbanization is also contributing to the growth of electric two-wheelers in North America. Urbanization is resulting in the increase of traffic congestion in cities which is leading to the growth of electric two-wheelers requirements. These vehicles provide the convenience of commuting at a shorter distance and with ease. Moreover, the rising living expenses in many cities of North America, has resulted in the increase of shared mobility which itself is experiencing the huge adoption of electric two-wheelers. Shared mobility helps in reducing the cost of ownership and maintenance of vehicles and thus, is seen as a good alternative for commuting to different places, ultimately helping in the increase of electric two-wheeler market.

Advancement in battery technology is helping a lot in the growth of electric two-wheeler market in North America. These technologies are helping in increasing the vehicle range and reduction in battery prices, aiding in reducing the overall cost of the vehicle, decrease in charging time, better battery life, among others. All these factors are among the major concerns of people regarding electric vehicles. Therefore, improvement in these areas is helping in persuading people to buy electric two-wheelers.

North America Electric Two-Wheeler Market Trends

The increasing adoption of electric two-wheelers can be seen in many cities of North America. As more and more people are becoming aware of the environment, the increase in sales of electric two-wheelers is rising as compared to the other type of two-wheelers. Cities are focusing on the rapid development of charging infrastructure for electric vehicles and promoting the use of electric vehicles due to a greater number of vehicles in the cities. Moreover, automotive manufacturing companies are offering more categories of electric two-wheelers which is helping to increase a greater number of customers and capture their preferences.

Another emerging trend in the market for electric two-wheelers is the increasing demand for electric motorcycles. Although the market for electric motorcycles is still relatively small, the availability of top-of-the-line models and improvements in battery technology are likely to contribute to the growth of this segment in the near future. Electric two-wheelers are expected to experience steady growth over the next few years, due to several factors such as growing preference for eco-friendly transport, government initiatives to encourage the adoption of electric vehicles and improvements in battery technology, etc.

North America Electric Two-Wheeler Market Challenges

The electric two-wheeler market has less incentives in North America. While the incentives for the electric vehicle market in general is huge but the market of electric two-wheeler has received lesser incentives as compared to other electric vehicle space in the country. Therefore, this bias in allotment of incentives is slowing the process of electrification of the two-wheeler market.

Electric vehicles have high initial costs as compared to the vehicles powered by internal combustion engines.  Even though governments are providing subsidies for purchasing new vehicles, they are still not considered as a competitive alternative to the combustion engine vehicles. Moreover, the improvement in battery technology is helping in driving the growth of electric two-wheelers. There are many areas which are of concern as of now, such as charging time, range, battery life, etc. Furthermore, there are some developments which need to be addressed regarding the disposal of batteries in an environmentally friendly manner.

Market Opportunities

The electric two-wheeler market presents several opportunities for growth in North America. The market is lagging in the charging infrastructure which gives the opportunities to develop the charging network at an early stage for vehicles. There are several incentives from the government as well to install the stations, especially in the cities. Further, trends of electric two-wheelers are more prevalent in the shared mobility market and delivery services which gives opportunity to increase the fleet size of these vehicles such market around the continent.


Company Profiles

Zero Motorcycles Inc, Lightning Motorcycle Corp., Harley Davidson Inc., ENERGICA MOTOR COMPANY INC., Yamaha Motor Co. Ltd., CSC Motorcycles, Niu International, BMW North America LLC, Yadea Group Holdings Ltd., Torrot Electric Europe S.A. (Volcon ePowersports) are some of the major players in the North America Electric Two-Wheeler market.