Key Highlights

The North America electric scooters and motorcycles market generated a value of USD 727.9 million in 2023, which will rise to USD 2,360.5 million, powering at an 18.4% CAGR, by 2030.

The increasing importance of green transportation systems, to decrease GHG emissions, is a key factor allowing governments to support electric vehicle sales. 

The support is provided through different incentives and federal tax credits to consumers at the time of buying these vehicles.

The improvements in battery technology to reduce the overall cost of electric two-wheelers, coupled with their enhanced driving range, is a major trend being observed in this industry.

Enhancements in battery capacity boost the range of electric scooters and motorcycles. Substantial effort has been taken in the enhancement of batteries over the years, to decrease their cost and enhance their capacity.

With the improvement in technology, the capacity of the battery has been improved to fulfill the need for a longer driving range. 

Manufacturers are constantly working toward attaining greater energy density and lesser dependence on cobalt, a costly raw material employed in these batteries, which, in line, boosts the operational efficiency of these batteries and decreases their price.

Key Insights

• Sharing services is likely to be the largest contributor to the industry, with a share of over 80%, by 2030. 
• Two-wheeler sharing services are very suitable for the general public, mainly daily commuters because they can enjoy driving to their destinations without the fuss of owning/maintaining their vehicles. 
• Electric kick scooters accounted for the largest share of the industry in 2023, with a share of approximately 65% share. This will be because of their substantial acceptance in sharing fleets. 
• Manufacturers have launched a huge count of such scooters in the past few years because they are eco-friendly, convenient, and economical to use.
• They need fewer operating expenses than various other vehicles, which leads to their high acceptance in sharing fleets.
• This category will remain the largest, in terms of both volume and value, throughout this decade.
• This is primarily because of the government backing in the form of rebates and incentives for purchasing these automobiles, the growing fondness of consumers for such vehicles, and the existence of a significant number of manufacturers.
• The less-than-5kWh battery capacity was the larger contributor to the industry in 2023, with a share of 85%. This is mainly because of the rising count of such scooters on the roads, particularly kick scooters, as part of sharing services, in this continent. 
• These two-wheelers comprise a smaller battery pack than motorcycles, which makes the whole vehicle smaller and easily controllable.
• The 10–15kWh battery capacity is likely to advance at a significant compound annual growth rate during this decade. This is because of the increasing need for long-range electric motorcycles.
• The U.S. led the industry in 2023, with approximately 85% share, mainly because of the faster acceptance of electric vehicle technologies in this nation.
• The U.S. government is encouraging the adoption of these vehicles with rebates and incentives, to decrease carbon emissions.
• The North America electric scooter and motorcycle industry is fragmented.

Source: P&S Intelligence