North America Electric Scooter and Motorcycle Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

North America Electric Scooters and Motorcycles Market Trends & Drivers

Development in Battery Technology

• Improvement in battery capacity increases the range of electric scooters and motorcycles. Significant effort has been taken in the development of batteries in recent years, to reduce their price and increase their capacity.
•  Also, with technological advancements, the battery capacity has been increased to meet the demand for a longer-driving range. Thus, manufacturers are consistently working toward achieving higher energy density and lower reliance on cobalt, an expensive raw material used in these batteries, which, in turn, increases the operational efficiency of these batteries and lowers their cost.
• Due to the noteworthy characteristics of over other batteries, it has become the battery of choice by many product manufacturers and is used in the majority of electric motorcycles, scooters, and kick scooters, for providing high-energy density. Electric motorcycle manufacturers in North America integrate li-ion batteries in their product portfolio, as they offer greater mileage and speed as compared to lead acid batteries, which can whip up the speed of up to 90 mph and can last over 80 miles in one charge.
• Thus, the development of battery technology in order to decrease the total cost of electric two-wheelers, along with their increased driving range, is the new trend observed in the electric scooters and motorcycles market in the region.

Government Incentives and Federal Tax Credits is Driving the Market

• The growing importance of green transportation systems, to reduce GHG emissions, is one of the major factors enabling governments to support EV sales. The support is provided via several incentives and federal tax credits to customers at the time of the purchase of these vehicles.
• For instance, the Government of California offers a 10% federal tax credit (up to $2,500) on the purchase of an electric motorcycle. Similarly, legislation has also been introduced providing $6 billion to the U.S. Postal Service (USPS) to buy tens of thousands of electric delivery vehicles. Apart from this, the Clean Vehicle Rebate Project (CVRP) promotes the adoption of clean vehicles in California, by providing rebates of up to $900 per electric motorcycle.
• Thus, government support in the form of rebates and federal tax credits for the procurement of these vehicles has a positive impact on the sale of such vehicles in North America.

Opportunity: Availability of smart charging stations

• Solar-powered and automated charging stations create a huge opportunity for the growth of the North American electric scooters and motorcycles market. In a move toward a 100% renewable-powered society, aggressive actions are being taken to eliminate the need for fossil fuels from the transportation and logistics sectors. EV providers have ample opportunities to put forward their arms in the design and development of such charging stations to widen the horizons of complete nature-based transportation across the region.
• For instance, through the Electric Vehicle Chargers Ontario Program, recently the Ministry of Transportation of Ontario (MTO) with regional EV providers, installed a new solar powered EV charging station in the city of Brampton, Canada. Through this, the Ministry believes to set up a robust network of EV chargers across the province, which would further allow commuters to have longer trips with electric scooters and motorcycles without GHG emissions.

High Purchase Cost

• One of the reasons that is hindering the growth of the market is the high purchase cost of electric scooters and motorcycles. All-electric motorcycle’s purchase price starts at around $10,000 and increases steeply from there. Energica Motor Company Inc. offers its electric motorcycles ranging from $20,900 to $22,600.
• Also, the electric motorcycle model LS-218, which has variants depending on battery capacity, costs around $38,890. The high cost of the battery, which accounts for around 50% of the vehicle cost, is the major factor that makes these vehicles expensive.
• Apart from costlier components, these vehicles have design challenges. Electric motorcycles are highly space constrained.
• The battery, being the heaviest and largest component must be placed with high priority, which generally leaves the motor to be compressed close to the battery in the space remaining, usually toward the rear.
• This arrangement results in heat generation by an electric motor, as the battery hides the motor from cooling air, whereas adding its heat to that produced by the motor itself. The solution for this is to place a mechanical fan to pull in some air. The high speed and performance of electric motorcycles depend on large water cooling, heat sinks, or forced air-cooling.
• Though these solutions resolve the issue of heat generation, they add part count, complexity, and tremendous cost to very price sensitive products. This results in hindering the sales of electric motorcycles, hence affecting the growth of the electric scooters and motorcycles market.

North America Electric Scooters and Motorcycles Industry Outlook

Application Insights

• The electric scooters and motorcycles used for sharing services are set to hold the largest revenue share, of more than 80%, in 2030. Two-wheeler sharing services are extremely convenient for the general public, primarily daily commuters, as they can enjoy driving to their required destinations without the hassles of owning and maintaining their own vehicles. Besides, they can easily access the services and book rides directly on companies’ mobile apps.
• Sharing services in North America are currently experiencing rapid development. Compared to other types of shared mobility, electric scooter and kick scooter sharing can be more hyper-localized and can better solve the issue of last-mile commutes.
• Many U.S. cities are developing regulations and policies for scooter sharing, which prioritize the safety of users while promoting efficient modes of commuting. These services are an enticing option for commuters as these vehicles are compact, easier to operate, and do not require any physical exertion.
• The size of the battery pack is also smaller as compared to other EVs, making it easier to swap and faster to change. The sudden arrival of these services in the region is increasing the number of such scooters on the roads, thus boosting the revenue for OEMs.

Applications covered in the report include:

• Sharing Services (Largest Category)
• Food and Grocery (Fastest-Growing Category)
• Personal Users

Type Overview

• Electric kick scooters dominated the market by units sold with around 65% share, in 2023, owing to their significant adoption in sharing fleets. Manufacturers have introduced a large number of such scooters in recent years as they are economical, environment-friendly, and convenient to use. Additionally, they have lower operating costs compared to other automobiles, which results in their high adoption in sharing fleets.
• Moreover, the category is expected to continue holding the larger share, in terms of both value and volume, in the coming years. This will be due to government support in the form of incentives and rebates for the purchase of these vehicles, the presence of a considerable number of manufacturers, and the increasing preference of customers for such vehicles.

The following type are included in the report:

• Motorcycle (Fastest-Growing Category)
• Scooter
• Kick Scooter (Largest Category)

Battery Capacity Analysis

• Scooters and motorcycles with a less-than-5kWh battery capacity hold a revenue share of 85% share in 2023. This can be attributed to the increasing number of such scooters on the roads, especially kick scooters, as part of sharing services, in the region. These two-wheelers have a smaller battery pack compared to motorcycles, which makes the entire vehicle smaller and easily maneuverable.
• During the forecast period, the market for 10–15kWh-battery-capacity two-wheelers is expected to grow significantly, with the rising demand for long-range electric motorcycles.

It is further classified as:

• <5 kWh (Largest Category)
• 5–10 kWh
• 11–15 kWh
• >15 kWh (Fastest-Growing Category)

Country Insights

• The U.S. held the larger share, of around 85% in 2023, in terms of value, primarily due to the faster adoption of EV technologies in the country. The U.S. government is supporting the procurement of these vehicles with incentives and rebates, to reduce carbon emissions from fuel-based vehicles. In addition, the recent trend of using kick scooters for last-mile connectivity in many cities has benefited the growth of the market.

Further, countries analyzed for this report include:

• U.S. (Larger Category)
• Canada (Faster-Growing Category)

Competitive Analysis

The North American electric scooter and motorcycle market has seen significant growth in recent years and is fragmented in nature, driven by factors such as increasing environmental awareness, government incentives, and the need for efficient urban mobility solutions.

North America Electric Scooters and Motorcycles Companies News

• In September 2023, Bird Rides Inc. acquired shared electric bike and scooter operator Skinny Labs, Inc (doing business as Spin) from Berlin-based TIER Mobility.
• In September 2022, KTM North America Inc. takes over the distribution of MV Agusta motorcycles in North America