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The global two-wheeler hub motor market was valued at $4,838.5 million in 2018, and is expected to surpass $8,458.7 million by 2024, growing with a CAGR of 9.8% between 2019 and 2024. Further, in 2018, the market registered a total sale of 59,103.0 thousand units, which is expected to grow with a CAGR of 10.6% during the forecast period to reach 107,729.0 thousand units in 2024.
Europe is expected to be the fastest growing region in the industry during the forecast period. This is because, with the implementation of Euro 4 emission standards in 2016, a large number of gasoline-based two-wheelers are being replaced by their electric counterparts. These standards were implemented to regulate the performance and capacity of two-wheelers, and the most significant impact of these standards has been on unrestricted two-wheelers with an engine of power more than 125 cc, thereby causing the downfall of the market for conventional two-wheelers. Thus, the rapid adoption of the electric two-wheelers in the region will lead to the growth of the two-wheeler hub motor market in the future.
Dynamics of Two-Wheeler Hub Motor Market
The shift towards high-powered motors is a key trend being observed in the two-wheeler hub motor market. Major manufacturers, such as Zero Motorcycles Inc., BMW AG, and Vectrix, are offering electric motorcycles with motor power more than 30 kW and have also announced their plans of launching models of even higher motor power. In 2018, Zero Motorcycles announced its plans of launching a dual-sport electric motorcycle, Zero DS ZF7.2. The model will be 8.0% faster and will have an additional 35.0% motor power compared to the previously launched models. Besides, many OEMs of conventional gasoline-based motorcycles have announced their plans of introducing high-powered electric models in the near future. For instance, Harley-Davidson Inc. announced the launch of its electric motorcycle, LiveWire, by 2019, which will be a high-powered motorcycle with a travel range up to 235 km on a single charge. Thus, the increasing demand for higher-powered motors is one of the major trends being observed in the market.
The rising adoption of electric two-wheelers is acting as a catalyst for the growth of the two-wheeler hub motor market. The demand for electric two-wheelers has witnessed an explosive growth in the recent years, attributed to the increasing concern of environmentalists and governments, owing to the increasing levels of carbon emission by conventional fuel-based vehicles. Moreover, electric two-wheelers, while reducing the carbon footprint on the environment, have gained significant interest from various governments as efficient and reliable light motor vehicle (LMV) alternatives. This factor has escalated the demand for these vehicles in the urban landscape, particularly in places with high carbon emission rates, which is, in turn, driving the growth of the market.
Two-Wheeler Hub Motor Market Segmentation Analysis
Based on vehicles, both the e-bikes and e-scooters and motorcycles categories held a similar share in 2018, in terms of volume, in the two-wheeler hub motor market. However, the e-scooters and motorcycles category is expected to witness faster growth at a CAGR of 12.3% during the forecast period, buoyed by their increasing adoption by customers as well as public sharing companies, as such vehicles offer a convenient and cost-effective mode of transportation.
On the basis of motor power, the <0.5 kW category held the largest share in the two-wheeler hub motor market in 2018, and is expected to remain the dominant category during the forecast period. This is because of the growing use of these low-powered motors in most of the e-bikes available in the market.
In terms of motor architecture, the induction motor category is expected to register the fastest growth during the forecast period at a CAGR of 25.8%, in terms of volume. This is attributed to the increasing demand for high-powered electric motorcycles, which use induction motors.
Based on motor type, the larger share in the two-wheeler hub motor market was held by the DC motor category, in 2018. DC motors offer the vehicles a higher starting torque, enable better speed variation, as well as assists in quick starting, stopping, and reversing. Additionally, these motors are much easier to maintain than AC motors. All these factors cumulatively contribute to the growth of the category.
The demand for two-wheeler hub motors in the aftermarket is expected to experience faster growth during the forecast period. The average life of an electric two-wheeler is higher than that of its hub motor. Thus, with the growing usage of these vehicles, the replacement rate the hub motor will grow more rigorously in the coming years.
Global Scenario of Two-Wheeler Hub Motor Market
The Asia-Pacific (APAC) region was the largest two-wheeler hub motor market in 2018, and is expected to maintain its dominance during the forecast period. The region’s dominance is mostly driven by the Chinese market, which alone accounted for around 97.6% of the global market share, in terms of value, in 2018. This is mainly attributed to the early introduction of electric two-wheelers in the country and support from the government, which make China the largest market, both globally and in APAC. Moreover, the Chinese market for two-wheeler hub motors is expected to be valued at $7,229.2 million in 2024.
The global two-wheeler hub motor market is expected to witness the fastest growth in the European region, attributed to the introduction of stringent emission standards in the form of Euro 4. This is encouraging the adoption of electric vehicles in the urban landscape, particularly in places with high carbon emission rates. Belgium is expected to register the fastest growth among all the countries in this region at a CAGR of 24.8% during the forecast period.
Competitive Landscape of the Two-Wheeler Hub Motor Market
The global two-wheeler hub motor market is highly fragmented, with the top six players accounting for less than 40.0% revenue in 2018. The market comprises numerous unorganized players, especially in China. Most of the electric two-wheeler manufacturers use hub motors provided by local Chinese players, making the market scrappy and diverse. The major players operating in the market are Yadea Technology Group Co. Ltd., Robert Bosch GmbH, Ananda Drive Techniques Co. Ltd., Jiangsu Xinri E-Vehicle Co. Ltd., and Zhejiang Luyuan Electric Vehicle Co. Ltd.
Recent Strategic Developments of Major Two-Wheeler Hub Motor Players
In recent years, the major players in the two-wheeler hub motor market have taken several strategic measures, such as product launches, mergers and acquisitions, and facility expansions, to gain a competitive edge in the industry. For instance, in July 2019, Robert Bosch GmbH announced that it would take up 50.0% stake in MAGURA Bike Parts, a subsidiary of MAGURA, in order to introduce a joint-venture under the name MAGURA Bosch Parts & Services GmbH & Co. KG. The development is aimed at achieving a closer cooperation between the two companies in the distribution of service and replacement parts. Moreover, the development is intended to strengthen and expand Bosch’s services in the e-bike market in Europe in the long run.
Key Questions Addressed/Answered in the Report