North America Electric Scooters and Motorcycles Market to Generate $2,348 Million Revenue by 2030
- Published: January 2023
The North American electric scooters and motorcycles market size is expected to advance at a CAGR of 18.10% during 2022–2030, to reach USD 2,348 million by 2030.
The major factors responsible for the growth of the market include the emergence of electric scooter sharing fleets, government incentives and tax credits for EV adoption, and low-maintenance nature of electric scooters and motorcycles.
The COVID-19 pandemic negatively impacted the electric two-wheelers market in North America. In the wake of its outbreak, electric scooter and motorcycle production came to a grinding halt, and sales were severely impacted on account of the supply chain disruption. Moreover, the lockdown increased the unemployment rate across North America, compelling people to think twice before making any hefty purchase.
Low Maintenance of These Automobiles
Electric scooters and motorcycles consist of fewer vibrating and moving parts compared to traditional vehicles, which reduces the need for periodic servicing. Since these modes of transportation are low-maintenance alternatives, they have gained huge interest from people not capable of assigning extra time for routine vehicle servicing and maintenance from their work schedules. Thus, operational Cost reduction is a prime factor for the increasing adoption of electric scooters and motorcycles in the region. With the low maintenance requirements, the expenses in the change of various oils and automotive parts are eliminated.
Demand for Electric Two-Wheelers with Li-Ion Batteries To Witness Faster Growth
The faster growth in the market during the forecast period is expected from electric scooters and motorcycles with Li-ion batteries, with a 22% CAGR, in terms of value. The growing demand for electric scooters and motorcycles that can travel longer without frequent charging, coupled with the increasing safety concerns, is the major growth driver for the market in this category. In addition, the falling prices of Li-ion batteries, along with their inherent advantages, such as low weight, small size, high energy density, low maintenance cost, and low rate of self-discharge, are expected to boost their adoption during the forecast period.
E-Two-Wheeler Adoption in Food and Beverage Delivery
A key opportunity for the regional market arises from the food and beverage delivery sector. With huge numbers of food and beverage outlets opening across the region that offer delivery options, delivery fleets have ample opportunities to replace the traditional delivery models with the low-maintenance and environment-friendly electric scooters and motorcycles.
The food and beverage sector generally has a shorter delivery range than conventional e-commerce, as orders mostly come out of nearby outlets. The adoption of electric scooters and motorcycles would benefit outlets’ owners, especially since their running cost is lower than that of gasoline-driven vehicles. This is itself because the per unit cost of electricity is lower than the per liter cost of gasoline. As a result, fleet owners can deliver more orders for the same operational cost as they would using ICE two-wheelers, which will ultimately make them more profitable.
The most-significant North American electric scooters and motorcycles market players are KTM North America Inc., Harley-Davidson Inc., Razor USA LLC, Segway Inc., TORROT ELECTRIC EUROPA S.A., Zero Motorcycles Inc., Energica Motor Company S.p.A., Lightning Motorcycle Corp., and Bell Custom Cycles.