PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887025
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887025
The global electric two wheeler powertrain market is rapidly expanding due to rising fuel prices, environmental concerns, government incentives, and advancements in battery technology. In 2024, the market reached a value of USD 10.59 billion, driven by the accelerating shift toward sustainable transport solutions. By 2025, the market is expected to rise to USD 12.03 billion, and by 2032, it is projected to reach USD 31.59 billion, growing at a CAGR of 14.8% during the forecast period. Asia Pacific dominated global demand with a massive 99.72% share in 2024, underscoring its role as the world's fastest-growing EV hub.
Electric two-wheeler powertrains include electric motors, batteries, controllers, and integrated electronics designed to supply efficient and smooth propulsion. These systems deliver low-maintenance, eco-friendly transport solutions suited for both urban mobility and rural connectivity.
Market Drivers
Urbanization and Last-Mile Connectivity Boosting Adoption
As cities become more congested, electric two-wheelers offer fast, low-cost, and flexible mobility. Their compact design helps riders navigate traffic and reduces travel time. In January 2025, EMX launched an electric scooter fleet in the UAE offering 135 km range and 16% improved energy efficiency, showcasing their growing appeal in logistics and urban commuting.
Environmental Policies and Government Incentives
Governments worldwide are implementing EV incentives, subsidies, tax rebates, and emissions regulations that favor electric mobility. These policies are influencing consumers and businesses to transition to electric two-wheelers, thereby accelerating market growth.
Market Restraints
Battery Range, Energy Density, and Charging Limitations
Despite progress, lithium-ion batteries still lag behind gasoline in terms of energy density and refueling convenience. Charging takes longer, and fast-charging infrastructure is not equally available across regions. Concerns about battery degradation and high replacement costs also affect consumer confidence, limiting broader adoption.
Market Opportunities
Advancements in Motor Efficiency and Vehicle Performance
Improved motor efficiency, higher torque output, and extended driving range are creating new opportunities for manufacturers to develop advanced electric two-wheeler powertrains. Innovations such as Exro Technologies' Coil Driver have shown improved acceleration and energy utilization, increasing market potential for premium and high-speed electric motorcycles.
Key Market Trends
Localization and In-House Powertrain Manufacturing
Manufacturers are increasingly producing motors, controllers, and battery systems locally to reduce costs, meet regulatory requirements, and improve supply chain reliability. In June 2024, Musashi Auto Parts India started mass production of e-axles expected to power up to 1 million electric two-wheelers by 2030, supporting India's growing EV ecosystem.
By Component Type
Traction inverters dominated the market in 2024, as they play a crucial role in energy conversion, motor efficiency, and range optimization. Rising demand for high-performance scooters and motorcycles continues to boost inverter adoption. Meanwhile, the motor segment is expanding quickly due to innovations in torque density, heat management, and structural design.
By Vehicle Type
Electric mopeds held the largest share in 2024, driven by rising demand for affordable, efficient commuting solutions. In March 2025, Ola Electric began delivering its S1 Pro Gen 3 series offering ranges up to 320 km, reflecting strong consumer demand for long-range mopeds. The electric motorcycle segment is also growing, influenced by the popularity of performance-oriented models.
By Power Output
The <3 kW power output segment led the market in 2024 because of its affordability and suitability for short-distance urban use. However, the >10 kW segment is expanding rapidly due to demand for high-performance electric motorcycles.
By Motor Type
Mid-drive motors are expected to dominate due to superior efficiency and torque. Ola's 2025 Roadster X series with 7-11 kW mid-drive motors highlights the shift toward high-performance e-motorcycles.
By Battery Type
Lithium-ion batteries led in 2024 due to long lifespan, high energy density, and fast charging. In January 2025, Ather Energy partnered with CBAK to integrate advanced lithium-ion cells, reinforcing their role as the industry standard.
Asia Pacific - The Dominant Market (2024 Value: USD 10.56 Billion)
Asia Pacific accounted for nearly the entire global market in 2024. China and India lead global production and adoption, backed by subsidies, battery innovations, and rapid urbanization.
North America
Growing government incentives, rising fuel prices, and consumer preference for sustainable mobility fuel regional growth.
Europe
Europe's stringent emission laws and expanding EV charging network boost adoption across major countries.
Rest of the World
Regions such as the Middle East, Africa, and South America are witnessing growing EV interest due to rising fuel costs and sustainable mobility goals.
Conclusion
With the market rising from USD 10.59 billion in 2024 to USD 31.59 billion by 2032, the electric two wheeler powertrain market is set for strong expansion powered by performance improvements, sustainability goals, and massive Asian demand.
Segmentation By Component Type
By Vehicle Type
By Power Output
By Motor Type
By Battery Type
By Geography