North America Electric Two-Wheeler Industry Set to Witness Huge Growth by 2025

With the increasing greenhouse gas (GHG) emissions and the escalating air pollution levels, the demand for environment-friendly mobility solutions is growing rapidly in North America. Moreover, the governments of many North American countries are implementing policies for encouraging the adoption of electric vehicles, including electric two-wheelers such as electric scooters and motorcycles. For instance, in the U.S., both federal and state governments are providing various incentives for augmenting the deployment of electric vehicles.

In 2017, the government of California launched an initiative, under which, it would offer 10% tax credit on the purchase of electric motorcycles having prices up to $2,500. Additionally, the state is also providing a rebate of up to $900 for buying electric motorcycles, under the Clean Vehicle Rebate Project (CVRP). Furthermore, the federal government allocated a budget of $6 billion to the U.S. Postal Service for buying electric delivery vehicles. Similarly, the Canadian government is providing a rebate of $1,524, under the British Columbia Specialty-Use Vehicle Incentive (SUVI) Program, on the purchase of low-speed electric motorcycles.

Apart from the aforementioned factors, the lower maintenance requirements of electric scooters and motorcycles in comparison to the conventionally used diesel and gasoline-powered two-wheelers are also contributing toward their booming sales in the region. As these vehicles have fewer moving and vibrating parts, they need low maintenance. This significantly reduces the requirement for periodic servicing, which usually costs the owners of conventional two-wheelers a huge amount. As these vehicles need minimal maintenance, they are increasingly being preferred by people who don’t have the time for routine vehicle maintenance and servicing.

Another major factor powering the sales of electric scooters in North America is the emergence of electric scooter sharing fleet in the U.S. and Canada. Due to these factors, the North American electric scooters and motorcycles market is exhibiting rapid expansion. As a result, the market value will grow from $164.7 million in 2020 to $590.4 million by 2025, as per the forecast of the market research company, P&S Intelligence. Furthermore, the market is expected to grow at a CAGR of 25.1% from 2021 to 2025.

Out of the electric motorcycles, scooters, and kick scooters, the demand for electric motorcycles is predicted to be the highest in the region in the coming years. This is credited to the existence of a large number of manufacturing companies, enactment of favorable government policies, including incentives and rebates, regarding the deployment of these vehicles, and the growing public preference for high-speed electric vehicles in the region. Personal users, sharing services, and food and grocery are the major application areas of electric scooters and motorcycles in North America.

Out of these, the usage of these vehicles was found to be the highest in sharing services in the past years. For daily commuters, two-wheeler sharing services are highly convenient, as these services allow them to reach their destinations without any hassle. The North American electric scooters and motorcycles market was dominated by the U.S. in 2020. This was due to the presence of a large commuter pool in the country and several favorable government policies and regulations regarding the deployment of these vehicles in the country.

Hence, it is safe to say that the demand for electric scooters and motorcycles will surge sharply in North America in the forthcoming years, primarily because of the increasing implementation of favorable government policies and the escalating air pollution levels in the region.

Hi Guys My name is Rahul Gautam and I am a Business Consultant Market Intelligence in the company named P&S Intelligence. I have 7 years of work experience. You can contact me at my personal number for any query at +1-888-778-7886