Europe Electric Two and Three-Wheeler Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Europe Electric Two & Three-Wheeler Market is anticipated to mark a tremendous rise in its revenue from US$ 6,209.3 Mn in 2021 to US$ 21,066.8 Mn by 2030. The market is registering a CAGR of 14.5% over the forecast period 2022-2030. In terms of volume, the market is projected to grow at a CAGR of 15% during the forecast period. Europe has the second largest share of electric vehicles after Asia Pacific. The adoption of electric vehicles in Europe is actively supported by the European Union and several national, provincial, and local governments in Europe. The market is majorly driven by factors such as growing demand for energy-efficient commuting and government support through subsidies and tax rebates.

A variety of policies have been established by governments at different levels to provide direct financial support to consumers and manufacturers; non-monetary incentives; subsidies for the deployment of charging infrastructure; procurement of electric vehicles for government fleets; and long-term regulations with specific targets. For instance, in 2008, France introduced a bonus-malus CO2-based tax system that penalize fossil-fuel vehicle sales, thereby promoting the production and sale of electric vehicles. Furthermore, several European governments have made long-term pledges with compliance targets within a specific timeframe such as ZEV (Zero-Emission Vehicles) mandates and the phase-out of internal combustion engine vehicle sales. For instance, Norway set a national goal that all new car sales by 2025 should be zero-emission vehicles (electric or hydrogen). In addition, the production of gas-powered vehicles is expected to decrease prominently over the next decade as gas is not a renewable source of energy and doesn’t promote sustainable development. Electric two & three-wheelers provide zero tailpipe emissions and noise-free transportation. Moreover, the electrification of two & three-wheelers is expected to result in lower operation and maintenance costs as compared to Internal Combustion Engine (ICE) vehicles, making them economically viable. However, the lack of EV charging infrastructure and poor design & performance standard of electric vehicles poses a big challenge to the market growth.  

Key Insights of the Report: 

• Latest study published by Astute Analytica analyzes the Europe Electric Two & Three-Wheeler Market for the study period of 2017-2030; where historical years are 2017-2020, base year is 2021 and forecast period is 2022-2030.
• The research report offers detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 15 chapters distributed across 100 pages with 14 list of tables and 28 list of figures.
• The market is segmented based on vehicle type, usage, end user, and country.
• The market estimates are presented in terms of value (US$ Mn) and volume (Units).
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models.
• Detailed value chain analysis of the industry was conducted. It includes raw material providers, electric vehicle manufacturers, distributors, and end users.
• Competitive dashboard section includes analysis on the basis of Concentration Ratio (CR), based on market size and market presence of key companies.

Key Takeaways from the Europe Electric Two & Three-Wheeler Market Report:

• Based on vehicle type, the e-bikes segment has the highest share in the Europe electric two & three-wheeler market in 2021 and is further estimated to continue its dominance over the projection period. Sales of electric bikes more than doubled in 2021 led by a sharp uptick in demand for high-speed e-bikes which are supported by state and central subsidies. Europe has the second largest electric light commercial global vehicle stock of 33% in 2021.
• In terms of usage, the personal segment holds the highest market share in 2021 and records the highest CAGR over the forecast period 2022-2030. Electric two & three-wheelers are predominantly used in the personal or private sector as they are being heavily used for commuting from one place to another, as they have become the most fuel-efficient transport system for long distances.
• Individuals (B2C) are the highest end users of the Europe electric two & three-wheeler market in 2021 and has the highest CAGR over the projection period due to the increased use of electric two & three-wheelers by customers as they are cost efficient and environmentally friendly.
• Germany dominates the Europe electric two & three-wheeler Market in 2021 and will continue its dominance over the forecast period. Germany is the largest market for light-duty electric commercial vehicles. The large share of the light commercial market is the result of a national purchase incentive scheme, which German companies have embraced. Additionally, Germany passed a law in December 2019 to phase out sales of cars that burn fossil fuels by 2040.

Impact of COVID-19 

The COVID-19 pandemic severely crippled the auto industry, and the disruption had its impact on demand for electric two & three-wheelers. Both the production and sales of new electric two & three-wheelers came to a halt across the European region as the whole ecosystem got disrupted. Furthermore, the supply of lithium-ion battery packs got impacted due to the pandemic and remained disrupted for several weeks. However, the market is coming back on track and is expected to flourish in the future. 

Competitive Insight

The key players in the Europe Electric Two & Three-Wheeler Market are Riese & Müller GmbH, Leon Cycle, Govecs AG, Walberg Urban Electrics GmbH, myStromer AG, Zero Motorcycles, Inc., Emco Electroroller GmbH and Energica Motor Company S.p.A. among others. Through extensive research, it is found that big players have adopted various competitive strategies such as merger & acquisition in order to have a grip in the stabilized market scenarios. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Segmentation Overview 

Following are the different segments of the Europe Electric Two & Three-Wheeler Market: 

By Vehicle Type segment of the Europe Electric Two & Three-Wheeler Market is sub-segmented into:

• E-bikes
• Electric Kick Scooters
• Two-Wheelers
  • Scooters
  • Motorcycles
• Three-Wheelers
  • Passenger 3-Wheelers
  • Cargo 3-Wheelers

 By Usage segment of the Europe Electric Two & Three-Wheeler Market is sub-segmented into:

• Personal
• Commercial
  • Passenger Carrier
  • Goods Carrier

 By End User segment of the Europe Electric Two & Three-Wheeler Market is sub-segmented into:

• Individuals (B2C)
• Businesses (B2B)
  • Logistics Companies
  • Transport (Fleet Operators)
  • Retail & E-Commerce
  • Utilities
  • Hospitality
  • Others

By Country segment of the Europe Electric Two & Three-Wheeler Market is sub-segmented into:

• Germany
• France
• Italy
• Spain
• Russia
• Poland