Electric motorcycle: Manufacturers go full throttle as electric motorcycle market opens up

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  Quantumrun Foresight
• April 20, 2022

Insight summary

The rise of electric motorcycles is reshaping personal transportation by offering an environmentally friendly and cost-effective alternative to traditional vehicles, with the added convenience of smartphone integration. This trend can help transform urban landscapes through reduced traffic and pollution, the creation of new safety regulations, and the potential for businesses to enhance sustainability through electric delivery options. The shift towards electric two-wheelers is driving changes in affordability, infrastructure, regulations, and the overall approach to sustainable mobility.

Electric motorcycle context

The increasing availability of battery-powered electric motorcycles is complemented by climate-conscious consumers being willing to make empowered purchasing decisions to mitigate the negative impact of carbon-emitting transportation methods. In a March 2021 forecast and analysis report, a global research firm, Technavio, reported that the global high-performance electric motorcycle market is set to grow at a compound annual growth rate (CAGR) of almost 28 percent between 2021 and 2025. The forecasted growth is underpinned by the advent of all-electric motorcycle racing and major motorcycle manufacturers increasing their focus on developing and producing electric motorcycles.

Well-known Italian motorcycle manufacturer, Ducati, announced that it would be the sole supplier of motorcycles to the FIM Enel MotoE World Cup starting from the 2023 racing season onward. In addition, the electric motorcycle market is growing, with a range of brands competing in multiple categories and across varying price points. Customers can choose from lower-priced urban motorcycles like the CSC City Slicker to the higher-priced Lightning Motorcycle Strike and Harley Davidson’s LiveWire.

The global movement towards decarbonization has accelerated the production of electric vehicles and motorbikes, which has resulted in declining prices of lithium-ion batteries, a key driver in market growth. Furthermore, growing government support for the adoption of electric vehicles has brought about immense growth opportunities in the market. 

Disruptive impact

The allure of electric motorcycles is not only tied to their environmentally friendly status but also to their cost-effectiveness in maintenance and charging compared to electric vehicles. The ability to update electric motorcycles through a smartphone application adds to their appeal, offering riders a seamless way to enhance their experience. This trend signifies a shift towards more accessible and sustainable personal transportation. It may lead to a broader acceptance of electric mobility solutions, providing a practical alternative to traditional fuel-powered vehicles.

On the corporate side, the growing interest in electric motorcycles presents both opportunities and challenges for manufacturers and service providers. Companies may need to adapt their production lines and marketing strategies to cater to this emerging market. The integration of smartphone technology with electric motorcycles offers a unique selling point, but it also requires careful consideration of security and user experience. Businesses may need to collaborate with tech companies to ensure that the software is user-friendly and secure, creating a holistic experience for the rider.

For governments and regulatory bodies, the rise of electric motorcycles requires a reevaluation of existing regulations for electric vehicles. Municipal, regional, and national governments may need to extend these regulations to the electric motorcycle industry. Electric charging stations, initially created to support electric cars, can be adapted for use by electric motorcycle riders, ensuring that the infrastructure is in place to support this growing trend. 

Implications of electric motorcycles

Wider implications of electric motorcycles may include: 

• Improved affordability of two-wheeled electric transportation options, from motorcycles to scooters to bikes, leading to a broader adoption among various income groups and contributing to a more inclusive and sustainable transportation landscape.
• Decreased traffic congestion, gas pollution, and noise pollution in big cities as more people commute to work using electric motorcycles and other forms of two-wheeled transportation, fostering a cleaner and more livable urban environment.
• The government establishing new safety regulations to regulate acceleration features, given how electric motorcycles can generate torque faster and reach higher speeds compared to traditional motorcycle models, leading to enhanced road safety and responsible riding practices.
• Urban delivery services enhancing their sustainability profiles by purchasing large numbers of electric motorcycles or scooters to supplement and support their businesses, contributing to reduced emissions and aligning with global sustainability goals.
• A shift in automotive manufacturing towards electric two-wheelers, leading to changes in supply chain dynamics and the creation of new partnerships between traditional manufacturers and technology companies.
• Increased investment in charging infrastructure specifically designed for electric motorcycles and scooters, leading to more accessible and convenient charging options for riders and supporting the growth of the electric two-wheeler market.
• The emergence of new job opportunities in electric vehicle maintenance, software development, and charging infrastructure, leading to a diversified labor market and new career paths.
• Potential challenges in ensuring equitable access to electric two-wheelers and charging infrastructure in rural and underserved areas, leading to a need for targeted policies and incentives to prevent disparities in transportation options.
• The development of community-based sharing programs for electric motorcycles and scooters, leading to more flexible and affordable transportation options for residents and visitors in urban areas.

Questions to consider

• Given the speed capabilities of most electric motorcycles, do you think that speed regulations in urban areas should be reviewed for public safety reasons and to prevent driver-caused accidents?
• What percentage of motorcycle drivers do you believe would be willing to replace their combustion engine motorcycles with electric motorcycles?