According to the TechSci Research report titled “Two-Wheeler Battery Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the global two-wheeler battery market stood at USD 6.4 billion in 2022 and is anticipated to grow at a CAGR of 7.3% during the forecast period, 2024-2028. The market’s growth is closely tied to the increasing demand for efficient and sustainable transportation solutions, especially in urban regions across the globe.
Two-wheeler batteries, both for internal combustion engine (ICE) vehicles and electric vehicles (EVs), have become indispensable in powering global mobility trends. As consumer demand shifts from traditional gasoline-powered motorcycles and scooters to electric variants, the market for high-performance, reliable, and cost-efficient batteries is expected to witness robust expansion.
Introduction to Two-Wheeler Battery Market
Market Overview
The global two-wheeler battery market comprises batteries that power motorcycles, mopeds, scooters, and electric bikes (e-bikes). These batteries are essential for engine ignition in conventional vehicles and for propulsion in electric two-wheelers. With increasing urban population densities, the adoption of compact, agile, and affordable mobility solutions such as two-wheelers is accelerating, positioning batteries as a key enabler of this mobility revolution.
Key Growth Drivers of Two-Wheeler Battery Market
- Urbanization and Changing Mobility Preferences
A significant driver of market growth is the rapid urbanization observed worldwide. With growing traffic congestion in metropolitan areas, commuters are seeking affordable and flexible transportation solutions. Two-wheelers are well-suited for navigating congested streets, offering a practical alternative to cars and public transportation. This urban mobility trend has fueled demand for both traditional and electric two-wheelers, boosting the battery market.
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- Rising Environmental Awareness and Electrification
Global concerns over climate change and air pollution have intensified interest in electric mobility. Electric two-wheelers—such as e-scooters and e-bikes—are increasingly being adopted for their lower carbon footprint and cost-efficiency. Batteries, particularly lithium-ion (Li-ion) variants, are critical to the performance and range of electric two-wheelers, making them central to the ongoing transition from ICE vehicles to electric mobility.
- Technological Advancements in Battery Chemistry
Battery technology is evolving rapidly, driven by research in energy density, battery lifespan, and fast-charging capabilities. Innovations in lithium-ion batteries have enabled longer ranges, improved safety, and reduced charging times. These enhancements are attracting both end consumers and shared mobility operators, expanding the total addressable market for two-wheeler batteries.
- Government Incentives and Policy Support
Governments across the world are incentivizing the adoption of electric mobility through subsidies, tax exemptions, and favorable regulations. Policies aimed at reducing fossil fuel consumption and emissions are encouraging consumers to transition to electric two-wheelers, directly impacting battery demand. Moreover, initiatives to improve charging infrastructure are further catalyzing this shift.
- Growth in Micro-Mobility and Shared Mobility Services
Urban centers are witnessing the proliferation of micro-mobility solutions, including shared electric scooters and e-bikes. These services require reliable batteries with high rechargeability and extended cycles, increasing the consumption of two-wheeler batteries. The growth of app-based ride-sharing services and bike rentals is thus contributing significantly to battery market expansion.
Two-Wheeler Battery Market Segmentations
By Vehicle Type
Motorcycles: Continue to dominate due to widespread usage in Asia-Pacific and Latin America.
Mopeds and Scooters: Gaining popularity in urban areas for short-distance commutes.
Electric Bikes: Rapid growth due to sustainability concerns, especially in Europe and China.
By Battery Type
Lead-Acid Batteries: Cost-effective but gradually declining in usage due to weight and lower lifespan.
Lithium-Ion Batteries: Dominating electric vehicle applications due to better performance and efficiency.
Other Battery Types: Including Nickel-Metal Hydride and Graphene-based batteries, still in developmental or niche phases.
By Drive Type
Internal Combustion Engine (ICE) Vehicles: Conventional segment still holds a significant market share.
Electric Vehicles (EVs): Fastest growing segment due to electrification trends and favorable policies.
Regional Insights of the Two-Wheeler Battery Market
Asia-Pacific dominates the global two-wheeler battery market due to its vast population base, rapid urbanization, and affordability-centric consumer behavior. Countries like India and China are at the forefront, with China leading in electric scooter penetration and India witnessing strong motorcycle sales. The presence of major battery manufacturers in the region, coupled with government-led electrification initiatives, cements Asia-Pacific’s role as the market leader.
Western European countries like Germany, Netherlands, and France have shown strong adoption of electric bicycles and scooters. Urban cycling culture, stringent emissions regulations, and proactive government subsidies have fostered a thriving market for two-wheeler batteries. Europe is also investing heavily in green infrastructure and sustainable mobility, further supporting battery demand.
In North America, cities such as San Francisco, New York, and Los Angeles are embracing electric two-wheelers, particularly in the form of shared electric scooters and e-bikes. Though motorcycle usage is less common than in Asia, the rise in electric micro-mobility and government incentives is fueling market growth. Investments in EV infrastructure and the push for clean energy align with growing battery consumption.
Latin America, with countries like Brazil and Mexico, exhibits strong two-wheeler usage due to affordability and practical commuting needs. While internal combustion vehicles dominate, there is growing interest in electric alternatives. Early government incentives and rising environmental awareness suggest a positive long-term trajectory for electric two-wheeler battery demand.
The Middle East and Africa represent a diverse market landscape, where two-wheelers are gaining popularity in urban areas. With increasing urbanization and rising interest in sustainability, there is growing potential for electric two-wheelers, particularly in North African countries. As infrastructure develops and battery costs decline, this region may see increased electrification in the years ahead.
Recent Developments
Amara Raja Batteries announced its intent to enter the electric two-wheeler battery market in August 2023, starting with chargers and eventually expanding to full battery solutions.
Exide Technologies revealed plans to build a gigawatt-scale lithium-ion battery manufacturing facility in May 2023 with an investment of INR 6,000 crore, leveraging technology from SVOLT.
These developments indicate a significant shift in industry priorities towards lithium-ion battery production and EV readiness.
Major companies operating in the Global Two-Wheeler Battery Market are:
- Amara Raja Batteries Limited
- Panasonic Corporation
- Exide Technologies
- VARTA
- Clarios
- GS Yuasa Corporation
- Hitachi Group Ltd
- Robert Bosch GmbH
- China Aviation Lithium Battery Co. Ltd
- Contemporary Amperex Technology Co. Limited
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Challenges and Restraints
High Initial Costs of Lithium-Ion Batteries
Despite offering better performance, lithium-ion batteries are relatively expensive, especially for price-sensitive markets. The high upfront cost of electric two-wheelers, primarily due to battery pricing, can deter consumers.
Infrastructure and Charging Limitations
Limited availability of public charging stations continues to pose a challenge for widespread EV adoption, particularly in developing nations. This bottleneck directly impacts consumer confidence in electric two-wheelers.
Raw Material Supply Chain Issues
Battery production depends on raw materials like lithium, cobalt, and nickel, which are subject to supply chain volatility. Geopolitical tensions and limited sources of these materials can impact production costs and timelines.
Future Outlook
As manufacturers invest in solid-state batteries, battery-as-a-service (BaaS) models, and battery swapping technologies, the market is set to witness major technological disruptions. These innovations will drive affordability, convenience, and faster EV adoption.
Countries globally are drafting roadmaps to phase out ICE vehicles over the next few decades. The resulting surge in demand for electric two-wheelers will drive battery consumption. International efforts to decarbonize transportation will be instrumental in shaping the market trajectory. Manufacturers are increasingly focusing on the entire battery lifecycle—from production to recycling. Circular economy models, involving battery reuse and recycling, are expected to gain traction, supported by regulations and environmental policies.
Conclusion
The global two-wheeler battery market is on the cusp of a transformative era. The convergence of urbanization, electrification, sustainability goals, and rapid technological advancement is reshaping how people commute, especially in densely populated cities. With electric mobility gaining global momentum, two-wheeler batteries are becoming central to this transition.
Asia-Pacific continues to lead in demand and manufacturing, while Europe and North America are pushing the frontiers of green mobility. Latin America, the Middle East, and Africa, although in earlier stages of adoption, are poised for accelerated growth. Innovations in battery technology, strategic collaborations, and supportive government frameworks are expected to unlock new market opportunities over the forecast period.
In this evolving landscape, battery manufacturers, OEMs, and policy-makers must collaborate to overcome challenges and harness emerging opportunities. With a robust CAGR of 7.3% projected through 2028, the global two-wheeler battery market represents not only a growing industry but a critical enabler of future urban transportation.
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