Electric Two-Wheeler Powertrain Market to Reach US$ 44.5 Billion by 2035 at 10.7% CAGR Globally | TMR

Electric two-wheeler powertrain market to hit US$44.5 Bn by 2035, driven by clean mobility policies and urban EV adoption.

WILMINGTON, DE, UNITED STATES, February 12, 2026 /EINPresswire.com/ -- The global electric two-wheeler powertrain market is experiencing strong momentum, driven by government-backed clean transportation policies, rising fuel prices, and growing adoption of electric mobility in urban areas. The market was valued at US$ 14.5 Bn in 2024 and is projected to reach US$ 44.5 Bn by 2035, expanding at a CAGR of 10.7% from 2025 to 2035.

The rapid shift toward sustainable transportation systems, combined with advancements in battery technologies and motor efficiency, is accelerating the deployment of high-performance electric propulsion systems across global markets.

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→Market Size & Key Highlights

Market size stood at US$ 14.5 Bn in 2024
Expected to reach US$ 44.5 Bn by 2035
Projected CAGR of 10.7% during 2025–2035
Asia Pacific accounted for 89.2% revenue share in 2024

Electric scooters held 86.3% market share by vehicle type
Major players include Robert Bosch GmbH, YAMAHA Motor Co., Ltd., MAHLE Powertrain Ltd, Valeo, and Delta Electronics, Inc.
Market Overview

The electric two-wheeler powertrain industry focuses on propulsion systems that power electric scooters, motorcycles, and e-bikes. These systems integrate electric motors, controllers, traction inverters, battery packs, and transmission units to convert electrical energy into mechanical motion.

Electric powertrains provide immediate torque, higher efficiency, minimal noise levels, and zero tailpipe emissions—making them ideal for dense urban environments.

The market includes hub motor systems, mid-drive motor systems, and fully integrated compact powertrain units designed to reduce weight while improving performance and energy efficiency.

→Key Market Growth Drivers

Government Push Toward Low-Emission Transportation

Governments worldwide are implementing stricter emission norms and offering incentives for electric vehicle adoption to reduce urban pollution and fossil fuel dependence. National sustainability roadmaps and net-zero targets are accelerating demand for advanced electric propulsion technologies.

In November 2024, Honda reinforced its electrification strategy to support carbon neutrality, highlighting how regulatory policies continue to influence OEM investments in electric powertrain systems.

Supportive policy frameworks are acting as innovation catalysts, encouraging manufacturers to develop scalable, efficient, and modular powertrain platforms.

→Rising Adoption of Electric Two-Wheelers for Urban Mobility

Rapid urbanization, rising fuel costs, and environmental awareness are driving consumers toward economical and eco-friendly commuting solutions. Electric two-wheelers are increasingly preferred for short-distance travel due to lower maintenance costs and operational efficiency.

In April 2025, Revolt Motors emphasized the environmental benefits of electric two-wheelers, including emission reduction and noise pollution control, further reinforcing market growth.

→Electric Scooters Segment Dominates

The electric scooters segment led the global market with an 86.3% revenue share in 2024. Their popularity in urban commuting has created strong demand for compact, efficient, and affordable powertrain systems.

Advancements in battery technology and integrated motor-controller systems have improved range, charging speed, and overall ride quality. Manufacturers continue to innovate in this segment, ensuring sustained leadership through 2035.

→Regional Outlook

Asia Pacific dominates the global electric two-wheeler powertrain market, accounting for 89.2% of revenue share in 2024.

China, India, and Southeast Asian nations rely heavily on two-wheelers for daily commuting, creating massive demand for affordable electric powertrain systems. The region benefits from strong local manufacturing ecosystems, government subsidies, expanding charging infrastructure, and ongoing battery and motor technology investments.

Asia Pacific is expected to maintain leadership throughout the forecast period.

→Key Market Players

Major participants shaping the electric two-wheeler powertrain market include: Robert Bosch GmbH, YAMAHA Motor Co., Ltd., MAHLE Powertrain Ltd, Valeo, T&D, NIDEC CORPORATION, Delta Electronics, Inc., Fukuta Elec. & Mach. Co., Ltd., Magna International Inc., Dana Limited, ZF Friedrichshafen AG, Schaeffler AG, AISIN CORPORATION, and TECO Electric & Machinery Co., Ltd..

These players are pursuing a combination of strategies to capture market share: expanding R&D investment in high-efficiency motors and power electronics; developing integrated, modular powertrain solutions that ease OEM integration; forging partnerships with battery and semiconductor suppliers to accelerate system-level optimization; and scaling localized manufacturing footprints—particularly across Asia Pacific—to meet surging regional demand. Additionally, many firms are enhancing software capabilities for energy management, telematics, and predictive maintenance to offer differentiated, services-enabled powertrain offerings.

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→Recent Developments

November 2025: Automotive OEMs expanded electrification strategies to include modular platforms, hydrogen systems, advanced semiconductors, and software-defined architectures.
October 2024: Delta Electronics showcased compact high-performance electric two-wheeler powertrains optimized for e-bikes and e-scooters, focusing on integrated design and durability.
Market Segmentation

The electric two-wheeler powertrain market is comprehensively segmented across multiple technical and application-based parameters to reflect the industry’s structural diversity and innovation trends.

→By Component Type

→The market is segmented into:

Motor
Traction Inverter
On-board Charger
Battery Pack
Others

Among these, motors and battery packs represent critical revenue contributors due to their direct impact on vehicle performance, efficiency, and range capabilities. Advancements in inverter technology and onboard charging systems are also enhancing energy management efficiency.

→By Vehicle Type

The market is categorized into:

Electric Scooters
Electric Motorcycles
Electric Bikes
Others

Electric scooters dominated with 86.3% share in 2024, primarily due to their affordability, ease of operation, and suitability for short urban commutes. Electric motorcycles are gaining traction in premium performance segments, while electric bikes are expanding in shared mobility and recreational use.

→By Motor Type

The market includes:

Mid Drive Motor
Hub Motor
Brushless DC Motor
Others

Hub motors are widely adopted in urban scooters due to cost efficiency and simple integration. Meanwhile, mid-drive motors are preferred in high-performance motorcycles for better weight distribution and torque output. Brushless DC motors continue to gain popularity for their durability and high efficiency.

→By Battery Type

Battery segmentation includes:

Lithium-ion Batteries
Lithium Iron Phosphate (LFP)
Lead-Acid Batteries
Others

Lithium-ion batteries dominate the segment due to superior energy density, lightweight properties, and longer life cycles. Lithium Iron Phosphate batteries are gaining traction for enhanced safety and thermal stability, particularly in high-temperature markets.

→By Power Output

The market is segmented into:

Less than 3 KW
3–10 KW
More than 10 KW

The 3–10 KW segment accounts for a substantial share as it suits mainstream electric scooters and commuter motorcycles. Higher power outputs above 10 KW are increasingly used in performance-oriented electric motorcycles.

→By Cooling Method

The industry includes:

Air-Cooled Systems
Liquid-Cooled Systems
Hybrid Cooling

Air-cooled systems dominate entry-level vehicles due to lower costs, while liquid-cooled systems are expanding in high-performance and long-range vehicles to enhance thermal management and system durability.

→By End User

The market is divided into:

Individual Consumers
Commercial Users
Rental Platforms
Others

Individual consumers account for the majority share; however, commercial fleet operators and rental platforms are emerging as fast-growing segments due to the expansion of shared mobility and last-mile delivery services.

→Investment Landscape and ROI Outlook

The electric two-wheeler powertrain market presents high-growth investment potential, supported by double-digit CAGR of 10.7%. Investments are primarily flowing into R&D, semiconductor integration, battery innovation, and modular system development.

Companies that successfully integrate motor efficiency, battery optimization, and digital connectivity features are expected to generate strong long-term returns.

→Why Buy This Report?

This report provides detailed analysis of market size, growth drivers, competitive positioning, regional dynamics, technological trends, and investment opportunities. It offers strategic insights for OEMs, component manufacturers, investors, and policymakers seeking to capitalize on the rapid electrification of urban mobility.

→Frequently Asked Questions

Q.How big was the electric two-wheeler powertrain market in 2024?
A.The market was valued at US$ 14.5 Bn in 2024.

Q.How large will the market be by 2035?
A.It is projected to reach US$ 44.5 Bn by 2035.

Q.What factors are driving market growth?
A.Government push toward low-emission transportation and rising adoption of electric two-wheelers for urban mobility.

Q.What is the expected CAGR during the forecast period?
A.The industry is expected to grow at 10.7% CAGR from 2025 to 2035.

Q.Which region dominates the market?
A.Asia Pacific is expected to account for the largest market share during the forecast period.

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