The Australia electric scooter and motorcycle market, valued at AUD 49.57 million in 2024, has experienced significant growth, driven by providing a cost-effective alternative to conventional vehicles, reducing fuel and maintenance expenses. The market is anticipated to expand at a compound annual growth rate (CAGR) of 12.40% from 2025 to 2034, potentially reaching AUD 159.54 million by 2034, as they are more energy-efficient compared to petrol-powered vehicles, using less energy for longer journeys. This shift toward electric mobility is part of a broader trend to reduce carbon footprints and embrace more sustainable transportation options across Australia.
Drivers of Growth in the Market
1. Cost-Effectiveness and Economic Benefits
Electric scooters and motorcycles offer significant cost savings when compared to traditional petrol-powered vehicles. One of the key advantages of these electric two-wheelers is their lower operational costs. They use less energy for longer trips, significantly reducing fuel expenses for riders. Additionally, electric vehicles generally have fewer moving parts compared to combustion engine vehicles, which results in lower maintenance costs over their lifespan. As fuel prices continue to rise, Australian consumers are increasingly drawn to the more affordable, long-term solution that electric scooters and motorcycles provide.
The economic benefit is particularly relevant for city dwellers and those in urban areas where transportation costs can be a significant part of an individual’s budget. Electric two-wheelers present an affordable, practical, and energy-efficient alternative for short commutes and last-mile travel.
2. Government Support and Incentives
Governments at both the federal and state levels in Australia have increasingly focused on encouraging the adoption of electric vehicles (EVs), including electric scooters and motorcycles. To promote greener alternatives and reduce carbon emissions, various incentives such as subsidies, rebates, and tax exemptions are being introduced to make electric vehicles more affordable for consumers.
Moreover, the Australian government has shown a commitment to reducing greenhouse gas emissions and is working on expanding EV infrastructure, including the establishment of more charging stations for electric vehicles. As these incentives become more widespread, they will further support the market’s expansion and adoption of electric two-wheelers.
3. Environmental Impact and Sustainability
The growing awareness of environmental sustainability is a major driving force behind the demand for electric scooters and motorcycles. As climate change concerns continue to rise globally, individuals and governments are searching for ways to reduce their carbon footprints. Electric two-wheelers, powered by clean energy sources, offer a solution that contributes to reducing air pollution and greenhouse gas emissions.
Unlike traditional petrol-powered motorcycles and scooters, electric models do not release harmful emissions, making them a more eco-friendly option for short-distance travel. This is particularly important in densely populated urban areas where air quality can be a concern. As Australia works towards meeting its sustainability targets, the adoption of electric two-wheelers aligns with the country's broader goals of reducing carbon emissions and creating more sustainable urban mobility.
4. Technological Advancements and Better Performance
Advancements in electric vehicle technology are also contributing to the growing popularity of electric scooters and motorcycles in Australia. Improvements in battery life, motor efficiency, and overall performance have made electric two-wheelers more attractive to consumers. With longer ranges on a single charge and faster charging times, these electric two-wheelers now offer a practical and reliable option for everyday transportation.
Manufacturers are also investing in smart features such as app connectivity, real-time performance tracking, and improved safety features, making electric scooters and motorcycles more user-friendly. These technological innovations enhance the overall customer experience and drive consumer adoption.
5. Increased Availability and Variety of Models
As demand for electric scooters and motorcycles increases, manufacturers are offering a wider range of models to cater to diverse consumer needs. From compact, budget-friendly scooters for daily commuting to high-performance electric motorcycles designed for leisure and longer-distance rides, there is now a greater variety of electric two-wheelers on the market. This increased choice allows consumers to select models that best suit their preferences, lifestyle, and budget.
Moreover, the range of electric scooters and motorcycles available today spans various segments, from entry-level models to premium products. As competition intensifies among manufacturers, customers are benefitting from better pricing and more features at each price point.
Challenges Facing the Market
While the electric scooter and motorcycle market in Australia is poised for significant growth, it is not without its challenges.
Charging Infrastructure: One of the primary challenges to the widespread adoption of electric two-wheelers is the availability of charging infrastructure. Unlike electric cars, electric scooters and motorcycles are typically used for short-distance commuting, which means the charging infrastructure needs to be easily accessible, especially in urban areas. The expansion of charging networks will be crucial to support the growth of the market.
Battery Range and Charging Time: While technological advancements have significantly improved the battery life and efficiency of electric scooters and motorcycles, concerns regarding battery range and charging time still persist for some consumers. Riders may worry about running out of charge during long-distance trips or experiencing long downtime while waiting for the battery to recharge. However, as technology continues to improve, these issues are expected to be addressed, making electric two-wheelers more convenient for a wider range of users.
Upfront Costs: Although the long-term savings from operating an electric scooter or motorcycle are clear, the initial cost can still be a barrier for some consumers. Electric two-wheelers tend to be more expensive upfront compared to traditional petrol-powered models, which may deter cost-conscious consumers. However, as technology advances and production scales up, the price of electric two-wheelers is expected to decrease, making them more affordable in the future.
Market Outlook and Trends
1. Urban Mobility and Last-Mile Solutions
As cities around Australia face congestion, pollution, and the need for more sustainable transportation solutions, electric scooters and motorcycles are well-positioned to serve as a solution for last-mile travel. Urban areas with dense populations and limited parking spaces are ideal environments for electric two-wheelers, as they offer a more flexible and practical transportation option compared to cars.
In addition to individual use, electric scooters and motorcycles are also being considered for shared mobility services. Ride-sharing companies are increasingly incorporating electric two-wheelers into their fleets, providing an eco-friendly and cost-effective alternative to conventional taxis and rideshare services.
2. Integration with Smart City Initiatives
As Australian cities work to integrate more technology into their infrastructure, electric scooters and motorcycles will play a crucial role in the development of smart city initiatives. From integrating with digital payment systems to being part of shared mobility services, electric two-wheelers will be key components of the sustainable urban mobility solutions of the future.
Conclusion
The Australia electric scooter and motorcycle market is set for significant growth over the next decade. With a projected CAGR of 12.40% from 2025 to 2034, the market is expected to reach AUD 159.54 million by 2034. The rise in environmental awareness, government support, technological advancements, and growing consumer interest in cost-effective and sustainable transportation are all contributing factors driving this market’s expansion.
As Australia moves toward a greener future, electric two-wheelers represent an important part of the solution, offering a sustainable, affordable, and efficient mode of transportation for urban areas. With the right infrastructure in place, the future of electric scooters and motorcycles in Australia looks incredibly promising.
