Middle East & Africa Electric Two-Wheeler Market Research Report, 2029

The electric two-wheeler market in the Middle East and Africa (MEA) presents a picture of a nascent yet rapidly evolving sector. While the global electric two-wheeler market is projected for significant growth, the MEA region exhibits a unique patchwork landscape with distinct variations in market maturity, consumer preferences, and government support structures across different countries. One such unique aspect lies in the contrasting approaches of the two economic powerhouses within the region – Saudi Arabia and South Africa. Saudi Arabia, heavily reliant on oil exports, has identified electric two-wheelers as a strategic tool for economic diversification and a reduction in dependence on fossil fuels. The government's Vision 2030 plan actively promotes electric vehicle adoption through a combination of financial incentives, tax exemptions, and subsidies for charging infrastructure development. This top-down approach has led to a relatively more mature electric two-wheeler market in Saudi Arabia, with a growing presence of international manufacturers, a focus on developing a nationwide charging network, and a rising consumer interest in electric mobility solutions. South Africa, on the other hand, presents a contrasting picture. While the country faces similar challenges with regards to air pollution and a desire to reduce its carbon footprint, the electric two-wheeler market remains in its early stages. Limited government support structures and a lack of financial incentives for electric vehicle ownership currently act as significant barriers to wider adoption. However, there are promising signs. The recent launch of a pilot project offering electric two-wheelers for ride-hailing services in Johannesburg hints at a potential shift towards electric mobility solutions. Furthermore, South Africa's established domestic motorcycle manufacturing industry presents an opportunity for the development and production of locally-made electric two-wheeler models, potentially catering to the specific needs and price points of the South African market. Beyond these two leading economies, the MEA region presents a diverse landscape of developing countries with varying levels of electric two-wheeler adoption. In Morocco, for instance, the government has implemented a tax exemption scheme for electric two-wheelers, coupled with initiatives to promote local assembly of electric vehicles. This approach aims to not only reduce reliance on imported oil but also foster the development of a domestic electric vehicle industry. Countries like Kenya and Rwanda, with their young and tech-savvy populations, are witnessing a growing interest in electric motorcycles for commercial purposes, particularly for use in delivery services and ride-sharing platforms. These countries often leverage existing mobile money ecosystems to facilitate convenient and affordable battery swapping solutions, addressing concerns about limited charging infrastructure. According to the research report "Middle East and Africa Electric Two-wheeler Market Research Report, 2029," published by Actual Market Research, the Middle East and Africa Electric Two-wheeler market is expected to reach a market size of more than USD 3 Billion by 2029 Beyond the broader market trends, a closer look reveals a fascinating interplay between established players and new entrants within the MEA electric two-wheeler market. Unlike developed markets where major motorcycle manufacturers dominate the electric two-wheeler space, the MEA region witnesses a more diverse range of players. Established motorcycle brands are certainly present, with companies like Hero MotoCorp (India) and Yamaha (Japan) exploring electric offerings within the region. However, the MEA market also sees a significant presence of regional players and startups specifically focused on electric two-wheelers. These companies, often backed by venture capital or private equity firms, are developing electric two-wheeler models tailored to the specific needs and preferences of MEA consumers. For instance, startups like Kijamii (Kenya) and Squad Motors (UAE) are designing electric two-wheelers specifically designed for rough terrain and off-road capabilities, catering to the diverse geographical landscapes within the MEA region. Another unique aspect is the focus on electric mopeds and low-speed electric two-wheelers. These smaller, more affordable vehicles address the need for short-distance, fuel-efficient transportation in congested urban areas. Companies like Easy Taxi (Egypt) and Inertia (Morocco) are capitalizing on this demand by offering electric mopeds specifically designed for urban environments. This focus on regional expertise and developing electric two-wheeler models suited to local conditions is a crucial differentiator for these startups. Established motorcycle manufacturers, accustomed to larger, more powerful gasoline-powered vehicles, might need to adapt their design philosophies and product offerings to cater to the specific needs of the MEA market. This could involve developing smaller, more lightweight electric two-wheelers with features like swappable batteries or enhanced durability for off-road use. Furthermore, the emergence of innovative financing models is another unique aspect shaping the MEA electric two-wheeler market. The upfront cost of electric two-wheelers can still be a barrier for some consumers, particularly in developing economies within the MEA region. To address this challenge, companies are exploring alternative financing options like battery leasing or subscription models. For instance, startups like Moove (India) and Awa (Nigeria) offer electric two-wheelers through subscription plans, allowing consumers to pay a monthly fee for access to the vehicle and battery usage. This eliminates the upfront cost barrier and potentially makes electric two-wheelers a more accessible option for a wider range of consumers.

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Market Drivers • Government Incentives and Focus on Sustainability: A key driver for the MEA electric two-wheeler market is the growing emphasis on sustainability and environmental consciousness within the region. Several governments across the MEA are actively promoting electric vehicle adoption through a combination of policies and incentives. This includes tax exemptions on electric two-wheelers, subsidies for charging infrastructure development, and lower registration fees. For instance, the Moroccan government offers subsidies for electric two-wheeler purchases and is investing heavily in expanding the national charging network. These initiatives significantly reduce the upfront cost barrier for consumers and make electric two-wheelers a more attractive proposition compared to traditional gasoline-powered options. Furthermore, the focus on sustainability aligns with the economic diversification goals of many MEA countries looking to reduce their reliance on oil exports. By promoting electric two-wheelers, governments can contribute to cleaner air quality, reduced dependence on fossil fuels, and a more sustainable transportation sector. • Rise of Delivery and Ride-Sharing Services: The burgeoning market for on-demand delivery and ride-sharing services in the MEA region presents a unique driver for the electric two-wheeler market. These services, often operating in congested urban environments, are increasingly recognizing the benefits of utilizing electric two-wheelers. Electric two-wheelers offer these companies a cost-effective and environmentally friendly solution for their delivery fleets. The lower operating costs associated with electric two-wheelers, including reduced fuel expenses and lower maintenance requirements, translate to significant cost savings for these service providers. Furthermore, electric two-wheelers navigate congested urban areas with ease due to their smaller size and maneuverability, allowing for efficient deliveries within city limits. This trend is particularly prominent in countries like Kenya and South Africa, where delivery and ride-sharing services are experiencing rapid growth. As these services expand their operations, the demand for electric two-wheelers is expected to rise proportionally, driving the overall market forward. Market Challenges

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• Limited Availability of Spare Parts and After-Sales Service Infrastructure: The nascent stage of the MEA electric two-wheeler market presents a challenge in terms of the limited availability of spare parts and after-sales service infrastructure. Unlike established gasoline-powered vehicles, the relatively new electric two-wheeler technology might pose challenges for repair and maintenance in some regions. A robust after-sales service network with technicians trained on electric vehicle technology is crucial to ensure a positive ownership experience for consumers. Investing in training programs for service personnel and establishing a well-distributed network of service centers are essential steps for manufacturers and dealerships to build consumer trust and encourage wider adoption of electric two-wheelers in the MEA region. • Limited Availability and Uneven Distribution of Charging Infrastructure: A critical challenge hindering the widespread adoption of electric two-wheelers in the MEA region is the limited availability and uneven distribution of charging infrastructure. While some major cities are witnessing an expansion of charging stations, many regions, particularly rural areas, lack adequate infrastructure for electric vehicle charging. This creates range anxiety for potential buyers, as concerns about running out of power and limited options for recharging can be a significant deterrent. To address this challenge, governments and private companies need to collaborate on developing a robust and well-distributed network of charging stations across the MEA region. This could involve exploring alternative solutions like battery swapping stations or promoting partnerships between electric two-wheeler manufacturers and existing gas station networks to integrate charging facilities. Based on the report, the Electric Two-wheeler market is segmented into electric motorcycle and electric scooter categories on the basis of vehicle type. The MEA electric two-wheeler market exhibits a distinct segmentation by vehicle type, with electric scooters currently holding the dominant position. This dominance can be attributed to several factors specific to the region's economic, demographic, and infrastructural landscape. Electric scooters cater particularly well to urban environments, which dominate the MEA landscape. These compact and maneuverable vehicles are ideal for navigating congested city streets and limited parking spaces. Additionally, electric scooters offer a cost-effective and fuel-efficient mode of transportation, appealing to a broad range of consumers in the MEA region, where affordability remains a key consideration. Furthermore, the growing popularity of ride-sharing services that utilize electric scooters in some MEA cities further fuels demand within this segment. However, a trend towards electric motorcycles is also emerging, particularly in specific segments of the MEA market. This can be observed in countries with a larger middle class and a growing demand for premium electric two-wheeler options. Electric motorcycles offer longer range capabilities, higher speeds, and a more powerful driving experience compared to electric scooters. This appeals to consumers who might use electric motorcycles for longer-distance commuting or recreational purposes. Additionally, the perception of electric motorcycles as a more stylish and performance-oriented option can attract a specific customer segment within the MEA region. Looking ahead, the electric scooter segment is expected to maintain its dominance in the near future due to its affordability and suitability for urban environments. However, the electric motorcycle segment is poised for significant growth as the MEA market matures and consumer preferences evolve. Manufacturers can capitalize on this trend by developing electric motorcycles tailored to the specific needs of MEA consumers, such as those featuring enhanced durability for rough terrain or swappable batteries for extended range. According to the report, the Electric Two-wheeler market is segmented into sealed-lead acid (SLA) and lithium ion based on battery. The MEA electric two-wheeler market presents a unique picture when it comes to battery technology segmentation. While Lithium-Ion batteries are increasingly recognized as the superior technology globally, a significant portion of the MEA market still utilizes Sealed Lead Acid (SLA) batteries. This can be attributed to several factors specific to the region's economic landscape and infrastructure limitations. Sealed Lead Acid (SLA) batteries offer a lower upfront cost compared to Lithium-Ion alternatives. This affordability is crucial in a region where budget constraints are a significant consideration for many consumers. Furthermore, SLA batteries require minimal maintenance and are generally considered to be more tolerant of extreme temperatures, which can be a concern in some parts of the MEA region with harsh climatic conditions. However, SLA batteries also come with drawbacks. They offer a shorter lifespan and lower energy density compared to Lithium-Ion batteries, resulting in a shorter travel range on a single charge. Additionally, the disposal of SLA batteries requires proper recycling procedures, which can be a challenge in some developing economies within the MEA region. Despite the prevalence of SLA batteries, a clear shift towards Lithium-Ion technology is underway. This is driven by several factors. Governments within the MEA region are increasingly focusing on promoting sustainable practices, and Lithium-Ion batteries offer a more environmentally friendly option due to their longer lifespan and recyclability. Furthermore, as charging infrastructure in the MEA region develops, the range anxiety associated with Lithium-Ion batteries becomes less of a concern. Additionally, advancements in Lithium-Ion technology are leading to more affordable battery options, making them a more attractive proposition for a wider range of consumers. Looking ahead, Lithium-Ion batteries are expected to become the dominant technology in the MEA electric two-wheeler market as affordability improves, charging infrastructure expands, and environmental considerations gain greater importance. However, SLA batteries are likely to remain a viable option in the near future, particularly in budget-conscious segments of the MEA market.

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According to the report, the Electric Two-wheeler market is segmented into 48V, 60V and 72V based on motor power. The MEA electric two-wheeler market exhibits a unique segmentation by motor power compared to more established markets. Here, we see a dominance of lower voltage motors (48V and 60V) with a growing presence of higher voltage options (72V and above). This specific characteristic can be attributed to several factors specific to the region. Firstly, a significant portion of the MEA market, particularly in developing economies, is driven by affordability. Lower voltage motors are generally less expensive compared to their higher voltage counterparts. This cost consideration is crucial for budget-conscious consumers seeking a cost-effective and fuel-efficient alternative to traditional gasoline-powered two-wheelers. Additionally, lower voltage motors are often sufficient for powering electric mopeds and low-speed electric scooters, popular choices for short-distance commuting within congested urban areas in the MEA region. These smaller, lighter vehicles prioritize maneuverability and practicality over high performance, making lower voltage motors a suitable and cost-effective option. However, the MEA market is also witnessing a growing demand for higher voltage electric two-wheelers (72V and above). This trend is driven by several factors. Firstly, as the market matures and consumer preferences evolve, there's a growing demand for electric scooters and motorcycles with longer ranges and higher top speeds. Higher voltage motors offer the necessary power to achieve these performance improvements. Additionally, government initiatives promoting electric vehicle adoption in some MEA countries often focus on specific performance benchmarks. Higher voltage motors can help electric two-wheelers meet these requirements and qualify for government subsidies or incentives. Finally, the category of "Other Motor Powers" encompasses a diverse range of electric two-wheeler options that fall outside the traditional voltage classifications. This could include electric bicycles with pedal-assist motors or even high-performance electric motorcycles with even more powerful motors exceeding 72V. According to the report, the Electric Two-wheeler market is segmented into commercial and private based on usage. The MEA electric two-wheeler market exhibits a unique segmentation by usage, with a strong presence of both commercial and private ownership segments. This reflects the diverse needs and applications for electric two-wheelers within the region. The commercial segment is driven by businesses seeking efficient and cost-effective transportation solutions. Delivery companies, ride-hailing services, and even rental businesses are increasingly adopting electric two-wheelers for their fleets. These vehicles offer significant advantages for commercial use, including lower fuel costs, reduced maintenance requirements, and maneuverability in congested urban environments. Additionally, government initiatives promoting green logistics solutions might incentivize businesses to adopt electric two-wheelers for their commercial operations. The private ownership segment caters to individual consumers seeking a convenient and environmentally friendly mode of transportation. Electric two-wheelers are particularly attractive for short-distance commuting within cities, offering a cost-effective alternative to gasoline-powered options. Additionally, rising fuel costs and growing environmental awareness are driving the adoption of electric two-wheelers for personal use within the MEA region. It's important to note that the relative size of these segments can vary depending on the specific country within the MEA region. Developed economies within the MEA might see a higher penetration of private ownership, while developing economies might witness a stronger commercial segment due to the focus on cost-effective business solutions. However, both segments are expected to experience growth as the MEA electric two-wheeler market matures and consumer preferences evolve. Based on the report, the major countries covered include the UAE, South Africa, Saudi Arabia, and the rest of the Middle East and Africa. Within the burgeoning MEA Electric Two-wheeler market, Saudi Arabia stands out as a regional leader. This leadership can be attributed to a confluence of unique factors specific to the Kingdom's economic landscape, government policy initiatives, and evolving consumer preferences. Firstly, Saudi Arabia's dependence on oil exports necessitates a strategic shift towards diversifying its energy sources and reducing reliance on fossil fuels. Electric Two-wheelers offer a compelling solution in this regard. Promoting electric vehicle adoption aligns with the Kingdom's Vision 2030 plan, which emphasizes sustainability and economic diversification. The government has implemented several initiatives to incentivize electric vehicle ownership, including tax exemptions on Electric Two-wheelers, subsidies for charging infrastructure development, and lower registration fees. These policies significantly reduce the upfront cost barrier for consumers, making Electric Two-wheelers a more attractive proposition compared to traditional gasoline-powered options. Furthermore, the unique demographic profile of Saudi Arabia presents a fertile ground for Electric Two-wheeler adoption. A young and tech-savvy population is increasingly drawn to sustainable and environmentally friendly transportation solutions. Electric Two-wheelers cater to this growing segment, offering a convenient and cost-effective mode of transportation for short-distance commuting within urban areas. Additionally, the rising disposable incomes of Saudi residents create a market for premium Electric Two-wheeler models with advanced features and longer range capabilities. Manufacturers are responding to this demand by introducing new Electric Two-wheeler models specifically designed for the Saudi market, often featuring enhanced performance specifications to accommodate the region's hot climate conditions. However, the Saudi Electric Two-wheeler market also faces some unique challenges. One concern is the limited availability of charging infrastructure, particularly outside major cities. The government's focus on developing a nationwide charging network is crucial to address range anxiety and encourage wider adoption beyond urban centers. Another challenge lies in consumer perceptions. While awareness of Electric Two-wheelers is growing, some potential buyers might harbor concerns about battery life, performance limitations, and the overall lifecycle costs compared to traditional gasoline options. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Electric Two-Wheeler market Research Report with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Vehicle Type • Electric Motorcycle • Electric Scooter By Battery • Sealed Lead Acid (SLA) • Lithium-Ion By Motor Power • 48 V • 60 V • 72 V • Others By Usage • Commercial • Private The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Two-Wheeler industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.