The market of electric motorcycles - UK

The electric motorcycles and scooters market, valued at $30 billion in 2022, is anticipated to grow at a 5% CAGR from 2023 to 2032, driven by strict CO2 emission regulations and eco-conscious consumer behavior. Dominating the global demand with 90% market share, the Asia-Pacific region, particularly China, benefits from low production costs and well-developed EV charging infrastructure, boasting 1.8 million charging stations. The UK market, albeit in its nascent stage, presents significant growth potential with electric motorcycles making up 5.6% of all sales in the UK in 2022. The rise is evident, with the market estimated at approximately $13.4 million, amidst plans to ban ICE motorcycles by 2035. Exports and imports of electric motorcycles in the UK have surged by 400% and 472%, respectively, from 2017-2021.

However, the COVID-19 pandemic temporarily affected the industry, halting production and challenging supply chains. Notably, the UK motorcycle industry has exhibited resilience with a promising 1.3 million motorcycles on the road as of 2021 and a particularly high number of motorcycle rider test passes. The majority of electric motor production remains in China due to abundant raw materials and strategic investments in essential materials like cobalt. The UK hosts 305 companies in electric motor manufacturing, indicating a developing yet promising sector. The market is segmented predominantly towards scooters and smaller electric motorcycles, reflecting the current suitability of EV technology for urban use and short distances.

Growing Interest in Electric Motorcycles Amidst Environmental and Economic

Considerations in the UK The electric motorcycle market in the United Kingdom is witnessing a significant uptick in interest, with environmental concerns, economical benefits, and performance advancements driving consumer demand. Although the electric motorcycle industry in the UK is currently in its infancy stages, with only a small percentage of motorcycles sold being electric, there is undeniable potential for growth. This is particularly evident as the UK government has announced plans to phase out ICE motorcycles by 2035, thereby propelling the market towards a more sustainable future. An insightful study by Bikesure interviewed over 600 UK motorcycle users, revealing that nearly half of the participants exhibited a keen interest in owning an electric motorcycle, with the interest skewed towards younger demographics.

The majority believe that despite the current love for internal combustion engines, a shift to electric motorcycles is imperative. The economic advantages are clear, with the low cost of charging—an estimated between £0.07 and £0.13 for a full charge—compared to a substantial £20 to £30 required to fill a traditional motorcycle's petrol tank. Additionally, electric motorcycles offer the allure of instant torque and minimal maintenance needs, both of which add to their appeal. Market trends show that consumers are gradually looking towards electric motorbikes that can match their traditional counterparts in every scenario, not just for urban commutes. New models like the Energica Experia — promising a city range of 261 miles and featuring in various sports journals — demonstrate the industry's efforts to expand into segments like touring bikes, which have historically been dominated by ICE vehicles.

The UK's electric motorcycles sector is predominantly made up of smaller enterprises, with no large companies exceeding 250 employees. The domestic manufacturing landscape features players such as Zapp and Maeving, while international entities like Niu Technologies, BMW, Harley Davidson, and Zero Motorcycles have sizable revenue figures and are key players in the global market. Distribution channels have remained traditional with dealerships continuing to play a central role in sales. However, emerging online platforms and changing consumer behaviors suggest a possible evolution in purchasing processes in the near future. The prices of electric motorcycles in the UK, although higher than traditional bikes, reflect the industry's infancy and the investments in research and development needed to spur innovation in this growing sector. In the UK, electric motorcycles and scooters are subject to licensing and insurance regulations. Motorcycles are categorized based on power output, with varying age and license requirements for different categories, falling under EU regulation (EU) No 168/201.

Key Contenders in the UK Electric Motorcycle Market

The UK electric motorcycle scene is brimming with a mix of innovative local start-ups and established international powerhouses, each striving to make their mark in a rapidly evolving industry.

Homegrown Innovators Stirring the Local Scene

• Surron: With a focus on agility and affordability, Surron is becoming a notable name, especially amongst younger riders seeking entry-level electric motorcycles. Their bikes are gaining a reputation for being fun and easy to ride, appealing to a new generation seeking sustainable, urban mobility solutions.
• Zapp: As a newcomer with a futuristic vision, Zapp is yet to break ground in terms of generating revenue. However, its commitment to creating high-performance electric scooters presents potential for disrupting the urban commute landscape.
• Maeving: Although Maeving keeps its cards close concerning its financial standing, it is gaining attention for its dedication to preserving motorcycle heritage through its electric designs. Maeving aims to blend classic aesthetics with modern electric technology to cater to enthusiasts who seek the best of both worlds.

Global Giants Paving the International Pathways

• Niu Technologies: Hailing from China, Niu Technologies has carved a significant niche in the smart urban mobility space. Their smart e-scooters embody a blend of modern design, innovative technology, and user-friendly features, making them a popular choice for cosmopolitan commuters.
• BMW: A venerable force in the automotive world, BMW extends its engineering prowess into electric motorcycles, setting high standards on performance and quality. Their offerings in the electric bike segment reflect the company's long-standing reputation for luxury and excellence in the motoring landscape.
• Harley Davidson: An iconic American brand known for its characteristic rumble and heavyweight bikes, Harley Davidson has taken a leap into the electric future with models like the Livewire. They carry the Harley legacy forward through a new, electrified chapter without compromising the thrill that riders associate with the brand.
• Zero Motorcycles: Pioneering the electric motorcycle movement, Zero Motorcycles stands as a prominent figure with its extensive range of electric bikes. From street to adventure, Zero’s offerings showcase the company's focused intent on revolutionizing the way motorcycles are ridden.

Each of these brands, be they emerging local businesses or global veterans, contributes uniquely to the UK's electric motorcycle ecosystem. As the market continues to grow, these players are not just competing for sales but also for the chance to lead the charge in a zero-emission future on two wheels. Their diverse approaches and commitment to innovation ensure that the

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 17/02/2023

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