Two Wheeler Hub Motor Market Analysis Report By Vehicle Type, By Installation, By Motor, By Sales Channel, By Power Output, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global two-wheeler hub motor market size was accounted for USD 8.2 billion, in 2019. It is estimated to attain a CAGR of 9.7% over the forecast period, 2020-2027. Hub motors are generally used for designing electric bicycles. These electric motors are generally employed on the wheels of a vehicle. The rising adoption of electric vehicles owing to rising awareness regarding global warming and depletion of fossil fuels are some of the key factors contributing to the market growth. Moreover, the rising efforts of manufacturers to reduce their carbon footprints are also projected to impact positively to the market growth. In addition, various governments across the globe are taking several initiatives to encourage people to opt for zero-emission vehicles which are anticipated to boost the demand for electric vehicles which thereby propels the demand for two wheeler hum motors.

Governments in countries such as China, U.S., and India are giving subsidies to increase the penetration of electric vehicles such as electric motorcycles, electric bikes, and electric scooters. Moreover, they are focusing on certain strategies to increase awareness for the adoption of electric vehicles. In addition, they are offering lucrative discounts and sharing services which are further anticipated to impact positively the growth of two-wheeler hub motor market.

The original equipment manufacturers (OEMs) are focusing on launching electric vehicles with high power output. For example, Harley Davidson recently introduced its electric motorcycle named LiveWire which will be available for sale at their dealership centers across Europe and North America. In a similar way, Okinawa Autotech Pvt. Ltd., in Oct 2019, announced a launch of electric motorcycles in a premium segment by the end of 2020. It is projected to give tough competition to one of the famous motorcycles in India named Revolt RV400. Such launches are projected to propel market growth from 2020 to 2027.

Vehicle Type Insights

The market for two-wheeler hub motors is categorized into electric motorcycles, electric scooters, electric bikes, and other vehicle types. The segment of electric bikes accounted for the largest market share of USD 4.5 billion in 2019. Generally, these motors are used in electric bikes on the account of factors like high torque, high speed and power, and extended range. Moreover, these motors offer better handling of vehicles owing to their lightweight feature. These factors are projected to propel the segment demand over the forecast period.

Electric scooters/mopeds are projected to ascend at a CAGR of 10.6% whereas electric motorcycles are projected to grow at a CAGR of 11.9% over the forecast period owing to government assistance such as subsidies and incentives for buying these vehicles. For example, U.S. is projected to be one of the largest markets for electric scooters by the end of 2025. The U.S. government is aiming for the adoption of 1.5 million electric vehicles by the end of 2025. This is projected to propel the demand for the segments over the forecast period.

Installation Insights

On the basis of installation, the market is categorized into front and rear hub motor. The segment of rear hub motor attained the largest revenue share of USD 7.5 billion in 2019 across the global market. Rising preference for this segment owing to factors such as high performance of vehicles, high stability, and improved traction is projected to fuel the market growth from 2020 to 2027. Rear hub motors are commonly preferred owing to the concentration of vehicle weight towards the rear end.

Furthermore, the segment of the front hub motor is projected to ascend at a CAGR of 7.1% over the forecast period. This growth is attributed to the factors such as low cost of the motor, requirement of low maintenance, ease of service.

Motor Insights

On the basis of motor, the two-wheeler hum motor market is categorized into gearless and geared hum motor segments. In 2019, the segment of geared hum motor held the largest market share of more than 79% and is anticipated to maintain its leading position from 2020 to 2027. Vehicles equipped with gear hub motors are easy to control as they have planetary gears. In addition, features like lighter weight and compact size of the gears are projected to propel the demand among majority of the manufacturers.

The segment of gearless hub motor is anticipated to grow at a CAGR of 8.4% from 2020 to 2027 owing to factors such as high torque and power provided by these motors. These motors are very heavy which increases the overall weight of the vehicle which is projected to hinder their demand. However, manufacturers can choose between these two motors by considering required specifications of the vehicle.

Sales Channel Insights

The OEM segment held the largest market share in 2019 owing to the high preference of consumers for vehicles that are equipped with motors manufactured by original equipment manufacturers. In addition, rising consumers demand for moped and electric scooters in exchange for conventional motorcycles is projected to fuel the growth of the segment from 2020 to 2027. In addition, rising exports and demand for electric vehicles and two-wheelers across the globe are projected to further propel the segment’s growth in the forthcoming years.

The segment of aftermarket sales channel is projected to grow at a CAGR of 8.1% over the forecast period. This growth is attributed to the rising modification of conventional motorcycles and bikes into electric vehicles by majority of small and medium enterprises and startups.

Power Output Insights

The market is categorized into about 3kW, 1-3 kW, and below 1kW hub motor, on the basis of power output. The segment of (1-3) kW power output is projected to attain the fastest CAGR of 10.6% from 2020 to 2027. Manufacturers employ motors with high power to increase the speed of vehicles without impacting their performance. Generally, (1-3) kW hub motors are employed in electric scooters and mopeds. This is projected to propel the segment’s demand in the forthcoming years.

The segment of hub motors with power output less than 1kW held the dominant market share of USD 4.6 billion in 2019 across the global market. These motors are generally employed in electric kick scooters and skateboards. Moreover, rising demand for electric bicycles in North America and Europe is projected to further propel the segment’s growth. In addition, the dominance of electric bikes in the global market with a market share of more than 50% is projected to further propel the growth of the segment from 2020 to 2027.

Regional Insights

In 2019, the market for two-wheeler hub motors in Asia Pacific accounted for the largest revenue share of USD 4.7 billion. Countries such as India, China, South Korea, and Japan are projected to be largest emerging markets for two wheeler hub motors. Moreover, presence of leading manufacturers such as MAC SHANGHAI ELECTRIC MOTOR COMPANY LTD, QS MOTOR, NTN Corporation, and TDCMin China is projected to further drive the regional growth.

North America is projected to grow at the fastest CAGR of 11.1% over the forecast period due to rising demand for electric vehicles in countries such as Canada and U.S. In addition, new vehicle launches by key original equipment manufacturers (OEMs) including Zero Motorcycles, LUNA CYCLE, Harley-Davidson, Victory Motorcycles, and Xiaomi (United States) in U.S. is projected to drive the regional demand.

Two Wheeler Hub Motor Market Share Insights

Leading players operating in this industry are MAC SHANGHAI ELECTRIC MOTOR COMPANY LTD, S MOTOR, TDCM, Heinzmann GmbH and Co. KG., NTN Corporation, Robert Bosch GmbH, Elaphe Propulsion Technologies Ltd., and Schaeffler Technologies AG and Co. KG. These players are focusing on various strategic initiatives like M&A, joint ventures, new product development, and strategic partnerships to retain their market share. Moreover, they are focusing on expanding their regional and global presence and expanding their product portfolio to cater to the large consumer base. For example, Elaphe Propulsion Technologies Ltd., in May 2018, introduced a two-wheeler hub motor named Elaphe L1500. On the other hand, Savic Motorcycles in Nov 2018, announced a new model of electric motorcycle named Café Races and is planning to launch it by the end 2020.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global two-wheeler hub motor market based on vehicle type, installation, motor, sales channel, power output, and region:

• Vehicle Type Outlook (Revenue, USD Million, 2016 - 2027)
    • Electric Scooter/Moped
    • Electric Bike
    • Electric Motorcycle
    • Others

• Installation Outlook (Revenue, USD Million, 2016 - 2027)
    • Front Hub Motor
    • Rear Hub Motor

• Motor Outlook (Revenue, USD Million, 2016 - 2027)
    • Geared Hub Motor
    • Gearless Hub Motor

• Sales Channel Outlook (Revenue, USD Million, 2016 - 2027)
    • OEM
    • Aftermarket

• Power Output Outlook (Revenue, USD Million, 2016 - 2027)
    • Below 1 kW
    • (1-3) kW
    • Above 3 kW

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
    • Asia Pacific
        • China
        • Japan
        • India
        • South Korea
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa