Europe appears to be on the fast track to leading the world in electric motorcycle use, according to a recently published study on the European electric motorcycle market by IDTechEx, an independent research firm based in the UK. The report, Electric Two-wheelers 2021-2041, states that the e-motorcycle market in Europe is expected to see at least 50% year-over-year growth in 2020, which builds on the momentum seen in recent years.
This growth is being driven by continued policy support from governments alongside startups and incumbent OEMs entering the market with new model releases. Growth is also being boosted by consumer awareness and acceptance in Europe of the benefits of electric motorcycles.
Besides the low cost of ownership, electric motorcycles improve the riding experience over traditional motorcycles by removing the noise, fumes, vibration, shifting, and clutching, as well as adding the environmental benefits of low emissions. The result has been strong growth on par with the electric car market since 2017.
Electric motorcycles typically use electric motors beyond 40 kW, which is more comparable to those found in electric cars than electric scooters, in a much more restricted space. This high-power need, coupled with the limited space on the motorcycle, means manufacturers rarely use off-the-shelf parts and design motors in-house from scratch.
The situation is the same for the battery packs, which actually take up the most space in boxy designs unconventional for the moto industry (even when using high-energy automotive-grade Li-ion cells). In contrast, inexpensive LFP (lithium iron phosphate) packs sourced from China can be used for the low energy needs of electric scooters.
Zero Motorcycles, the global market leader for electric motorcycles based in California, is a good example. It uses locally sourced NMC (nickel manganese cobalt) pouch cells in a custom pack and has an impressive custom-built permanent-magnet AC motor that is passively air-cooled. The motor has no transmission, with a direct drive to the rear wheel and instant torque.
This results in electric motorcycles that are expensive when compared with equivalent combustion models. Startups often focus on developing competition or racing bikes, which are less price-sensitive markets. However, while the market is growing, the purchase price remains the primary hurdle: a motorcycle with a 14-kW·h battery pack sells for over $15,000 today.
The issue is exacerbated by the fact that electric motorcycles have the most appeal to environmentally conscious millennials who tend to have less purchasing power than older generations preferring loud pipes. In fact, young people are less inclined to buy a motorcycle in general, which is an existential problem the overall industry is grappling with. The high price of electric motorcycles should naturally improve as battery costs continue to decline from the economies of scale of the automotive industry, which may be enough to entice a new, younger audience.
The new IDTechEx report addresses and forecasts electric two-wheelers with pure electric modes under 4 kW (“electric scooters”) and over 4 kW (“electric motorcycles”). It has historic data back to 2015 and forecasts to 2041, with insight into the drivers and uptake by region: China, India, Indonesia, Vietnam, EU + the UK, U.S., and RoW (rest of world). The report further explores key technology trends, such as the transition away from lead-acid batteries and the reliance on permanent-magnet motors for all power classes. Market shares of companies are provided regionally, based on primary interviews with market leaders.
