With the increasing greenhouse gas (GHG) emissions and the escalating air pollution levels, the demand for environment-friendly mobility solutions is growing rapidly in North America. Moreover, the governments of many North American countries are implementing policies for encouraging the adoption of electric vehicles, including electric two-wheelers such as electric scooters and motorcycles. For instance, in the U.S., both federal and state governments are providing various incentives for augmenting the deployment of electric vehicles.

In 2017, the government of California launched an initiative, under which, it would offer 10% tax credit on the purchase of electric motorcycles having prices up to $2,500. Additionally, the state is also providing a rebate of up to $900 for buying electric motorcycles, under the Clean Vehicle Rebate Project (CVRP). Furthermore, the federal government allocated a budget of $6 billion to the U.S. Postal Service for buying electric delivery vehicles. Similarly, the Canadian government is providing a rebate of $1,524, under the British Columbia Specialty-Use Vehicle Incentive (SUVI) Program, on the purchase of low-speed electric motorcycles.

Another major factor powering the sales of electric scooters in North America is the emergence of electric scooter sharing fleet in the U.S. and Canada. Due to these factors, the North American electric scooters and motorcycles market is exhibiting rapid expansion. As a result, the market value will grow from $164.7 million in 2020 to $590.4 million by 2025, as per the forecast of the market research company, P&S Intelligence. Furthermore, the market is expected to grow at a CAGR of 25.1% from 2021 to 2025.

Hence, it is safe to say that the demand for electric scooters and motorcycles will surge sharply in North America in the forthcoming years, primarily because of the increasing implementation of favorable government policies and the escalating air pollution levels in the region.