UAE Two-Wheeler Market Grow with a CAGR of 6.30% through 2030

The UAE two-wheeler market is growing due to increasing demand for efficient urban mobility, rising e-commerce deliveries, and a shift toward eco-friendly transportation, including electric scooters and motorcycles

According to TechSci Research report, “UAE Two-Wheeler Market – By Region, Competition, Forecast & Opportunities, 2030F”, the UAE Two-Wheeler market stood at USD 122.04 million in 2024 and is anticipated to grow USD 175.60 million by 2030 with a CAGR of 6.30% during forecast period. The UAE two-wheeler market is undergoing a significant transformation, fueled by evolving consumer preferences, technological advancements, environmental policies, and a growing need for efficient urban mobility. As cities like Dubai and Abu Dhabi continue to grow in population and economic activity, the demand for compact, affordable, and time-saving transportation options has intensified. Two-wheelers, including motorcycles, scooters, and electric bikes, are emerging as practical solutions for both personal and commercial use, especially in densely populated and traffic-congested urban environments. This growing interest is further amplified by the booming e-commerce and food delivery sectors, which rely heavily on two-wheelers for last-mile logistics. Delivery services such as Talabat, Deliveroo, and Careem Now, along with logistics providers serving major online retailers like Amazon and Noon, are expanding their fleets to include motorcycles and scooters, creating robust and sustained demand in the market.

One of the key factors contributing to this market growth is the increasing shift toward electric two-wheelers. As part of its broader sustainability goals under initiatives like UAE Vision 2030 and Net Zero 2050, the government is promoting the adoption of electric vehicles through incentives such as reduced registration fees, free parking, toll exemptions, and support for charging infrastructure. These developments are crucial in encouraging the adoption of electric two-wheelers, which are particularly well-suited for short commutes and commercial delivery tasks. The rising adoption of electric scooters and motorcycles also aligns with the UAE’s climate goals and is contributing to a gradual yet steady transformation in urban transportation.

Despite its promising growth trajectory, the UAE two-wheeler market also faces several challenges. Extreme climatic conditions, especially during the summer months when temperatures can exceed 45°C, limit the usability of two-wheelers and pose health risks to riders. Additionally, safety concerns remain a key issue, as two-wheeler riders are more vulnerable to accidents compared to car users. The fast-paced traffic on many UAE roads and inconsistent adherence to safety regulations further exacerbate this risk. Moreover, while the infrastructure for electric vehicles is improving, the lack of dedicated charging stations for two-wheelers and limited regulatory clarity for electric scooters in some emirates continue to act as barriers to widespread adoption.

Nonetheless, the long-term outlook for the UAE two-wheeler market remains highly positive. The country’s rapidly urbanizing population evident from the 4.34% increase in urban residents in 2023, reaching over 9.2 million combined with high rates of vehicle ownership and increasing traffic congestion, underscores the growing relevance of agile, compact transport options. Two-wheelers offer a cost-effective and time-saving alternative that can help reduce traffic, cut emissions, and improve last-mile connectivity. This is particularly important in a country where residents spend an average of 20 hours per week in traffic, according to data from the Roads and Transport Authority (RTA). As public and private sectors continue to invest in infrastructure and promote sustainable transport, two-wheelers are expected to play a central role in shaping the future of urban mobility in the UAE.

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The UAE Two-Wheeler market is segmented into vehicle type, propulsion type, and company.

Based on the propulsion type, Electric two-wheelers are the fastest-growing segment in the UAE, driven by rising environmental awareness, supportive government policies, and expanding charging infrastructure. Incentives such as reduced registration fees, free parking, and toll exemptions are encouraging consumers and businesses to shift from conventional internal combustion engine (ICE) models to electric alternatives. With over 300 charging stations already in place and ambitious plans to expand further, the ecosystem for electric mobility is becoming more robust. Additionally, the demand for sustainable last-mile delivery solutions is pushing logistics and food delivery companies to adopt electric scooters and motorcycles, accelerating the segment’s rapid growth.

Based on the region, Abu Dhabi is emerging as the fastest-growing region in the UAE two-wheeler market, supported by its growing urban development, rising population density, and increasing focus on sustainable transportation. The city is actively investing in modern infrastructure and smart mobility solutions, creating a favorable environment for two-wheeler adoption. Additionally, the expanding food delivery and e-commerce sectors are fueling demand for motorcycles and scooters for last-mile logistics. Abu Dhabi’s strategic initiatives to enhance connectivity and reduce traffic congestion are further contributing to the growth of two-wheeler usage, making it a key region driving the market’s rapid expansion in the UAE.

Major companies operating in UAE Two-Wheeler market are:

• Sociedad Comercial Gildemeister S.A.
• Suzuki Motor de UAE SPA
• Yamaha Motor UAE Ltda.
• Kawasaki Motors UAE Ltda.
• Harley-Davidson UAE SPA
• KTM UAE SPA
• Al Yousuf LLC
• AL Futtaim Group Single Person Company L.L.C
• Husqvarna Motorcycles UAE SPA
• MV Agusta UAE SPA

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“Technological integration is another significant driver in the UAE’s two-wheeler market. Consumers are increasingly demanding vehicles equipped with smart features such as GPS navigation, anti-theft systems, mobile app connectivity, and real-time tracking. These innovations not only enhance user convenience and safety but also improve fleet management for commercial operators. The rise of app-based scooter-sharing services and subscription models reflects a broader global trend toward Mobility-as-a-Service (MaaS). These flexible ownership models are gaining traction in the UAE, especially among younger residents and gig economy workers who prioritize affordability and convenience over vehicle ownership. Monthly and weekly rental plans bundled with maintenance and insurance are becoming popular, particularly in the food and parcel delivery segments,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

UAE Two-Wheeler Market, By Vehicle Type (Scooter/Moped, Motorcycle), By Propulsion Type (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of UAE Two-Wheeler market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the UAE Two-Wheeler market.

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