Indonesia Two-Wheeler Market to Grow with a CAGR of 3.50% through 2030

The growth of the Indonesia Two-Wheeler Market is driven by increasing urbanization, rising fuel prices, and the demand for affordable transportation. These factors are driving the market in the forecast period 2026-2030.

According to TechSci Research report, “Indonesia Two-Wheeler Market – By Region, Competition, Opportunities and Forecast, 2020-2030F”, The Indonesia Two-Wheeler Market was valued at USD 9.42 Billion in 2024 and is expected to reach USD 11.58 Billion by 2030 with a CAGR of 3.50% during the forecast period.

The Indonesia Two-Wheeler Market is undergoing significant transformation, driven by several dynamic factors. With the increasing popularity of the gig economy, two-wheelers have become an essential part of Indonesia's transportation landscape, particularly for delivery services and ride-sharing operators. The demand for motorcycles, especially in urban and semi-urban areas, has surged as businesses rely on them for logistics and last-mile deliveries. Moreover, affordability remains a crucial factor as motorcycles continue to be more cost-effective than cars for the average consumer, making them the preferred mode of transportation for daily commuting and short-distance travel.

Another prominent driver is the growing focus on mobility solutions that offer flexibility. Two-wheelers are increasingly seen as a convenient alternative to public transportation, offering an easier and faster way to navigate traffic congestion, which is a growing concern in major cities like Jakarta. Motorcycles are well-suited to maneuver through narrow streets and dense traffic, providing quick access to various parts of the city, particularly in areas with limited public transport options. This flexibility makes motorcycles a vital solution for people looking to balance time, cost, and convenience in their daily routines.

Furthermore, technological advancements are reshaping consumer expectations. There is a rising demand for smarter, more efficient motorcycles equipped with GPS, smart connectivity, and advanced safety features. As consumers become more tech-savvy, they are looking for motorcycles that offer not only performance but also enhanced connectivity and rider assistance features. The growing interest in smart motorcycles indicates a shift towards more integrated and modern transportation solutions.

However, the market also faces several challenges. Limited charging infrastructure for electric motorcycles poses a significant barrier to the mass adoption of EVs, even as consumer awareness of environmental concerns rises. In addition, the affordability of motorcycles in the premium segment remains a hurdle for a large segment of the population, limiting access to higher-end models. Lastly, regulatory uncertainties around vehicle emissions and safety standards continue to create challenges for manufacturers and consumers alike, as local governments work on standardizing the policies across the country.

Despite these hurdles, the Indonesian Two-Wheeler Market is poised for growth, driven by changing consumer needs, technological innovation, and an evolving regulatory landscape. As the market adapts to these shifting trends, it remains a key component of Indonesia’s transportation ecosystem.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Indonesia Two-Wheeler Market"

Indonesia Two-Wheeler Market Is Segmented by Vehicle Type, Propulsion Type, and By Region.

​In 2024, the electric two-wheeler segment is the fastest-growing propulsion type in Indonesia’s two-wheeler market. This growth is fueled by the increasing adoption of environmentally friendly and cost-effective transportation solutions. With the Indonesian government offering substantial subsidies for electric motorcycles, the price gap between traditional internal combustion engine (ICE) motorcycles and electric models has narrowed significantly, making EVs more attractive to a broader consumer base. Rising awareness about environmental sustainability and concerns over urban air pollution have made electric two-wheelers a more desirable option for commuters, particularly in urban centers. Electric motorcycles are also gaining traction due to their lower operational costs, including reduced fuel expenses and minimal maintenance requirements. The government’s focus on improving charging infrastructure and supporting EV-related technology has helped address some of the limitations of electric motorcycles, such as range anxiety and charging speed. As consumers seek cleaner, more efficient alternatives to traditional motorcycles, the electric two-wheeler segment is expected to continue its rapid expansion throughout 2024, outpacing the growth of ICE models.

In 2024, Sumatra emerges as the fastest-growing region for two-wheelers in Indonesia. Sumatra, which is home to a significant portion of the country’s population, is seeing a surge in demand for both electric and ICE motorcycles. As the region’s urban areas expand and infrastructure improves, two-wheelers have become an increasingly popular mode of transportation for daily commutes and short-distance travel. The growing population and rising disposable incomes have made motorcycles an affordable and convenient alternative to other forms of transportation, particularly in smaller towns and cities where public transport options may be limited. Additionally, Sumatra benefits from government initiatives that promote electric vehicle adoption, with the rollout of charging stations and other supportive infrastructure encouraging consumers to transition to electric motorcycles. With both environmental concerns and practicality driving consumer choices, Sumatra is poised to be a key market for electric two-wheelers in 2024, contributing to the region’s overall growth in the two-wheeler sector.

Major Market Players Operating in Indonesia Two-Wheeler Market Are:

• PT Bajaj Auto Indonesia
• PT TVS Motor Company Indonesia
• Yamaha Indonesia Motor Mfg
• PT Layur Astiti Bumi Kencana
• PT Astra Honda Motor
• PT. Smart Motor Indonesia
• Suzuki Indonesia
• PT. Sanyang Industri Indonesia
• Piaggio Indonesia
• PT Kawasaki Motor Indonesia 

Download Free Sample Report

Customers can also request for 10% free customization on this report.

Sustainability is becoming an increasingly important trend in the two-wheeler market. Consumers are becoming more conscious of the environmental impact of their choices, pushing manufacturers to develop eco-friendly products. The push for cleaner, greener transportation solutions has led to greater interest in electric motorcycles and more fuel-efficient combustion engines. As environmental concerns continue to rise, the demand for sustainable two-wheelers is expected to increase, shaping the future direction of the market. Manufacturers are also investing in sustainable production practices, including the use of recyclable materials and energy-efficient manufacturing processes, which further supports this growing trend", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Indonesia Two-Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycles), By Propulsion Type (ICE, Electric), By Region, Competition,  Opportunities and Forecast, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the Indonesia Two-Wheeler Market.

Contact

TechSci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

Tel: +1-332-258-6602

Email: [email protected]

Website: www.techsciresearch.com