|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 70.23 Billion
|
|
CAGR (2025-2030)
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9.27%
|
|
Fastest Growing Segment
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EV
|
|
Largest Market
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India
|
|
Market Size (2030)
|
USD 119.55 Billion
|
Market
Overview
Asia-Pacific
Two-Wheeler market was valued at USD 70.23 Billion in 2024 and is expected to
reach USD 119.55 Billion by 2030 with a CAGR of 9.27% during the forecast
period. The Asia-Pacific two-wheeler market is experiencing robust growth,
driven by several key factors. The region’s rapid urbanization has led to an
increased demand for efficient and affordable modes of transport. According to the International Energy Agency (IEA), electric two-wheelers in the Asia-Pacific accounted for over 85% of global e-two-wheeler stock in 2023, led by China, India, and Vietnam.
Two-wheelers
are particularly attractive in densely populated cities where traffic
congestion is a major concern. Rising disposable income among consumers,
especially in emerging economies like India and Southeast Asia, has expanded
the market for both premium and entry-level two-wheelers. The affordability,
fuel efficiency, and convenience offered by two-wheelers are making them the
preferred mode of transport for daily commuting. In addition, the shift towards
electric two-wheelers is gaining momentum, driven by the need for more
sustainable transportation options in response to environmental concerns and
stricter emissions regulations.
A significant trend in the Asia-Pacific two-wheeler market is the
growing adoption of electric vehicles (EVs). Governments across the region are
introducing policies that support the development of electric mobility,
including subsidies for electric two-wheelers, tax incentives, and investments
in charging infrastructure. This shift aligns with the global push toward
reducing carbon footprints and dependence on fossil fuels. Innovations in
battery technology and the reduction in battery prices are also making electric
two-wheelers more accessible to a broader range of consumers. As a result,
electric scooters and motorcycles are gaining traction, particularly in
countries like China and India, where the push for cleaner transportation is
intensifying.
Market Drivers:
Urbanization
and Population Density
Rapid
urbanization in Asia-Pacific has significantly increased the demand for
two-wheelers. As cities grow more densely populated, traditional four-wheel
vehicles struggle with traffic congestion and limited parking spaces.
Two-wheelers, which are compact and nimble, offer an ideal solution for
navigating through crowded urban streets. In densely populated countries like
India, China, and Southeast Asia, two-wheelers provide a cost-effective and
efficient means of transport for daily commuting, especially among younger
populations. For instance, In July 2024, China's State Council revealed its
expectation for the urbanization rate of the permanent population to approach
70% within the next five years. As of the end of 2023, official statistics
indicated that 66.16% of the resident population resided in urban areas.
Rising Disposable Income
As the middle
class expands in many parts of Asia-Pacific, disposable incomes are rising,
driving consumer spending on personal transportation. With improved economic
conditions, more people can afford two-wheelers, which serve as an affordable
alternative to private cars. As per the Thai Ministry of Land Transport, Thailand had over 22 million registered motorcycles in 2023, almost three times its number of registered passenger cars. Entry-level motorcycles and scooters are
particularly popular, offering a combination of low purchase costs, good fuel
efficiency, and practicality. Higher-income levels also allow consumers to
consider upgrading to higher-end models, spurring growth in the premium segment.
Demand for
Affordable and Efficient Transportation
In many
developing economies in the Asia-Pacific region, affordability is a key
consideration in purchasing decisions. Two-wheelers are often more economical
to buy, maintain, and fuel than four-wheel vehicles. This has led to the
widespread adoption of motorcycles and scooters as primary modes of transport.
With fuel prices rising globally, the economic appeal of two-wheelers remains
strong, as they consume less fuel and are cheaper to maintain, especially in
countries with high fuel taxes or fluctuating prices.
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Key Market Challenges
Competition and Market Saturation
The two-wheeler
market in Asia-Pacific is highly competitive, with numerous established
players, including both international and local brands. As the market matures,
competition is expected to intensify, particularly in the electric two-wheeler
segment. New entrants and established brands alike are vying for market share,
which could lead to price wars and reduced profit margins. Differentiating
products through technology, design, and brand loyalty will become critical for
manufacturers looking to sustain growth in this crowded market.
Limited Charging Infrastructure for Electric Models
The lack of
charging infrastructure remains one of the most significant challenges facing
the widespread adoption of electric two-wheelers. In many cities and rural
areas, the number of charging stations is insufficient to meet the needs of
electric vehicle owners. This lack of infrastructure contributes to range
anxiety, which discourages potential buyers from making the switch to electric
models. Investment in charging networks is crucial to supporting the growth of
the electric two-wheeler market, but it requires collaboration between
governments, businesses, and manufacturers.
Key
Market Trends
Increasing
Popularity of Electric Two-Wheelers
Across the Asia-Pacific, the demand for electric two-wheelers is on the rise, driven by a mix
of government policies, environmental concerns, and technological advancements.
While electric motorcycles and scooters represent a smaller portion of the
overall market, their growth rate is accelerating. In countries like China,
India, and Japan, the government is promoting electric mobility through
subsidies, tax incentives, and infrastructure investments. Consumers are also
increasingly drawn to electric two-wheelers due to lower operating costs, such
as fuel and maintenance, as well as the growing network of charging stations. For
instance, in March 2024, the Ministry of Industry of Indonesia reported a
significant rise in the number of electric vehicles (EVs) within the country
during 2023. Notably, the quantity of two-wheeled electric vehicles experienced
a remarkable increase of 262 percent, climbing from 17,000 units in 2022 to
62,000 units in 2023. This surge can be largely attributed to government
support initiatives aimed at facilitating the purchase of two-wheeled EVs.
Shift Toward
Premium and Performance Models
While
budget-friendly, entry-level models dominate the two-wheeler market in Asia-Pacific, there is a noticeable shift toward higher-end motorcycles and
scooters. As disposable incomes rise, particularly in developed countries such
as Japan, South Korea, and Thailand, consumers are looking for more premium
options that offer advanced features, superior performance, and better
aesthetics. Brands are responding by introducing higher-performance models with
features such as advanced suspension systems, better fuel efficiency, and
greater comfort. This trend reflects changing consumer expectations as
two-wheelers transition from purely functional modes of transport to lifestyle
products.
Smart
Technology Integration
The integration
of smart technology into two-wheelers is becoming more prevalent across Asia-Pacific. Modern motorcycles and scooters now come with features such as
smartphone connectivity, advanced GPS navigation, real-time vehicle
diagnostics, and even remote security systems. These technological innovations
enhance both safety and convenience for riders. For example, some models
feature app-based monitoring for tracking and diagnostics, while others
integrate advanced rider assistance systems. As consumers demand more from
their two-wheelers, manufacturers are increasingly incorporating technology to
differentiate their products and meet the expectations of new age consumers.
Segmental Insights
Propulsion Insights
The Asia-Pacific
two-wheeler market is split between Internal Combustion Engine (ICE) and Electric Vehicle (EV) segments, with ICE models still widely used,
particularly in regions with established fuel infrastructure. These vehicles,
including motorcycles and scooters, are favored for their longer range, quick
refueling, and lower upfront costs, making them popular in rural and semi-urban
areas where charging infrastructure for electric vehicles is still developing.
However, the BEV segment is growing rapidly, driven by increasing environmental
concerns, government incentives, and the rising cost of fuel. BEVs, including
electric scooters and motorcycles, offer lower emissions, reduced operating
costs, and fewer maintenance needs due to simpler mechanics. Advances in
battery technology are enhancing the range and charging efficiency of BEVs,
while expanding charging infrastructure in urban areas further boosts their
adoption for short-distance commuting. As consumers shift towards sustainable
transport options, BEVs are becoming an increasingly attractive alternative to
ICE models in urban centers.
Country
Insights
In 2024, India has emerged as the largest market for electric two-wheelers in the Asia-Pacific region, driven by its large population, rapid urbanization, and government incentives for electric vehicles. Motorcycles and scooters are widely used across both urban and rural areas for their affordability and practicality, with electric two-wheelers gaining popularity due to supportive policies and expanding charging infrastructure. The government's push for sustainability and reduced traffic congestion is further fueling the demand for electric models, positioning India as a leader in the transition to greener transportation.
China’s two-wheeler market is the largest in the world, driven by strong demand for electric scooters, motorcycles, and mopeds across both urban and rural regions. In 2023, domestic sales of electric two-wheelers surpassed 13 million units, boosted by government incentives, subsidies, and stricter emission norms that are accelerating the transition from petrol-powered bikes to electric models. Rising fuel costs, urban congestion, and the rapid growth of e-commerce and food delivery services are further fueling adoption, while shared mobility platforms are expanding access to affordable electric two-wheelers. Technological advancements such as IoT-enabled diagnostics, battery swapping networks, and fast-charging systems are enhancing safety and convenience, positioning China to remain the dominant force in the global two-wheeler industry.
Recent
Developments
- In October 2024, Raptee Electric unveiled its first high-voltage electric motorcycle, the T30, in India. Built on a 72V architecture, the T30 delivers a top speed of 135 km/h and a range of up to 150 km, with fast-charging capability allowing 80% charge in under 45 minutes. The motorcycle comes equipped with advanced safety features such as traction control and ABS, positioning it as a premium choice for riders seeking both performance and sustainability.
- In 2024, India has surpassed China to
become the largest two-wheeler market in the world, fueled by rising
demand in rural regions. In the first half of 2024, India's two-wheeler
market recorded a significant year-on-year growth of 22%. This impressive
performance enabled India to overtake China and establish itself as the
leading two-wheeler market globally.
- In September 2024, Bajaj Auto, a leading
manufacturer of two-wheelers in India, reported a 22% increase in sales,
reaching a total of 400,489 units, which includes exports. This milestone
signifies the first occasion the company has exceeded the 400,000 units
mark. In the same month of the prior year, the company had sales of
327,712 units.
- In March 2024, Brembo, an Italian manufacturer
of braking systems, revealed the establishment of a production facility in
Thailand. The company disclosed an investment of USD 43 million aimed at
enhancing its global industrial footprint, thereby enabling it to
capitalize on emerging growth opportunities within the Southeast Asian
market.
Key
Market Players
- Honda Motor Co., Ltd
- Hero MotoCorp Ltd
- Yadea Technology Group Co., Ltd.
- Yamaha Motor Co., Ltd.
- TVS Motor Company
- Bajaj Auto Ltd.
- Suzuki Motor Corporation
- Jiangmen Dachangjiang Group Co., Ltd.
- Kawasaki Motors, Ltd
- ZHEJIANG CFMOTO POWER CO., LTD.
|
By Vehicle
Type
|
By Propulsion
|
By End
Use
|
By Country
|
|
|
|
|
- China
- India
- Japan
- South
Korea
- Thailand
- Indonesia
- Australia
- Rest
of Asia-Pacific
|
Report
Scope:
In this
report, the Asia-Pacific Two-Wheeler Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
·
Asia-Pacific Two-Wheeler Market, By Vehicle Type:
o
Motorcycle
o
Scooter/Moped
·
Asia-Pacific Two-Wheeler Market, By Propulsion:
o
Internal
Combustion Engine
o
Electric
Vehicles
·
Asia-Pacific Two-Wheeler Market, By End Use:
o
Personal
o
Commercial
·
Asia-Pacific Two-Wheeler Market, By Country:
o
China
o
India
o
Japan
o
South
Korea
o
Thailand
o
Indonesia
o
Australia
o
Rest of
Asia Pacific
Competitive
Landscape
Company Profiles: Detailed analysis of the major companies present
in the Asia-Pacific Two-Wheeler Market.
Available
Customizations:
Asia-Pacific Two-Wheeler Market report with the
given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company
Information
- Detailed analysis and profiling of additional
market players (up to five).
Asia-Pacific Two-Wheeler Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]