Connected Two Wheeler Market- Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Scooter/Moped, Motorcycle), By Propulsion Type (Internal Combustion Engine (ICE), Electric), By Service Type (Driver Assistance, Infotainment and Safety), By Connectivity Type (Integrated, Embedded and Tethered), By End- User (Private, Commercial) and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 0.34 Billion
CAGR (2026-2031)	34.47%
Fastest Growing Segment	Driver Assistance
Largest Market	Asia Pacific
Market Size (2031)	USD 2.01 Billion

Market Overview

The Global Connected Two Wheeler Market will grow from USD 0.34 Billion in 2025 to USD 2.01 Billion by 2031 at a 34.47% CAGR. The Global Connected Two Wheeler Market comprises motorcycles and scooters equipped with embedded internet connectivity and software systems that facilitate features such as real-time navigation, vehicle diagnostics, and safety alerts. The primary drivers supporting market growth include the rising consumer demand for active rider safety mechanisms, the necessity of smartphone integration for daily commuting, and the structural shift toward electric mobility which requires sophisticated battery management and software updates. These functional drivers are distinct from aesthetic trends and address fundamental requirements for security and utility in modern transportation.

However, a significant challenge impeding broader market expansion is the high cost of integrating advanced telematics hardware, which limits adoption in price-sensitive developing economies. This economic barrier is critical given the reliance of the global industry on high-volume markets. According to the Society of Indian Automobile Manufacturers, in the fiscal year 2024-2025, the electric vehicle segment captured over 6% of the 19.6 million total two-wheelers sold, representing a growing but specific sub-sector that is currently driving the penetration of standard connected features.

Key Market Drivers

The rapid electrification of two-wheelers serves as a primary catalyst for the integration of embedded connectivity systems globally. Unlike internal combustion engine vehicles, electric variants require continuous monitoring of battery health, charging status, and range estimation, which necessitates robust telematics architecture. Manufacturers leverage these connected systems to deploy over-the-air software updates that enhance vehicle performance without physical service interventions. According to Ola Electric, June 2024, in the 'Red Herring Prospectus', the company delivered 329,618 electric scooters in Fiscal 2024, all equipped with proprietary software and connectivity to manage the electric powertrain and user interface. This dependence on software for core vehicle functionality ensures that connectivity becomes an inherent component of the electric transition rather than an optional accessory.

Simultaneously, the growing integration of smartphones and digital instrument clusters pushes the market forward by merging personal communication devices with vehicle instrumentation. Modern riders increasingly expect seamless navigation, call management, and ride analytics displayed directly on the dashboard to maintain safety and convenience. This trend drives OEMs to replace analog dials with TFT displays capable of Bluetooth tethering and running proprietary applications. According to TVS Motor Company, July 2024, in the 'Integrated Annual Report 2023-24', the manufacturer achieved sales of approximately 194,000 units of the iQube series, which features SmartXonnect telematics, reflecting the high uptake of digitally integrated models. To illustrate the broader adoption environment, according to ACEM, in 2024, motorcycle registrations in major European markets reached 610,757 units during the first six months, signaling a robust baseline for introducing these advanced technologies.

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Key Market Challenges

The high cost of integrating advanced telematics hardware creates a substantial economic barrier that significantly hampers the growth of the Global Connected Two Wheeler Market. In price-sensitive developing economies, which account for a vast portion of global sales, the additional expense required for embedded internet modules and sophisticated sensors disproportionately affects the final vehicle price. Manufacturers operating in these low-margin, high-volume segments often hesitate to standardise such features because the target demographic prioritizes affordability and basic utility over premium digital capabilities. Consequently, the adoption of connected safety and diagnostic tools remains restricted to premium vehicle tiers, preventing widespread market penetration.

This affordability gap is particularly critical when considering the sheer scale of demand in these regions. According to the Federation of Automobile Dealers Associations (FADA), in November 2025, the two-wheeler retail sales in India reached approximately 2.55 million units. This massive volume of predominantly entry-level vehicles illustrates the magnitude of the market that remains largely inaccessible to advanced connectivity solutions due to hardware costs. Unless the unit economics of telematics components improve, the integration of smart features will remain financially unviable for the mass market, directly stalling the industry's broader expansion.

Key Market Trends

The Integration of 5G and Cellular Vehicle-to-Everything (C-V2X) Communication is advancing the market by establishing a cooperative safety ecosystem where two-wheelers digitally interact with infrastructure. This technology overcomes the limitations of traditional line-of-sight sensors, enabling motorcycles to receive real-time alerts about hazards obscured by intersections or large vehicles. The deployment of this architecture is accelerating through government-backed infrastructure goals which are essential for connected safety applications. According to Autotalks, June 2024, in the article 'Navigating the Road to Safer Intersections: What's the Impact of V2X Infrastructure?', the company highlighted that the US Department of Transportation has set a target to equip 25% of signalized intersections with V2X connectivity by 2026, establishing the necessary physical network to support widespread adoption.

Simultaneously, the Growth of Usage-Based Insurance (UBI) and Telematics Data Monetization is transforming the economic model of ownership by utilizing embedded connectivity to assess risk. Insurers are moving away from static demographic criteria, instead leveraging high-fidelity telematics data such as braking patterns, acceleration, and mileage to create personalized premium structures. This shift incentivizes safer riding behaviors while generating a direct revenue stream from vehicle data. According to Boundless Rider, May 2024, in the 'Boundless Rider Launches Motorcycle Insurance Industry's First AI-Powered App' announcement, the company introduced a new telematics-driven program that automatically applies a 20% premium discount for policyholders who maintain low monthly mileage, validating the commercial viability of behavioral data integration.

Segmental Insights

The driver assistance segment has emerged as the fastest-growing area in the global connected two-wheeler market due to a heightened focus on rider safety and regulatory compliance. Governments and organizations, such as the European Commission, have implemented stricter mandates regarding vehicle safety standards, necessitating the adoption of advanced monitoring systems. These regulations encourage manufacturers to embed technologies that detect blind spots and prevent collisions. As a result, the integration of intelligent safety features is expanding rapidly to satisfy legal requirements and the growing consumer preference for secure transportation.

Regional Insights

Asia Pacific maintains a leading position in the global connected two-wheeler market, primarily due to the widespread reliance on motorcycles for daily transportation in major economies like China and India. This regional dominance is reinforced by the rapid adoption of electric two-wheelers, which necessitates integrated connectivity for battery monitoring and charging station location. Furthermore, government initiatives focusing on road safety and intelligent transport systems encourage manufacturers to embed telematics and tracking features. Consequently, high vehicle production volumes combined with increasing smartphone integration solidify Asia Pacific as the principal market for connected mobility solutions.

Recent Developments

• In November 2024, Hero MotoCorp unveiled an updated version of the Mavrick 440 motorcycle at the EICMA trade show in Milan, emphasizing upgraded digital interfaces. The motorcycle replaced its previous LCD unit with a new circular TFT instrument console derived from its premium partnership models. This upgraded display offered enhanced smartphone connectivity via Bluetooth, enabling features such as turn-by-turn navigation, call and SMS alerts, and music control directly from the handlebars. The update signaled the manufacturer's intent to bring premium connected technologies to its mass-market roadster segment, aligning with global trends in motorcycle digitization.
• In August 2024, BRP Inc. officially launched its all-electric motorcycle lineup, the Can-Am Pulse and Can-Am Origin, featuring high-level digital connectivity. Both models were equipped with a substantial 10.25-inch touchscreen display that supported Apple CarPlay, allowing for seamless smartphone integration for navigation, media, and communication. The motorcycles utilized the BRP GO! mobile application to keep riders connected to their vehicle's status and ride data. This launch marked the brand's return to the two-wheeler segment with a focus on modern technology, offering an interface that mirrored the sophisticated infotainment systems typically found in the automotive sector.
• In April 2024, Ather Energy launched the Rizta, a family-oriented electric scooter equipped with advanced connected features aimed at improving rider safety and convenience. The vehicle featured a new dashboard integration that allowed riders to view WhatsApp messages directly on the screen while the scooter was stationary. The company also introduced "SkidControl," a proprietary traction control system that leveraged sensor data to manage motor torque effectively on slippery surfaces. Furthermore, the launch included the reveal of a smart helmet accessory that paired wirelessly with the scooter to provide audio and voice control, deepening the integration between the rider and the connected vehicle ecosystem.
• In January 2024, Ola Electric introduced the MoveOS 4 software update for its range of electric scooters, significantly enhancing their connectivity capabilities. The update incorporated an in-house developed navigation system, Ola Maps, which integrated the company's charging network directly into the ride interface for seamless route planning. Additional features included biometric app lock security, a "Find My Scooter" function, and geofencing alerts to monitor the vehicle's location. The software also enabled a unique "Concert Mode" that synchronized the vehicle's lights with music. This release marked a major advancement in the company's digital ecosystem, offering users a more personalized and secure connected riding experience.

Key Market Players

• BMW Motorrad
• Continental AG
• Robert Bosch GmbH
• Panasonic Corporation
• TE Connectivity
• Aeris Communications
• Vodafone Group PLC
• Starcom Systems
• KPIT Technologies

By Vehicle Type	By Propulsion Type	By Service Type	By Connectivity Type	By End- User	By Region
Scooter/Moped Motorcycle	Internal Combustion Engine (ICE) Electric	Driver Assistance Infotainment and Safety	Integrated Embedded and Tethered	Private Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Connected Two Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Connected Two Wheeler Market, By Vehicle Type:

• Scooter/Moped
• Motorcycle

• Connected Two Wheeler Market, By Propulsion Type:

• Internal Combustion Engine (ICE)
• Electric

• Connected Two Wheeler Market, By Service Type:

• Driver Assistance
• Infotainment and Safety

• Connected Two Wheeler Market, By Connectivity Type:

• Integrated
• Embedded and Tethered

• Connected Two Wheeler Market, By End- User:

• Private
• Commercial

• Connected Two Wheeler Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE