Two-Wheeler Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Scooter/Moped, Motorcycles), By Propulsion Type (ICE, Electric), By Region & Competition, 2020-2030F

Market Overview:

Global Two-Wheeler Market was valued at USD 686.88 Billion in 2024 and is expected to reach USD 797.51 Billion by 2030 with a CAGR of 2.52% during the forecast period. The global two-wheeler market is experiencing significant transformation driven by growing demand for cost-effective personal transportation, rising fuel prices, and rapid urban population growth. Consumers are increasingly opting for two-wheelers due to their lower maintenance costs, fuel efficiency, and ability to navigate congested roads. For instance, According to SIAM, India’s two-wheeler market saw a 16.23% growth, reaching 18,437,528 units from January to November 2024, driven by stronger domestic demand supported by improved consumer sentiment, a healthy monsoon, and festive season momentum. Technological advancements such as the integration of smart connectivity, improved safety features, and electrification are reshaping product offerings and consumer expectations. The growing popularity of electric two-wheelers, driven by stricter emissions norms and consumer interest in sustainable transport, is opening new avenues for manufacturers and startups alike. Opportunities are emerging through expanding shared mobility platforms, subscription-based ownership models, and increased financing accessibility for first-time buyers. Manufacturers are investing in battery technology, lightweight materials, and AI-powered mobility solutions to remain competitive.

Market Drivers

Rising Demand for Cost-Effective Urban Mobility

The increasing urban population and escalating traffic congestion are fueling the need for efficient, low-cost personal transport options. Two-wheelers offer a practical solution for navigating dense urban environments while consuming less fuel and requiring lower maintenance compared to four-wheelers. Their affordability and ease of use attract a broad spectrum of users, from daily commuters to delivery service operators. With income growth among middle and lower-income groups, motorcycles and scooters remain within reach for mass-market consumers, helping drive sustained demand. Rising fuel prices also reinforce the appeal of fuel-efficient two-wheelers. Governments and institutions supporting two-wheeler accessibility through easy financing schemes and credit options further enhance market traction. The integration of modern features such as digital instrument clusters and navigation systems without a steep price rise makes them even more desirable. The ability to travel independently, avoid crowded public transport, and minimize commuting time enhances their utility.  For instance, In 2024, shared mobility is rapidly gaining traction, with the number of e-hailing trips tripling from 5.5 trillion in 2016 to 16.5 trillion in 2019, and revenues reaching USD 130 billion. By 2030, total revenues from hailed mobility are expected to surge to between USD 450 billion and USD 860 billion, accounting for 80 to 90 percent of consumer spending in shared mobility. The shared-micromobility  is projected to generate up to USD 90 billion by 2030.

Growth in Electric Two-Wheelers Adoption

Environmental concerns, rising fuel costs, and evolving consumer preferences are accelerating the adoption of electric two-wheelers. Electric models offer a clean alternative to internal combustion engines, producing zero tailpipe emissions and enabling sustainable commuting. Advances in battery technology have significantly enhanced range, charging time, and overall performance, making electric scooters and motorcycles increasingly viable for everyday use. Declining battery costs are making electric variants more affordable, broadening their appeal across income groups. Governments worldwide are incentivizing electric vehicle adoption through subsidies, tax exemptions, and infrastructure development such as charging stations, which is stimulating consumer interest. Manufacturers are responding by expanding their electric product lines, offering various models with different performance levels and price points.  For instance, Electric vehicle sales in India’s two-wheeler segment rose sharply by 79%, reaching 20,171 units, while scooter sales grew by 30% compared to the previous year, reflecting changing consumer preferences toward urban mobility and sustainable transportation.

Technological Advancements and Connectivity Integration

The integration of advanced technologies in two-wheelers is revolutionizing rider experience, safety, and convenience. Features such as Bluetooth connectivity, GPS navigation, smartphone pairing, voice assistance, and ride analytics are increasingly standard even in mid-range models. These smart features enhance rider engagement, allow real-time vehicle diagnostics, and promote safe driving practices. Anti-lock braking systems (ABS), traction control, ride modes, and advanced suspension technologies are improving performance and safety across both commuter and premium segments. Telematics and IoT-based systems enable fleet operators and individual riders to monitor vehicle usage, fuel efficiency, and service schedules remotely, contributing to better maintenance and reduced downtime.

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Key Market Challenges

Inadequate Charging Infrastructure for Electric Variants

One of the most critical challenges facing the two-wheeler industry, particularly in the electric segment, is the lack of widespread and reliable charging infrastructure. Electric two-wheelers rely heavily on consistent and accessible charging networks to ensure usability and driver confidence. However, in many regions, the deployment of public and private charging stations has not kept pace with the growth in electric vehicle sales. Range anxiety persists among potential buyers who fear being stranded without access to a charging point, deterring adoption. Home charging is often impractical in densely populated urban areas or in apartment settings where dedicated parking and power outlets are unavailable.

Rising Cost of Raw Materials and Components

The global two-wheeler industry is grappling with the impact of rising raw material costs, which affects manufacturing and ultimately, end-user pricing. Key materials such as steel, aluminum, rubber, and lithium have witnessed price volatility due to supply chain disruptions, geopolitical tensions, and fluctuating global demand. The increasing cost of semiconductors and electronics, which are integral to modern two-wheelers equipped with smart and safety features, has added to the burden. Manufacturers often face a dilemma either absorb higher input costs and reduce profit margins or pass the cost on to consumers, risking reduced demand.

Key Market Trends

Rise of Subscription and Leasing Models

Consumer attitudes toward vehicle ownership are shifting, leading to the growing popularity of subscription-based and leasing models in the two-wheeler segment. These flexible alternatives to traditional ownership offer riders access to new or premium vehicles without large upfront investments or long-term financial commitments. Subscription plans typically bundle maintenance, insurance, and service into a single monthly payment, simplifying ownership and enhancing affordability. This model appeals particularly to urban dwellers, gig workers, and younger consumers who value access over possession and prefer short-term mobility solutions. Leasing options are also becoming more attractive due to the rapid pace of technological advancements and product obsolescence, especially in the electric two-wheeler segment. Businesses operating delivery fleets are leveraging such models to scale quickly while controlling costs.

Integration of Smart Safety Features

Modern two-wheelers are increasingly being equipped with advanced safety features that were once reserved for high-end vehicles, reflecting a shift in consumer expectations and regulatory pressures. Technologies such as anti-lock braking systems (ABS), traction control, cornering ABS, and electronic stability programs are now becoming standard across many segments. These systems significantly reduce the risk of accidents, particularly in adverse conditions or emergency maneuvers. The growing use of sensors and digital intelligence is enabling real-time feedback to riders, alerting them about potential hazards and offering predictive maintenance insights.

Digital Retail and Direct-to-Consumer Sales Models

The digital transformation of the two-wheeler market is reshaping how products are discovered, purchased, and serviced. Consumers are increasingly relying on online platforms for vehicle research, price comparisons, financing options, and even end-to-end purchases. Direct-to-consumer (D2C) sales models, powered by digital showrooms and virtual consultations, are gaining traction as manufacturers seek to enhance customer experience and cut dealership-related costs. Brands are launching e-commerce portals with features like AR-based vehicle visualization, digital paperwork, and online loan approvals to simplify the buying journey.

Segmental Insights

Vehicle Type Insights

In 2024, motorcycles dominated the global two-wheeler market by vehicle type, accounting for the largest share in terms of both volume and value. This dominance is primarily attributed to their versatility, performance, and ability to cater to a wide range of applications, from personal commuting to commercial delivery services. Motorcycles typically offer greater engine capacity, speed, and load-carrying capacity compared to scooters and mopeds, making them more appealing to consumers seeking robust and long-distance mobility solutions. Their adaptability across various terrains, including rural and semi-urban roads, further solidifies their utility in diverse settings beyond just urban commuting. Consumers often prefer motorcycles for their longer lifespan, fuel efficiency, and relatively low cost of ownership over time, especially in markets where transportation infrastructure is still developing. For instance, In 2024, the global motorcycle industry, encompassing two- and three-wheelers across scooter, underbone, moped, and motorcycle categories, reached a record-high of 61.8 million units sold, surpassing the previous peak recorded in 2018. This milestone marks a strong recovery of nearly 10 million units since the market downturn in 2020.

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Regional Insights

Asia-Pacific led the global two-wheeler market in 2024 due to its dense population, urban congestion, and reliance on affordable personal mobility. Two-wheelers remain essential for commuting, family use, and small businesses, especially in areas with limited public transport. Their fuel efficiency, low maintenance cost, and ease of financing support widespread adoption. Local production and growing income levels also contributed to the segment’s strength across both urban and rural settings.

Europe & CIS showed a growing preference for electric and premium two-wheelers driven by environmental concerns and urban mobility needs. Vehicles are used more for short-distance commuting and leisure, influenced by stringent emission norms and sustainability goals. The market favors high-tech, safe, and eco-friendly models, although seasonal usage and strong public transport networks keep overall volumes moderate compared to Asia-Pacific.

South America experienced rising two-wheeler demand in 2024 as consumers sought low-cost transport amid economic challenges and fuel price increases. Motorcycles and scooters are widely used for commuting and delivery services, particularly where public transit is unreliable. Low-displacement models dominate, while emerging interest in electric two-wheelers is supported by early-stage regulatory efforts and shifting consumer preferences.

Recent Developments

• In 2024, Honda retained its global leadership in the motorcycle market for the 50th consecutive year, selling 19.4 million units and capturing 32% market share, driven by strong demand in markets like Bosnia (+127.9%), Albania (+112%), and Ukraine (+100.8%).
• Hero MotoCorp secured second place globally with 5.9 million units sold, marking a 6.9% growth. Exceptional gains in Costa Rica and Nigeria (both +184%) and Sri Lanka (+54.3%) helped offset declines in lower-end segments.
• Yadea ranked fourth globally with 4.3 million units sold, maintaining a leading position among electric two-wheeler manufacturers. Despite a 13% decline, the company expanded its footprint in Cambodia, Pakistan, and Moldova.
• Mexican brand Italika achieved the highest growth rate among leading manufacturers in 2024, with sales rising 35.8% to 1.3 million units, propelled by strong domestic and Latin American demand.

Key Market Players

• MotoCorp Ltd.
• Bajaj Auto Ltd
• Yamaha Motor Co., Ltd
• Piaggio & C. S.p.A
• TVS Motor Company Limited
• Harley Davidson
• Suzuki Motor Corporation
• Kawasaki Heavy Industries, Ltd
• Honda Motor Co., Ltd
• BMW Motorrad

Report Scope:

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

•        Two-Wheeler Market, By Vehicle Type:

o    Scooter/Moped

o    Motorcycles

•        Two-Wheeler Market, By Propulsion Type:

o    ICE

o    Electric

•       Two-Wheeler Market, By Region:

o    North America

§  United States

§  Canada

§  Mexico

o    Europe & CIS

§  Germany

§  France

§  U.K.

§  Spain

§  Italy

o    Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

§  Australia

§  Thailand

o    Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

o    South America

§  Brazil

§  Argentina

§  Colombia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global Two-Wheeler Market.

Available Customizations:

Global Two-Wheeler Market report with the given market data, TechSci Research offers customizations according to the 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).

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