Middle East Two-Wheeler Market By Vehicle Type (Motorcycles and Scooters/Mopeds), By Capacity (Up to 125 cc, 126 cc – 250 cc, 250 cc – 500 cc, Above 500 cc, Electric), By End Use (Individual, Institutional) By Country, Competition Forecast & Opportunities, 2020-2030F

Market Overview

Middle East Two-Wheeler Market was valued at USD 406.8 Million in 2024 and is expected to reach USD 668.3 Million by 2030 with a CAGR of 9.4% during the forecast period. The Middle East two-wheeler market is witnessing a transformation driven by changing consumer preferences and evolving transportation needs. As cities become more congested, two-wheelers are emerging as a practical and efficient mode of transport, particularly for daily commuting. Lightweight scooters and motorcycles are gaining traction due to their fuel efficiency, compact size, and low maintenance costs.

The presence of a young, tech-savvy population with rising disposable incomes is fueling interest in personal mobility options, further encouraging two-wheeler adoption across urban centers. Technological advancements in vehicle design and improved access to financing options are making two-wheelers more accessible to a broader consumer base. Recognizing the importance of accessible charging infrastructure, Saudi Arabia has embarked on an ambitious plan to develop a comprehensive network of charging stations. The Saudi Electric Vehicle Charging Infrastructure Development Initiative (SEVCIDI), launched in 2021, aims to install 50,000 charging stations across the nation by 2025. This expansion is supported by significant investments, including a dedicated USD 1.41 billion allocation for charging infrastructure through 2025. Such developments ensure that electric two-wheelers have the necessary support for widespread adoption, addressing concerns related to range anxiety and charging accessibility.

Market Drivers

Increasing Urbanization

As cities continue to expand rapidly, traffic congestion has become a significant concern, making two-wheelers an attractive alternative for daily commuting. Urban areas are increasingly becoming crowded, which limits the mobility of residents using cars. Motorcycles and scooters, with their ability to navigate narrow roads and congested areas, offer commuters a faster, more efficient way to travel. This shift towards urbanization creates a growing demand for two-wheelers as practical, compact vehicles that can easily maneuver through heavy traffic and reduce travel time. For instance, according to MEED, the MENA region’s project pipeline has reached an estimated USD 3.7 trillion, with the GCC accounting for over 84% (USD 3.1 trillion) of the total. Transportation infrastructure and building real estate especially schools, hospitals, and other social facilities remain the leading segments. Construction project awards in the Middle East surged by over 50% in 2023 compared to 2022 (as per Q3 data), setting a new five-year high and reflecting the region’s strongest construction activity levels in a decade.        

Rising Demand for Affordable Transportation

In many regions, consumers are seeking cost-effective transportation options due to increasing fuel prices and economic challenges. Two-wheelers, particularly those with smaller engine capacities, provide a more affordable alternative to cars. Not only do they require less fuel, but they also have lower maintenance and insurance costs, making them an ideal choice for individuals looking to save money on transportation. The lower upfront costs associated with purchasing a two-wheeler compared to a car make it an attractive option for many, especially in markets where personal income growth is moderate.

Technological Advancements in Electric Two-Wheelers

The development of electric two-wheelers is one of the most significant drivers in the market. Innovations in battery technology and the rise of charging infrastructure have made electric two-wheelers more feasible for consumers. With a focus on reducing environmental impact, electric motorcycles and scooters are becoming an attractive option for those who want to reduce their carbon footprint. These eco-friendly vehicles are powered by rechargeable batteries that offer low operating costs and minimal maintenance, making them a more sustainable and cost-effective alternative to traditional fuel-powered two-wheelers.

Shift Towards Sustainable Mobility

Governments and consumers alike are becoming more conscious of the need for sustainable mobility solutions. With increasing environmental awareness, there is a strong push for electric two-wheelers that emit fewer greenhouse gases and offer a cleaner alternative to gasoline-powered vehicles. Governments around the world are implementing policies, such as tax rebates and incentives, to promote the use of electric vehicles, including two-wheelers. This regulatory support is a key factor driving the market as more individuals opt for electric two-wheelers to contribute to cleaner air and reduce their environmental impact. The development of charging infrastructure is crucial for the adoption of electric two-wheelers. In 2024, Careem launched Dubai's first fleet of electric motorbikes, equipped with 4,000-watt lithium battery packs that can be charged at 192 Careem stations across the city. This expansion of charging facilities supports the growing number of electric two-wheelers and encourages their use by reducing range anxiety among consumers.

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Key Market Challenges

Inadequate Charging Infrastructure

While electric two-wheelers are gaining popularity, the lack of widespread charging infrastructure remains a significant barrier to mass adoption. Consumers often hesitate to purchase electric vehicles due to concerns about limited charging stations and long charging times. In many areas, the availability of charging stations is sparse, leading to "range anxiety" the fear that an electric vehicle will run out of power before reaching the nearest charging point. Until a comprehensive charging network is established, the widespread adoption of electric two-wheelers will remain limited.

Extreme Weather Conditions

In regions with extreme weather conditions, particularly those that experience high temperatures or frequent rain, two-wheelers may not always be the most practical choice. In hot climates, riders may face discomfort during summer months, while heavy rains in certain areas could make two-wheeler travel dangerous. These environmental factors limit the usability of two-wheelers in certain regions, especially for daily commuting. Manufacturers have started to focus on developing weather-resistant designs and accessories to address this challenge, but weather-related concerns still present an obstacle to widespread market growth.

Key Market Trends

Growth of Electric Two-Wheelers

The shift toward electric mobility is one of the most prominent trends in the two-wheeler market. With advancements in battery technology, electric two-wheelers are becoming more affordable, reliable, and practical for consumers. The push for eco-friendly alternatives and lower operating costs is contributing to the growing popularity of electric motorcycles and scooters. As governments continue to implement policies promoting clean transportation, the demand for electric two-wheelers is expected to grow significantly. Innovations in battery technology, such as fast-charging solutions and increased range, are helping to address consumer concerns and accelerate adoption. The electric two-wheeler market in Saudi Arabia is experiencing significant growth, supported by government incentives and a young, tech-savvy population. In December 2023, BMW AG announced the launch of the new BMW R 1300 GS in Saudi Arabia, featuring a new boxer engine and suspension to set new standards for off-road biking and new benchmarks in the touring segment.

Two-Wheelers for Delivery Services

With the rapid growth of e-commerce and online food delivery services, there has been a noticeable increase in demand for two-wheelers used for business purposes. Delivery riders, particularly in urban areas, are opting for motorcycles and scooters due to their ability to navigate dense traffic efficiently. Delivery service providers are turning to two-wheelers because of their lower operational costs compared to cars. This trend has resulted in a steady increase in demand for commercial two-wheelers, further driving the growth of the market, especially in metropolitan cities. Wize, a UAE-based delivery service provider, has introduced a fleet of electric motorcycles tailored for efficient and eco-friendly delivery services. The company offers businesses a chance to cut transport emissions by up to 30% and provides a rental and subscription online platform to manage fleets effectively.

Increasing Focus on Sustainability and Environmental Impact

As climate change concerns grow, there is a heightened focus on sustainability within the two-wheeler market. Consumers and governments alike are seeking ways to reduce the carbon footprint of transportation. This has led to a growing preference for electric two-wheelers, which produce fewer emissions than traditional gasoline-powered bikes. Manufacturers are also focusing on sustainable production practices and environmentally friendly materials in vehicle design. The shift towards more eco-conscious transportation solutions is a trend that is expected to continue as the market responds to global environmental challenges. The Egyptian government is supporting the electric two-wheeler market by promoting sustainable and eco-friendly practices. The Arab Organization for Industrialization unveiled Kader, Egypt’s latest locally-made electric motorcycle, priced at USD 1,806, offering a range of 60 kilometers per charge.

Segmental Insights

Capacity Insights

The two-wheeler market in the Middle East displays a wide range of offerings across various engine capacities and power sources, catering to distinct consumer preferences and usage needs. The segment of up to 125 cc is primarily used for short-distance travel and urban commuting. These two-wheelers appeal to riders who prioritize ease of handling, fuel efficiency, and lower ownership costs. Their compact size makes them suitable for navigating congested streets and parking in tight spaces. The relatively low maintenance requirements further enhance their appeal among budget-conscious consumers. In the 126 cc to 250 cc range, vehicles offer a balance between power and efficiency, making them suitable for longer commutes or moderate recreational use. This segment is often chosen by users who need more versatility and slightly enhanced performance compared to lower cc options. The increased engine capacity provides better handling at higher speeds while still maintaining affordability in terms of fuel and maintenance.

Models falling in the 250 cc to 500 cc category cater to consumers seeking a more powerful and dynamic riding experience. These are often used for both leisure and more demanding road conditions, offering enhanced performance and comfort. Riders in this segment may prioritize design, engine responsiveness, and superior riding ergonomics for extended journeys. These motorcycles often come with more sophisticated components and offer a blend of daily utility and lifestyle appeal. Above 500 cc models are typically high-performance motorcycles tailored for enthusiasts and long-distance riders. They offer robust power, cutting-edge technology, and premium features. These vehicles are often seen as lifestyle investments and are favored for touring and highway travel. Riders in this category may seek a strong blend of design, power, and advanced safety and infotainment features. Electric two-wheelers, while emerging, reflect a growing interest in sustainable transportation. These vehicles are chosen for their quiet operation, lower operating costs, and alignment with environmental consciousness. Technological progress in battery efficiency and charging speed is gradually improving consumer confidence in electric models. Their adoption is influenced by the development of charging infrastructure and support policies. Consumers are also attracted to the reduced emissions and modern styling often associated with electric two-wheelers. While each capacity category serves different user needs, the overall market structure remains dynamic, adapting to evolving consumer lifestyles, fuel economy considerations, and preferences for convenience or performance.

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Country Insights

Saudi Arabia

Saudi Arabia stands out as a dominant market due to its strong government backing aimed at transforming the transportation sector to align with sustainability goals. The country’s initiatives to promote electric vehicle adoption, coupled with investments in infrastructure, have significantly accelerated the penetration of electric two-wheelers. The youthful population and increasing urban congestion further fuel demand, making electric scooters and motorcycles practical alternatives for daily commuting and delivery services.

UAE

The UAE’s market showcases substantial maturity with a clear focus on integrating advanced technology into electric two-wheelers. Urban centers like Dubai and Abu Dhabi have embraced electric mobility through supportive policies and expanded charging infrastructure. The government’s push for clean energy transportation aligns with the nation’s vision to reduce carbon emissions, which has encouraged both consumers and businesses to adopt electric two-wheelers. The UAE also benefits from high consumer purchasing power, and a rising interest in smart and sustainable transport options. The presence of a robust network of charging stations and incentives enhances the market’s accessibility and appeal.

Egypt 

Egypt emerges as a significant player in the region, driven by growing awareness of environmental issues and efforts to localize electric vehicle production. The government’s support through policy frameworks and incentives has catalyzed growth in the electric two-wheeler sector. Affordability remains a key factor in Egypt’s market dynamics, with the availability of competitively priced electric motorcycles appealing to a wide base of consumers. Additionally, the expanding urban population and the need for affordable, eco-friendly urban mobility solutions contribute to the sector’s growth trajectory. The increasing interest in last-mile delivery services, powered by electric two-wheelers, further amplifies the market potential in the country.

Recent Developments

• In 2024, Careem launched Dubai's first fleet of electric motorbikes, equipped with 4,000-watt lithium battery packs. These bikes are integrated into Careem's bike-sharing platform and charged at 192 stations across the city. The initiative aims to reduce delivery-related carbon emissions by up to 24 tonnes daily, aligning with the UAE's sustainability goals. The move reflects Careem's commitment to eco-friendly transportation and its role in advancing urban mobility solutions.
• Aramex: In 2024, Aramex, a leading logistics service provider, announced its strategies to incorporate electric two-wheelers for last-mile distribution services. This shift towards electric-based two-wheelers aims to minimize operating costs and reduce carbon emissions. 
• In September 2022, Gogoro initiated its expansion into Israel by launching Smartscooters and battery-swapping stations in Tel Aviv. This development marks Gogoro's first venture outside Taiwan, introducing its innovative battery-swapping technology to the Middle Eastern market. The expansion underscores the growing interest in sustainable transportation solutions in the region.
• In 2023, Hero MotoCorp inaugurated an exclusive showroom in Dubai, offering a range of models including the Ignitor 125, Hunk 150, and the ECO 150 cargo and passenger variants. This expansion signifies Hero MotoCorp's strategic efforts to strengthen its presence in the Middle Eastern market, catering to both personal and commercial transportation needs.

Key Market Players

• Yamaha Motor Co., Ltd.
• Honda Motor Co., Ltd.
• Hero MotoCorp Ltd.
• Bajaj Auto Ltd.
• TVS Motor Company Ltd.
• Suzuki Motor Corporation
• Kawasaki Heavy Industries, Ltd.
• Ducati Motor Holding S.p.A.
• Harley-Davidson, Inc.
• Piaggio & C. S.p.A.

Report Scope:

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

•         Middle East Two-Wheeler Market, By Vehicle Type:

o    Motorcycles

o    Scooters/Mopeds

•        Middle East Two-Wheeler Market, By Capacity:

o    Up to 125 cc

o    126 cc – 250 cc

o    250 cc – 500 cc

o    Above 500 cc

o    Electric

•         Middle East Two-Wheeler Market, By End Use:

o    Individual

o    Institutional

•          Middle East Two-Wheeler Market, By Country:

o    Turkey

o    Saudi Arabia

o    UAE

o    Qatar

o    Kuwait

o    Bahrain

o    Oman

o    Egypt

o    Rest of Middle East

Competitive Landscape

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

Available Customizations:

Middle East 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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