Motorcycle Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented Analysis, By Motorcycle Type (Standard, Sports, Cruiser, Touring, Others), By Propulsion Type (ICE, Electric), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 84.15 Billion
CAGR (2026-2031)	6.98%
Fastest Growing Segment	Electric
Largest Market	Asia Pacific
Market Size (2031)	USD 126.14 Billion

Market Overview

The Global Motorcycle Market will grow from USD 84.15 Billion in 2025 to USD 126.14 Billion by 2031 at a 6.98% CAGR. The Global Motorcycle Market encompasses the manufacturing and sale of vehicles with two or three wheels used for private commuting, commercial delivery, and leisure. A primary driver supporting growth is rapid urbanization which necessitates efficient mobility options to navigate heavy traffic congestion in densely populated cities. Furthermore, the lower operational costs and superior fuel efficiency of motorcycles compared to passenger cars maintain their status as an essential transportation method in emerging economies and an economical choice in developed regions.

A significant challenge impeding market acceleration is the implementation of stringent environmental regulations that compel manufacturers to invest in costly emission reduction technologies. These compliance mandates often result in higher production expenses that are passed to consumers and can dampen demand in segments sensitive to price increases. According to the European Association of Motorcycle Manufacturers, in 2024, new motorcycle registrations in five key European markets reached 1,155,640 units representing a 10.1 percent increase from the prior year.

Key Market Drivers

Government Subsidies and Regulatory Push for Electric Motorcycles is a transformative force reshaping the industry structure. Authorities worldwide are implementing stringent emission norms and financial incentives, such as purchase grants and tax rebates, to accelerate the transition away from internal combustion engines. This regulatory pressure is compelling manufacturers to aggressively expand their electric portfolios, thereby driving adoption rates even in price-sensitive markets where initial ownership costs were previously a barrier. The impact of these policy interventions is evident in the surging uptake of battery-powered units in key regions. According to the Federation of Automobile Dealers Associations, April 2024, in the 'Vehicle Retail Data for March 2024 and FY24', electric two-wheeler retail sales in India for the fiscal year 2024 registered a robust year-on-year increase of 30.06 percent.

Increasing Disposable Income and Vehicle Affordability in Emerging Economies acts as a critical catalyst for substantial volume growth. As economic conditions improve in high-population regions like Southeast Asia and India, rising purchasing power is unlocking demand for personal mobility solutions, particularly among the middle class who prioritize cost-effective transportation. This trend is evidenced by substantial surges in entry-level vehicle transactions, which significantly boost overall market figures. According to the Society of Indian Automobile Manufacturers, May 2024, in the 'Auto Industry Performance of April-2024' report, domestic two-wheeler sales reached 1,751,393 units, representing a 30.8 percent growth from the prior year. Reflecting the broader financial health driven by this global demand, according to Honda Motor Co., Ltd., May 2024, in the 'Consolidated Financial Summary for the Fiscal Year Ended March 31, 2024', sales revenue from the motorcycle business segment increased by 10.7 percent year-over-year.

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Key Market Challenges

The implementation of stringent environmental regulations presents a formidable obstacle to the expansion of the global motorcycle market. As regulatory bodies enforce rigorous emission standards, manufacturers are compelled to integrate complex exhaust treatment systems and engine modifications to ensure compliance. These obligatory technological upgrades necessitate substantial capital expenditure in research and development, which invariably increases the unit production cost. Consequently, these rising expenses are typically transferred to consumers through higher retail prices, rendering two-wheeled vehicles less affordable. This price escalation disproportionately affects entry-level segments where buyers are highly sensitive to cost adjustments, thereby suppressing sales volumes in categories that traditionally drive mass-market adoption.

The adverse impact of these economic pressures on price-sensitive segments is evident in recent industry statistics. According to the European Association of Motorcycle Manufacturers, in 2024, new moped registrations in key European markets decreased to 180,591 units, reflecting a 6.5 percent decline compared to the previous year. This contraction in the smaller-displacement segment, which contrasts with the growth seen in premium categories, illustrates how regulatory-driven cost increases can directly dampen demand for the most economical transportation options available to consumers.

Key Market Trends

A prominent trend characterizing the sector is the surge in demand for adventure and dual-sport motorcycles, driven by a growing consumer preference for versatile machines capable of long-distance touring and off-road exploration. Manufacturers are prioritizing the development of robust chassis platforms and advanced suspension systems to cater to riders seeking experiential travel rather than simple commuting. This shift towards lifestyle-oriented all-terrain vehicles is particularly visible in mature markets where leisure riding dominates. Substantiating this segment's dominance, according to BMW Group, January 2025, in the press release 'BMW Motorrad presents strongest sales result in company history', the brand delivered a record 210,408 motorcycles in 2024, with the R 1300 GS and R 1250 GS Adventure models alone contributing approximately 68,000 units to the total volume.

Additionally, the market is witnessing the premiumization of small and mid-capacity segments, where manufacturers are increasingly equipping lower-displacement vehicles with high-end features traditionally reserved for superbikes. This strategy targets aspirational buyers in developing regions who desire superior performance, aesthetics, and technology but operate within constrained budgets. Companies are optimizing their portfolios to favor these higher-margin models over basic utility two-wheelers, resulting in improved profitability despite fluctuating mass-market volumes. Highlighting the financial impact of this strategic pivot, according to Hero MotoCorp, May 2025, in the press release 'Hero MotoCorp Reports Highest Ever Revenue and PAT for Fiscal 2025', the company posted a 16 percent increase in net profit for the fiscal year ended March 31, 2025, a growth trajectory attributed to a favorable product mix and enhanced cost efficiencies.

Segmental Insights

The Electric segment is currently the fastest-growing category within the Global Motorcycle Market, primarily driven by rigorous international mandates aimed at decarbonizing transportation. Governments worldwide are implementing supportive policies, such as financial subsidies and tax exemptions, to accelerate the adoption of zero-emission vehicles. For instance, the European Union has enforced stringent emission standards that compel manufacturers to transition away from internal combustion engines. Furthermore, the rising volatility of fossil fuel prices has encouraged consumers to seek more economical alternatives, thereby solidifying the shift toward electric mobility solutions in the global landscape.

Regional Insights

The Asia Pacific region commands the leading position in the global motorcycle market, driven primarily by rapid urbanization and high population density in key economies such as India, China, and Indonesia. These demographic factors create an acute necessity for affordable, maneuverable personal transportation to navigate congested city infrastructures. Consequently, two-wheelers serve as an essential daily utility rather than a recreational asset. This dominance is further reinforced by rising middle-class disposable incomes and robust local manufacturing ecosystems that ensure cost-effective supply. Additionally, supportive government policies promoting electric mobility are modernizing the sector while sustaining high sales volumes.

Recent Developments

• In November 2024, Royal Enfield marked a significant milestone by launching its new electric vehicle sub-brand, Flying Flea, and unveiling the C6 electric motorcycle. The model draws inspiration from the lightweight motorcycles of the 1940s, featuring a forged aluminum girder fork and an articulated mudguard that blend classic aesthetics with modern engineering. The motorcycle utilizes a magnesium battery case for weight reduction and cooling, alongside advanced connectivity features like over-the-air software updates. This strategic diversification into the electric mobility space demonstrates the company's commitment to urban sustainability while maintaining its heritage of producing distinct, character-rich motorcycles.
• In July 2024, Bajaj Auto introduced a groundbreaking innovation in the two-wheeler industry with the launch of the Freedom 125, the world's first CNG-powered motorcycle. The vehicle features a unique bi-fuel system with a dedicated CNG cylinder integrated safely into the trellis frame, allowing riders to switch between petrol and natural gas at the touch of a button. Designed to offer a significant reduction in daily operating costs compared to petrol equivalents, the motorcycle underwent rigorous safety validation, including impact tests. This launch highlights the company's focus on developing sustainable, cost-efficient transportation solutions for price-sensitive global markets.
• In May 2024, BMW Motorrad unveiled the Automated Shift Assistant (ASA), a sophisticated transmission technology designed to enhance the motorcycling experience by simplifying gear changes. This system employs two electromechanical actuators to automate clutch actuation and gear shifts, completely removing the need for a manual clutch lever while retaining the traditional foot gear lever. Riders can operate the motorcycle in a fully automatic 'D' mode or a manual 'M' mode, ensuring smooth, jolt-free gear changes in various riding conditions. The innovation was introduced to make riding more comfortable and was announced as a feature for the company's premium boxer-engine models.
• In January 2024, Triumph Motorcycles globally revealed the Daytona 660, re-entering the middleweight sports bike segment with a fully faired model designed for the global market. The motorcycle is powered by a significantly updated 660cc triple-cylinder engine that delivers higher power and torque figures compared to the Trident platform. Engineered for both agile sports handling and all-day riding comfort, the bike features Showa ‘Big Piston’ forks, radial brake calipers, and rider-focused technology such as three distinct riding modes. This strategic product launch aimed to compete directly with rival middleweight sports offerings by combining British styling with accessible performance and high-specification components.

Key Market Players

• Honda Motor Co., Ltd.
• IVS Motor Company Ltd.
• Bajaj Auto Ltd.
• Yamaha Motors Co.
• Suzuki Motor Corporation
• Triumph Motorcycles
• Bayerische Motoren Werke (BMW) AG
• Harley-Davidson, Inc.
• Hero MotoCorp Ltd.
• Kawasaki Motors Corp

By Motorcycle Type	By Propulsion Type	By Region
Standard Sports Cruiser Touring Others	ICE Electric	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Motorcycle Market, By Motorcycle Type:

• Standard
• Sports
• Cruiser
• Touring
• Others

• Motorcycle Market, By Propulsion Type:

• ICE
• Electric

• Motorcycle 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