Two-wheeler Market Size, Share & Industry Analysis, By Type (Scooters, Motorcycles, and Mopeds), By Engine Displacement (Below 125cc, 126cc - 155cc, 156cc - 200cc, 201cc- 500cc, and Above 500cc), By Propulsion (ICE and Electric), and Regional Forecast, 2024-2032

The global two-wheeler market size was valued at USD 114.36 billion in 2023. The market is projected to grow from USD 120.36 billion in 2024 to USD 201.42 billion by 2032, exhibiting a CAGR of 6.6% during the forecast period.

The rising need for urban mobility and growing traffic congestion will drive the demand for two-wheelers (2W) across the globe. In densely populated areas, 2Ws offer a convenient mode of transportation, allowing riders to navigate through traffic congestion and find parking spaces more efficiently. Two-wheelers are generally affordable to purchase and operate easily compared to cars and to other four-wheeled vehicles. They are economical in terms of fuel consumption, making them a suitable choice for consumers.

The COVID-19 pandemic induced global economic downturn and lockdowns in several parts of the world temporarily plummeted global product sales . The impact of the pandemic varied across different regions, with few regions witnessing a decline in vehicle sales, whereas few regions witnessed a rise in sales in 2020. The pandemic was significantly challenging for the manufacturers across the world. Temporarily closed manufacturing facilities disrupted the supply chain and the shortage of raw materials significantly, thereby affected the growth of the two wheeler industry. However, the market is likely to recover rapidly due to various factors such as increasing penetration of electric scooters and motorcycles inclining preference of the populace toward 2Ws for a daily commute and short distance travel activities.

Two-wheeler Market Trends

Developing EV Charging Infrastructure to Create Lucrative Opportunities in the Near Future

The lack of EV charging infrastructure is one of the significant hurdles to EV penetration in the developing economies such as Lithuania, Greece, and others. Therefore, EV charging infrastructural development initiatives will likely create lucrative opportunities for electric two-wheelers in the near future. The Asia Pacific is the most dominating market for the global two-wheeled vehicles industry. However, the penetration of electric 2Ws in developing and underdeveloped Asia Pacific economies is still insufficient. Various players such as Ather, OLA, and established players such as Honda, Hero, etc. are planning to launch new electric 2W models in leading markets of Asia Pacific such as India, Indonesia, and others. However, the lack of charging infrastructure further limits EV penetration in the region.

The Indian government is taking initiatives to speed up automotive electrification in the region. For instance, while presenting the Union Budget 2022, the government of India stated that it would set up initiatives to boost the electric infrastructure and EV ecosystem to achieve the decarburization goal. Moreover, the government also announced that the center would present a new policy for battery swapping to encourage EV use. Therefore, increasing government focus on electric infrastructural development and the EV ecosystem will likely create lucrative opportunities for the market in the upcoming years.

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Two-wheeler Market Growth Factors

Rapid Urbanization Coupled with the Urban Traffic Congestion to Drive Market Growth

The population in urban areas is increasing at a rapid pace. According to the data shared by the UN on Trade and Development, the global urban population percentage grew from 51.6% in 2010 to 56.9% in 2022. The urban population has increased strongly over the previous years. It is generally higher in the developed nations (79.7% in 2022) than in the developing economies (52.3%). In least development countries (LDCs), the people living in urban areas are in the minority (35.8%).

It is witnessed that over the previous years, urbanization has been most pronounced in developing regions such as Asia and Oceania. Additionally, according to the United Nations (UN) Department of Economics and Social Affairs, nearly 68% of the world population is anticipated to live in urban areas by 2050. Therefore, increasing demand for compact mobility solutions such as 2Ws in developed and developing economies due to road congestion, lack of parking spaces, and other problems associated with urbanization are likely to improve the market growth in the coming years.

RESTRAINING FACTORS

Rising Cases of Explosion of Electric Two-wheeler Batteries to Hinder Market Growth

An increasing number of electric 2W battery explosion cases, especially across the Asia Pacific, are anticipated to affect market growth in the future. However, the recently increasing number of accidents in India due to electric scooter battery explosions is plummeting the market growth in the region.

Due to the rising number of battery explosion cases, manufacturers in India had to recall their electric 2Ws to avoid future incidents. Additionally, in May 2022, the government also constituted the committee in the wake of EV fires and battery explosions in electric scooters belonging to brands Okinawa Autotech, Boom Motor, Pure EV, Ola Electric, and Jitendra EV. Therefore, plummeting electric 2Ws sales due to safety concerns regarding electric 2W batteries will likely restrain the market growth over the forecast period.  In April 2022, Pure EV recalled nearly 2,000 concerned electric scooters due to a battery explosion accident. Similarly, in April 2022, Ola Electric also stated that it is recalling more than 1400 of its e-scooters in the wake of vehicles catching fire, with some fatalities being witnessed so far.

Two-wheeler Market Segmentation Analysis

By Type Analysis

Scooters Segment to Grow at a Highest CAGR owing to Urban Mobility and Traffic Congestion

Based on type, the market is categorized into scooters, motorcycles, and mopeds.

The scooters segment is expected to grow at the highest CAGR during the forecast period. The growth is attributed to the affordability and ability to provide convenience in traffic-congested cities. Moreover, scooters offer an excellent fuel-efficient alternative for urban commuting and are a popular mode of transport in metropolitan and suburban cities. Additionally, scooters are often preferred by women riders for their ease of handling.

The motorcycles segment held the largest two-wheeler market share in 2023. For many individuals and families in developing countries, motorcycles serve as a primary mode of transportation due to their affordability and efficiency. Moreover, motorcycles offer better fuel efficiency than scooter, resulting in lower operational costs, which is particularly appealing in regions with high fuel prices and for the low income group population. In July 2024, Bajaj Auto launched Freedom125, a CNG-propelled motorcycle, catering the growing demand for CNG vehicles in India.

By Engine Displacement Analysis

Below 125cc To Take Leading Position Owing To Its Cost-Effectiveness

Based on engine displacement, the market is divided into below 125cc, 126cc – 155cc, 156cc – 200cc, 201cc – 500cc, and above 500cc.

Below 125cc will capture the majority market share during the forecast period attributed to higher fuel efficiency. Small-displacement 2Ws are typically more fuel-efficient than larger vehicles, making them cost-effective transportation options, especially in regions where fuel prices are high or income levels are relatively low. The lower operating costs appeal to budget-conscious consumers.

Above 500cc will grow at a rapid pace during the forecast period. Many bikes in this segment are designed for sport riding or adventure touring, offering features such as advanced suspension systems, larger fuel tanks, and touring-oriented ergonomics. These bikes are equipped with premium features such as ride-by-wire throttle, traction control, and slipper clutches, enhancing their performance and safety. This devolvement drives the market growth during the forecast period.

By Propulsion Analysis

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ICE Led in 2023 Owing to Its Demand in Developing Regions

In terms of propulsion, the market is divided into electric and internal combustion engine (ICE).

The ICE segment dominated the market in 2023. The internal combustion engine (ICE) segment dominates the market due to its established technology, extensive refueling infrastructure, lower costs, high performance, consumer familiarity, and widespread availability, especially in developing regions such as the Asia Pacific region, where electric vehicle infrastructure is still lacking.

The ongoing trend for the electrification of existing and new 2W models is expected to drive market growth. Almost all the leading players in the industry are focused on the electrification of their 2W models to grab early revenue growth opportunities and offer future mobility solutions. The companies plan to launch their electric 2Ws in untapped markets such as emerging economies worldwide. In November 2023, Vietnam’s domestic electric two wheeler manufacturer, Dat Bike, introduced an electric scooter to promote and accelerate the adoption of green mobility in the country.

REGIONAL INSIGHTS

By geography, the market is divided into North America, Europe, Asia Pacific, Latin America, and the rest of the world.

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Asia Pacific will dominate the global two-wheeler market during the forecast period. Urbanization and traffic congestion drives the Asia Pacific two-wheeler market by increasing the need for compact, efficient transportation solutions. As cities grow and traffic becomes more congested, two-wheelers offer a practical alternative for navigating crowded streets, providing a cost-effective, quick, and flexible mode of transport for daily commuters and urban residents. This fuels the market demand in the Asia Pacific region. For instance, in January 2024, According to the United Nations Economic and Social Council, The Asia Pacific region is rapidly urbanizing, with the urban population expected to grow from around 2.5 billion in 2023 to 3.4 billion by 2050. This makes it one of the world's most populous regions, characterized by expanding cities, thriving economies, and evolving digital landscapes.

North America's two-wheeler market growth will be characterized by rising demand for motorcycles. In countries such as U.S. and Canada, motorcycle and scooters are popular choices among the consumers for recreational riding and touring purposes, especially in regions with scenic routes and favorable weather conditions. This drives the growth of the market in the North American region.

In Europe, demand for electric vehicles is on the rise owing to their convenience among consumers. Growing emphasis on reducing emissions and adopting more environment-friendly transportation solutions will propel the industry's growth.

Government regulations play a crucial role in accelerating the adoption of two-wheeled vehicles in Latin America. Incentives such as tax breaks, subsidies for electric vehicles, and infrastructure development projects can encourage the adoption of motorcycles and scooters. Additionally, regulations regarding emissions standards and safety requirements impact the types of vehicles.

The rise of e-commerce, courier services, and last-mile delivery businesses has increased the demand for two-wheelers as an efficient mode of transportation in Middle East & Africa.

KEY INDUSTRY PLAYERS

Research & Development Activities will Provide Competitive Edge to Market Players in the Industry

The key players in the global two-wheeler market are investing in research & development activities, product differentiation & development, and mergers & acquisitions to gain a strong foothold in the market. In May 2024, Honda R&D (India) Private Limited (HRID), a subsidiary of Honda Motor Co., Ltd. and functioning as Honda’s research and development arm for motorcycles & power products in India, opened its new Solution R&D Center in Bengaluru, Karnataka.

LIST OF TOP TWO-WHEELER COMPANIES:

• Honda Motor Co., Ltd. (Japan)


• TVS Motor Company Ltd. (India)


• Bajaj Auto Ltd. (India)


• Yamaha Motors Co. (Japan)


• Suzuki Motor Corporation (Japan)


• Triumph Motorcycles (U.K.)


• Bayerische Motoren Werke (BMW) AG (Germany)


• Harley-Davidson, Inc. (U.S.)


• Hero MotoCorp Ltd. (India)


• Kawasaki Motors Corp. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 - Triumph Motorcycles unveiled the TF 250-X, boasting a top-tier power to weight ratio and the most comprehensive specification package 250cc motocross in market.


• January 2023 – TVS Motor Company launched its commuter segment, TVS Metro Plus 110, in Bangladesh. The motorcycle is upgraded with renewed styling, and the safety aspects would cater to the growing customer demand in the Bangladesh market. It would deliver on the commuter needs of mileage, safety, comfort, and style.


• December 2022 – Bajaj Auto Ltd. launched the updated 2023 Platina 110 motorcycle with ABS in India; its start price is around USD 1200. This is the first model of Platina 110 ABS receiving a single-channel ABS on the front wheel, which would improve the safety quotient of the commuter motorcycle. Bajaj offers the 2023 Platina 110 ABS in four color options: Ebony Black, Gloss Pewter Grey, Cocktail wine Red, and Saffire Blue.


• March 2022 – Honda unveiled its 12 new motorcycles for the year 2022-2023. The 12 new models will include CBR1000RR, CBR650R, CB650R, PCX, Grom, Trail 125, Ruckus, and two off-road motorbikes. The company is motivated to introduce new and improved motorcycles to customers and increase their influence in the market.


• February 2022 – Honda announced the launch of two new bikes and a 125cc scooter for the Indian market. The Indian market is highly competitive for two-wheelers due to its high demand. The company dominated the market by introducing new bikes to stay ahead of its competitors.

REPORT COVERAGE

The market report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers in-depth analysis and insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth in recent years.

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