Two-Wheelers Market

Two-wheelers Market Overview

The global Two-Wheelers Market size was valued at USD 365.32 billion in 2024 and is predicted to reach USD 455.32 billion by 2030 with a CAGR of 3.7% from 2025-2030.

The market for two-wheelers propels with the increasing urbanization across the globe, increasing disposable income and growing e-commerce usage among mankind. However, the excessive price of the raw materials adopted by two-wheeler manufacturing impedes its affordability and accessibility to customers. 

Instead, the implementation of AI in motorbikes to detect collision are likely to provide future scope for market growth. Hero MotoCorp and Ather Energy are among the key market players who are utilizing various business strategies such as partnerships and product launches in an effort to increase their market growth and increase their offerings. Sophisticated safety technologies in two-wheeled automotive are propelled by persistent advancements in technology, now combine smart technologies that advance rider protection, reduce manual effort, and redefine vehicle security standards.

Urbanization Boosting the Demand for Two-Wheelers

With rise in number of people settling in cities, the demand for cost-effective and effective means of transport is growing high. This increases the demand for two-wheelers due to its quick, easy commute, mileage advantage and being an easy mode of transportation in congested areas. 

According to reports published by the World Bank Group's, 2024, a total of close to 56% of global population, approximately 4.4 billion persons, resides within cities currently. This number is going to rise significantly, with nearly 70% of the world's population living in urban areas by 2050. With more congestion in cities, motorbikes become an easy means for daily commute, saving time and increasing mobility. With cities expanding at high growth rates, the demand for these two-wheeled vehicle is going to rise even higher, making them a lifeline mode of transport for millions.

Rising Disposable Income Driving Growth in the Two-Wheelers Industry

As individual disposable incomes are growing, the expenditure in terms of individual mobility solutions, that of two-wheelers are growing gradually as they are less expensive and convenient mode of transport. As per reports published by Organisation for Economic Co-operation and Development reports in 2024, OECD countries' real household per capita income rose by 0.9% in the first quarter of 2024 compared to 0.3% in the fourth quarter of 2023. Increasing purchasing power with such two-wheelers market growth is driving scooter and motorcycle sales, especially in metropolitan regions where two-wheeled motor vehicle prove to be handy and economical vehicle to commute.

E-Commerce Growth Fueling the Two-Wheelers Industry

The sudden growth in e-commerce industry created huge demand for motorbikes, as delivery executives use them for quick and efficient last-mile delivery. With the surge in online shopping, logistics companies and food delivery apps are expanding their two-wheeler fleets to keep up with growing customer demands for fast and on-time deliveries.

According to International Trade Administration publications, 2024, worldwide B2B e-commerce is expected to reach USD 36 trillion by 2026 and B2C e-commerce revenue will grow to USD 5.5 trillion by the year 2027 at a compound annual growth rate of 14.4%. Such increased dependency on two-wheelers for deliveries give rise to adoption of these vehicles, hence making them an integral part of the changing e-commerce landscape.

Rising Raw Material Costs Hindering the Two-Wheelers Industry

Rising prices of raw materials namely steel, aluminium, and lithium for electric two-wheelers are driving the price of production high, making motorbikes and scooters beyond people's purchasing abilities. The rising prices of these raw materials are making the two-wheeled motor vehicles unaffordable for many, that could slow down the industry's growth.

Rising Demand for AI Integrated Two-Wheelers Creates Future Opportunity

The integration of smart technology, such as Artificial Intelligence (AI)-based navigation, vehicle tracking Internet of Things (IoT)-based, and real-time diagnostics, provides a monumental growth opportunity for the two-wheeler sector. Collision alert, predictive maintenance, and phone connectivity are some of the aspects that enhance safety, efficiency, and convenience, and is expected for more consumers towards purchasing two-wheelers, and thereby assist in demand hike.

For instance, in February 2025, BYTES, are developing artificial intelligence-based safety tech for two-wheeled motor vehicles. The company is creating an Advanced Driver Assistance System (ADAS) using computer vision and artificial intelligence that detects potential danger and warns motorcyclists in real-time. The system avoids accidents by detecting dangerous situations before it happens.

Market Segmentations and Scope of the Study

The two-wheelers market report is segmented on the basis of vehicle type, propulsion type, engine capacity and power, technology level, end user, price segment, distribution channel, and region. On the basis of vehicle type, the market is segmented into motorcycles, scooters, and mopeds. On the basis of propulsion type, the market is classified into internal combustion engine and electric vehicles.

Based on engine capacity and power, the market is segmented into internal combustion engine capacity and electric vehicle power and range. The internal combustion engine capacity segment is further categorized into up to 125 cc, 126 cc to 250 cc, and above 250 cc. The electric vehicle power and range segment is bifurcated into low power and range, medium power and range, and high power and range.

Based on technology level, the market is segmented into conventional and connected and smart two-wheelers. Further, connected and smart two-wheelers include advanced digital connectivity, smart navigation, IoT-enabled monitoring, and intelligent rider assistance technologies. On the basis of end user, the market is divided into individual use, commercial use, and institutional use.

Based on price segment, the market is classified into economy, mid segment, and premium. On the basis of distribution channel, the market is segmented into offline dealership and online channel. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia Pacific region dominates the two-wheelers market share and is expected to maintain this position during the forecast period. The booming growth of e-commerce industry in the region led to growing demand for two-wheelers since delivery executives use them to carry out swift and efficient order fulfilment.

According to reports released by IBEF, 2025, India's e-commerce industry attained USD 14 billion in GMV (Gross Merchandise Value) in the 2024 festive season, an increase of 12% from the same period last year. Also, the e-retail market is anticipated to reach more than USD 160 billion by 2028, boosted by increasing online expenditure. Increasing two-wheelers market demand is going to further drive the utilization of motor bikes in the delivery and logistics sector.

Additionally, the increasing need for green mobility and government encouragement towards electric mobility are strongly propelling the two-wheelers industry in the region. With individuals becoming more concerned about air pollution and fuel prices, they are switching very quickly to electric scooters and motorcycles. As per reports published by Guide to Chinese Climate Policy, 2023, more than 325 million electric motor bikes occupied the roads in 2023 alone, with approximately 47 million new ones sold annually in China Republic. The surge represents China's push for sustainable urban transport.

On the other hand, the North American region is anticipated to experience steady growth in the two-wheelers market during the forecast period. With more disposable income, within this region, there are more people opting for two wheeled motors vehicles as an easy and cost-effective transportation option. Based on reports published by the Organization for Economic Co-operation and Development, 2024, Canadian per capita real household income rose 0.6% in a reversal of a 0.5% drop in Q4 2023. With this economic improvement, it is enabling consumers to spend on scooters and motorbikes, pushing the market higher.

Additionally, increased population mobility of this region to urban areas is fueling demand for two-wheelers because they are an economical and convenient means of transport over congested city streets. As per reports published by the Center for Sustainable Systems, 2024, 83% of Americans now live in urban cities, that was 64% in 1950, and are expected to be 89% by 2050. With the increasing rate of urbanization, people are now more likely to ride motorcycles and scooters as they are cheap, efficient in fuel, and easy mode of communication through traffic.

Competitive Landscape

Various key players operating in the two-wheelers industry are Honda Motor Co., Ltd., Hero MotoCorp Ltd., Yamaha Motor Co., Ltd., Yadea Group Holdings Ltd., TVS Motor Company Ltd., Bajaj Auto Ltd., Suzuki Motor Corporation, Loncin Motor Co., Ltd. (Loncin), Chongqing Zongshen Power Machinery Co., Ltd. (Zongshen), QJMOTOR, Eicher Motors Limited (Royal Enfield), NIU Technologies (Niu), Ola Electric Mobility Limited, Piaggio & C. S.p.A. (Piaggio Group), Zhejiang CFMoto Power Co., Ltd. (CFMoto) and others. These companies are adopting various strategies such as product launch and partnership to remain dominant in the market.

For example, in May 2025, Honda Motor Co., Ltd. expanded its premium two-wheeler portfolio in India through the launch of the all-new CB750 Hornet and CB1000 Hornet SP motorcycles. The launch reflects Honda’s strategy to strengthen its presence in the high-performance motorcycle segment by introducing technologically advanced models equipped with enhanced rider features and powerful engine platforms. In addition, Honda recently introduced the NX500 with E-Clutch technology, further emphasizing the company’s focus on improving rider convenience and integrating innovative mobility technologies into its premium product lineup. These developments demonstrate Honda’s continued investment in premiumization and advanced mobility solutions across global motorcycle markets.

Moreover, in 2025, Yamaha Motor Co., Ltd. continued expanding its global premium and connected mobility portfolio by introducing advanced motorcycles and smart scooter technologies across international markets. The company has increasingly emphasized connected riding experiences, fuel-efficient engine technologies, and premium urban mobility solutions to attract younger consumers and performance-oriented riders. Yamaha’s focus on integrating digital technologies, enhanced rider assistance systems, and smart mobility features highlights the broader industry shift toward intelligent and connected two-wheelers.

Key Benefits

• The report provides quantitative analysis and estimations of the two-wheelers market from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future two-wheelers market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the two-wheelers market is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Two-Wheelers Market Key Segments

By Vehicle Type

• Motorcycles

• Scooters

• Mopeds

By Propulsion Type

• Internal Combustion Engine

• Electric

By Engine Capacity and Power

• Internal Combustion Engine Capacity

  • Up to 125 cc

  • 126 cc to 250 cc

  • Above 250 cc

• Electric Vehicle Power and Range

  • Low Power and Range

  • Medium Power and Range

  • High Power and Range

By Technology Level

• Conventional

• Connected and Smart

By End User

• Individual Use

• Commercial Use

• Institutional Use

By Price Segment

• Economy

• Mid Segment

• Premium

By Distribution Channel

• Offline Dealership

• Online Channel

By Region

• North America

  • The U.S

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Honda Motor Co., Ltd.

• Hero MotoCorp Ltd.

• Yamaha Motor Co., Ltd.

• Yadea Group Holdings Ltd.

• TVS Motor Company Ltd.

• Bajaj Auto Ltd.

• Suzuki Motor Corporation

• Loncin Motor Co., Ltd. (Loncin)

• Chongqing Zongshen Power Machinery Co., Ltd. (Zongshen)

• QJMOTOR

• Eicher Motors Limited (Royal Enfield)

• NIU Technologies (Niu)

• Ola Electric Mobility Limited

• Piaggio & C. S.p.A. (Piaggio Group)

• Zhejiang CFMoto Power Co., Ltd. (CFMoto)

Report Scope and Segmentation: