Two Wheelers Market Overview, 2025-30

The two-wheeler industry is a significant segment of the global automotive market, encompassing motorcycles, scooters, mopeds, and electric bikes. These vehicles are favored for their affordability, fuel efficiency, and ease of maneuverability, particularly in congested urban areas. They serve as a primary mode of transportation for millions of people worldwide, especially in developing countries where they offer a cost-effective alternative to cars. The history of the two-wheeler industry dates back to the late 19th century with the invention of the first motorized bicycle. Over the decades, two-wheelers have evolved significantly in terms of design, performance, and technology.

The post-World War II era saw a surge in the popularity of motorcycles, particularly in Europe and North America. In Asia, countries like India, China, and Indonesia have become major markets due to their large populations and growing middle class. The global two-wheeler market has been experiencing steady growth, driven by increasing urbanization, rising disposable incomes, and the demand for fuel-efficient vehicles.

According to recent reports, Asia-Pacific dominates the market, accounting for a significant share of global sales. Electric two-wheelers are also gaining traction, fueled by advancements in battery technology and growing environmental concerns. The market is expected to continue its upward trajectory, with projections indicating robust growth in the coming years.

According to the research report “Global Two-wheeler Market Overview, 2025-30” the global market is projected to reach market size of USD 187.33 Billion by 2030 increasing from USD 140.02 Billion in 2024, growing with 5.08% CAGR by 2025-30. Several companies have established themselves as leaders in the two-wheeler industry. Prominent names include Honda, Yamaha, Suzuki, and Kawasaki from Japan, Hero MotoCorp and Bajaj Auto from India, and Harley-Davidson from the United States. These companies invest heavily in research and development to introduce innovative models and stay ahead of the competition. Additionally, new entrants focusing on electric vehicles, such as Tesla and various startups, are reshaping the industry landscape.

Technological advancements have played a crucial role in the evolution of two-wheelers. Modern bikes come equipped with advanced features such as anti-lock braking systems (ABS), traction control, and ride-by-wire throttles. The integration of Internet of Things (IoT) technology has enabled the development of smart bikes with connectivity features, including GPS navigation, Bluetooth connectivity, and mobile app integration. Electric two-wheelers are at the forefront of innovation, offering eco-friendly alternatives with zero emissions and lower operating costs. The environmental impact of traditional internal combustion engine (ICE) two-wheelers has prompted the industry to explore sustainable alternatives.

Electric two-wheelers have emerged as a viable solution, reducing carbon emissions and dependence on fossil fuels. Governments around the world are implementing stricter emissions regulations and offering incentives to promote the adoption of electric vehicles (EVs). Additionally, manufacturers are focusing on developing more efficient and environmentally friendly production processes.

Market Drivers

• Urbanization and Traffic Congestion: Rapid urbanization has led to increased traffic congestion in many parts of the world. Two-wheelers offer a practical solution due to their smaller size and greater maneuverability, making them ideal for navigating through congested streets.
• Economic Affordability: Two-wheelers are more affordable than cars, both in terms of initial purchase price and ongoing maintenance costs. This affordability makes them accessible to a wider range of consumers, particularly in emerging markets where disposable incomes may be lower.

Market Challenges

• Regulatory and Emission Standards: Governments are implementing stricter emission norms to combat pollution, posing a challenge for manufacturers to comply while maintaining cost-effectiveness. The transition to electric vehicles also requires significant investment in new technologies and infrastructure.
• Safety Concerns: Safety remains a major challenge as riders are more vulnerable to accidents compared to car occupants. Continuous improvement in safety features, rider education, and road infrastructure is necessary to enhance rider safety.

Market Trends

• Electric Mobility: The shift towards electric two-wheelers is driven by environmental concerns and advancements in battery technology. Electric scooters and bikes are gaining popularity due to their lower operating costs, reduced emissions, and government incentives.
• Connectivity and Smart Features: The integration of IoT and smart technology is transforming two-wheelers into connected vehicles. Features such as GPS navigation, Bluetooth connectivity, and mobile app integration are becoming more common, enhancing the overall riding experience and providing added convenience and safety for riders.

Motorcycles dominate the two-wheeler market primarily due to their superior power, durability, and adaptability across diverse terrains and usage needs.

Motorcycles lead the global two-wheeler market because they offer a unique balance of speed, power, and rugged performance that appeals to a wide range of users from urban commuters to rural transporters, delivery workers, and long-distance riders. Unlike scooters, which are generally optimized for smooth city roads and short distances, motorcycles are designed to withstand tougher road conditions, carry heavier loads, and travel longer distances with greater fuel efficiency and engine endurance. In developing regions such as Asia, Africa, and South America, motorcycles serve as a lifeline for mobility and income, enabling millions to access work, healthcare, education, and delivery-based employment.

Their manual gear system and stronger suspension make them particularly suited for uneven terrains, hilly regions, and rural infrastructure where road quality is inconsistent. Additionally, motorcycles often come with a wider range of engine capacities from 100cc to over 500cc catering to both entry-level buyers and premium sports or touring segments, thereby expanding their market appeal. Manufacturers also benefit from low production costs, high resale value, and widespread repair infrastructure, which further boosts their demand.

The < 150cc two-wheeler segment leads the market due to its affordability, fuel efficiency, and suitability for daily commuting in urban and semi-urban areas.

Two-wheelers with engine capacities below 150cc dominate the market because they strike the ideal balance between cost-effectiveness, practicality, and performance for everyday use. These vehicles are primarily targeted at budget-conscious consumers, especially in densely populated and developing regions where motorcycles and scooters are essential for personal mobility. The lower engine displacement ensures high fuel efficiency, making them extremely economical for daily commuting over short to moderate distances.

Additionally, the initial purchase price, maintenance costs, and insurance premiums are significantly lower compared to higher-displacement models, making them highly attractive to first-time buyers, students, working professionals, and delivery workers. Their lightweight design and ease of maneuverability make them particularly well-suited for navigating through traffic congestion in cities and towns.

In countries like India, Indonesia, Vietnam, and parts of Africa and South America, this segment forms the backbone of the two-wheeler industry, supported by a strong ecosystem of local manufacturers, service centers, and financing options. Moreover, many popular scooter and entry-level motorcycle models fall under this category, offering a mix of style, technology, and comfort that appeals to a wide demographic.

Internal Combustion Engine (ICE) two-wheelers dominate the market due to their established infrastructure, lower upfront costs, and widespread consumer familiarity.

ICE-powered two-wheelers continue to lead the global market because they benefit from a deeply entrenched ecosystem of production, distribution, fueling, and servicing that has been built and optimized over decades. Consumers across both developed and developing economies are more familiar and comfortable with ICE vehicles, as they are widely available, easy to refuel, and supported by extensive service networks even in rural or remote areas.

Unlike electric two-wheelers, which often require dedicated charging infrastructure and are limited by battery range, ICE vehicles offer longer range, quicker refueling, and better performance in terms of power and load-carrying ability factors especially important for commercial uses like delivery and long-distance travel. Additionally, ICE models come in a broad price spectrum, but the entry-level models are typically cheaper than their electric counterparts, particularly in regions where government incentives for electric mobility are still lacking or ineffective.

The global manufacturing scale and supply chain for ICE components from engines to fuel systems also result in economies of scale that electric two-wheelers have yet to fully match. In many emerging markets, where cost sensitivity and infrastructure limitations are major concerns, ICE two-wheelers remain the most practical and dependable mobility option, ensuring their continued market dominance despite the rise of electric alternatives.

The Asia-Pacific region is leading in the two-wheeler market primarily due to its high population density and rapid urbanization, which create a significant demand for affordable and efficient personal transportation solutions.

The Asia-Pacific region stands as a dominant force in the global two-wheeler market due to several intertwined factors, with high population density and rapid urbanization being paramount. Countries like India, China, and Indonesia have densely populated urban centers where public transportation infrastructure often falls short of meeting commuter needs. This gap is effectively filled by two-wheelers, which offer an affordable, flexible, and efficient mode of transport. The economic factor plays a crucial role, as two-wheelers are significantly more affordable than cars, making them accessible to a broader segment of the population, including the burgeoning middle class.

Additionally, the inadequate public transport infrastructure in many parts of the region necessitates personal transportation solutions. Cultural preferences also favor two-wheelers, given their ability to maneuver through heavy traffic and narrow roads, which are common in densely populated cities. Furthermore, supportive government policies and incentives, particularly for electric vehicles, boost the market growth. The presence of major manufacturers and a well-established supply chain within the region also contribute to its leadership position by ensuring cost-effective production and distribution.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Two Wheelers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Motorcycle
• Scooters
• Electric Two-Wheeler
• Mopeds

By Engine Capacity

• < 150 CC
• 151 -400 CC
• 401- 800CC
• > 801 CC

By Price

• ICE
• Electric

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.