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The two-wheeler industry has long been a cornerstone of personal transportation, especially in developing countries, where affordability, accessibility, and adaptability are key drivers of consumer preference. In India, Southeast Asia, parts of Latin America, and increasingly in Africa, motorcycles and scooters are not just vehicles - they are economic enablers, social equalizers, and lifestyle necessities. The industry’s evolution reflects the broader socio-economic currents shaping global transportation trends, urban development, and sustainability imperatives. This report comes with 10% free customization, enabling you to add data that meets your specific business needs.
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At its core, the two-wheeler segment comprises motorcycles, scooters, mopeds, and electric variants that serve varied purposes - from daily commuting to cargo transport in rural areas, and from leisure riding to last-mile delivery services. What makes two-wheelers unique is their agility and affordability. In densely populated urban zones plagued by traffic congestion, two-wheelers offer a practical alternative to larger vehicles, saving both time and fuel. In rural areas, where road infrastructure is often underdeveloped, motorcycles and mopeds provide vital connectivity. Their low cost of purchase and maintenance has made them a preferred mode of transport for middle- and lower-income groups across regions.
According to the research report “Global Two-wheeler Market Outlook, 2030” the global Two-wheeler 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. The post-pandemic period has highlighted the resilience and significance of the two-wheeler industry. As public transport was curtailed or perceived as risky due to hygiene concerns, demand for personal vehicles surged - especially in the entry-level segment. This shift reignited growth in many markets, reversing the slowdown observed prior to 2020 due to regulatory changes and economic uncertainties.
Moreover, with the proliferation of e-commerce and hyperlocal delivery, two-wheelers have become indispensable for last-mile logistics. This growing demand has encouraged innovation and investment across the industry, from digital financing platforms for vehicle purchase to AI-based fleet management solutions. The rise of electric two-wheelers (E2Ws) marks a pivotal transformation in the industry. Growing environmental concerns, government incentives, and rapid advancements in battery technology have catalyzed a shift toward electric mobility.
Countries like India and China are leading the transition, supported by schemes like FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and subsidies on EV purchases. Startups and legacy players alike are racing to offer electric models that match or exceed traditional vehicles in performance, range, and convenience. While challenges such as charging infrastructure and battery recycling remain, the momentum toward electrification appears irreversible.
Market Drivers
- Rising Urban Congestion and Last-Mile Mobility Needs: In rapidly urbanizing cities across Asia, Africa, and Latin America, traffic congestion and limited parking space have made two-wheelers the preferred mode of transport. Their compact size and maneuverability make them ideal for last-mile connectivity and daily commuting. Moreover, the rise of gig economy services - like food delivery, courier services, and shared mobility - has further fueled demand for efficient, cost-effective, and time-saving transportation solutions, where two-wheelers naturally dominate.
- Affordability and Low Total Cost of Ownership: Compared to four-wheelers, two-wheelers are significantly more affordable in terms of both initial cost and operational expenses. This makes them accessible to a wider segment of the population, especially in developing economies. Fuel efficiency, lower maintenance costs, and now increasing financing options - even for entry-level customers - make two-wheelers a practical investment for personal and commercial purposes alike.
Market Challenges
- Lack of Charging Infrastructure for Electric Two-Wheelers: While electric two-wheelers are gaining traction, one of the most significant barriers to adoption is the absence of a robust charging infrastructure. Range anxiety, limited public charging points, and inconsistent battery swapping networks make potential buyers hesitant. This is particularly challenging in rural and semi-urban areas, where electric mobility could be most transformative but infrastructure remains underdeveloped.
- Stringent Emission and Safety Regulations: Increasingly strict environmental and safety norms across countries are forcing manufacturers to adapt quickly. Upgrades like Bharat Stage VI in India or Euro 5 in Europe demand advanced engine technologies and compliance measures that raise production costs. Similarly, safety mandates like ABS (anti-lock braking systems) or crash regulations add to design complexity and pricing, potentially affecting demand in the price-sensitive segments.
Market Trends
- Electrification and Battery Innovation: One of the most defining trends is the rapid shift toward electric two-wheelers, driven by environmental concerns, rising fuel costs, and government incentives. Innovations in battery technology - such as solid-state batteries, fast-charging, and battery-swapping models - are reshaping product development. Major OEMs and startups alike are heavily investing in expanding electric portfolios, and some markets are even moving toward bans on ICE two-wheelers in the coming decade.
- Digital Integration and Smart Features: The modern two-wheeler is becoming increasingly tech-enabled. Features such as GPS navigation, Bluetooth connectivity, remote diagnostics, anti-theft tracking, and smartphone-linked dashboards are gaining popularity, especially among younger consumers. Telematics and IoT integration are also being used by fleet operators to monitor performance and improve efficiency, signaling a broader transformation from just a mobility product to a connected mobility solution.
Motorcycles hold a leading position in the two-wheeler market due to their powerful combination of speed, fuel efficiency, load-carrying capacity, and adaptability to diverse terrains and user needs. Unlike scooters or mopeds, motorcycles come in a wide range of engine capacities - from 100cc commuter models to 500cc+ performance bikes - allowing manufacturers to cater to a broad customer base across income levels and use cases. In rural and semi-urban areas, motorcycles are often seen as essential utility vehicles, capable of handling unpaved roads, longer travel distances, and heavier loads, including agricultural or delivery goods.
For daily commuters in congested cities, motorcycles offer quicker acceleration and better mileage, which translates to time and cost savings. Moreover, motorcycles are preferred by male riders in many cultures due to their perceived ruggedness, status appeal, and aspirational value, which further fuels demand. Their extended fuel tank range, durability under tough conditions, and compatibility with ride-hailing or delivery services make them a versatile asset not just for personal mobility but also for earning livelihoods.
The < 150cc segment leads the two-wheeler market because it offers the best balance of affordability, fuel efficiency, and practicality for mass-market daily commuting needs.
Two-wheelers with engine capacities below 150cc dominate the market primarily because they cater to the largest segment of consumers - those seeking economical, reliable, and easy-to-maintain transportation for daily use. This segment is especially popular in price-sensitive regions like India, Southeast Asia, and Africa, where a significant portion of the population depends on two-wheelers for commuting to work, school, or running household errands. These vehicles are designed to deliver exceptional fuel efficiency, which is crucial in countries with volatile fuel prices and long travel distances. Their lower upfront cost makes them accessible to first-time buyers, middle-income families, and rural consumers alike.
Maintenance costs are also minimal, making them an attractive long-term investment. Additionally, the < 150cc category includes both motorcycles and scooters, offering buyers a choice based on personal preference, road conditions, and comfort. With rising urban congestion and limited public transportation in many cities, these light-weight, agile vehicles provide an ideal solution for navigating traffic and narrow roads. Manufacturers have also introduced stylish designs and modern features even in the budget segment, making them appealing without sacrificing functionality.
Internal Combustion Engine (ICE) two-wheelers lead the market because of their well-established infrastructure, affordability, and proven performance across diverse geographies and user needs.
ICE two-wheelers continue to dominate the global two-wheeler market primarily due to their long-standing presence, mature supply chain, and user familiarity. Over decades, manufacturers have refined ICE technology to deliver reliable performance, fuel efficiency, and low maintenance costs, making these vehicles a trusted choice for both urban and rural consumers. The supporting ecosystem - including widespread availability of fuel stations, easy access to spare parts, and experienced mechanics - makes ICE vehicles more convenient to own and operate than electric alternatives, especially in remote or underdeveloped areas where charging infrastructure is still lacking.
Furthermore, ICE two-wheelers are available in a wide range of models and price points, allowing consumers to choose vehicles based on power, design, and utility without the premium cost often associated with electric vehicles. For commercial users - like delivery personnel, small business owners, or agricultural workers - ICE bikes and scooters offer longer range and the ability to refuel quickly, minimizing downtime and maximizing productivity. Even as electrification gains momentum, particularly in urban centers, the scalability and immediate practicality of ICE vehicles ensure their continued leadership in the market, especially in emerging economies where affordability and infrastructure readiness still shape purchasing decisions.
The Asia-Pacific (APAC) region leads the two-wheeler market due to its large population, high demand for affordable personal mobility, and strong domestic manufacturing ecosystems.
The Asia-Pacific region dominates the global two-wheeler market because it brings together the perfect mix of massive demand, cost-conscious consumers, and robust industrial capacity. Countries like India, China, Indonesia, Vietnam, and the Philippines have large populations with growing urban centers and insufficient public transportation infrastructure, making two-wheelers an essential mode of daily commuting. In these regions, two-wheelers are not just a convenience but a necessity - providing low-cost, fuel-efficient, and flexible transportation for millions of people across both urban and rural landscapes.
Additionally, APAC is home to some of the world’s largest two-wheeler manufacturers - such as Hero MotoCorp, Honda, Yamaha, Bajaj, and TVS - who have built highly localized and vertically integrated supply chains. This manufacturing strength allows for large-scale production at competitive prices, meeting domestic demand while also supporting exports to other regions. Government policies that support two-wheeler ownership through subsidies, lower taxes, and financing options have further boosted adoption. Cultural factors also play a role - two-wheelers are often the first vehicle owned by young adults or families, seen as a symbol of mobility and economic progress.
- In June 2025, TVS Motor launched the 2025 TVS Apache RTR 200 4V motorcycle, presenting numerous technical upgrades to spot two decades of the Apache brand. The new and advanced model is priced at INR 1,53,990 (ex-showroom Delhi) and will be accessible at TVS dealerships across India.
- In May 2025, Honda achieved a significant global milestone, with its cumulative production of motorcycles and scooters surpassing the 500 million threshold. This accomplishment occurs 76 years after the company initiated mass production in 1949. Looking ahead to 2025, the 500 millionth unit is produced in Honda's largest market, India, and it was none other than the beloved local model Activa.
- In May 2025, Suzuki Motorcycle India Pvt. Ltd. (SMIPL) announced its plan of setting up a new manufacturing facility in Haryana, marking its second plant in the nation. Situated at IMT Kharkhoda, this establishment is in accordance with the government's objective to enhance industrial infrastructure, draw in international investments, and create job opportunities in the area.
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.Table of Contents
1. Executive Summary5. Economic /Demographic Snapshot13. Strategic Recommendations15. Disclaimer
2. Market Dynamics
3. Research Methodology
4. Market Structure
6. Global Two Wheeler Market Outlook
7. North America Two Wheeler Market Outlook
8. Europe Two Wheeler Market Outlook
9. Asia-Pacific Two Wheeler Market Outlook
10. South America Two Wheeler Market Outlook
11. Middle East & Africa Two Wheeler Market Outlook
12. Competitive Landscape
14. Annexure
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Honda Motor Co., Ltd.
- Yamaha Motor Co., Ltd
- Suzuki Motor Corporation
- Kawasaki Heavy Industries Ltd.
- Bayerische Motoren Werke AG
- TVS Motor Company Limited
- KTM AG
- Bajaj Auto Limited
- Hero MotoCorp Limited
- Triumph Motorcycles Ltd
- Harley-Davidson, Inc.
- Zero Motorcycles, Inc.
- Piaggio Group
- SSR Motorsports, Inc.
- Malaguti, SpA
- Torrot Electric Europa S.L.
- SWM Motorcycles
- Vmoto
- Ather Energy Ltd.
- Yadea
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 191 |
| Published | June 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 140.02 Billion |
| Forecasted Market Value ( USD | $ 187.33 Billion |
| Compound Annual Growth Rate | 5.0% |
| Regions Covered | Global |
