The australian two-wheeler market size is expected to grow from USD 0.86 billion in 2025 to USD 0.89 billion in 2026, and is forecast to reach USD 1.17 billion by 2031, at a 5.66% CAGR over 2026-2031. This report is Segmented by Vehicle Type (Scooters, Mopeds, and More), Technology (ICE by Engine Capacity, Electric by Motor Power), Transmission (Manual, Automatic/CVT), Fuel Type (Petrol, Electric, and CNG / LPG), Distribution Channel (Offline Dealers, Online Platforms), End User (Personal, Commercial/Fleet), and Region. Market Forecasts are Provided in Value (USD) and Volume (Units).
Other drivers and restraints analyzed in the detailed report include:
In 2025, scooters, though occupying a smaller segment, outpaced the broader market. This surge was driven by office workers in Sydney and Melbourne who favored features such as automatic transmissions, under-seat storage, and lower seat heights. While mopeds cater to a niche audience, they have found favor among delivery couriers seeking options that don't require a license. Honda's 2026 launch of the E-Clutch, enabling clutch-less shifting on conventional motorcycles, is set to broaden the appeal of the Australian two-wheeler market, drawing in a more comfort-oriented demographic.
In 2025, internal-combustion formats dominated sales, accounting for 92.15%. Commuter machines largely drove this in the 100-125 cc and 126-180 cc categories, which consume 3 L/100 km. Meanwhile, electric models are on the rise, boasting a 12.48% CAGR. This growth is fueled by ACT loans and Queensland rebates, which help reduce the cost gap between electric and internal-combustion models. While charging infrastructure is primarily urban, hindering regional adoption, the electric scooter segment in Australia's two-wheeler market is expanding, especially as courier fleets experiment with subscription bundles.
The 4-15 kW power range suits daily city commutes of 80-150 km. Zero Motorcycles, targeting enthusiasts ready to invest in high-performance models, operates above 15 kW, though its shipment volumes remain limited. The growth of internal combustion engines (ICE) will depend on compliance with the New Vehicle Efficiency Standard, pushing OEMs towards cleaner engines, even as battery prices continue to decline.
Australia Two-Wheeler Market Trends and Insights
Rising Urban Congestion and Parking Scarcity
Sydney, Melbourne, and Brisbane are experiencing heavier traffic and fewer curb-side spaces, prompting commuters to adopt motorcycles and scooters that occupy one-third the footprint of a passenger car . As parking fees in the CBD remain high, the allure of scooters intensifies. By 2025, scooter registrations are expected to grow, even as overall deliveries face challenges. Additionally, two-wheelers are poised to benefit from upcoming road-user charging schemes, which will impose penalties on heavier vehicles. With the rise of hybrid work patterns, there's a growing preference for flexible, point-to-point trips, further establishing the Australian two-wheeler market as a viable alternative to public transit.Escalating Fuel Prices and Cost-Sensitive Commuters
Even after an excise cut implemented in 2026, petrol price fluctuations remain a significant concern for households. Motorcycles, which are more fuel-efficient than light cars, offer notable annual savings on fuel costs. Furthermore, the OECD's push for increased fuel taxes would amplify these cost benefits for two-wheeler users. As a result, families in Queensland and Western Australia are increasingly opting to replace their second car with a two-wheeler.Stringent Rider Licensing and Safety Regulations
In Australia, graduated schemes stretch the path to an unrestricted license over several years. They enforce a strict zero-blood-alcohol-content rule and limit power-to-weight ratios. Riders under a certain age are required to complete mandatory training courses and pay higher insurance excesses. As a result, first-year ownership costs are significantly high. These stringent measures stand in stark contrast to the lenient rules governing unlicensed e-scooters, diverting potential entrants away from the Australian two-wheeler market.Other drivers and restraints analyzed in the detailed report include:
- Recreational off-Road Motorcycling Culture
- Government Rebates for EV Two-Wheelers
- Competitive Pricing of Micro-Cars & Utes
Segment Analysis
Motorcycles secured 64.38% of the Australian two-wheeler market share in 2025 and are on track for 6.51% CAGR through 2031, due to broad use cases spanning urban commuting, highway touring, and weekend trail riding. Yamaha's dominance in the adventure, motocross, and street bike categories highlights its appeal to both novice and premium riders. This growth is further fueled by Western Australia's off-road culture, where premium adventure bikes significantly enhance dealer margins.In 2025, scooters, though occupying a smaller segment, outpaced the broader market. This surge was driven by office workers in Sydney and Melbourne who favored features such as automatic transmissions, under-seat storage, and lower seat heights. While mopeds cater to a niche audience, they have found favor among delivery couriers seeking options that don't require a license. Honda's 2026 launch of the E-Clutch, enabling clutch-less shifting on conventional motorcycles, is set to broaden the appeal of the Australian two-wheeler market, drawing in a more comfort-oriented demographic.
In 2025, internal-combustion formats dominated sales, accounting for 92.15%. Commuter machines largely drove this in the 100-125 cc and 126-180 cc categories, which consume 3 L/100 km. Meanwhile, electric models are on the rise, boasting a 12.48% CAGR. This growth is fueled by ACT loans and Queensland rebates, which help reduce the cost gap between electric and internal-combustion models. While charging infrastructure is primarily urban, hindering regional adoption, the electric scooter segment in Australia's two-wheeler market is expanding, especially as courier fleets experiment with subscription bundles.
The 4-15 kW power range suits daily city commutes of 80-150 km. Zero Motorcycles, targeting enthusiasts ready to invest in high-performance models, operates above 15 kW, though its shipment volumes remain limited. The growth of internal combustion engines (ICE) will depend on compliance with the New Vehicle Efficiency Standard, pushing OEMs towards cleaner engines, even as battery prices continue to decline.
Complete Report Scope:
- By Vehicle Type
- Scooters
- Mopeds
- Motorcycles
- By Technology
- Internal Combustion Engine (ICE)
- By Engine Capacity
- Below 100 cc
- 100 - 125 cc
- 126 - 180 cc
- 181 - 250 cc
- 251 - 500 cc
- 501 - 800 cc
- 801 - 1600 cc
- Above 1600 cc
- By Engine Capacity
- Electric
- By Motor Power (kW)
- Below 4 kW
- 4 - 7 kW
- 7 - 15 kW
- Above 15 kW
- By Motor Power (kW)
- Internal Combustion Engine (ICE)
- By Transmission
- Manual
- Automatic / CVT
- By Fuel Type
- Petrol
- Electric
- CNG / LPG
- By Distribution Channel
- Offline Dealers
- Online Platforms
- By End User
- Personal
- Commercial / Fleet
- By Region (States and Territories)
- ACT and New South Wales
- Victoria and Tasmania
- Queensland
- Northern Territory and South Australia
- Western Australia
List of Companies Covered in this Report:
- Yamaha Motor Co., Ltd.
- Honda Motor Co., Ltd.
- Kawasaki Heavy Industries, Ltd.
- Suzuki Motor Corporation
- Harley-Davidson, Inc.
- KTM AG
- BMW Motorrad
- Ducati Motor Holding S.p.A
- Triumph Motorcycles Ltd.
- Royal Enfield (Eicher Motors)
- Indian Motorcycle
- CFMoto
- Piaggio Group
- Vmoto Ltd.
- Fonzarelli Pty Ltd
- Zero Motorcycles, Inc.
- Kymco
- Sanyang Motor Co., Ltd.
- Segway-Ninebot
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 Introduction
4 Market Landscape
5 Market Size & Growth Forecasts (Value (USD) and Volume (Units))
6 Competitive Landscape
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Yamaha Motor Co., Ltd.
- Honda Motor Co., Ltd.
- Kawasaki Heavy Industries, Ltd.
- Suzuki Motor Corporation
- Harley-Davidson, Inc.
- KTM AG
- BMW Motorrad
- Ducati Motor Holding S.p.A
- Triumph Motorcycles Ltd.
- Royal Enfield (Eicher Motors)
- Indian Motorcycle
- CFMoto
- Piaggio Group
- Vmoto Ltd.
- Fonzarelli Pty Ltd
- Zero Motorcycles, Inc.
- Kymco
- Sanyang Motor Co., Ltd.
- Segway-Ninebot
