Two-Wheeler Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Two-Wheeler Market Analysis

The Two-Wheeler Market size is estimated at 706 billion USD in 2025, and is expected to reach 777.2 billion USD by 2029, growing at a CAGR of 2.43% during the forecast period (2025-2029).

The global two-wheeler industry is experiencing significant transformation driven by technological advancements and changing consumer preferences. Major manufacturers are investing heavily in research and development to enhance their product offerings and maintain a competitive advantage. This is evidenced by substantial investments in the sector, such as Toyota's USD 1.29 billion commitment to a battery manufacturing facility in North Carolina, announced in December 2022. The industry landscape is dominated by established players, with Honda Motor Co. Ltd. maintaining its position as the market leader with approximately 26.5% global market share in 2023, demonstrating the concentrated nature of market leadership among traditional manufacturers.

Manufacturing dynamics are evolving rapidly with an increased focus on sustainable production methods and electric two-wheeler technology. The industry has witnessed remarkable progress in battery technology, with lithium-ion battery prices declining by approximately 80% over the past decade, reaching around USD 220 per kilowatt-hour. This significant reduction in battery costs has made electric two-wheelers more commercially viable and attractive to consumers. Major automotive companies are forming strategic partnerships to strengthen their position in the electric vehicle segment, exemplified by Ford and SK Innovations' USD 11.4 billion investment in manufacturing facilities in Tennessee and Kentucky.

Consumer preferences are increasingly shifting toward environmentally conscious transportation solutions, particularly in urban areas where two-wheelers offer practical mobility solutions. The market is witnessing a growing demand for electric and hybrid models, especially in developed regions where environmental regulations are more stringent. This shift is supported by the global average gasoline price of USD 1.22 per liter in 2022, which has prompted consumers to consider more fuel-efficient alternatives. The industry is responding to these changing preferences by introducing innovative features and smart connectivity options in newer models, including electric motorcycles and scooters.

The future outlook for the two-wheeler market is characterized by accelerating technological innovation and sustainability initiatives. Manufacturers are increasingly focusing on developing advanced electric powertrains, lightweight materials, and enhanced safety features. The industry is witnessing a significant transformation in its supply chain, with companies establishing regional manufacturing hubs to ensure better market responsiveness and cost efficiency. This evolution is particularly evident in the electric two-wheeler segment, where continued technological advancements and increasing consumer acceptance are driving growth. The market is expected to see further integration of digital technologies, including connected vehicle features and advanced diagnostic capabilities, enhancing the overall riding experience and vehicle maintenance.

Global Two-Wheeler Market Trends

The rising global demand and government support propel electric vehicle market growth

• Electric vehicles (EVs) have become indispensable in the automotive industry, driven by their potential to enhance energy efficiency and reduce greenhouse gas and pollution emissions. This surge is primarily attributed to growing environmental concerns and supportive government initiatives. Notably, global EV sales witnessed a robust 10.82% growth in 2022 compared to 2021. Projections indicate that annual sales of electric passenger cars will surpass 5 million by the end of 2025, accounting for approximately 15% of total vehicle sales.
• Leading manufacturers and organizations, like the London Metropolitan Police & Fire Service, have been actively pursuing their electric mobility strategies. For instance, they have set a target of a zero-emission fleet by 2025, with a goal of electrifying 40% of their vans by 2030 and achieving full electrification by 2040. Similar trends are expected globally, with the period from 2024 to 2030 witnessing a surge in demand and sales of electric vehicles.
• Asia-Pacific and Europe are poised to dominate electric vehicle production, driven by their advancements in battery technology and vehicle electrification. In May 2020, Kia Motors Europe unveiled its "Plan S," signaling a strategic shift toward electrification. This decision came on the heels of record-breaking sales of Kia's EVs in Europe. Kia has ambitious plans to introduce 11 EV models globally by 2025, spanning various segments like passenger vehicles, SUVs, and MPVs. The company aims to achieve annual global EV sales of 500,000 by 2026.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• Africa's demographic evolution demonstrates consistent growth with a notable acceleration in recent years
• Countries like Australia, India, and Indonesia project a steady upward trajectory in GDP per capita, suggesting robust economic strategies and potential investment in the automotive industries
• Several European countries are facing population declines, while others are growing, indicating a need for targeted policy interventions
• Saudi Arabia and UAE, both pivotal nations in the Middle East, demonstrated population growth from 2017 to 2023. While there were slight dips for both countries in between, the overarching upward trend indicates their significant roles and attractions in the region
• North America's demographic story highlights steady growth and adaptability, with each nation contributing uniquely to the region's vibrant mosaic, underlining its continued global significance
• South America's demographic narrative, represented by Brazil and Colombia, showcases a story of consistent growth, with Brazil experiencing a pronounced surge
• Despite a GDP per capita decline in 2022-2023, Africa shows potential for future economic stability through trade agreements and infrastructure development
• Asia-Pacific displays a panorama of economic evolution: from the relentless pursuits of emerging economies to the recalibrations of established ones, painting a picture of resilience, adaptation, and ambition
• Europe's GDP per capita is on track for steady growth, reflecting resilience and strategic policies
• Projections for the coming years indicate a steady growth trajectory for both the UAE's diversified sectors and its role as a regional business hub. This growth can be attributed to the country's focus on diversification efforts and strategic partnerships
• Despite challenges in 2020, by 2023, the US experienced growth, Mexico displayed a robust recovery, while Canada witnessed a dip
• During 2017-2030, Brazil and Colombia displayed contrasting economic paths. While both faced downturns around 2020, Brazil's GDP per capita showed recovery by 2023, whereas Colombia witnessed a slight decline
• South Africa's consumer vehicle population shows signs of stabilization
• The Asia-Pacific's diverse consumer spending trends on vehicle purchases not only reflect the region's evolving economic conditions but also highlight the shifting consumer preferences and vehicular market dynamics across countries
• European countries are experiencing growth in CVP, driven by government incentives for eco-friendly vehicles
• In the short term (2022-2023), Saudi Arabia maintained stable consumer spending for vehicle purchases, while the UAE experienced a slight decline, suggesting differing market dynamics
• North America exhibits diverse trends in CVP, with Canada experiencing a slight decrease, the US seeing an increase, and Mexico showing significant growth
• Brazil and Colombia are expected to see an increase in consumer spending for vehicle purchases (CVP), indicating a recovering automotive market and growing consumer confidence
• South Africa, Kenya, and Morocco exhibit declining inflation rates, while Nigeria faces a sharp inflation increase
• Asia-Pacific’s varied inflation rates reflect the diverse economic challenges and responses of each nation, from battling pandemic-induced fluctuations to aiming for future stability through strategic economic policies
• Europe is poised for economic stability, with concerted efforts to manage inflation and foster a balanced economic landscape
• From 2017 to 2030, the Middle East is expected to display varied inflationary patterns, with countries like Iran facing significant challenges, while others like Saudi Arabia and the UAE expected to show stability
• From 2017 to 2023, North America, particularly countries like the US and Canada, navigated inflationary spikes, especially post-pandemic in 2022
• Projections indicate a trend toward economic stabilization and controlled inflation in the region, highlighting a concerted push to restore equilibrium and foster growth
• Auto interest rates across Africa, Asia-Pacific, and North America showed significant regional diversity, influenced by a combination of economic policies, market dynamics, and global conditions
• Global efforts to expand and enhance EV infrastructure are signaling a collective push toward electrification
• Battery pack prices in Africa continued to decline from USD 186 in 2022 to USD 176 in 2023, driven by technological advancements and increased market competition
• The demand for EVs in Asia-Pacific is fueled by falling battery prices
• Declining battery prices and government initiatives drive demand for electric vehicles in Europe
• The Middle East's battery market: A continuous descent in prices and promising energy trends
• Declining prices of lithium-ion batteries drive the demand for electric vehicles in North America
• South America’s surging demand for electric vehicle batteries: falling costs and strategic alliances
• The global automotive industry will undergo a transformative phase, with a pronounced shift toward electrification from 2023 to 2025, followed by a period of refinement and consolidation in the subsequent years
• For over a year, Russia's invasion of Ukraine disrupted global crude oil and petroleum product markets

Segment Analysis: Propulsion Type

ICE Segment in Global Two-Wheeler Market

The Internal Combustion Engine (ICE) segment continues to dominate the global two-wheeler market, commanding approximately 76% market share in 2024. This substantial market presence is attributed to the segment's well-established manufacturing infrastructure, widespread availability of fuel stations, and consumer familiarity with traditional combustion engines. The segment's strength is particularly evident in emerging markets where factors such as lower initial purchase costs, established maintenance networks, and proven reliability continue to drive consumer preference. Additionally, recent technological advancements in ICE engines have led to improved fuel efficiency and reduced emissions, helping maintain their appeal despite growing environmental concerns.

Hybrid and Electric Vehicles Segment in Global Two-Wheeler Market

The Hybrid and Electric Vehicles segment is experiencing remarkable growth, projected to expand at approximately 17% during 2024-2029. This impressive growth trajectory is driven by increasing environmental consciousness, government incentives for electric two-wheelers adoption, and significant improvements in battery technology and charging infrastructure. Manufacturers are introducing innovative features such as enhanced range capabilities, faster charging times, and smart connectivity options, making these vehicles more attractive to consumers. The segment's growth is further supported by urbanization trends, rising fuel costs, and stringent emission regulations across major markets, positioning hybrid and electric two-wheelers as sustainable mobility solutions for the future.

Remaining Segments in Propulsion Type

The pure electric segment represents a distinct category in the two-wheeler market, offering zero-emission vehicles that cater to environmentally conscious consumers and markets with strict emission regulations. This segment is characterized by continuous innovations in battery technology, motor efficiency, and charging solutions. While currently representing a smaller portion of the market compared to ICE and hybrid vehicles, pure electric two-wheelers are gaining traction in urban areas where charging infrastructure is more developed and government incentives are strongest. The segment's growth is complemented by increasing consumer awareness about environmental issues and the overall shift towards sustainable transportation solutions, including the rise of electric motorcycles and electric scooters.

Two-Wheeler Market Geography Segment Analysis

Two-Wheeler Market in Africa

The African two-wheeler market demonstrates significant regional variations in consumer preferences and market dynamics. South Africa leads the region's premium segment with a strong presence of international brands and a well-developed dealer network. The rest of Africa shows increasing adoption of two-wheelers as essential transportation, particularly in urban areas where they provide an affordable mobility solution. Infrastructure development and urbanization across the continent are driving market expansion, while growing environmental awareness is gradually shifting interest toward electric two-wheelers in major cities.

Two-Wheeler Market in South Africa - Regional Leader

South Africa dominates the African two-wheeler market share, holding approximately 40% of the regional market share in 2024. The country's market is characterized by a diverse product range, from entry-level commuter bikes to premium motorcycles. Urban centers like Johannesburg and Cape Town show particularly strong demand, supported by a robust financing ecosystem and established service networks. The market benefits from the country's relatively advanced infrastructure and higher disposable incomes compared to other African nations. Local dealerships and distribution networks have expanded significantly, offering both new and used two-wheelers to cater to different consumer segments.

Two-Wheeler Market in South Africa - Growth Leader

South Africa is also the fastest-growing market in the region, with a projected growth rate of approximately 5% from 2024 to 2029. This growth is driven by increasing urbanization and the rising need for cost-effective transportation solutions. The country's expanding middle class and growing interest in recreational motorbikes contribute to market momentum. Government initiatives to improve road infrastructure and promote sustainable transportation options are creating favorable conditions for market expansion. The emergence of new financing options and the introduction of electric two-wheelers are expected to further accelerate market growth.

Two-Wheeler Market in Asia-Pacific

The Asia-Pacific two-wheeler market represents a diverse landscape with varying consumer preferences and market maturity levels across countries. China and India dominate the regional market with their massive production capabilities and domestic demand. Japan and South Korea lead in technological innovation, particularly in electric two-wheelers, while emerging markets like Indonesia and Thailand show strong growth potential. The region's market is characterized by a mix of utilitarian use in developing countries and recreational riding in more developed nations.

Two-Wheeler Market in China - Regional Leader

China maintains its position as the largest two-wheeler market in Asia-Pacific, commanding approximately 45% of the regional market share in 2024. The country's market is driven by its vast urban population and well-developed manufacturing infrastructure. Chinese manufacturers have established strong domestic and international presence, offering a wide range of products from basic commuter vehicles to premium electric two-wheelers. The market benefits from extensive government support for electric mobility and a comprehensive supply chain ecosystem that enables competitive pricing and rapid product development.

Two-Wheeler Market in India - Growth Leader

India emerges as the fastest-growing market in Asia-Pacific, with an expected growth rate of approximately 5% from 2024 to 2029. The Indian two-wheeler market is driven by a young demographic, rising disposable incomes, and increasing urbanization. Government initiatives promoting electric mobility and improving road infrastructure contribute to market expansion. The presence of major global manufacturers and strong domestic players creates a competitive environment that drives innovation and product development. Rural market penetration and the growing adoption of electric two-wheelers are expected to sustain this growth momentum.

Two-Wheeler Market in Europe

The European two-wheeler market exhibits sophisticated consumer preferences with a strong focus on premium segments and environmental sustainability. Countries like France, Germany, and the UK lead in market development, while Eastern European nations show emerging potential. The region's strict emission regulations and urban mobility challenges drive innovation in electric two-wheelers. The market benefits from well-developed infrastructure and a strong recreational riding culture across countries.

Two-Wheeler Market in France - Regional Leader

France stands as the largest two-wheeler market in Europe, characterized by a strong urban mobility culture and growing environmental consciousness. The country's market benefits from extensive government support for sustainable transportation and well-developed infrastructure. Urban centers like Paris lead in two-wheeler adoption, supported by favorable policies and expanding charging networks for electric vehicles. The market shows a balanced mix of commuter vehicles and recreational motorcycles, with strong dealer networks and after-sales support.

Two-Wheeler Market in France - Growth Leader

France also leads European market growth, driven by increasing adoption of electric two-wheelers and supportive government policies. The country's urban mobility challenges and environmental goals create strong incentives for two-wheeler adoption. Investment in charging infrastructure and urban planning favorable to two-wheelers supports market expansion. The growing popularity of shared mobility services and increasing interest in sustainable transportation options contribute to market momentum.

Two-Wheeler Market in Middle East

The Middle Eastern two-wheeler market shows distinct characteristics across different countries, with the UAE and Saudi Arabia leading in premium segment adoption. The region's market is influenced by extreme weather conditions and varying regulatory frameworks across countries. While recreational riding dominates in Gulf countries, practical commuting purposes drive demand in other parts of the region. The UAE leads both in market size and growth rate, benefiting from advanced infrastructure and strong purchasing power, while also showing increasing interest in electric two-wheelers.

Two-Wheeler Market in North America

The North American two-wheeler market is characterized by a strong recreational riding culture and growing interest in premium segments. The United States dominates the regional market, followed by Canada and Mexico, each with distinct consumer preferences and market dynamics. The region shows increasing adoption of electric two-wheelers, particularly in urban areas, with Canada emerging as the fastest-growing market. The presence of major global manufacturers and strong dealer networks supports market development across all three countries.

Two-Wheeler Market in South America

The South American two-wheeler market demonstrates strong growth potential, with Brazil leading both in market size and growth rate. Argentina and other countries show varying levels of market development, influenced by economic conditions and infrastructure development. The region's market is primarily driven by practical transportation needs, particularly in urban areas with traffic congestion. Growing environmental awareness and improving economic conditions support the gradual adoption of electric two-wheelers across the region.