Market Size of two-wheeler Industry
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 673 Billion |
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Market Size (2030) | USD 759 Billion |
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Largest Share by Propulsion Type | ICE |
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CAGR (2024 - 2030) | 2.02 % |
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Largest Share by Region | Asia-Pacific |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Two-Wheeler Market Analysis
The Two-Wheeler Market size is estimated at 673 billion USD in 2024, and is expected to reach 759 billion USD by 2030, growing at a CAGR of 2.02% during the forecast period (2024-2030).
673 Billion
Market Size in 2024 (USD)
759 Billion
Market Size in 2030 (USD)
4.53 %
CAGR (2017-2023)
2.02 %
CAGR (2024-2030)
Largest Segment by Propulsion Type
78.03 %
value share, ICE, 2023
ICE two-wheelers dominate due to their affordability, widespread availability, and well-established refueling infrastructure, making them popular globally.
Fastest-growing Segment by Propulsion Type
9.94 %
Projected CAGR, Hybrid and Electric Vehicles, 2024-2030
Electric two-wheelers are the fastest-growing due to government incentives, rising fuel prices, and increasing consumer awareness of the benefits of sustainable transportation options.
Fastest-growing Segment by Region
15.15 %
Projected CAGR, Europe, 2024-2030
Europe leads in growth due to strong government support for sustainable transportation, extensive charging infrastructure, and increasing consumer preference for eco-friendly vehicles.
Largest Segment by Country
51.79 %
value share, China, 2023
China leads the two-wheeler market due to its large population, significant manufacturing capacity, and high consumer demand for affordable and efficient personal transportation.
Leading Market Player
26.50 %
market share, Honda Motor Co. Ltd., 2023
Honda Motorcycles is the largest market player in the global two-wheeler market with a share of around 23% globally. Honda has invested $5.4 billion dollars in 2021 in Research and development across all countries.
The rising GDP and per capita income in developing nations bolsters the global demand for two-wheelers
- The global two-wheeler market is projected to register a CAGR of 25.08% from 2022 to 2028. The surge in e-commerce and shared micro-mobility services, particularly in emerging economies like China and India, is fueling the adoption of two-wheelers in urban areas. With their pocket-friendly prices and app-based convenience, two-wheelers are attracting a growing customer base.
- Moreover, the rising GDP and per capita income in developing nations are bolstering the global demand for two-wheelers. This surge in income has created a substantial consumer class, driving overall consumption. Notably, the per capita disposable income in rural areas of countries like India, Thailand, and Indonesia is expected to witness rapid growth.
- The mounting concerns over vehicular emissions have prompted governments worldwide to tighten regulations. Automotive manufacturers are increasingly prioritizing weight reduction to enhance fuel efficiency. Electric vehicles (EVs) are gaining traction in many developing economies as a means to curb emissions. Governments are incentivizing EV adoption through subsidies and tax exemptions. For instance, in India, the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) program offers subsidies of INR 10,000 per kWh of battery capacity for electric two-wheeler buyers. The FAME initiative allocated INR 2,000 crore to support the sale of nearly 1 million electric two-wheelers by March 2022.
Global two-wheeler trends vary: Asia leads in volume, the West prefers luxury, and emerging regions show mixed growth
- In Asia-Pacific, the two-wheeler market is highly dynamic. It is the largest in the world due to the high population density, particularly in countries like India, China, and Southeast Asia. Motorcycles and scooters are popular due to their affordability, fuel efficiency, and convenience in navigating congested urban areas. This region has a robust local manufacturing base, strong supply chains, and supportive government policies encouraging two-wheeler use. Additionally, electric two-wheelers are gaining traction in this market, driven by increasing awareness of environmental issues, government incentives for electric vehicles, and advancements in battery technology.
- Contrastingly, in North America and Europe, the two-wheeler market is often seen as a segment for enthusiasts rather than a necessity. These regions exhibit a strong preference for higher-powered motorcycles over scooters or mopeds. The market is characterized by a demand for luxury and sports motorcycles, with companies like Harley-Davidson, BMW, and Ducati enjoying significant brand loyalty. Environmental considerations and urban mobility solutions are reshaping the market, with an increasing shift toward electric and hybrid models. European cities, particularly, are fostering this shift with stringent emission regulations and incentives for electric vehicle purchases.
- The Rest of the World, encompassing South America, Africa, and the Middle East, shows a mixed pattern. In South America, motorcycles are essential for urban and rural transportation, similar to Asia-Pacific, though the market is smaller. Africa's two-wheeler market is growing, driven by the need for affordable transportation amid expanding urbanization and improving road infrastructure.
Two-Wheeler Industry Segmentation
Electric, Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type. Africa, Asia-Pacific, Europe, Middle East, North America, South America are covered as segments by Region.
- The global two-wheeler market is projected to register a CAGR of 25.08% from 2022 to 2028. The surge in e-commerce and shared micro-mobility services, particularly in emerging economies like China and India, is fueling the adoption of two-wheelers in urban areas. With their pocket-friendly prices and app-based convenience, two-wheelers are attracting a growing customer base.
- Moreover, the rising GDP and per capita income in developing nations are bolstering the global demand for two-wheelers. This surge in income has created a substantial consumer class, driving overall consumption. Notably, the per capita disposable income in rural areas of countries like India, Thailand, and Indonesia is expected to witness rapid growth.
- The mounting concerns over vehicular emissions have prompted governments worldwide to tighten regulations. Automotive manufacturers are increasingly prioritizing weight reduction to enhance fuel efficiency. Electric vehicles (EVs) are gaining traction in many developing economies as a means to curb emissions. Governments are incentivizing EV adoption through subsidies and tax exemptions. For instance, in India, the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) program offers subsidies of INR 10,000 per kWh of battery capacity for electric two-wheeler buyers. The FAME initiative allocated INR 2,000 crore to support the sale of nearly 1 million electric two-wheelers by March 2022.
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| Electric | |
| Hybrid and Electric Vehicles | |
| ICE |
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Two-Wheeler Market Size Summary
The two-wheeler market is experiencing significant growth, driven by factors such as the rise of e-commerce and shared micro-mobility services, particularly in emerging economies like China and India. These regions are witnessing increased adoption of two-wheelers due to their affordability and convenience, supported by rising GDP and per capita income. The market is also influenced by environmental concerns, prompting governments worldwide to implement stricter regulations on vehicular emissions. This has led to a focus on electric vehicles (EVs), with incentives like subsidies and tax exemptions encouraging their adoption. The Asia-Pacific region stands out as the largest market, benefiting from high population density, a robust manufacturing base, and supportive government policies. In contrast, North America and Europe view the two-wheeler market more as a niche for enthusiasts, with a preference for luxury and sports motorcycles, while also shifting towards electric and hybrid models due to environmental considerations.
Globally, the two-wheeler market is moderately consolidated, with major players like Bajaj Auto Ltd., Hero MotoCorp Ltd., Honda Motor Co. Ltd., TVS Motor Company Limited, and Yamaha Motor Company Limited holding significant market shares. The market dynamics vary across regions, with South America and Africa showing growth driven by the need for affordable transportation amid urbanization. Electric vehicles are becoming increasingly important, with advancements in battery technology and vehicle electrification leading the charge in Asia-Pacific and Europe. Companies like Kia Motors are making strategic shifts towards electrification, aiming to expand their EV offerings significantly. The period from 2024 to 2030 is expected to see a surge in demand for electric vehicles, with global sales projected to rise substantially, supported by government initiatives and growing environmental awareness.
Two-Wheeler Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Propulsion Type
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1.1.1 Electric
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1.1.2 Hybrid and Electric Vehicles
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1.1.3 ICE
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1.2 Region
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1.2.1 Africa
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1.2.1.1 South Africa
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1.2.1.2 Rest-of-Africa
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1.2.2 Asia-Pacific
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1.2.2.1 Australia
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1.2.2.2 China
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1.2.2.3 India
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1.2.2.4 Indonesia
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1.2.2.5 Japan
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1.2.2.6 Malaysia
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1.2.2.7 South Korea
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1.2.2.8 Thailand
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1.2.2.9 Rest-of-APAC
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1.2.3 Europe
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1.2.3.1 Austria
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1.2.3.2 Belgium
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1.2.3.3 Czech Republic
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1.2.3.4 Denmark
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1.2.3.5 Estonia
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1.2.3.6 France
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1.2.3.7 Germany
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1.2.3.8 Ireland
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1.2.3.9 Italy
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1.2.3.10 Latvia
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1.2.3.11 Lithuania
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1.2.3.12 Norway
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1.2.3.13 Poland
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1.2.3.14 Russia
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1.2.3.15 Spain
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1.2.3.16 Sweden
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1.2.3.17 UK
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1.2.3.18 Rest-of-Europe
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1.2.4 Middle East
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1.2.4.1 Saudi Arabia
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1.2.4.2 UAE
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1.2.4.3 Rest-of-Middle East
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1.2.5 North America
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1.2.5.1 Canada
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1.2.5.2 Mexico
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1.2.5.3 US
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1.2.6 South America
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1.2.6.1 Argentina
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1.2.6.2 Brazil
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1.2.6.3 Rest-of-South America
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Two-Wheeler Market Size FAQs
How big is the Global Two-Wheeler Market?
The Global Two-Wheeler Market size is expected to reach USD 673.00 billion in 2024 and grow at a CAGR of 2.02% to reach USD 758.98 billion by 2030.
What is the current Global Two-Wheeler Market size?
In 2024, the Global Two-Wheeler Market size is expected to reach USD 673.00 billion.
