Global Two-Wheeler Market Grows Steadily at a CAGR of 6.12%

Introduction

The global two-wheeler market is experiencing significant growth, primarily driven by increasing disposable incomes in emerging economies like India, Vietnam, and Indonesia. In these regions, two-wheelers are favored for their affordability and convenience as a means of daily transport. Their low maintenance costs and excellent fuel efficiency further boost their appeal.

There is also a rising preference for fuel-efficient models, encouraging manufacturers to develop vehicles using lightweight materials and advanced engine technologies. At the same time, the popularity of premium and performance motorcycles is on the rise, especially among young urban consumers who value speed, aesthetics, and modern features. For many, these high-end bikes represent more than just transportation, they reflect personal style and status.

Moreover, the incorporation of smart features such as GPS navigation, Bluetooth connectivity, and ride data analytics is enhancing the riding experience, catering to the growing demand from tech-oriented users. Together, these trends are driving the strong expansion of the global two-wheeler market.

Market Dynamics

Rising urban population and traffic congestion drives the global market

The growth of the global two-wheeler market is significantly influenced by the expanding urban population and escalating traffic congestion. As cities continue to grow, commuters are increasingly burdened by crowded roads and limited parking availability. Two-wheelers present a practical and nimble transportation solution, allowing riders to navigate through heavy traffic and narrow city streets more efficiently. As per the United Nations, 56% of the world’s population resided in urban areas in 2023, and this is expected to increase to 68% by 2050, contributing to heightened traffic issues.

• For example, the 2024 Global Traffic Index revealed a worsening congestion trend, with 76% of major cities reporting slower average vehicle speeds. Istanbul recorded the highest traffic delays, with drivers losing an average of 105 hours annually, followed by New York City and Chicago, each with 102 hours lost.

This trend highlights a growing inclination toward two-wheelers as a convenient and time-saving mode of transport, thereby fueling market growth on a global scale.

Electric two-wheelers in developing nations create tremendous opportunities

The growing adoption of electric two-wheelers in developing countries presents a significant market opportunity, fueled by increasing fuel costs, traffic congestion, and environmental concerns. Governments are playing a key role in promoting this transition through supportive policies, financial incentives, and infrastructure development.

• For example, Delhi's upcoming EV policy proposes a ban on the sale of new petrol-powered two-wheelers starting April 1, 2027. To facilitate this transition, buyers of electric scooters and motorcycles can receive subsidies of up to ₹30,000 (around $350), along with tax exemptions and a small surcharge on petrol sales to fund EV initiatives.

This trend is not limited to India, nations such as Kenya and Pakistan are also implementing EV-friendly policies and establishing battery-swapping networks. As a result, the two-wheeler segment in these regions is undergoing a major transformation, creating substantial growth prospects for manufacturers offering sustainable and cost-effective transportation solutions.

Regional Analysis

The Asia Pacific region dominates the global two-wheeler market, driven by high population density, rapid urbanization, and growing middle-class income. Countries like India, Vietnam, Indonesia, and Thailand have emerged as major hubs due to the increasing demand for affordable personal mobility solutions. India alone accounted for over 15 million two-wheeler sales in FY2023, with brands like Hero MotoCorp, Bajaj, and TVS leading the market.

Additionally, the electric two-wheeler segment is gaining traction, with Ola Electric and Ather Energy significantly expanding their production capacities. In Vietnam, Honda commands a dominant market share, while Indonesia is witnessing a surge in local and Chinese EV models like NIU and Yadea. Government initiatives such as subsidies for electric scooters in India and tax exemptions in Southeast Asia further support market expansion. Thus, the region remains pivotal to innovation and volume growth in the global two-wheeler landscape.

Key Highlights

• The global two-wheeler market size was valued at USD 138.19 billion in 2024 and is estimated to grow from USD 146.65 billion in 2025 to reach USD 235.86 billion by 2033, growing at a CAGR of 6.12% during the forecast period (2025–2033).
• By vehicle type, the global two-wheeler market is segmented into motorcycles, scooters, and mopeds. The motorcycle segment dominated the market.
• By propulsion type, it is categorized into internal combustion engine (ICE) and electric. The internal combustion engine (ICE) segment held the largest market share.
• Based on engine capacity, the market is classified into <100 cc, 101–125 cc, 126–250 cc, 251–500 cc, 501–800 cc, and above 800 cc.
• By end user, the market is divided into personal and commercial. The personal segment held a dominant share of the global market.
• By distribution channel, the market is segmented into offline and online. The offline segment dominated the market.
• Asia-Pacific is the highest shareholder in the global market.

Competitive Players

1. Honda Motor Co., Ltd.
2. Yamaha Motor Co., Ltd.
3. Hero MotoCorp Ltd.
4. Bajaj Auto Ltd.
5. TVS Motor Company
6. Suzuki Motor Corporation
7. Piaggio & C. SpA
8. Harley-Davidson, Inc.
9. KTM AG
10. Kwang Yang Motor Co., Ltd. (KYMCO)

Recent Developments

• In June 2025- Honda Motorcycle & Scooter India launched the 2025 XL750 Transalp, priced at ₹10.99 lakh (ex‑showroom, Gurugram). Featuring a 755 cc parallel‑twin engine with 90 BHP, a 5‑inch TFT display with RoadSync, redesigned LED headlamp, windscreen, revised suspension, dual‑channel ABS, torque control, and five ride modes, deliveries begin in July 2025.

Segmentation

1. By Vehicle Type
   1. Motorcycles
   2. Scooters
   3. Mopeds
2. By Propulsion Type
   1. Internal Combustion Engine (ICE)
   2. Electric
3. By Engine Capacity
   1. <100 cc
   2. 101–125 cc
   3. 126–250 cc
   4. 251–500 cc
   5. 501–800 cc
   6. Above 800 cc
4. By End User
   1. Personal
   2. Commercial
5. By Distribution Channel
   1. Offline
   2. Online