Two-Wheeler Market Size & Outlook, 2025-2033

Two-Wheeler Market Size

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).

The global two-wheeler market is driven by rising disposable incomes, especially in emerging economies such as India, Vietnam, and Indonesia, where two-wheelers offer an affordable and convenient transportation option. Their low cost of ownership and high fuel efficiency make them an attractive choice for daily commuting. Consumers are increasingly opting for models that offer better mileage, pushing manufacturers to innovate with lightweight materials and efficient engines.

Additionally, the demand for premium and performance motorcycles is growing, particularly among young urban consumers who seek style, speed, and advanced features. These high-end bikes serve not just as transportation but also as lifestyle statements. Another key driver is the integration of smart technologies, including GPS navigation, Bluetooth, and ride analytics, which enhance user experience and cater to tech-savvy riders. These factors collectively support the robust growth of the global two-wheeler market.

Latest Market Trend

Subscription & Leasing Models

The two-wheeler market is evolving with a growing shift towards subscription and leasing models, offering greater flexibility and cost-efficiency compared to traditional ownership. This trend is especially prominent among urban consumers and younger demographics who prefer usage-based access over long-term commitment. These models reduce the burden of upfront costs, maintenance, and insurance, making two-wheelers more accessible to a broader audience, including delivery riders and gig economy workers.

• For instance, in July 2025, Hero MotoCorp introduced the Vida VX2 electric scooter with a unique Battery-as-a-Service (BaaS) model. Customers can purchase just the chassis (priced between ₹59,490 and ₹64,990) and subscribe to the battery separately through flexible pay-per-kilometer or monthly plans (~₹0.96/km). This approach significantly lowers the initial investment and aligns with the growing demand for affordability and convenience.

As more manufacturers explore similar models, the market is poised for a transformation in how consumers access and use two-wheelers.

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Two-Wheeler Market Growth Factor

Rising Urban Population and Traffic Congestion

The rising urban population and increasing traffic congestion are key drivers of the global two-wheeler market. As urban centers expand rapidly, residents face mounting challenges in commuting due to overcrowded roads and limited parking. Two-wheelers offer an efficient and agile solution, enabling faster navigation through dense traffic and narrower streets. According to the United Nations, over 56% of the global population lived in urban areas as of 2023, a figure projected to rise to 68% by 2050. Consequently, there has been a rise in urban traffic.

• For instance, according to the Global Traffic Index, in 2024, traffic congestion worsened globally, with 76% of major cities experiencing slower average speeds. Istanbul topped the list with 105 hours lost per driver annually, followed by New York City and Chicago at 102 hours.

This shift underscores the growing preference for two-wheelers as a time-saving mobility option, thereby driving the global market growth.

Market Restraint

Safety and Accident Concerns

One of the major restraints in the global two-wheeler market is the high risk of accidents and safety concerns associated with their use. Two-wheelers offer limited protection to riders compared to four-wheeled vehicles, making them more vulnerable in traffic collisions. According to the World Health Organization (WHO), motorcyclists account for nearly 28% of all road traffic deaths globally.

In developing countries, poor road infrastructure, lack of helmet usage, and insufficient rider training further increase the risk. These safety issues impact consumer confidence and discourage new buyers, especially in urban areas with heavy traffic. As a result, safety concerns remain a significant barrier to the widespread adoption of two-wheelers.

Market Opportunity

Electric Two-Wheelers in Developing Nations

The rapid adoption of electric two-wheelers in developing nations presents a promising market opportunity, driven by rising fuel prices, urban congestion, and environmental concerns. Governments are actively supporting this shift through favorable policies, subsidies, and infrastructure investments.

• For instance, Delhi’s proposed EV policy aims to prohibit the sale of new petrol-powered two-wheelers starting April 1, 2027. To encourage the shift, the government is offering financial incentives of up to ₹30,000 (approximately $350) for purchasers of electric scooters and motorcycles. The policy also includes tax exemptions and introduces a nominal surcharge on petrol sales to support EV adoption.

Such initiatives are not limited to India, countries like Kenya and Pakistan are also rolling out EV policies and battery-swapping infrastructure. As a result, the two-wheeler market in these regions is witnessing a transformative shift, offering manufacturers vast opportunities to meet the rising demand for clean and affordable mobility.

Regional Analysis

Asia Pacific dominates the global two-wheeler market, driven by high population density, rapid urbanization, and a strong demand for affordable personal mobility. The region is seeing fast-growing adoption of electric two-wheelers, supported by government incentives and local manufacturing capabilities. High fuel prices and congested road networks make two-wheelers the most practical mode of transportation. In addition, rising disposable incomes and the expansion of the e-commerce and delivery sectors are boosting demand for both personal and commercial-use scooters and motorcycles across urban and semi-urban areas.

Chinese Market Trends

China’s two-wheeler market is witnessing rapid electrification, with electric scooters dominating urban mobility. Brands like Yadea and NIU Technologies lead the shift, which is supported by government policies such as EV subsidies and emission restrictions. With over 300 million electric two-wheelers already on the road, China's focus on sustainability and smart urban transport continues to boost demand, particularly in Tier I cities like Beijing and Shanghai.

India’s two-wheeler market is one of the largest globally, driven by rising incomes and high fuel prices. Traditional players like Hero MotoCorp and Bajaj Auto dominate rural and urban segments, while electric startups like Ola Electric and Ather Energy are expanding. With over 80% of Indian households relying on two-wheelers, especially in Tier II and III cities, government EV incentives and FAME II policies are accelerating adoption across regions.

North America's Market Drivers

The North American two-wheeler market is witnessing a surge in demand for electric motorcycles and scooters, driven by a rising focus on eco-friendly mobility and urban congestion solutions. The region's strong inclination toward recreational and premium motorbikes supports growth in the high-end segment. Expanding charging infrastructure and advancements in battery technology are further fueling electric vehicle adoption. Additionally, the emergence of ride-sharing and last-mile delivery services is boosting demand for efficient two-wheelers, making the market more attractive for manufacturers and mobility service providers.

United States Market Trends

The U.S. two-wheeler market is evolving with rising interest in electric motorcycles and scooters, especially in urban centers like Los Angeles and New York. Companies such as Harley-Davidson (with its LiveWire EV) and Zero Motorcycles are expanding EV portfolios. The increasing popularity of last-mile delivery services and motorcycle clubs, alongside eco-conscious commuting trends, is fueling demand. Federal EV incentives and growing charging infrastructure further support electric two-wheeler adoption across the country.

Canada’s two-wheeler market is witnessing steady growth driven by urban commuters seeking fuel-efficient alternatives. With increasing interest in electric mobility, brands like NIU and Daymak are gaining traction. Government incentives for electric vehicles, particularly in provinces like Quebec and British Columbia, are encouraging adoption. Additionally, the rise in motorcycle tourism in scenic regions like Alberta and Ontario supports demand for both electric and gas-powered motorcycles.

Europe: Substantial Potential for Growth

In Europe, the two-wheeler market is expanding steadily, primarily due to strong environmental policies and growing urbanization. Governments are incentivizing the shift toward electric mobility, encouraging the adoption of e-scooters and e-motorcycles. The region has seen a significant rise in bike-sharing systems and demand for lightweight urban mobility solutions. High fuel prices and stringent emission regulations are pushing consumers toward greener alternatives. Additionally, cultural shifts favoring sustainable and flexible commuting are making two-wheelers a preferred choice for city dwellers, especially among younger demographics.

France's Market Trends

France’s two-wheeler marketis witnessing growth driven by urban mobility needs and government support for electric vehicles. Incentives for e-scooter purchases and low-emission zones in cities like Paris are encouraging electric two-wheeler adoption. Brands like Peugeot Motocycles and Govecs are expanding their electric models. The country also saw a rise in shared mobility services such as Cityscoot, reflecting increasing demand for sustainable urban transport.

The UK two-wheeler marketis evolving with rising interest in eco-friendly mobility and congestion-free commuting. The UK government’s plug-in grant and ULEZ (Ultra Low Emission Zone) policies in cities like London have boosted e-bike and electric scooter demand. Leading players such as NIU and Super Soco are growing their presence. Additionally, post-pandemic preference for personal transport has reignited interest in motorcycles for daily commuting.

Vehicle Type Insights

The motorcycle segment holds a dominant share in the global two-wheeler market due to its versatility, better performance, and suitability for long-distance travel. Widely preferred by both urban and rural consumers, motorcycles offer higher fuel efficiency and durability compared to other vehicle types. The rising popularity of commuter bikes and sport models, particularly in emerging economies like India and Indonesia, further boosts this segment. Additionally, technological enhancements and competitive pricing contribute to its sustained market growth.

Propulsion Type Insights

The internal combustion engine (ICE) segment continues to lead the global two-wheeler market owing to its established infrastructure, affordability, and widespread consumer acceptance. Despite the rising shift toward electrification, ICE-powered two-wheelers remain popular due to longer range, better power output, and ease of refueling. Developing countries heavily rely on ICE models for daily commuting and cargo transport. Manufacturers are also investing in cleaner combustion technologies to meet emission norms, helping maintain demand for ICE vehicles globally.

Engine Capacity Insights

The 101–125 cc engine capacity segment is a significant contributor to the two-wheeler market, especially in Asia-Pacific. These models strike an ideal balance between performance and fuel efficiency, making them highly suitable for daily commuting. Popular among young riders and middle-income groups, this segment offers low maintenance costs and sufficient power for city travel. The availability of various stylish and feature-rich models in this category enhances its appeal, driving consistent demand across both urban and semi-urban regions.

End-User Insights

The personal segment dominates the two-wheeler market, driven by increasing urbanization and the need for convenient, economical mobility solutions. Two-wheelers are widely used for daily commuting, especially in congested cities where larger vehicles are impractical. Rising disposable incomes, lifestyle changes, and growing demand for personal ownership further propel this segment. Moreover, the availability of a wide range of models, catering to preferences like affordability, style, and mileage, strengthens the adoption of two-wheelers for personal use.

Distribution Channels Insights

The offline segment continues to account for the majority of two-wheeler sales, supported by strong dealership networks and consumer preference for physical inspection before purchase. Customers benefit from personalized service, test rides, and financing assistance, making offline channels a trusted medium. In emerging markets, buyers often prefer direct interactions with sales representatives for better decision-making. Additionally, after-sales services and maintenance facilities available at dealerships further reinforce the dominance of offline distribution in this market.

Company Market Share

Companies in the two-wheeler market are focusing on expanding their product portfolios with fuel-efficient and electric models to cater to evolving consumer preferences. They are investing in R&D for innovative technologies like connected features and lightweight designs. Strategic partnerships, localization of manufacturing, and aggressive marketing campaigns are also being pursued to enhance brand visibility and reach. Moreover, companies are strengthening their after-sales service networks to boost customer satisfaction and retention.

Tvs Motor Company

TVS Motor Company, a leading two-wheeler manufacturer based in India, plays a significant role in the global two-wheeler market. Established in 1978, it offers a wide range of motorcycles, scooters, and mopeds catering to diverse consumer needs. The company has a strong presence in over 60 countries and is known for innovation, fuel efficiency, and affordability. TVS has also made notable advancements in electric mobility with its iQube electric scooter, aligning with the shift toward sustainable transportation solutions.

• In May 2025, TVS Motor Company launched Jupiter 125 DT SXC at ₹88,942 (ex‑showroom Delhi). This new dual‑tone SmartXonnect variant adds cosmetic flair and feature upgrades, including a colour LCD, LED lighting, hazard lamps, turn-by-turn navigation, Bluetooth call/SMS alerts, follow‑me headlamp, and pillion backrest, while retaining the same 124.8 cc engine and 33 L storage capacity.

List of key players in Two-Wheeler Market

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)

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Recent Developments

• June 2025- TVS Motor Company launched Apache RTR 160 2V (2025 model) in India for ₹1.34 lakh (ex‑showroom), meeting new OBD‑2B emission norms. It features upgraded dual‑channel ABS for improved braking, refreshed styling, and minor performance tweaks. This ₹4,000 premium over the Racing Edition highlights TVS’s commitment to safety, emissions compliance, and value.
• June 2025- Triumph India has teased an upcoming “Triple Tribute” variant of the Trident 660, honoring the legendary Isle of Man TT racer “Slippery Sam.” First unveiled globally, it features a dramatic black‑blue‑red livery, quickshifter, cornering ABS, traction control, sport mode, flyscreen, and belly pan. Indian launch date TBA.
• June 2025- Honda Motorcycle & Scooter India has 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.