Two-Wheeler Market

Market Overview:

The global two-wheeler market size reached US$ 121.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 181.6 Billion by 2028, exhibiting a growth rate (CAGR) of 7.00% during 2023-2028. Rapid urbanization, the expanding middle-class, cost-efficiency, rising demand for electric options due to escalating environmental consciousness among consumers, significant technological advancements, and the growing consumer preference for personal mobility are some of the major factors propelling the market

A two-wheeler refers to a type of vehicle with two wheels that operate on either manual or motorized propulsion. It is commonly used for personal transportation and includes various categories such as motorcycles, scooters, and bicycles. These vehicles are popular for their maneuverability in urban settings, fuel efficiency, and relatively lower maintenance costs compared to four-wheeled vehicles. Two-wheelers are a significant segment within the automotive industry, catering to a diverse consumer base with varying preferences for speed, style, and functionality. This market continues to evolve with advancements in technology, emission standards, and changing consumer demands.

Rising urbanization and population densities have led to an increased need for efficient and cost-effective modes of personal transportation, propelling the demand for two-wheelers such as motorcycles and scooters. Besides this, the expanding middle-class population in emerging economies, coupled with improving economic conditions, has further spurred the demand for affordable and convenient mobility solutions, creating a favorable outlook for market expansion. Moreover, the growing awareness of environmental concerns and the need for sustainable transportation options has prompted a shift towards electric two-wheelers, bolstering the market growth. The market is further supported by the introduction of numerous government incentives and stricter emission regulations impelling the adoption of electronic two-wheelers. In addition to this, ongoing technological advancements in terms of design, performance, connectivity features, and safety systems have attracted consumers seeking modern and innovative two-wheeler options, presenting lucrative opportunities for market expansion.

Two-Wheeler Market Trends/Drivers:

Expanding urbanization and high population densities

Rapid urbanization across the globe has significantly impacted transportation needs. As more people migrate to urban areas, there is an increasing demand for compact, maneuverable, and cost-effective modes of transportation. Two-wheelers, particularly motorcycles and scooters, fulfill this requirement perfectly. They can navigate through congested urban streets, offering a convenient solution to the challenges posed by traffic congestion and limited parking spaces. Moreover, the convenience of two-wheelers for short to medium distances makes them an attractive option for urban commuters, contributing to increasing product adoption.

Environmental awareness and regulations

Growing concerns about environmental sustainability and the adverse effects of fossil fuel consumption have led to a shift towards greener transportation alternatives. This shift has been particularly evident in the two-wheeler industry, with rising demand for electric motorcycles and scooters. Moreover, numerous governments worldwide are implementing stringent emission regulations and providing incentives for the adoption of electric vehicles, thus encouraging consumers to opt for eco-friendly two-wheelers. The lower operational costs and reduced carbon footprint associated with electric two-wheelers have further driven their popularity among environmentally conscious consumers.

Middle-class expansion and economic growth

The expanding middle-class population in emerging economies has significantly contributed to the surge in two-wheeler demand. As disposable incomes rise and economic conditions improve, more individuals are seeking affordable and convenient mobility solutions. Two-wheelers offer an attractive balance between cost efficiency and personal convenience, making them a favored choice among middle-class consumers. This demographic shift has led to robust growth in markets such as India, Southeast Asia, and parts of Africa, where two-wheelers are often seen as a symbol of upward mobility.

Two-Wheeler Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global two-wheeler market report, along with forecasts at the global, regional and country levels for 2023-2028. Our report has categorized the market based on type, technology, transmission, engine capacity, fuel type, end-user, and distribution channel.

Breakup by Type:

• Scooters
• Mopeds
• Motorcycle
• Electric Two-Wheeler
   

Motorcycle dominates the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes scooters, mopeds, motorcycle, and electric two-wheeler. According to the report, motorcycle represented the largest segment.

Motorcycles, renowned for their speed, agility, and sense of freedom, attract enthusiasts seeking exhilarating riding experiences, which represents one of the prime factors fueling the market growth. Concurrent with this, their versatility on varied terrains and road conditions, coupled with a wide range of designs and performance options, appeals to a diverse consumer base, aiding in market expansion. In addition to addressing urban commuting needs, motorcycles often resonate with adventure-seeking riders who prioritize exploration and distinctive style. The dynamic evolution of motorcycle technology, including advanced safety features and connectivity options, adds to their allure, contributing to the market's growth.

Breakup by Technology:

• ICE
• Electric
   

ICE holds the largest share in the market

A detailed breakup and analysis of the market based on the technology has also been provided in the report. This includes ICE and electric. According to the report, ICE accounted for the largest market share.

The growing demand for internal combustion engine (ICE) two-wheelers due to their affordability, ease of maintenance, and familiarity represents a key factor strengthening market growth. In many regions, especially in developing economies, ICE two-wheelers continue to be a practical choice for individuals seeking cost-effective transportation solutions. These vehicles offer a well-established infrastructure for fueling and maintenance, making them accessible even in areas with limited resources. While electric alternatives are gaining traction, ICE two-wheelers maintain their popularity among price-sensitive consumers who prioritize initial affordability and a well-established support network.

Breakup by Transmission:

• Manual
• Automatic
   

Manual dominates the market

The report has provided a detailed breakup and analysis of the market based on the transmission. This includes manual and automatic. According to the report, manual represented the largest segment.

The growing demand for manual two-wheelers due to the connection they provide between the rider and the machine is aiding in market expansion. Enthusiasts often value the tactile experience and control offered by manual transmissions, allowing them to engage with the vehicle's performance actively. Apart from this, manual two-wheelers tend to have lower upfront costs and maintenance expenses compared to their automatic counterparts, making them attractive to budget-conscious consumers. This demand is also fueled by regions where manual transmission riding skills are the norm, adding to the preference for these vehicles among riders who enjoy a more engaged and traditional approach to riding.

Breakup by Engine Capacity:

• <100cc
• 100-125cc
• 126-180cc
• 181-250cc
• 251-500cc
• 501-800cc
• 801-1600cc
• >1600cc
   

100-125cc holds the largest share in the market

A detailed breakup and analysis of the market based on the engine capacity has also been provided in the report. This includes <100cc, 100-125cc, 126-180cc, 181-250cc, 251-500cc, 501-800cc, 801-1600cc, and >1600cc. According to the report, 100-125cc accounted for the largest market share.

The increasing demand for two-wheelers with engine capacities ranging from 100cc to 125cc is driven by their optimal balance between fuel efficiency and performance. These vehicles offer a practical solution for daily commuting, catering to riders seeking an economical mode of transportation without compromising on power. Furthermore, their size and maneuverability make them well-suited for urban environments while still providing adequate acceleration for longer journeys. Apart from this, the cost-effectiveness of maintenance and initial purchase appeals to a broad spectrum of consumers, positioning these two-wheelers as versatile options in the market.

Breakup by Fuel Type:

• Gasoline
• Petrol
• Diesel
• LPG/CNG
• Battery
   

Petrol dominates the market

The report has provided a detailed breakup and analysis of the market based on the fuel type. This includes gasoline, petrol, diesel, LPG/CNG, and battery. According to the report, petrol represented the largest segment.

The demand for petrol-powered two-wheelers is driven by their widespread availability and well-established refueling infrastructure. In regions where electric charging infrastructure is still developing or where consumers prioritize the convenience of refueling, petrol two-wheelers remain a preferred choice. In addition to this, the familiarity of internal combustion engines and the ease of finding petrol stations contribute to the sustained demand. Furthermore, these two-wheelers often come at a lower upfront cost compared to their electric counterparts, appealing to cost-conscious consumers looking for efficient and reliable personal transportation options.

Breakup by End-User:

• Personal
• Commercial
   

Personal holds the largest share in the market

A detailed breakup and analysis of the market based on the end-user has also been provided in the report. This includes personal and commercial. According to the report, personal accounted for the largest market share.

Two-wheelers are widely adopted for personal usage owing to their convenience, affordability, and flexibility. They offer individuals an efficient and nimble mode of transportation, particularly for short to long distances. Moreover, the cost-effectiveness of ownership, including lower purchase prices, fuel consumption, and maintenance expenses, makes them an appealing choice for personal mobility solutions. Concurrent with this, their compact size allows for easier maneuvering in congested urban environments and better access to areas with limited parking space. This convenience factor, combined with the ability to navigate varying road conditions, is influencing the popularity of two-wheelers for personal use.

Breakup by Distribution Channel:

• Offline Channels
• Online Channels
   

Offline channels dominate the market

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes offline channels and online channels. According to the report, offline channels represented the largest segment.

The rising sales of two-wheelers through offline channels are attributed to the tactile experience and personalized assistance they offer to consumers. Physical dealerships provide potential buyers with the opportunity to interact directly with the vehicles, sit on them, and often take them for test rides, allowing for a more comprehensive evaluation before making a purchase decision. Moreover, the guidance of sales personnel in showrooms helps customers navigate through various models, features, and financing options, enhancing the overall purchasing experience. In addition to this, offline channels also cater to regions with limited internet access or where consumers prefer face-to-face interaction when making significant purchases, such as vehicles.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest two-wheeler market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, and Spain); Asia Pacific (China, Japan, India, South Korea, Australia, and Indonesia); Latin America (Brazil and Mexico); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific two-wheeler market is primarily driven by a combination of densely populated urban centers, economic growth, and cultural factors. As urbanization intensifies across the region, there is a growing need for efficient and accessible transportation solutions, making two-wheelers an ideal choice due to their maneuverability in congested streets and relatively lower costs. Besides this, the expanding middle-class population in countries such as India, China, and Southeast Asian nations has led to inflating disposable incomes and a surge in demand for personal mobility. Additionally, the cultural preference for two-wheelers as a practical mode of transportation further reinforces their popularity, strengthening the market growth. Moreover, the rise of e-commerce and delivery services is boosting demand for commercial two-wheelers. Furthermore, the availability of electric two-wheelers aligns with the region's push for environmental sustainability, driving adoption.

Competitive Landscape:

The competitive landscape of the global two-wheeler industry is characterized by a diverse array of manufacturers, each striving to capture market share by leveraging innovation, design, and strategic partnerships. Established brands maintain a strong presence with a wide range of offerings, appealing to different consumer preferences and demographics. Rising demand for electric alternatives has prompted traditional manufacturers to invest in research and development of electric two-wheelers to stay competitive. Simultaneously, emerging players have rapidly expanded their portfolios and global reach. These companies often focus on cost-effective options that cater to price-sensitive markets. Additionally, technological advancements have given rise to startups specializing in electric mobility, aiming to disrupt the market with innovative designs and eco-friendly solutions.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Harley Davidson
• Hero MotoCorp Ltd.
• Honda Motor Co., Ltd.
• Suzuki Motor Corporation
• Yamaha Motor Co., Ltd.

Recent Developments:

• In June 2023, Yamaha Motor announced plans to merge with its subsidiary Yamaha Motor Electronics to enhance its electronics capabilities. The merger aims to strengthen resources for eco-friendly product development, reinforce purchasing power, and align with Yamaha's electric vehicle expansion and sustainability goals.
• In January 2023, Hero Motor Corp. announced its commencement of flex-fuel motorcycle production, in response to the ethanol-engine trend, to leverage early revenue chances through innovative technology.
• In September 2022, LiveWire, a subsidiary of Harley-Davidson announced the production S2 Del Mar electric motorcycle featuring LiveWire's cutting-edge ARROW architecture, offering thrilling performance and a range of 110 miles.

Two-Wheeler Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the two-wheeler market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global two-wheeler market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the two-wheeler industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.