Two-Wheeler Market Size, By Topology, By Propulsion, By Product, By Engine Displacement, Growth Forecast 2025 – 2034

Two-Wheeler Market Size

The global two-wheeler market was valued at USD 285.2 billion in 2024 and is estimated to register a CAGR of 5.4% between 2025 and 2034. The projected growth of the market is supported by a growing number of EV manufacturers around the world. Consolidated focus on sustainability and environmental protection is gradually increasing the production and sales of electric motorcycles, which, in turn, aids the growth of the motorcycle industry. To remain competitive in the business, major players are making significant investments.
 

New players in the industry are responding to the heightened need for sustainable mobility by launching eco-friendly motorcycles. Their entry is changing the dynamics of the industry. In November 2023, Orxa launched Mantis. A motorcycle that uses electric propulsion as the primary motive force, making it an environmentally friendly option. It aims to meet the growing demand for eco-friendly electric motorcycles, while assisting in the shift from conventional combustion engines to more renewable options.
 

The two-wheeler segment is observing the continuous improvements and innovation of technology that not only improves two-wheeler market growth but also transforms the viewpoint on personal mobility. Due to the growing international concern of reducing carbon footprints, it is apparent that there is a positive shift towards EV acceptance all over the globe. One of them is the transformational, lightweight, and compact electric motors and energy drives that are integrated with high-capacity, high-performance batteries.
 

The development of the industry is mostly due to advancements in battery technology that have higher energy densities, longer ranges, and quicker charging times. In November 2023, Farasis Energy introduced its Super Pouch Solution (SPS), utilizing eVTOL battery technology with electric motorcycle batteries.
 

Two-Wheeler Market Trends

• The competition in the market for electric motorcycles has intensified as traditional motorcycle makers and new players are investing into the development of Electric Vehicles (EVs). This competition is leading to enhanced refinement, lower costs, and greater variety of models offered, which is good for consumers as well as the growth of the industry.
   
• Due to the increasing two-wheeler market demand, electric motorcycle manufacturers are introducing new motorcycle models. For example, Ola Electric in August 2023 launched four new stylish motorcycles: Diamondhead, Adventure, Roadster and Cruiser. The company has opened the pre-reservation phase for these electric motorcycles which are likely to be available in late 2024.
   
• Sport electric motorcycles are especially appealing to speed riders because of their instantaneous torque and quick acceleration. These bikes provide a thrilling and high-performance riding experience. Additionally, designers and manufacturers are interested in more advanced and futuristic concepts. Hence, Kawasaki to introduce its Ninja e-1 electric sports bike and also its Z e-1 naked motorcycle in America in October 2023. Both motorcycles are equipped with a three-kilowatt-hour battery that allows you to travel 66 km per charge. On top of that, the batteries are quite easy to remove and can be fully charged using a 110-volt wall socket in around four hours.
   
• Particularly, electric off-road motorcycles are very well suited for trail riding because of how absolutely quiet they are when being ridden outdoors, which helps prevent disturbing wildlife or other activities.
   
• Additionally, the instant torque delivery assisted by the electric motor is particularly useful off-road, as it allows for more responsive power or torque that helps navigate difficult terrain and obstacles. Other firms also construct electric dirt bikes, such as Hero Motor Corp which recently launched their Vida Concept Lynx electric dirt bike in Milan, Italy, November 2023. This bike was made as light as possible to improve rideability and maneuverability.
   

Two-Wheeler Market Analysis

Based on product, the two-wheeler market is divided into motorcycle and scooter. In 2024, the motorcycle segment held a market share of over 80% and is expected to cross USD 400 billion by 2034.  
 

• In the motorcycle industry, the importance of safety and legal requirements is shaping business developments in many nations. Governments are starting to introduce rigorous safety regulations which make it mandatory for manufacturers to improve safety in their products.
   
• The adoption of powder metallurgy in the manufacturing of automotive and motorcycle parts is becoming a standard practice. Compliance with emission limits and other ultra-conservative legal regulations also affects the way product development is approached in the motorcycle industry, making motorcycle manufacturers look for new ideas and making corresponding investments in R&D.
   
• The global motorcycle market is expanding because of the growing income levels, the increase in government spending, the growing market for emerging economies, and the increasing sophistication needed in the vehicle. Dramatic changes in outlook towards ecological issues and consumers moving towards electric vehicles is what is propelling the entire industry.
   
• The use of gasoline motorcycle vehicles accounts for about 23% of the world’s emission of greenhouse gases. Electric motorcycles produce no tailpipe emissions such offers a cleaner and safer environment. The ever-increasing demand for these vehicles will be driven especially as battery technology and supporting infrastructure continues to advance along with increasing government subsidies in less developed countries.
   
•  Moreover, innovation as well as customization trends are being driven by change in consumer buying behavior. Consumers are looking for one-of-a-kind experiences which pushes manufacturers to provide options such as customizable design and performance specifications. This has passed the novelty stage and is consolidating into a market paradigm shift in the motorcycle industry from traditional mass scale production.

Based on propulsion, the two-wheeler market is categorized into petrol and electric. The petrol segment held a market share of 92% in 2024.
 

• Refueling infrastructure along with long riding range and affordability makes petrol the most preferred segment in the two-wheeler market. Two wheelers powered by petrol remain a sought-after option as they are affordable modes of transportation in developing markets. Although there is an increasing trend towards electrification, regions with poor e-vehicle infrastructure still primarily depend on petrol variants.
   
• Used most commonly in developing economies, precision two-wheelers have a vast usability range without the need for constant refueling while being much cheaper than electric vehicles which helps justify the low price point. Regions with limited adoption of e-vehicles will still have a high demand for petrol powered bike models.
   
• The quickly growing sector which include food and grocery delivery as well as ride sharing have also created their own demand for petrol, two wheelers. These models are preferred because they have better dependability and range while also being cost effective. Using petrol models in most busy urban areas lowers costs associated with downtime, thus ensuring groceries and other important items get delivered in time.
   
• To increase the efficiency of petrol two-wheelers, the manufacturers are incorporating modern fuel injection systems, enhancing hybrids, and improving combustion processes. The growing emission standards are introducing innovations in engine designs that are more environmentally friendly. These changes guarantee that petrol two wheelers will continue to be useful even as governments encourage cleaner mobility technologies.

North America dominated the global two-wheeler market with a major share of over 40% in 2024 and U.S. leads the market in the region.
 

• The North American electric motorcycle market is progressively adopting this mode of transport due to increased environmental awareness, government subsidies, and battery technology improvements. The emerging consumers are drawn to motorcycles owing to their sustainability, lower operating costs, and growing charging stations as part of a transition to cleaner and innovative transportation policies.
   
• Likewise, in the U.S., the electric motorcycle market is growing because policy measures designed to introduce electric vehicles (EVs) are encouraging their adoption. Free Federal and state tax credits, rebates, and charging stations for electric motorcycles also attract consumers. In January 2023, the Illinois Environmental Protection Agency (IEPA) began subsidizing the purchase of new e-scooters by offering a USD 1,500 rebate to riders residing in Chicago, Aurora, Naperville and other areas of Illinois. Rebate applications can be submitted within 90 days of purchasing, leasing and registering an electric vehicle; however, only one maximum rebate will be available every ten years.  These incentives not only lower financing costs of motorcycle ownership, but also reduce environmental damage, hence stimulating the acceptance and approval of electric motorcycles in various parts of the U.S.
   
• Advanced EV technologies combined with greater awareness of environmental issues is increasing the adoption of electric bikes in Canada.
   

The two-wheeler market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• The increase in sales of electric motorcycles in Europe and the UK is directly related to their use case as an urban commuting vehicle. These vehicles have small sizes which fit European cities, and they operate emission free, hearing to the focus on electric designs. These observations hint towards an increase in eco-friendly commuting patterns in cities. 
   
• In the UK, eco-friendly compact electric powered motorbikes are becoming very popular in cities, with regards to commuting. The use of such scooters and small motorcycles in the framework of sustainable policies on urban mobility carried out in the form of public transport in the cities of the country. Along with the rest of Europe, these cities are striving to achieve more eco-friendly and efficient methods of moving people and goods. 
   
• Rest of Europe, including Germany, are advancing battery technology, especially energy-dense solid-state batteries, which is vital for the adoption of electric motorcycles. AutoTech News took the latest step on November 2023, saying that the German Government has wired USD 1.1 billion to a consortium for electric car batteries and plans the construction of a leading research center for solid-state battery technology.
   
• Moreover, in the UK, the ‘PowerDrive Line’ program is creating a pre-pilot line for lithium-based solid-state batteries to be used in electric and plug-in hybrid cars. These advancements significantly lessen range anxiety, which improves the performance of electric motorcycles for long-distance travel, therefore, increasing the market’s demand.
   

The two-wheeler market in China is anticipated to witness lucrative growth between 2025 – 2034.
 

• Collaboration from established motorcycle companies, tech firms and electric motorcycle startups is helping the innovation of the motorcycle industry in China. New strategic joint ventures take advantage of the integration sophisticated by design agencies and the automobile industry in the global marketplace. This favorable development does for this country as the greatest seller of electric motorcycles.
   
• In October 2023, REVZILLA.COM claimed that collaborating with Chinese and Indian associates offers one a great dealership network, local factories, and two-wheeler market intelligence which is critical to succeed in the highly contested motorcycle markets of China and India.
   
• The surge in the sale of electric motorcycles in India will require huge capital investment for the charging network infrastructure. A new public private partnership has been formed to add more charging stations in the country to keep pace with the growing market for electric two wheelers. TOI report of October 2023 claimed that it looks like startup business for EV infrastructure and components have been doing well for the past three years.
   

Two-Wheeler Market Share

• Top 7 companies of the two-wheeler industry are Harley Davidson, Honda, Yamaha, Suzuki, Niu Technologies, Piaggio, and Kawasaki collectively holding market share of around 40% in 2024.
   
• The strength of the Honda and Harley Davidson, coupled with their vast international reach and range of products offered, has allowed them to successfully capture a significant share of the two-wheeler market. Honda is more active in commuter and performance motorcycles, whereas Harley possesses a larger share of the premium cruiser segment. Yamaha, owing to its innovation and versatility, continues to be important in many categories.
   
• Harley Davidson is venturing further into the electric two-wheelers market by introducing LiveWire. The firm is concentrating on powerful electric motorcycles that boast premium features and smart city rider technology, aimed at urban riders and enthusiasts seeking a greener way to ride without compromise.
   
• Honda continues to consolidate its position in the commuter segment by launching new fuel-efficient and hybrid two wheelers. The firm is investing heavily on electric mobility by broadening their battery-swapping infrastructure and developing models that balance cost and sustainability in growing and developed economies.
   
• Yamaha is pursuing the development of new mobility solutions that incorporate artificial intelligence-based rider assistance and safety systems. The company is designing new generation of light weight, high-performance electric and hybrid motorcycles for urban commuters and adventure riders. Yamaha has further competitive advantage because of its collaboration with other companies in smart mobility.
   

Two-Wheeler Market Companies

Major players operating in the two-wheeler industry include:

• Honda
• Hero MotoCorp
• Yamaha
• Bajaj
• Yadea
• Suzuki
• Kawasaki
• Harley-Davidson
• Piaggio
• Royal Enfield
• BMW Motorrad
   

Businesses that are developed alongside new technological innovations modernize an industry and compete within it. An example is the continuous competition for supremacy between Hero, Honda, and Yamaha motorcycle manufacturing companies. As these companies are well established, they already have a strong presence in the markets and have a diverse portfolio serving various components of the motorcycle industry. For instance, Honda has everything within its reach starting from commuter bikes to superbikes, thus ensuring his capture in two-wheeler market.
 

The rivalry of niche manufacturers has increased from the introduction of KTM and Ducati to performance and premium motorcycles. For instance, this is clear when KTM launched the 790 Adventure for the North American 2024 model year after the Super Adventure family of motorcycles was released. This new version is an improvement, but it is better in terms of updated electronics and more mechanical changes than his predecessor. The introduction of electric motorcycle manufacturers also increases the competition, this includes Zero Motorcycles and Energica which illustrate the industry is going in the direction of greener options.
 

Two-Wheeler Industry News

• In November 2023, at EICMA 2023, Royal Enfield electric motorcycle brand- The Himalayan 450 was revealed for the very first time at international markets. The Himalayan 450 is a fusion of nature and technology as it incorporates Royal Enfield’s adventure essence into an eco-friendly electric motorcycle, giving the society what they want in a sustainable & multifaceted electric bike.
   
• In November 2023, Pure EV has launched the “Pure EcoDryft 350” electric scooter. This electric scooter is considered, at least one of the most functional eco-friendly electric scooters available, traveling 171 kilometres on a single charge. It also helps to support the trend of eco responsible mobility by sustaining the need for electric motorcycles that are green and efficiently usable.
   
• In October 2023, Kawasaki, a renowned motorcycle company from Japan, set up a manufacturing facility in Nuevo Leon, Mexico, and spent USD 200 million on it. Accomplishing this will enable Kawasaki to enhance their production capabilities and further land themselves strategically in the region.
   
• In March 2023, Hero MotoCorp has entered a partnership with Zero Motorcycles for the co-development and co-promotion of premium electric motorcycles. This collaboration was envisioned to combine Hero’s robust manufacturing and distribution vertical with Zero’s electric vehicle capability.
   

The two-wheeler market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Product

• Motorcycle
  • Sport
  • Standard
  • Cruiser
  • Adventure
• Scooter

Market, By Propulsion

• Petrol
• Electric

Market, By Engine Displacement

• Below 15c0c
• 150cc-250cc
• 251cc-350cc
• 351cc-500cc
• Above 500cc

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Netherlands
  • Belgium
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia