Two-wheeler Market Size, Share & COVID-19 Impact Analysis, By Type (Scooter, Motorcycle, and Moped), By Technology (ICE and Electric), and Regional Forecast, 2023– 2030

The global two-wheeler market size was valued at USD 108.58 billion in 2022. The market is projected to grow from USD 114.46 billion in 2023 to USD 181.11 billion by 2030, exhibiting a CAGR of 6.8 % during the forecast period. 

The two-wheeler market includes scooters, motorcycles, and mopeds. The scooter segment generally includes electric 2W with an engine ranging between 50 to 250cc. The motorcycle segment includes two-wheelers designed for higher speeds with better acceleration and speed handling characteristics. The moped segment consists of bicycle typed vehicles equipped with pedals and low-powered engines generally smaller than 50cc.

The rising traffic congestion in metropolitan cities and growing fuel prices drive users and various end-users to opt for them as a preferred option for traveling. This drives the demand as they provide higher fuel efficiency than automobiles and are easy to navigate through traffic congestion, thus driving their demand.

COVID-19 IMPACT

Temporary Shutdown in Two-wheeler Production Hindered Market Expansion Amid the Pandemic

The impact of COVID-19 was varied across different regions, with a few regions witnessing a decline in sales, whereas other regions witnessed a rise in motorcycle sales in 2020. According to the European Association of Motorcycle Manufacturers, the total registrations in the five largest motorcycles in Europe, such as France, Italy, Spain, Germany, and the U.K., fell by 37.9% in March 2020 as compared to the same month in 2019. Additionally, the situation worsened further in April 2020, when combined registrations in the largest markets fell by roughly 74.9%, with some economies witnessing 84% to 96% decline.

However, the market witnessed a fast recovery owing to increasing demand for electric models in the region due to government subsidies, tax benefits, and rising climate change-related concerns. Moreover, the adoption of the vehicles for short-range travel and commuting to avoid unnecessary traffic congestion boosted market growth.

LATEST TRENDS

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Growing Inflation and Rising Fuel Prices to Surge the Demand for Electric Two-wheelers Worldwide

Global crude oil prices and currency exchange rate affect gasoline prices worldwide as various economies import fuels from the Gulf countries. Electric 2Ws are highly efficient for city commuting and offer a great alternative to gasoline-fueled vehicles, leading to increased adoption of electric mobility worldwide.

Moreover, the growing environmental awareness of the harmful repercussions of carbon emissions is driving the end-users to opt for a greener alternative for commuting. Additionally, they have low operational costs compared to conventional vehicles. Therefore, rising fuel prices and adopting electric versions of these vehicles are some of the market trends observed in developing economies worldwide.

DRIVING FACTORS

Rapid Urbanization and Growing Traffic Congestion to Aid Market Growth

The problems associated with rapidly growing urbanization are high population density, road traffic congestion, lack of parking spaces, and inadequate mobility infrastructure. Over the past decade, developing countries have witnessed rapid urbanization. According to the United Nations (UN) Department of Economics and Social Affairs, nearly 68% of the world's population will live in urban areas by 2050.

Asia Pacific is anticipated to witness market growth during the forecast period due to urbanization, and the infrastructure across the metropolitan cities is anticipated to grow at an average rate of around 3% per year. Therefore, increasing demand for compact mobility solutions, such as motorcycle and scooters, in developed and developing economies due to road congestion and lack of parking spaces will likely improve market growth in the coming years.

Rapidly Increasing Fuel Prices and Shifting Consumer Preference to Elevate Market Augmentation 

Global crude oil prices and currency exchange rate affect gasoline prices worldwide as various economies import fuels from the Gulf countries. Most of the populace in urban areas utilize four-wheelers such as sedans, compact cars, SUVs and other four-wheelers for their long-range transportation, daily commute, and other travel-related activities. However, it provides significantly better fuel economy compared to four-wheelers.

Therefore, a sharp surge in gasoline prices will likely shift the urban and rural populace's preference from four-wheelers to these vehicles for superior fuel economy and low maintenance.

RESTRAINING FACTORS

Rising Safety Concerns Regarding Riding Two-wheelers to Limit the Market Growth

Four-wheelers, such as sedans, SUVs, and other cars, provide more comfort, safety, and convenience than them. Therefore, the populace prefers four-wheelers for long-distance rides. In addition, an increasing number of accident cases involving 2W is further anticipated to impact global motorcycle and scooter sales negatively. For instance, according to the National Crime Records Bureau (NCRB), in 2021, two-wheelers accounted for 44.5% of the total road accident deaths in India.

SEGMENTATION

By Type Analysis

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Growing Demand for Higher Speeds in Two-wheelers Drives the Demand for Motorcycles Globally

Based on type, the market is segmented into scooter, motorcycle, and moped. The motorcycle segment held the largest market share in 2022 and is also expected to grow at a significant growth rate from 2023 to 2030. Motorcycles are extensively used in India and China for food and goods delivery services and are also used as self-drive rentals and bike taxis. Moreover, the Asia Pacific region holds the largest market share, thus propelling the segment's growth.

By Technology Analysis

Affordability of Two-wheelers Among Middle Class Populace to Fuel ICE Segment Expansion

Based on technology, the market is categorized into ICE and electric. Internal Combustion Engine (ICE) two-wheelers (2W) accounted for the largest market size in 2022. ICE 2W demand is still consistent in high-volume countries such as India, China, and other Southeast Asian countries as the relatively affordable electric mopeds available in these regions are not comparable in terms of performance (range per charge, power, and time taken for charging). Moreover, lack of sufficient charging infrastructure supporting the adoption of electric vehicles is surging the demand for IC engines. 

The electric segment is the fastest-growing segment by technology, with a highest CAGR between 2023 to 2030 and is expected to assist the overall two-wheeler market growth. Currently, the majority of e-2Ws sold are low-speed vehicles. However, with government subsidies and evolving technology, both supply and demand will shift to high-speed vehicles.

REGIONAL INSIGHTS

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The regional analysis section covers the trends and demand in various regions such as Asia Pacific, Europe, North America, and the rest of the world. 

Asia Pacific dominated the two-wheeler market share in 2022, with India and China accounting for a majority of market share. They offer a cost effective alternative and are highly compact when compared to passenger vehicles. Furthermore, consumers tend to opt for them as they provide higher fuel efficiency at low cost. These few factors are driving the demand in the Asia Pacific market.

The increasing penetration of the product is also creating the need for new environmental related legislation to control air pollution. For instance, in Vietnam (the fourth largest market in Asia in terms of volume sales), the capital city of Hanoi is planning to ban motorbikes across all of its core districts after 2025 to curb emissions. These factors will impact the market growth.

Europe also accounted for a significant market share in 2022 and is expected to grow at a steady CAGR over the forecast period. The 2W registrations in five of the largest Europe markets, including the U.K., Spain, France, Italy, and Germany, increased drastically compared to 2020. The North America market accounted for a decent market size in 2022, and it is expected to grow significantly over the forecast period.

KEY INDUSTRY PLAYERS

Companies are Focusing on Developing and Introducing Electric Two-wheelers to Widen their Customer Base

Various regional and international players consistently develop advanced strategies to effectively introduce new electric models in the automotive industry to take a leading step in the competitive landscape. Many companies are forming mergers and partnerships & collaboration strategies to enable market growth. In March 2021, Honda signed a Letter of Intent with KTM, Piaggio, and Yamaha Motor to create a Swappable Batteries Consortium for motorcycles and light electric vehicles.

LIST OF KEY COMPANIES PROFILED:

• Honda Motor Co., Ltd. (Japan)


• Yamaha Motors Co. (Japan)


• Hero Moto Corp. (India)


• Suzuki Motor Corporation (Japan)


• BMW Motorrad International (Germany)


• Bajaj Auto (India)


• Emergica Moto Company Inc. (Italy)


• Kawasaki (Japan)


• Piaggio & C. SpA (Italy)


• Triumph Motorcycles Ltd. (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: Hero Motor Corp. announced the initiation of production of flex-fuel motorcycles as many leading OEMs are focusing on creating ethanol-compliant engines and vehicles. The company aims to introduce newer technology to grab early revenue opportunities.


• January 2023: Bajaj partnered with Triumph Motorcycles to manufacture mid-capacity motorcycles for the Indian and international markets. This partnership is expected to help Bajaj to deliver mid-range motorcycles in the international market.


• June 2022: Triumph announced the testing of its new electric bike TE 1. The model was developed in collaboration with Williams Advanced Engineering, Integral Powertrain Limited, and Warwick Manufacturing Group.


• April 2022: Yamaha Motor developed the TY-E 2.0 electric trials bike, which achieves carbon neutrality by proposing the new value of EV-powered motorcycling. The TY-E 2.0 is scheduled to participate in several rounds of the 2022 FIM Trial World Championship alongside other electric and gas-powered models.


• March 2022: Suzuki signed MOU with the state of Gujarat for electric vehicles and batteries manufacturing in India to invest USD 1,353.82 million toward carbon neutrality.

REPORT COVERAGE

An Infographic Representation of Two Wheeler Market

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The report provides regional insights on this market and focuses on key aspects such as leading companies, product/service types, and leading product applications. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

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