Two-Wheeler Market: Scooter & Motorcycle Demand, Lifestyle Shifts & Growth Outlook

Strong urbanization and rising personal mobility needs are driving the two-wheeler market. According to IMARC Group's latest research publication, global two-wheeler market size reached USD 138.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 245.9 Billion by 2033, exhibiting a growth rate (CAGR) of 6.25% during 2025-2033.

How AI is Reshaping the Future of Two-Wheeler Market

• Smart Collision Detection and Safety Enhancement: AI-powered sensors and cameras continuously monitor rider surroundings in real-time, identifying potential collision risks and providing instant alerts or automatic braking interventions. Studies indicate that fleets implementing AI collision detection have seen accident reductions of up to 30%, significantly improving rider safety while lowering insurance claims and maintenance costs.
• Predictive Maintenance and Fleet Optimization: Machine learning algorithms analyze vehicle performance data to predict component failures before breakdowns occur, enabling proactive maintenance scheduling that minimizes downtime.

• Connected Mobility and Personalized Experiences: Artificial intelligence enables seamless communication between two-wheelers and infrastructure through advanced connectivity systems that enhance navigation, diagnostics, and rider assistance features.

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Two-Wheeler Industry Overview:

Rapid urbanization across developing economies is fundamentally reshaping two-wheeler demand as growing cities struggle with traffic congestion and limited parking infrastructure. Asia Pacific leads global production and consumption, with countries like India, China, and Japan dominating manufacturing, collectively accounting for over 80% of worldwide two-wheeler sales.

Two-Wheeler Market Trends & Drivers

The explosive growth of electric two-wheelers represents the most transformative shift reshaping the market landscape, driven by environmental concerns, government incentives, and advancing battery technology. India's electric two-wheeler market grew 24% annually in 2024, surpassing one million units, with projections reaching ₹1.44 trillion by 2030 as manufacturers expand model offerings across price segments.

The expansion of connectivity features and smart technology integration is reshaping consumer expectations as two-wheelers evolve from simple transportation into intelligent mobility platforms. HERE Technologies partnered with Pioneer Corporation in January 2025 to showcase innovative connected devices for two-wheelers at India's Bharat Mobility Global Expo 2025, demonstrating industry commitment to location-aware technology.

The surge in delivery and commercial applications powered by India's gig economy is creating unprecedented demand for affordable, reliable two-wheelers suited for last-mile logistics. Electric three-wheeler adoption reached 54% in FY 2023-24, the highest across all vehicle segments, demonstrating commercial operators' willingness to embrace alternative powertrains when total cost of ownership advantages become clear.

Leading Companies Operating in the Global Two-Wheeler Industry:

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

Two-Wheeler Market Report Segmentation:

By Type:

• Scooters
• Mopeds
• Motorcycle
• Electric Two-Wheeler

Motorcycle represents the largest class, offering versatility for both urban commuting and long-distance travel while appealing to riders seeking freedom, independence, and adventure.

By Technology:

• ICE
• Electric

Based on the technology, the market has been segmented into ICE and electric.

By Transmission:

• Manual
• Automatic

Manual dominates the market, offering direct control, engaging riding experience, lower upfront costs, and easier maintenance compared to automatic alternatives.

By Engine Capacity:

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

100-125cc holds the largest market share, delivering optimal balance of fuel efficiency, affordability, and sufficient power for daily commuting and short-distance travel.

By Fuel Type:

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

Petrol dominates the market due to widespread fuel station availability, established infrastructure, reliable performance, and lower upfront costs compared to alternative fuel options.

By End-User:

• Personal
• Commercial

Personal use accounts for the largest market share, driven by individual demand for affordable, convenient, and versatile transportation for daily commuting, leisure, and recreational activities.

By Distribution Channel:

• Offline Channels
• Online Channels

Offline channels represent the largest segment, providing customers physical examination opportunities, test rides, personalized service, after-sales support, servicing, and financing options through dealerships.

Regional Insights:

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

Asia Pacific exhibits clear dominance in the two-wheeler market due to rapid urbanization, congested city streets, burgeoning middle-class population, and affordable transportation needs across developing economies.

Recent News and Developments in Two-Wheeler Market

• June 2025: TVS Motor launched the 2025 TVS Apache RTR 200 4V motorcycle, presenting numerous technical upgrades to spot two decades of the Apache brand. The new and advanced model is priced at INR 1,53,990 (ex-showroom Delhi) and will be accessible at TVS dealerships across India.

• May 2025: Honda achieved a significant global milestone, with its cumulative production of motorcycles and scooters surpassing the 500 million threshold. This accomplishment occurs 76 years after the company initiated mass production in 1949. Looking ahead to 2025, the 500 millionth unit is produced in Honda's largest market, India, and it was none other than the beloved local model Activa.
• May 2025: Suzuki Motorcycle India Pvt. Ltd. (SMIPL) announced its plan of setting up a new manufacturing facility in Haryana, marking its second plant in the nation. Situated at IMT Kharkhoda, this establishment is in accordance with the government's objective to enhance industrial infrastructure, draw in international investments, and create job opportunities in the area.

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