Two Wheeler Market: Urban Mobility Demand, Fuel Efficiency Trends & Industry Growth Outlook

According to IMARC Group's latest research publication, the 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 the Two-Wheeler Market

• AI-Powered Predictive Maintenance and Diagnostics: Machine learning algorithms analyze real-time sensor data from engine, brakes, and battery systems to detect faults before they escalate.
• Smart Rider Assistance and Collision Avoidance: AI-integrated safety systems are redefining road safety standards in two-wheelers. Segway-Ninebot's January 2025 launch of the Ninebot SIGHT AI Visual Assist System equipped with 2.4TOPS computing power delivers forward collision warnings, blind-spot monitoring, lane departure alerts, and AI gesture recognition in a single package.
• Intelligent Battery Management and Range Optimization: AI-driven battery management systems are squeezing more range and longevity out of lithium-ion packs.

Access the Latest 2026 Market Data & Forecasts

Two-Wheeler Industry Overview

The global two-wheeler market is undergoing a structural shift, driven by rapid urbanization, rising middle-class incomes across Asia Pacific, and an accelerating pivot to electric mobility. India alone sold over 20 million two-wheelers in 2025, with electric variants crossing 1.28 million units — a record high. Government programs like India's PM E-DRIVE scheme (₹10,900 crore outlay) and China's city-level EV adoption policies, where e-2Ws now command a 54.8% sales share, are reshaping competitive dynamics and pushing manufacturers to electrify at pace.

Two-Wheeler Market Trends & Drivers

Urbanization and the Daily Commuter Advantage Rapid urban growth across emerging economies is one of the most powerful forces driving two-wheeler demand. India's urban population is on track to surpass 530 million, and over 17 million two-wheelers were sold to meet urban commuting needs in recent years.

Electric Revolution and Government Policy Push Governments worldwide are accelerating the shift to electric two-wheelers through aggressive incentives. India's PM E-DRIVE scheme is supporting 2.47 million electric two-wheelers, while a GST reduction to 18% on sub-350cc vehicles now benefits over 90% of the domestic market.

Technology, Connectivity, and the Premium Segment Surge Rising disposable incomes are fueling demand for smarter, feature-rich two-wheelers. The global two-wheeler connectivity system market, valued at USD 3.10 billion, is expanding as buyers expect GPS navigation, Bluetooth dashboards, and app-based diagnostics as standard.

Leading Companies Operating in the Global Two-Wheeler Industry

• Bajaj Auto Ltd.
• BMW Motorrad (Bayerische Motoren Werke AG)
• Harley-Davidson Inc.
• Hero MotoCorp Ltd.
• Honda Motor Co. Ltd.
• KTM AG
• Piaggio & C. SpA
• Royal Enfield (Eicher Motors Limited)
• Suzuki Motor Corporation
• TVS Motor Company
• Yamaha Motor Co. Ltd.
• Ola Electric Mobility

Two-Wheeler Market Report Segmentation

By Type:

• Scooters
• Mopeds
• Motorcycle
• Electric Two-Wheeler

Motorcycle dominates the market, driven by its versatility for both urban commuting and long-distance travel, and its strong appeal among younger demographics seeking performance and freedom.

By Technology:

• ICE
• Electric

ICE holds the largest share, though electric is the fastest-growing segment supported by government incentives and improving battery technology.

By Transmission:

• Manual
• Automatic

Manual transmission represents the largest segment, preferred for its direct riding control and lower upfront cost.

By Engine Capacity:

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

The 100–125cc segment commands the largest share due to its optimal balance of fuel efficiency, affordability, and everyday practicality.

By Fuel Type:

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

Petrol dominates due to widespread fueling infrastructure and reliable long-range performance.

By End-User:

• Personal
• Commercial

By Distribution Channel:

• Offline Channels
• Online Channels

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 represents the largest and most dominant regional segment, with China and India together accounting for the lion's share of global two-wheeler production and sales.

Recent News and Developments in the Two-Wheeler Market

• January 2025: Segway-Ninebot launched the Ninebot SIGHT AI Visual Assist System, featuring three high-performance AI chips, 2K high-definition recording, and intelligent safety features including forward collision warnings, blind-spot monitoring, and lane departure alerts — setting a new benchmark for smart two-wheeler safety technology.
• November 2024: Honda Power Pack Energy India announced plans to establish 500 battery-swapping stations across Bangalore, Delhi, and Mumbai by March 2026, as part of a broader push to reduce range anxiety and accelerate electric two-wheeler adoption in major urban centers.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.