Two-Wheeler Market to Grow at 2.43% CAGR as Demand for Affordable Mobility and Urban Commuting Rises

Two-wheelers have long been an essential mode of transportation across the world, particularly in regions where affordability, convenience, and ease of mobility are key priorities. From motorcycles to scooters, two-wheelers play a vital role in daily commuting, delivery services, and personal travel.

According to Mordor Intelligence, the global two-wheeler market is estimated at USD 706 billion in 2025 and is expected to reach USD 777.2 billion by 2029, growing at a CAGR of 2.43% during the forecast period (2025-2029). The steady growth is supported by rising demand for practical and cost-effective transportation options, especially in densely populated urban areas and developing countries.

While the market faces challenges such as fuel price fluctuations and regulatory changes, increasing urbanization, technological advancements in vehicle manufacturing, and the emergence of electric two-wheelers continue to create new opportunities for the industry.

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Key Trends Driving the Two-Wheeler Market

Rising Demand for Affordable Mobility in Developing Nations

In countries with expanding populations and limited public transport infrastructure, two-wheelers have emerged as an essential mobility solution. Their affordability, low maintenance costs, and ability to navigate congested roads make them highly practical, especially for middle- and lower-income groups.

Regions such as Asia-Pacific, Latin America, and parts of Africa are witnessing steady growth in two-wheeler sales, with motorcycles and scooters providing an economical alternative to cars and public transport.

Urban Congestion and the Preference for Compact Vehicles

Urban centers worldwide continue to grapple with traffic congestion, limited parking space, and rising transportation costs. Two-wheelers, with their compact design and fuel efficiency, offer a convenient solution for short-distance travel and daily commuting in busy city environments.

This trend is particularly noticeable in cities across India, Southeast Asia, and parts of Europe, where motorcycles and scooters provide quick, cost-effective mobility for millions of commuters.

Emergence of Electric Two-Wheelers

While traditional petrol-powered two-wheelers continue to dominate the market, electric two-wheelers are gradually gaining traction, driven by environmental concerns, government incentives, and improving charging infrastructure.

Manufacturers are expanding their electric product portfolios to meet changing consumer expectations, though electric two-wheeler adoption remains at varying stages across different regions.

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Market Segmentation

The two-wheeler market can be segmented based on vehicle type, propulsion type, and geography, providing a detailed view of industry dynamics and areas of growth.

By Vehicle Type:

Motorcycles:
Including commuter bikes, sports bikes, and high-performance motorcycles.

Scooters:
Known for their ease of use, fuel efficiency, and suitability for urban commuting.

Mopeds:
Lightweight, low-speed vehicles popular in specific regional markets for short-distance travel.

By Propulsion Type:

Internal Combustion Engine (ICE) Two-Wheelers:
Traditional petrol or diesel-powered vehicles that dominate global sales.

Electric Two-Wheelers:
Battery-powered motorcycles, scooters, and mopeds gaining popularity as cleaner alternatives.

By Geography:

Asia-Pacific
North America
Europe
South America
Middle East and Africa

Asia-Pacific remains the largest market for two-wheelers, accounting for significant production and consumption levels, led by countries such as India, China, and Indonesia. Meanwhile, electric two-wheelers are slowly finding space in North America and Europe, where environmental concerns and supportive policies are influencing buying decisions.

Key Players in the Two-Wheeler Market

The global two-wheeler market is competitive and includes a wide range of manufacturers catering to different price points, vehicle categories, and geographic regions. Established companies are focusing on product quality, affordability, and expanding electric offerings to stay competitive.

Some of the key players operating in the two-wheeler market include:

Honda Motor Co., Ltd.
Hero MotoCorp Ltd.
Bajaj Auto Ltd.
Yamaha Motor Co., Ltd.
Suzuki Motor Corporation
TVS Motor Company
Kawasaki Heavy Industries Ltd.
Piaggio & C. SpA
Harley-Davidson, Inc.
Ducati Motor Holding S.p.A.

These companies play a crucial role in meeting the global demand for two-wheelers, offering a wide variety of models suited to urban commuters, rural users, and recreational riders. Their efforts to introduce electric models, improve fuel efficiency, and offer affordable options help maintain steady market momentum.

Conclusion

The global two-wheeler market remains an essential part of the transportation landscape, offering practical and economical mobility solutions to millions of people worldwide. As urbanization continues and demand for affordable transportation grows, two-wheelers are expected to maintain their position as a preferred mode of travel, particularly in developing regions.

The market is projected to grow from USD 706 billion in 2025 to USD 777.2 billion by 2029, with a CAGR of 2.43%, reflecting steady demand driven by affordability, convenience, and the gradual introduction of electric models.

While challenges such as regulatory changes, infrastructure gaps, and fuel price volatility exist, manufacturers and policymakers are working together to support the two-wheeler industry's growth. With rising urban populations, technological improvements, and shifting mobility preferences, the two-wheeler market is expected to remain a key contributor to global transportation in the coming years.

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