Two-Wheeler Market Expected to Reach $260.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Two-Wheeler Market," The two-wheeler market was valued at $143.30 billion in 2022, and is estimated to reach $260.6 billion by 2032, growing at a CAGR of 6.4% from 2023 to 2032.

The demand for two-wheelers is increasing due to the growing number of private companies heavily investing in the development of more efficient and smart motorcycles and scooters. The young generation of consumers is quite selective when it comes to the comfort and performance for riding, which encourages manufacturers to use appealing marketing techniques when they launch new two-wheeler models. For instance, in August 2022, BMW AG improved its SS 1000 R with improvements in the aerodynamic field. The newly created exterior fairing a composed of visible carbon fiber and has a wider windscreen that considerably enhances maximum speed while lowering aerodynamic drag and improving flow around the rider.

In personal travel, two-wheelers play a vital role in providing affordable and efficient mobility solutions to people around the world. Its compact size, fuel efficiency, and movability make two-wheelers ideal choices for personal traveling, especially in heavily populated urban and semi-urban areas. Moreover, the rising population in several countries has led to a higher necessity for convenient and economical transportation modes. Also, their affordability makes them accessible to a broader segment, including students and lower-income individuals. Furthermore, the shift towards e-scooters and eco-friendly transportation has further driven the industry's growth. In addition, the integration of smart features technology in two-wheelers, such as connectivity, GPS navigation, and smartphone integration.

Companies like Honda and TVS have introduced smart two-wheelers that offer real-time data and connectivity options, enhancing the overall riding experience. These vehicles come equipped with advanced connectivity options, allowing riders to seamlessly pair their smartphones with the scooter's onboard system. This integration enables hands-free calling, music control, and access to navigation, enhancing the overall riding experience. Furthermore, the integration of smart technologies in vehicles influences the overall appeal of two-wheelers. As technology continues to enhance, it is likely that more modernizations in smart technologies will emerge, further shaping the future of the two-wheeler industry and elevating the riding experience for users.

The two-wheeler industry is also characterized by continuous innovation, with manufacturers introducing advanced features, improved safety standards, and cutting-edge technology to attract consumers. Therefore, the two-wheeler sector remains an important and dynamic part of the automotive industry, contributing to economic growth and providing diverse transportation options to meet the changing needs of consumers.

Additionally, the consumer trend towards using electric bicycles as an environmentally friendly and efficient solution for commuting and rising fuel costs is complementing the market growth. Additionally, rising energy costs and competition among new energy efficient technologies are also expected to drive market growth. Additionally, according to Paul Lee, Mark Casey, and Craig Wigginton (Deloitte's Global Head of Research for the Technology, Media, and Telecommunications (TMT) Industry), more than 130 million e-bikes will be sold between 2020 and 2020. (motorcycles and scooters) will be manufactured. Sales of electric bikes in 2023. He is scheduled to start in 2023. It is expected to sell more than 40 million units worldwide. This is attributed to technological innovations in electric bikes, making them more attractive for commuters.

The market growth is supplemented by factors such as increase in government initiatives toward electric mobility, rise in fuel prices, and consumer inclination toward use of e-bikes as an eco-friendly & efficient solution for commute which propels the growth of the two-wheeler market. However, high initial cost of e-bikes and scooters and ban on use of e-bikes in major cities of China are the factors expected to hamper the growth of the electric scooter and motorcycle market. In addition, improvement in infrastructure and growth in advancement in battery technology create market opportunities for the key players operating in the two-wheeler market.

Electric two-wheelers have also gained traction as environmentally conscious consumers look for sustainable alternatives. Companies have responded by introducing electric scooters, such as the Bajaj Chetak and TVS iQube in India, capitalizing on the growing demand for eco-friendly mobility solutions. Furthermore, the ease of financing options and the penetration of financial institutions into rural areas have made two-wheelers more accessible to a wider consumer base, driving further growth in these markets.

The two-wheeler market is segmented on the basis of body type, technology, price, and region. Depending on the body type, the market is segregated into scooter and motorcycle. By technology, it is categorized into Internal Combustion Engine (ICE) and Electric. As per price, it is fragmented into low, medium, and high. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

COVID-19 Impact

The automotive industry, including the two-wheeler market, faced substantial disruptions as lockdowns, supply chain interruptions, and reduced consumer demand resulted in a temporary downturn. The closure of manufacturing units and disruptions in the supply chain, both domestically and internationally, hampered production schedules. Many companies faced challenges in sourcing components and raw materials, leading to delays in manufacturing and assembly processes. In addition, the industry also showed resilience by adapting to the changing circumstances. Some companies accelerated their digital presence, enabling online sales and services. Moreover, the increased demand for personal mobility, driven by a reluctance to use public transportation, provided a silver lining for the industry as people turned to two-wheelers for commuting.

KEY FINDINGS OF THE STUDY.

• By vehicle type, the scooter segment is anticipated to exhibit significant growth in the automotive suspension market in the near future.
• By propulsion, the electric segment is anticipated to exhibit significant growth in the automotive suspension market in the near future.
• By price, the medium segment is anticipated to exhibit significant growth in the automotive suspension market in the near future.
• By Region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players covered in the two-wheeler market report include Honda Motor Co., Ltd., Bajaj Auto Ltd., BMW AG, Hero Moto Corp., Kawasaki Motors Corp., USA, Piaggio & C. SpA, Suzuki Motor Corporation, Triumph Motorcycles, TVS Motor Company, and Yamaha Motors Co.