Market Overview

The two-wheeler market refers to the global industry that deals with the manufacturing, distribution, and sales of motorcycles, scooters, and other similar vehicles. Two-wheelers are popular modes of transportation in many countries due to their affordability, fuel efficiency, and ease of maneuverability in congested urban areas.

Meaning

The term “two-wheeler” is used to describe any vehicle that runs on two wheels, powered by an internal combustion engine or electric motor. These vehicles are primarily designed for personal transportation and offer an economical and convenient means of commuting. Two-wheelers can vary in size and style, ranging from lightweight scooters to powerful motorcycles built for speed and performance.

Executive Summary

The global two-wheeler market has witnessed significant growth in recent years, driven by various factors such as increasing urbanization, rising disposable incomes, and changing consumer preferences. The market is highly competitive, with several key players vying for market share by introducing innovative features and technologies in their products.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• Growing demand for affordable transportation: With the increase in population and urbanization, there is a rising demand for affordable modes of transportation. Two-wheelers fulfill this need by providing cost-effective mobility solutions, especially in developing countries.
• Shifting consumer preferences towards electric vehicles: The market has witnessed a growing trend towards electric two-wheelers due to increasing environmental concerns and government incentives promoting sustainable transportation. Electric scooters and motorcycles offer lower emissions and reduced operating costs, driving their adoption.
• Technological advancements: The two-wheeler industry has seen significant technological advancements, including the integration of smart features, improved engine efficiency, advanced safety systems, and enhanced connectivity options. These advancements have improved the overall riding experience and attracted more consumers.

Market Drivers

• Urbanization and congestion: As urban areas become more crowded, two-wheelers provide a practical solution for navigating through traffic congestion. They offer better mobility and maneuverability compared to four-wheelers, making them a preferred choice for daily commuting.
• Affordability and fuel efficiency: Two-wheelers are generally more affordable than cars and require lower maintenance costs. They also offer better fuel efficiency, making them a cost-effective mode of transportation, particularly for individuals with limited budgets.
• Changing lifestyle and consumer preferences: The increasing desire for personal mobility, especially among the younger generation, has fueled the demand for two-wheelers. They offer freedom, convenience, and a sense of adventure, making them attractive to a wide range of consumers.

Market Restraints

• Safety concerns: Despite technological advancements, two-wheelers are still considered riskier compared to cars due to the lack of protective structures. Accidents and injuries associated with two-wheelers remain a significant concern for consumers and may hinder market growth.
• Infrastructural limitations: Inadequate road infrastructure, particularly in developing countries, can limit the growth of the two-wheeler market. The lack of proper roads, parking facilities, and charging infrastructure for electric two-wheelers can pose challenges for consumers.

Market Opportunities

• Electric two-wheeler market: The growing demand for electric vehicles presents significant opportunities for manufacturers and investors in the two-wheeler market. Governments around the world are promoting electric mobility through incentives and subsidies, encouraging consumers to adopt electric scooters and motorcycles.
• Emerging markets: Developing countries with a large population and rising disposable incomes offer immense growth potential for the two-wheeler market. These markets are witnessing an increase in urbanization, which drives the demand for affordable and efficient modes of transportation.
• E-commerce delivery services: The expansion of e-commerce and last-mile delivery services has created a new market segment for two-wheelers. Delivery companies are increasingly using motorcycles and scooters for fast and cost-effective delivery in congested urban areas.

Market Dynamics

The two-wheeler market is characterized by intense competition among key players striving to differentiate themselves through product innovation, marketing strategies, and pricing. Manufacturers are focusing on developing technologically advanced and feature-rich vehicles to attract customers. Additionally, partnerships with ride-sharing and rental companies have become common to tap into the growing shared mobility sector.

Regional Analysis

The two-wheeler market is geographically diverse, with significant variations in consumer preferences, regulations, and infrastructure across regions. Asia-Pacific dominates the market, accounting for the largest share due to its vast population, rapid urbanization, and strong demand from countries like India, China, and Indonesia. Europe and North America also have substantial market shares, driven by the demand for electric two-wheelers and premium motorcycles.

Competitive Landscape

Leading companies in the Two-Wheeler Market:

1. Hero MotoCorp Ltd.
2. Honda Motor Co., Ltd.
3. Yamaha Motor Co., Ltd.
4. Bajaj Auto Ltd.
5. TVS Motor Company Ltd.
6. Suzuki Motor Corporation
7. Piaggio & C. SpA
8. KTM AG
9. Harley-Davidson, Inc.
10. Vespa (Piaggio Group)

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The two-wheeler market can be segmented based on vehicle type, fuel type, and region. Vehicle types include motorcycles, scooters, and mopeds. Fuel types can be categorized as gasoline-powered, electric, and hybrid two-wheelers. Geographically, the market can be divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Category-wise Insights

Motorcycles: Motorcycles form a significant segment in the two-wheeler market, offering a wide range of options from entry-level commuter bikes to high-performance sports bikes. They are popular among enthusiasts and individuals seeking a thrilling riding experience.

Scooters: Scooters are gaining popularity due to their convenience, ease of use, and practicality in urban environments. They are generally more fuel-efficient than motorcycles and appeal to a broad range of consumers, including women and older riders.

Mopeds: Mopeds are lightweight two-wheelers with smaller engines and limited speed capabilities. They are popular in urban areas for short commutes and often serve as a low-cost alternative to cars or public transportation.

Key Benefits for Industry Participants and Stakeholders

• Revenue growth opportunities: The two-wheeler market offers significant revenue growth prospects for manufacturers, suppliers, and dealers. The increasing demand for two-wheelers, especially in emerging markets, provides opportunities for market expansion and higher sales volumes.
• Technological advancements and innovation: The industry offers a platform for continuous technological advancements and innovation. Manufacturers can invest in research and development to improve vehicle performance, safety features, and connectivity options, thereby gaining a competitive edge.
• Sustainable transportation: The shift towards electric two-wheelers aligns with the growing emphasis on sustainable transportation and reducing carbon emissions. Industry participants can contribute to environmental conservation and attract environmentally conscious consumers.

SWOT Analysis

Strengths:

• Affordability and cost-effectiveness
• Fuel efficiency and low operating costs
• Wide range of vehicle options and styles
• Strong distribution networks and after-sales service

Weaknesses:

• Safety concerns and risk of accidents
• Dependence on infrastructure development
• Limited storage and carrying capacity compared to cars
• Perception of two-wheelers as less prestigious than cars

Opportunities:

• Electric two-wheeler market growth
• Expansion in emerging markets
• Integration of advanced safety features
• Collaborations with ride-sharing and delivery companies

Threats:

• Intense competition among manufacturers
• Changing government regulations and policies
• Economic downturns affecting consumer purchasing power
• Disruption from new mobility solutions like autonomous vehicles

Market Key Trends

• Rise of electric two-wheelers: The growing awareness of environmental sustainability and favorable government policies have accelerated the adoption of electric two-wheelers. Manufacturers are focusing on developing electric models with improved battery technology, longer range, and faster charging.
• Connectivity and smart features: Two-wheelers are incorporating advanced connectivity options, such as smartphone integration, GPS navigation, and Bluetooth connectivity. Riders can access real-time information, control multimedia, and enhance safety through connected features.
• Urban mobility solutions: With the increasing urbanization and traffic congestion, there is a rising demand for urban mobility solutions. Two-wheeler manufacturers are exploring options like shared mobility, subscription-based services, and compact electric vehicles designed specifically for urban commuting.

Covid-19 Impact

The Covid-19 pandemic had a mixed impact on the two-wheeler market. While the industry initially faced disruptions in production and supply chain due to lockdowns and restrictions, it witnessed a rebound in demand as people sought personal transportation to avoid public transportation. The pandemic highlighted the advantages of two-wheelers in terms of social distancing and reduced exposure to crowded spaces.

Key Industry Developments

• Introduction of electric models: Several major two-wheeler manufacturers have launched electric models to capitalize on the growing demand for sustainable transportation. These electric two-wheelers offer zero-emission mobility and align with the global shift towards a greener future.
• Integration of advanced safety features: Manufacturers are incorporating advanced safety features like anti-lock braking systems (ABS), traction control, and stability control in their two-wheelers. These features enhance rider safety and mitigate the risks associated with riding.
• Collaborations with technology companies: Two-wheeler manufacturers are forming partnerships with technology companies to integrate smart features, connectivity options, and artificial intelligence. These collaborations aim to enhance the overall riding experience and offer value-added services.

Analyst Suggestions

• Focus on electric mobility: Manufacturers should invest in research and development to improve electric vehicle technology, extend battery range, and enhance charging infrastructure. Electric two-wheelers have immense growth potential and can help companies establish a competitive advantage.
• Address safety concerns: Continuous efforts should be made to enhance rider safety through the integration of advanced safety features and the promotion of responsible riding practices. Industry participants should also collaborate with regulatory bodies to implement stringent safety standards.
• Expand distribution and service networks: Strengthening distribution networks and after-sales service is crucial for market penetration and customer satisfaction. Manufacturers should prioritize expanding their presence in emerging markets and remote areas to cater to a broader customer base.

Future Outlook

The future of the two-wheeler market looks promising, driven by factors such as increasing urbanization, the need for affordable transportation, and the shift towards electric mobility. The industry is expected to witness continued growth, with electric two-wheelers gaining significant market share. Technological advancements, connectivity options, and smart features will shape the industry’s landscape, offering improved riding experiences and enhanced safety.

Conclusion

The two-wheeler market is a dynamic and competitive industry that caters to the growing demand for affordable and efficient modes of transportation. It offers a range of vehicles, from motorcycles to scooters and mopeds, catering to diverse consumer preferences. The industry’s future lies in the expansion of electric two-wheelers, technological advancements, and addressing safety concerns. As urbanization and environmental consciousness continue to rise, the two-wheeler market is poised for sustained growth and innovation.