Africa Two-Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycles), By Propulsion Type (ICE, Electric), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The Africa Two-Wheeler market was valued at USD 3.68 Billion in 2024 and is expected to reach USD 6.51 Billion by 2030 with a CAGR of 9.95% during the forecast period. Africa's two-wheeler market is experiencing significant growth, driven by increasing urbanization and the demand for affordable and efficient transportation. With limited public transport infrastructure in many regions, two-wheelers serve as an essential means of mobility for individuals and businesses. The rise of ride-hailing platforms and motorcycle taxi services is contributing to widespread adoption. Two-wheelers are also being leveraged for last-mile delivery solutions, particularly in the booming e-commerce sector. Governments and financial institutions are introducing favorable policies, such as microfinancing and subsidies, which further enhance accessibility for low- and middle-income populations. The market is evolving, with innovation in electric two-wheelers and connected technologies catering to shifting consumer preferences.

The market is propelled by the increasing need for cost-effective transportation, particularly in densely populated areas. Two-wheelers offer unmatched convenience for navigating congested urban roads, making them an ideal choice for commuters. The expansion of motorcycle taxi services, such as boda-bodas and okadas, is another significant driver, creating employment opportunities and addressing mobility gaps in urban and rural regions. The growth of e-commerce is fueling demand for two-wheelers in logistics and last-mile delivery, offering quick and economical solutions for businesses. Technological advancements, such as fuel-efficient engines and electric models, are attracting environmentally conscious consumers and reducing long-term operating costs. Supportive government initiatives, including import tax reductions and financial schemes, further encourage market penetration among underserved segments.

Prominent trends include the shift toward electric two-wheelers, driven by the need to reduce carbon emissions and dependency on imported fuels. The adoption of connected two-wheelers equipped with GPS, anti-theft systems, and ride analytics is gaining traction, particularly in urban centers. Opportunities lie in expanding two-wheeler sales in untapped rural areas where infrastructure development is underway. Manufacturers are also focusing on designing durable, low-maintenance models tailored to African conditions. However, challenges persist, such as fluctuating fuel prices, which can affect the operational affordability of traditional motorcycles. Inadequate infrastructure, such as poor road conditions and insufficient charging facilities for electric models, remains a barrier. Additionally, safety concerns, including high accident rates and a lack of proper regulations, continue to hinder market growth. Addressing these challenges through innovation and policy reforms will be critical for sustaining the market's momentum.

Market Drivers

Growing Urbanization and Need for Affordable Mobility

Rapid urbanization in Africa has led to a surge in demand for cost-effective and convenient transportation solutions. Two-wheelers are widely adopted due to their affordability, efficiency, and suitability for navigating congested city streets. As public transportation systems remain underdeveloped in many regions, two-wheelers are bridging the gap by offering reliable alternatives for short- and medium-distance travel. Their low initial costs and minimal fuel consumption make them a preferred choice for the growing middle-class population. This trend is further supported by increasing rural-to-urban migration, which has created a larger consumer base seeking accessible transportation options. Two-wheelers are also favored in regions with limited road infrastructure where larger vehicles face challenges. Governments are promoting two-wheelers as an affordable and sustainable mobility option. The ease of parking and maneuverability in narrow urban roads also enhances their attractiveness. With rapid population growth and urban sprawl, this trend is expected to continue as urban centers expand. Furthermore, two-wheelers are increasingly becoming a status symbol for young individuals seeking independence and flexibility in their transportation choices.

Expansion of Motorcycle Taxi Services

Motorcycle taxis, known locally as "boda-bodas" or "okadas," have become a vital part of Africa’s transportation ecosystem. These services are not only addressing mobility challenges but also creating employment opportunities for millions. The rise of app-based ride-hailing platforms has further streamlined operations, offering safe and reliable options for passengers. Motorcycle taxis are particularly beneficial in areas where cars cannot navigate due to poor road conditions. This segment has emerged as a significant driver, contributing to the widespread adoption of two-wheelers across urban and rural landscapes. The income generation opportunities they provide have also become a lifeline for unemployed youth. In many regions, these services account for a large percentage of daily commuter trips, demonstrating their indispensable role. Governments are recognizing their importance by introducing training programs for drivers to improve safety and efficiency. Partnerships between motorcycle taxi services and technology companies are driving innovation, such as cashless payment systems and route optimization tools. These taxis are increasingly being equipped with tracking and safety systems to enhance passenger security. Expansion into rural areas is also occurring as these services address connectivity gaps.

Rising Demand for Last-Mile Delivery Solutions

The booming e-commerce sector in Africa has driven the demand for two-wheelers in logistics and last-mile delivery. Companies rely on motorcycles for their agility and ability to deliver goods quickly, even in traffic-congested areas. Two-wheelers are cost-effective for businesses, enabling them to manage operations with minimal investment and lower operating expenses. The increasing reliance on fast delivery services for food, groceries, and other consumer goods is expected to sustain this demand, creating lucrative opportunities for two-wheeler manufacturers. As consumer expectations for faster deliveries rise, businesses are increasingly relying on motorcycles for their speed and reliability. Even small-scale enterprises are utilizing motorcycles to expand their delivery reach and improve customer satisfaction. Courier companies are introducing fleet management systems to optimize delivery routes and improve operational efficiency. Partnerships between delivery platforms and motorcycle manufacturers are promoting customized vehicles for delivery needs. This segment is also witnessing the introduction of electric motorcycles to reduce costs and improve sustainability. Growing consumer trust in e-commerce platforms is further accelerating the adoption of delivery motorcycles. Investments in cold-storage boxes for perishables are enhancing the capabilities of these vehicles. Furthermore, delivery services are becoming a critical part of rural supply chains. For instance, in 2024, Africa's e-commerce market is set to surpass 500 million active users, growing at a steady 17.9% CAGR since 2017, fueled by improved internet and mobile connectivity. As consumer demand for a wide range of products, from groceries to fashion, continues to rise, the need for efficient last-mile delivery solutions has become paramount. Logistics providers are innovating to address challenges such as unreliable address systems, safety concerns, and poor infrastructure. This growth in e-commerce is expected to propel the last-mile logistics market to a value of USD 2.35 billion by 2030, up from USD 1.14 billion in 2021.

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Key Market Challenges

Poor Road Infrastructure

Underdeveloped road networks in many African countries pose significant challenges for two-wheeler usage. Uneven surfaces, potholes, and unpaved roads make commuting unsafe and uncomfortable, particularly in rural areas. This hinders the full potential of two-wheelers as a reliable mode of transportation. Poor infrastructure not only affects ride comfort but also accelerates wear and tear on vehicles, leading to higher maintenance costs. In some regions, flooding, dust, and mud further complicate road conditions, which can cause delays and accidents. Riders must constantly navigate these hazards, reducing the overall efficiency and appeal of two-wheelers. Additionally, these poor road conditions can increase the frequency of breakdowns and accidents, posing a major safety risk for users. While road improvements are ongoing in certain urban areas, many rural regions still lack the necessary infrastructure to support the widespread use of two-wheelers. Governments and local authorities must prioritize infrastructure development to ensure the sustainable growth of the two-wheeler market.

Fluctuating Fuel Prices

Dependence on fuel-powered motorcycles makes the two-wheeler market vulnerable to fluctuations in global oil prices. Rising fuel costs can impact the affordability of owning and operating motorcycles, particularly for low-income users. As fuel prices rise, operating expenses increase, reducing the overall value proposition of motorcycles as an affordable transportation option. In certain regions, unpredictable fuel supply and pricing issues cause further instability, affecting the accessibility of motorcycles. Consumers, especially in rural areas, are highly sensitive to fuel price fluctuations, as it directly impacts their daily expenses. For businesses relying on motorcycles for delivery or commercial use, rising fuel costs can significantly reduce profitability. This challenge emphasizes the need for alternative solutions, such as electric two-wheelers, to reduce dependency on conventional fuels. Governments and manufacturers are exploring incentives for electric motorcycles to mitigate this challenge and offer consumers an environmentally friendly and cost-effective alternative.

Limited Charging Infrastructure for Electric Two-Wheelers

As the market transitions toward electric two-wheelers, the lack of charging infrastructure presents a significant obstacle. Most regions lack adequate charging stations, making it difficult for users to adopt electric models. In rural and less developed areas, the absence of charging facilities discourages potential buyers who are concerned about the convenience and reliability of electric vehicles. Even in urban centers, the limited availability of charging stations creates anxiety around range and downtime for electric two-wheelers. Without widespread infrastructure development, the adoption of electric motorcycles remains slow. Addressing this challenge requires substantial investment in charging networks, as well as collaboration between governments, private enterprises, and utility providers. Additionally, incentives for installing home charging units could help make electric motorcycles a more viable option for consumers in both urban and rural areas.

Key Market Trends

Shift Toward Electric Two-Wheelers

The growing emphasis on reducing carbon emissions is driving the adoption of electric two-wheelers. Consumers are increasingly drawn to eco-friendly options that offer lower operating costs and minimal environmental impact. Electric motorcycles provide a solution to the rising fuel costs, offering lower maintenance expenses and the possibility of utilizing renewable energy sources for charging. Manufacturers are introducing affordable and reliable electric models tailored to the African market, addressing the demand for both urban commuting and commercial use. The shift towards electric two-wheelers is not only driven by environmental concerns but also by government incentives and policies aimed at promoting green technologies. Electric motorcycles are becoming more practical with improved battery life, faster charging times, and better overall performance. As awareness grows and technology advances, electric two-wheelers are expected to dominate the market in the coming years. Companies are expanding their product portfolios with electric versions of popular models, increasing accessibility for consumers. For instance, Africa’s electric two and three-wheeler (E2&3W) market is rapidly expanding, with expectations for it to capture 50% of all motorcycle sales by 2040. The demand is driven by lower operational costs, particularly for fleets. E2&3Ws are already becoming significant economic contributors, offering direct and indirect job opportunities. However, barriers such as high upfront costs, limited charging infrastructure, and financing challenges persist. Innovations like battery swapping and locally tailored models are key to overcoming these hurdles. Investment in this market is increasing, with countries like Kenya, Nigeria, and Ghana leading the way.

Customization of Two-Wheeler Models

Manufacturers are focusing on designing models specifically suited to Africa’s unique requirements, such as rugged terrains and long-distance travel. Customization includes features like reinforced frames, larger fuel tanks, and improved suspension systems, ensuring reliability and durability. African consumers are also increasingly seeking motorcycles with enhanced cargo capabilities for business or personal use, leading to the development of models with larger carriers or storage compartments. Customization allows brands to cater to diverse needs across different market segments, from motorcycle taxis to long-distance riders. The availability of affordable spare parts for repairs and maintenance is also an important factor influencing model preferences. The demand for motorcycles that can withstand harsh road conditions and extreme weather is leading manufacturers to focus on quality, performance, and longevity. As consumer preferences evolve, motorcycle manufacturers are focusing on providing tailored solutions that fit local needs, thus strengthening their market presence.

Emergence of Local Manufacturing Hubs

To meet growing demand and reduce dependency on imports, several countries are establishing local two-wheeler manufacturing and assembly plants. This not only reduces costs but also promotes job creation and economic growth. Local manufacturing hubs are enabling quicker product availability and reducing supply chain disruptions. As the market for two-wheelers expands, the focus is shifting towards fostering indigenous production capabilities. Partnerships between local governments and international motorcycle manufacturers are facilitating the growth of manufacturing plants. This trend is expected to contribute to economic development by creating new employment opportunities in assembly, distribution, and maintenance services. Additionally, local production allows manufacturers to better tailor products to the unique needs of African consumers. The emergence of these hubs is expected to drive down costs, increase the availability of affordable models, and strengthen the market's overall sustainability.

Segmental Insights

Propulsion Type Insights

In 2024, the dominant segment of Africa’s two-wheeler market by propulsion type was Internal Combustion Engine (ICE) motorcycles. ICE motorcycles have long been the backbone of transportation across the continent, primarily due to their affordability, availability, and proven performance in diverse conditions. These motorcycles are particularly popular for both personal use and commercial purposes, such as motorcycle taxis, where efficiency, cost-effectiveness, and the ability to travel long distances without the concern of battery limitations are critical. Their reliability and robust infrastructure for fueling stations in both urban and rural areas further support their dominance. ICE motorcycles are also relatively cheaper to maintain compared to their electric counterparts, making them the preferred choice for individuals and businesses with limited access to capital.

The widespread availability of spare parts and repair services for ICE motorcycles is another key factor contributing to their continued dominance. In addition, the well-established fueling infrastructure ensures that users can easily access fuel, even in remote areas where electric charging stations are sparse. This widespread familiarity with ICE motorcycles has established a strong market presence, particularly in emerging and underserved regions where access to electric infrastructure is still limited.

Despite the growth of electric vehicles in some markets, the adoption of electric two-wheelers in Africa faces several barriers. High initial costs, limited charging infrastructure, and concerns about the availability of affordable battery replacement options remain significant challenges. While electric two-wheelers offer advantages in terms of lower operating costs and environmental benefits, they are not yet as accessible for most consumers across the continent. However, the shift toward cleaner and more sustainable transport is starting to gain momentum, with increasing interest in electric motorcycles, especially in urban areas. Yet, in 2024, the ICE segment continues to lead the market, benefiting from its established infrastructure, affordability, and familiarity among consumers.

Electric two-wheelers are expected to see significant growth in the coming years, particularly as governments and organizations focus on sustainability and reducing carbon emissions. However, in 2024, the ICE motorcycle remains the dominant propulsion type in Africa, catering to most the population’s transportation needs.

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Country Insights

In 2024, Nigeria emerged as the dominant country in Africa’s two-wheeler market. The country’s rapidly growing population and urbanization are central to the high demand for affordable and efficient transportation solutions. With an estimated population of over 200 million people, Nigeria has a large and diverse consumer base, fueling the widespread adoption of two-wheelers. The inadequacy of public transportation options in many urban and rural areas further drives the demand for personal mobility. Motorcycles have become the preferred mode of transport due to their low cost, ability to navigate congested traffic, and suitability for both short and long-distance travel.

Motorcycle taxis, known as "Okadas," play a crucial role in Nigeria’s two-wheeler market. They have become an essential part of the transportation system, particularly in Lagos and other major cities, where traffic congestion is a daily challenge. These motorcycles provide an affordable and quick means of transport, especially for people in low- to middle-income groups who cannot afford private cars. In addition to urban mobility, motorcycles are also used for delivery services in Nigeria’s expanding e-commerce sector, which further boosts their demand.

Nigeria’s two-wheeler market is also benefiting from increasing government support, particularly in the form of policies aimed at promoting small businesses and entrepreneurship. Motorcycle taxi services have gained government backing for their role in job creation, as millions of Nigerians rely on them for income. Despite challenges such as fluctuating fuel prices, the affordability of motorcycles in comparison to other modes of transport makes them an attractive option for many Nigerians.

The country’s relatively established infrastructure for fuel distribution supports the dominance of internal combustion engine (ICE) motorcycles, which continue to make up most of the two-wheeler market. Although the adoption of electric motorcycles is gaining traction, especially in urban areas where sustainability is becoming more important, the widespread availability of fuel stations and the lower upfront cost of ICE motorcycles solidify their position as the dominant propulsion type in Nigeria.

With urbanization expected to continue and more Nigerians looking for efficient transportation solutions, the two-wheeler market in Nigeria is expected to maintain its dominant role in Africa’s overall two-wheeler landscape in 2024.

Recent Developments

• In 2023, Uber has launched electric motorcycles in Kenya, marking a significant step in Africa's shift to sustainable transportation. This initiative is the first of its kind on the continent, aiming to reduce emissions while offering cost-effective options for riders. The electric motorcycles will help mitigate fuel costs, providing an eco-friendly alternative for Uber drivers. This move aligns with Uber's broader sustainability goals and showcases the growing trend of electric vehicles in Africa’s urban mobility sector.
• In 2024, Spiro, an African electric vehicle manufacturer, has officially launched operations in Nigeria, starting with electric motorcycles in Ogun State. The company plans to expand to eight Nigerian provinces, promoting sustainable transportation solutions. In its first phase, Spiro will introduce battery swapping stations in Abeokuta to facilitate the transition to electric mobility. Spiro aims to electrify Africa’s transport sector, reducing environmental impact, cutting costs, and improving public health. The expansion follows similar initiatives in Kenya, Uganda, and other African nations.
• Dodai, an Ethiopian e-mobility startup, has launched electric motorbikes in Addis Ababa, marking a significant move towards sustainable transport in Africa. The company has raised $4 million to scale production and expand its operations. Dodai’s electric bikes, which can travel up to 150 km per charge, offer a 95% cost savings compared to traditional fuel-powered motorcycles, benefiting from Ethiopia’s cheap electricity. Dodai is partnering with EthioPost and local delivery services to implement a battery-swapping system by the end of 2024.
• In 2024, TVS Motor Company has launched a range of new two- and three-wheelers in Ghana, marking a significant expansion of its presence in the African market. The launch includes both traditional internal combustion engine models and electric vehicles, aimed at addressing the growing demand for affordable and sustainable transportation in the region. This move is part of TVS's broader strategy to tap into the rapidly evolving African e-mobility sector, providing cost-effective solutions to meet the needs of the local population.

Key Market Players

• Bajaj Auto Ltd.,
• TVS Motor Company Limited
• Yamaha Motor Co., Ltd
• Hero MotoCorp Ltd
• Honda Motor Co, Ltd
• Kwang Yang Motor Co., Ltd
• Suzuki Motor Corporation
• Sanyang Motor Co., Ltd
• Lifan Motors
• Luoyang Northern EK Chor Motorcycle Co., Ltd.

Report Scope:

In this report, the Africa Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Africa Two-Wheeler Market, By Vehicle Type:

o   Scooter/Moped

o   Motorcycles

·         Africa Two-Wheeler Market, By Propulsion Type:

o   ICE

o   Electric

·         Africa Two-Wheeler Market, By Country:

o   Egypt

o   Nigeria

o   Kenya

o   Angola

o   Morocco

o   Ethiopia

o   South Africa

o   Uganda

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Africa Two-Wheeler Market.

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