Asia-Pacific Two-Wheeler Market By Vehicle Type (Motorcycle, Scooter & Moped), By Propulsion Type (ICE, BEV), By Region, Competition, Forecast & Opportunities, 2019-2029F

Market Overview

The Asia-Pacific Two-Wheeler market was valued at USD 70.23 Billion in 2023 and is expected to reach USD 119.55 Billion by 2029 with a CAGR of 9.27% during the forecast period.  The Asia-Pacific two-wheeler market is experiencing robust growth, driven by several key factors. The region’s rapid urbanization has led to an increased demand for efficient and affordable modes of transport. Two-wheelers are particularly attractive in densely populated cities where traffic congestion is a major concern. Rising disposable income among consumers, especially in emerging economies like India and Southeast Asia, has expanded the market for both premium and entry-level two-wheelers. The affordability, fuel efficiency, and convenience offered by two-wheelers are making them the preferred mode of transport for daily commuting. In addition, the shift towards electric two-wheelers is gaining momentum, driven by the need for more sustainable transportation options in response to environmental concerns and stricter emissions regulations.

A significant trend in the Asia-Pacific two-wheeler market is the growing adoption of electric vehicles (EVs). Governments across the region are introducing policies that support the development of electric mobility, including subsidies for electric two-wheelers, tax incentives, and investments in charging infrastructure. This shift aligns with the global push toward reducing carbon footprints and dependence on fossil fuels. Innovations in battery technology and the reduction in battery prices are also making electric two-wheelers more accessible to a broader range of consumers. As a result, electric scooters and motorcycles are gaining traction, particularly in countries like China and India, where the push for cleaner transportation is intensifying.

Market Drivers:

Urbanization and Population Density

Rapid urbanization in Asia-Pacific has significantly increased the demand for two-wheelers. As cities grow more densely populated, traditional four-wheel vehicles struggle with traffic congestion and limited parking spaces. Two-wheelers, which are compact and nimble, offer an ideal solution for navigating through crowded urban streets. In densely populated countries like India, China, and Southeast Asia, two-wheelers provide a cost-effective and efficient means of transport for daily commuting, especially among younger populations. For instance, In July 2024, China's State Council revealed its expectation for the urbanization rate of the permanent population to approach 70% within the next five years. As of the end of 2023, official statistics indicated that 66.16% of the resident population resided in urban areas. The State Council has also introduced a five-year action plan aimed at urbanization, emphasizing the goal of "fully harnessing the significant potential of domestic demand inherent in urbanization."

Rising Disposable Income

As the middle class expands in many parts of Asia-Pacific, disposable incomes are rising, driving consumer spending on personal transportation. With improved economic conditions, more people can afford two-wheelers, which serve as an affordable alternative to private cars. Entry-level motorcycles and scooters are particularly popular, offering a combination of low purchase costs, good fuel efficiency, and practicality. Higher-income levels also allow consumers to consider upgrading to higher-end models, spurring growth in the premium segment.

Demand for Affordable and Efficient Transportation

In many developing economies in the Asia-Pacific region, affordability is a key consideration in purchasing decisions. Two-wheelers are often more economical to buy, maintain, and fuel than four-wheel vehicles. This has led to the widespread adoption of motorcycles and scooters as primary modes of transport. With fuel prices rising globally, the economic appeal of two-wheelers remains strong, as they consume less fuel and are cheaper to maintain, especially in countries with high fuel taxes or fluctuating prices. 

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Key Market Challenges

Competition and Market Saturation

The two-wheeler market in Asia-Pacific is highly competitive, with numerous established players, including both international and local brands. As the market matures, competition is expected to intensify, particularly in the electric two-wheeler segment. New entrants and established brands alike are vying for market share, which could lead to price wars and reduced profit margins. Differentiating products through technology, design, and brand loyalty will become critical for manufacturers looking to sustain growth in this crowded market.

Limited Charging Infrastructure for Electric Models

The lack of charging infrastructure remains one of the most significant challenges facing the widespread adoption of electric two-wheelers. In many cities and rural areas, the number of charging stations is insufficient to meet the needs of electric vehicle owners. This lack of infrastructure contributes to range anxiety, which discourages potential buyers from making the switch to electric models. Investment in charging networks is crucial to supporting the growth of the electric two-wheeler market, but it requires collaboration between governments, businesses, and manufacturers.

Key Market Trends

Increasing Popularity of Electric Two-Wheelers

Across the Asia-Pacific, the demand for electric two-wheelers is on the rise, driven by a mix of government policies, environmental concerns, and technological advancements. While electric motorcycles and scooters represent a smaller portion of the overall market, their growth rate is accelerating. In countries like China, India, and Japan, the government is promoting electric mobility through subsidies, tax incentives, and infrastructure investments. Consumers are also increasingly drawn to electric two-wheelers due to lower operating costs, such as fuel and maintenance, as well as the growing network of charging stations. For instance, in March 2024, the Ministry of Industry of Indonesia reported a significant rise in the number of electric vehicles (EVs) within the country during 2023. Notably, the quantity of two-wheeled electric vehicles experienced a remarkable increase of 262 percent, climbing from 17,000 units in 2022 to 62,000 units in 2023. This surge can be largely attributed to government support initiatives aimed at facilitating the purchase of two-wheeled EVs.

Shift Toward Premium and Performance Models

While budget-friendly, entry-level models dominate the two-wheeler market in Asia-Pacific, there is a noticeable shift toward higher-end motorcycles and scooters. As disposable incomes rise, particularly in developed countries such as Japan, South Korea, and Thailand, consumers are looking for more premium options that offer advanced features, superior performance, and better aesthetics. Brands are responding by introducing higher-performance models with features such as advanced suspension systems, better fuel efficiency, and greater comfort. This trend reflects changing consumer expectations as two-wheelers transition from purely functional modes of transport to lifestyle products.

Smart Technology Integration

The integration of smart technology into two-wheelers is becoming more prevalent across Asia-Pacific. Modern motorcycles and scooters now come with features such as smartphone connectivity, advanced GPS navigation, real-time vehicle diagnostics, and even remote security systems. These technological innovations enhance both safety and convenience for riders. For example, some models feature app-based monitoring for tracking and diagnostics, while others integrate advanced rider assistance systems. As consumers demand more from their two-wheelers, manufacturers are increasingly incorporating technology to differentiate their products and meet the expectations of new age consumers.

Segmental Insights

Propulsion Type Insights

The Asia-Pacific two-wheeler market is split between Internal Combustion Engine (ICE) and Battery Electric Vehicle (BEV) segments, with ICE models still widely used, particularly in regions with established fuel infrastructure. These vehicles, including motorcycles and scooters, are favored for their longer range, quick refueling, and lower upfront costs, making them popular in rural and semi-urban areas where charging infrastructure for electric vehicles is still developing. However, the BEV segment is growing rapidly, driven by increasing environmental concerns, government incentives, and the rising cost of fuel. BEVs, including electric scooters and motorcycles, offer lower emissions, reduced operating costs, and fewer maintenance needs due to simpler mechanics. Advances in battery technology are enhancing the range and charging efficiency of BEVs, while expanding charging infrastructure in urban areas further boosts their adoption for short-distance commuting. As consumers shift towards sustainable transport options, BEVs are becoming an increasingly attractive alternative to ICE models in urban centers.

 

Country Insights

In 2023, India has emerged as the largest market for electric two-wheelers in the Asia-Pacific region, driven by its large population, rapid urbanization, and government incentives for electric vehicles. Motorcycles and scooters are widely used across both urban and rural areas for their affordability and practicality, with electric two-wheelers gaining popularity due to supportive policies and expanding charging infrastructure. The government's push for sustainability and reduced traffic congestion is further fueling the demand for electric models, positioning India as a leader in the transition to greener transportation.

Recent Developments

• In 2024, India has surpassed China to become the largest two-wheeler market in the world, fueled by rising demand in rural regions. In the first half of 2024, India's two-wheeler market recorded a significant year-on-year growth of 22%. This impressive performance enabled India to overtake China and establish itself as the leading two-wheeler market globally.
• In September 2024, Bajaj Auto, a leading manufacturer of two-wheelers in India, reported a 22% increase in sales, reaching a total of 400,489 units, which includes exports. This milestone signifies the first occasion the company has exceeded the 400,000 units mark. In the same month of the prior year, the company had sales of 327,712 units.
• In March 2024, Brembo, an Italian manufacturer of braking systems, revealed the establishment of a production facility in Thailand. The company disclosed an investment of USD 43 million aimed at enhancing its global industrial footprint, thereby enabling it to capitalize on emerging growth opportunities within the Southeast Asian market.

Key Market Players

• Honda Motor Co., Ltd
• Hero MotoCorp Ltd
• Yadea Technology Group Co., Ltd.
• Yamaha Motor Co., Ltd.
• TVS Motor Company
• Bajaj Auto Ltd.
• Suzuki Motor Corporation
• Jiangmen Dachangjiang Group Co., Ltd.
• Kawasaki Motors, Ltd
• ZHEJIANG CFMOTO POWER CO., LTD.

Report Scope:

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

• Asia-Pacific Two-Wheeler Market, By Vehicle Type:

o   Motorcycle

o    Scooter & Moped

•           Asia-Pacific Two-Wheeler Market, By Propulsion Type:

o    ICE

o    BEV

•      Asia-Pacific Two-Wheeler Market, By Country:

o    China

o   Japan

o   Indonesia

o   Thailand

o   South Korea

o   Australia

o   Vietnam

o   Malaysia

o   Bangladesh

o   Rest of Asia-Pacific

Competitive Landscape

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

Available Customizations:

Asia-Pacific Two-Wheeler Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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