UAE Two-Wheeler Market, By Vehicle Type (Scooter/Moped, Motorcycle), By Propulsion Type (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

UAE Two-Wheeler market was valued at USD 122.04 million in 2024 and is anticipated to grow USD 175.60 million by 2030 with a CAGR of 6.30% during the forecast period. The UAE two-wheeler market is experiencing notable growth, driven by rising urbanization, increasing traffic congestion, and a growing preference for cost-effective and fuel-efficient transportation solutions. The surge in e-commerce and food delivery services has significantly contributed to demand, particularly for scooters and motorcycles used for last-mile deliveries.

Additionally, government initiatives promoting electric mobility and sustainable transport are encouraging the adoption of electric two-wheelers. Consumers are increasingly attracted to two-wheelers for their affordability, ease of navigation in congested areas, and lower maintenance costs. Technological advancements and growing environmental awareness are expected to further shape the market's expansion in the coming years.

Electric vehicles accounted for 13% of total car sales in the UAE in 2023, a sharp rise from 3.2% in 2022 and just 0.7% in 2021, according to the Ministry of Energy and Infrastructure. With approximately 260,000 new vehicles sold in 2023, as reported, this rapid increase in EV adoption highlights a significant consumer shift toward sustainable mobility. The surge reflects growing environmental awareness, improved EV infrastructure, and strong government support key factors that are driving the growth of the electric vehicle market in the UAE, including rising interest in electric two-wheelers for urban and last-mile transport.

Key Market Drivers

Growth of E-Commerce and Food Delivery Services

One of the primary drivers of the UAE two-wheeler market is the rapid expansion of e-commerce and food delivery services. With the rising popularity of online shopping and the increasing number of digital consumers in the UAE, demand for fast, last-mile delivery solutions has surged. Two-wheelers, particularly scooters and motorcycles, are ideal for navigating urban areas quickly and efficiently, making them the preferred choice for delivery operators.

Major food delivery companies like Talabat, Deliveroo, and Zomato, as well as logistics providers servicing platforms like Amazon and Noon, rely heavily on two-wheelers to fulfill quick delivery promises. These businesses often purchase fleets of bikes or enter into leasing agreements with riders, thereby contributing directly to the growth of the two-wheeler market. The continuous expansion of online commerce, alongside the booming appetite for convenience, is expected to sustain this upward trajectory.

Urbanization and Traffic Congestion

The UAE’s rapidly urbanizing population and growing metropolitan centers such as Dubai, Abu Dhabi, and Sharjah have led to increased traffic congestion, especially during peak hours. As car ownership continues to rise, city roads are becoming more crowded, resulting in longer commute times and reduced transport efficiency. The UAE's urban population reached 9,202,532 in 2023, marking a 4.34% increase from 2022. This steady rise in urbanization is driving demand for efficient and compact mobility solutions, further fueling the growth of the two-wheeler market in the region.

Two-wheelers offer a practical solution to these issues, as they are more agile and require less road space than cars. Riders can easily maneuver through traffic, significantly reducing travel time in dense city environments. This makes two-wheelers particularly appealing for daily commuting and short-distance travel, especially for younger professionals and delivery personnel.

Government Push for Sustainable Mobility

The UAE government has been proactive in promoting environmental sustainability and reducing its carbon footprint, particularly through the encouragement of green transportation alternatives. In line with the UAE Vision 2030 and various emirate-level sustainability programs, authorities are supporting the adoption of electric vehicles, including electric two-wheelers. The UAE currently has over 300 public and private EV charging stations, with Abu Dhabi alone targeting the installation of 70,000 chargers by 2030 through initiatives led by ADNOC and TAQA. This rapid expansion of charging infrastructure is a key driver of market growth, creating a more accessible and reliable environment for electric two-wheeler adoption.

Initiatives such as reduced registration fees for electric vehicles, infrastructure development for charging stations, and incentives for clean energy adoption have created a more favorable environment for electric two-wheelers. Furthermore, collaborations between local startups and international electric vehicle manufacturers have led to increased availability and visibility of e-scooters and e-motorcycles in cities.

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Key Market Challenges

Extreme Climatic Conditions

One of the most significant challenges hindering the growth of the two-wheeler market in the UAE is the country’s extreme weather conditions, particularly during the summer months. The UAE experiences scorching temperatures that often exceed 45°C (113°F) between June and September. These harsh climatic conditions make riding two-wheelers uncomfortable and even dangerous during the peak of summer.

For personal users and delivery riders, long exposure to high temperatures can lead to health issues such as dehydration, heat exhaustion, or heatstroke. As a result, many individuals prefer using air-conditioned cars or public transportation during the hotter months, limiting the seasonal usability of two-wheelers. Even logistics and food delivery companies often experience a dip in two-wheeler usage during summer, which can disrupt operational efficiency and fleet utilization.

Safety Concerns and High Accident Risk

Road safety is another major concern in the UAE two-wheeler market. Motorcyclists and scooter riders are more vulnerable to accidents compared to car drivers due to their lower visibility on roads and the lack of protective structures around them. Despite ongoing improvements in road infrastructure, the high-speed nature of many UAE roads and highways poses serious risks for two-wheeler users.

Accidents involving two-wheelers often result in severe injuries or fatalities, discouraging potential riders from choosing this mode of transport. Safety concerns are especially prevalent among families and the older population, who generally prefer safer and more stable modes of transport. Additionally, many delivery riders often expats face pressure to complete multiple orders within tight deadlines, which sometimes leads to speeding and unsafe driving practices.

Key Market Trends

Rising Adoption of Electric Two-Wheelers

A prominent trend transforming the UAE two-wheeler market is the growing adoption of electric two-wheelers. Driven by sustainability goals and increasing environmental awareness, both consumers and businesses are shifting toward eco-friendly mobility solutions. Electric scooters and motorcycles are emerging as a viable alternative to conventional petrol-powered models, particularly for short-distance commuting and last-mile delivery. As of 2024, the UAE had over 147,000 electric and hybrid vehicles on its roads, with electric vehicle registrations alone increasing by more than 25% year over year. Total new vehicle sales in the country reached 316,000 units during the year, reflecting the growing momentum toward cleaner and more sustainable transportation options.

The UAE government’s commitment to reducing carbon emissions under its Vision 2030 and Net Zero 2050 strategies is encouraging the use of electric vehicles. Startups and international brands are actively launching electric two-wheeler models, and micro-mobility companies are introducing shared electric scooter services in urban areas like Dubai and Abu Dhabi. These efforts are supported by growing investments in charging infrastructure and favorable policies such as reduced registration fees or import duties on electric vehicles.

Integration of Technology and Smart Features

The UAE, known for its tech-savvy population and smart city initiatives, is witnessing a growing demand for technologically advanced two-wheelers. Manufacturers are integrating smart features such as GPS tracking, anti-theft systems, digital dashboards, Bluetooth connectivity, and smartphone integration into two-wheelers. These features enhance user convenience, safety, and real-time vehicle monitoring, making them especially attractive to urban commuters.

Delivery businesses are also adopting fleet management platforms that allow real-time route tracking, performance monitoring, and maintenance alerts, improving overall operational efficiency. Electric two-wheelers, in particular, are increasingly equipped with IoT-enabled telematics for better fleet control.

Expansion of Micro-Mobility Solutions

Micro-mobility—referring to lightweight, low-speed transportation options like e-scooters and small electric bikes—is expanding rapidly in the UAE’s urban centers. As cities aim to reduce congestion and improve last-mile connectivity, shared e-scooter services have been introduced in pedestrian zones, residential neighborhoods, and commercial hubs.

These services cater to short-distance commuters, tourists, and city dwellers looking for convenient and affordable transportation options. Dubai, for instance, has launched pilot programs and permanent zones for e-scooter usage, and several international operators have entered the market with app-based rental platforms.

Micro-mobility supports the UAE’s vision of creating smart, sustainable, and livable cities. It also complements public transportation systems by solving the last-mile gap between metro stations or bus stops and final destinations. With increasing consumer adoption and supportive government regulations, micro-mobility is expected to become an integral part of the urban mobility ecosystem.

Segmental Insights

Vehicle Type Insights

Motorcycles was the dominating segment in the UAE two-wheeler market, driven by their versatility, higher speed capabilities, and suitability for both personal commuting and commercial applications. They are widely used by delivery service providers due to their durability and efficiency for long-distance and high-frequency usage. Additionally, motorcycles offer greater engine power and performance compared to scooters, making them ideal for intercity travel and highway usage. The growing popularity of leisure riding and premium motorcycle brands has further boosted demand. With their adaptability to various terrains and purposes, motorcycles continue to hold a significant share of the two-wheeler market in the UAE.

Propulsion Type Insights

Internal Combustion Engine (ICE) two-wheelers dominated the UAE market due to their widespread availability, established infrastructure, and cost-effectiveness. These vehicles are preferred for their powerful performance, longer range, and quick refueling capabilities, making them ideal for delivery services and personal commuting. Despite the growing interest in electric alternatives, ICE two-wheelers remain the first choice for many due to lower upfront costs, mature servicing networks, and familiar technology. Additionally, fuel prices in the UAE remain relatively affordable, further supporting ICE vehicle usage. Until electric infrastructure becomes more robust, ICE two-wheelers are expected to maintain their dominant market position. 

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Regional Insights

Dubai is the dominating region in the UAE two-wheeler market, driven by its dense urban population, advanced infrastructure, and thriving e-commerce and food delivery sectors. The city’s fast-paced lifestyle and traffic congestion make two-wheelers an efficient mode of transportation for both commercial and personal use. Dubai has also been at the forefront of embracing micro-mobility solutions and electric scooters, supported by government initiatives promoting sustainable urban mobility. With numerous delivery service providers, high tourist activity, and a tech-savvy population, Dubai continues to lead in two-wheeler adoption, contributing significantly to the overall growth of the UAE’s two-wheeler market.

Recent Developments

• In May 2025, EDaddy launched the UAE’s first locally developed electric bike the X7. With a 200 km range, 110 kph top speed, multi-battery swap capability, and advanced safety features like blind-spot detection and real-time diagnostics, it’s tailored for delivery fleets. Market rollout started July with battery-swap hub network deployment.

• In April 2025, UAE startup Sulmi is bringing 200 limited‑edition premium electric motorbikes, called the EB‑One Founder Edition, to local consumers. Designed and 3D‑printed in‑country, it boasts a 150 kph top speed, a 300 km range, and features AI-based rider-assist systems.
• In March 2023, Zoom Volt Motors launched the VS1 electric motorcycle tailored for B2B logistics, offering around 160 km range and up to 100 kph speed. It includes USB ports, reverse gear, and air‑circuit breakers designed for robust, emission‑free delivery operations.

• In March 2025, Virgin Mobile UAE has introduced electric motorcycles specifically for its delivery riders marking a first in the UAE telecom sector’s entry into electric fleet mobility.

Key Market Players

• Sociedad Comercial Gildemeister S.A.
• Suzuki Motor de UAE SPA
• Yamaha Motor UAE Ltda.
• Kawasaki Motors UAE Ltda.
• Harley-Davidson UAE SPA
• KTM UAE SPA
• Al Yousuf LLC
• AL Futtaim Group Single Person Company L.L.C
• Husqvarna Motorcycles UAE SPA
• MV Agusta UAE SPA

Report Scope:

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

• UAE Two-Wheeler Market, By Vehicle Type:

o   Scooter/Moped

o   Motorcycle

• UAE Two-Wheeler Market, By Propulsion Type:

o   ICE

o   Electric

• UAE Two-Wheeler Market, By Region:

o   Dubai

o   Abu Dhabi

o   Sharjah

o   Ajman

o   Rest of UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the UAE Two-Wheeler Market.

Available Customizations:

UAE 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).