Motorcycle Market

Motorcycle Market Outlook (2025 to 2035)

The global motorcycle market is projected to increase from USD 121.5 billion in 2025 to USD 179.8 billion by 2035, with a CAGR of 3.9% during the forecast period. Growth is driven by boosting motorcycle adoption in congested cities due to rising urban traffic congestion and fuel efficiency needs. The growth of e-commerce and the gig economy is driving demand for motorcycles used in last-mile deliveries.

Quick Stats for Motorcycle Market

• Industry Value (2025): USD 121.5 Billion
• Projected Value (2035): USD 178.1 Billion
• Forecast CAGR (2025 to 2035): 3.9%
• Leading Segment (2025): Sports (26% Market Share)
• Fastest Growing Country (2025-2035): India (5.1% CAGR)
• Top Key Players: Eicher Motors Limited, Ducati Motor Holding S.p.A, Yamaha Motor Co., Ltd., Bajaj Auto Limited, and Suzuki

What are the Drivers of Motorcycle Market?

The growth of the global motorcycle market is primarily driven by increasing urbanization and rising demand for affordable, fuel-efficient transportation. As cities become more congested, particularly in emerging economies across Asia-Pacific and Latin America, motorcycles are seen as a practical solution for navigating traffic, offering ease of parking and lower operating costs. Their relatively low purchase price and superior mileage compared to passenger cars make them the preferred choice for the middle and lower-middle-income population, especially in countries like India, Indonesia, Vietnam, and Brazil.

Another key driver is the exponential growth of the e-commerce and last-mile delivery ecosystem. The surge in food delivery services, online shopping platforms, and courier businesses has led to a rise in demand for motorcycles, which are ideally suited for quick and cost-effective urban deliveries. Delivery companies increasingly rely on two-wheelers for their operational efficiency, further supported by leasing and fleet management models that make acquisition easier for gig workers and businesses alike. This is particularly evident in markets where motorcycles are already embedded in the urban mobility landscape.

Government initiatives to promote electric mobility and reduce emissions are also playing a crucial role in market expansion. Many countries are offering subsidies, tax benefits, and infrastructure development to boost the adoption of electric motorcycles. Programs like India’s FAME-II and the European Union’s Fit for 55 initiative are encouraging OEMs to develop battery-powered models with longer ranges, lower charging times, and smart features. In response, several manufacturers are launching advanced electric motorcycles with features such as regenerative braking, IoT integration, and modular battery systems.

Moreover, increasing disposable income and a shift in consumer preferences are fueling the demand for premium and feature-rich motorcycles. Beyond daily commuting, motorcycles are being embraced for lifestyle and recreational purposes, including touring, racing, and adventure riding. This has led to a growing market for sports bikes, cruisers, and off-road models, particularly in North America and Europe. Coupled with financing options and digital retail channels, the accessibility and appeal of motorcycles continue to grow, making them a vital component of the global personal mobility ecosystem.

What are the Regional Trends of Motorcycle Market?

The Asia-Pacific region dominates the global motorcycle market, both in terms of volume and growth rate. Countries like India, China, Indonesia, Vietnam, and Thailand are major contributors due to high population density, inadequate public transport, and the affordability of motorcycles compared to four-wheelers. In India alone, motorcycles serve as the primary mode of transportation for millions, especially in rural and semi-urban areas. The region is also experiencing rapid adoption of electric motorcycles, driven by supportive government schemes like India’s FAME II and rising fuel prices. Moreover, Southeast Asia is witnessing a surge in demand due to the rise of e-commerce and food delivery services that rely on two-wheelers for last-mile mobility.

In Europe, the motorcycle market is shaped by a mix of environmental policy, lifestyle choices, and premium brand preferences. While motorcycles are less common for daily commuting, they are widely used for leisure and sport. Countries like Italy, Germany, and France are key markets for adventure bikes, touring motorcycles, and electric scooters. European governments are heavily promoting zero-emission vehicles through incentives and urban emission regulations, which is accelerating the growth of electric two-wheelers. Brands such as Piaggio, KTM, and BMW Motorrad are responding with new electric and hybrid models tailored to urban riders and eco-conscious consumers.

North America, led by the U.S., features a motorcycle market focused largely on recreational and cruiser-style motorcycles. Unlike in the Asia-Pacific region, motorcycles here are often seen as lifestyle or luxury products rather than essential commuting tools. Major brands like Harley-Davidson, Indian Motorcycle, and Honda dominate the segment with cruisers, touring bikes, and off-road motorcycles. While electric motorcycle adoption is relatively slow, companies like Zero Motorcycles and Harley’s LiveWire are beginning to shape a niche electric segment supported by improving infrastructure and government EV tax incentives.

In Latin America and the Middle East & Africa, motorcycles play a vital role in affordable and efficient transportation, especially in underserved areas. In Brazil, Colombia, and Mexico, two-wheelers are essential for personal and commercial use, including deliveries and ride-hailing services. Africa, in particular, relies on motorcycles as a key form of transport in rural regions, with growing interest in electrification driven by cost savings and sustainability. Companies such as Ampersand and Spiro are piloting electric motorcycle solutions tailored to African markets. Meanwhile, the Middle East is witnessing a rise in premium and electric motorcycles, especially in urban development zones and smart city initiatives. However, overall market penetration remains relatively modest compared to other regions.

What are the Challenges and Restraining Factors of Motorcycle Market?

The global motorcycle market faces several significant restraints and challenges that could hinder its sustained growth, particularly in urbanized and developed regions. One of the most critical concerns is rider safety. Motorcycles, by design, offer less protection than cars, making them more susceptible to accidents and fatalities. In many countries, especially in emerging economies, inadequate road infrastructure, poor enforcement of traffic laws, and low awareness about road safety contribute to high accident rates. This poses a serious challenge to market expansion, as safety concerns often deter families, elderly individuals, and even governments from encouraging two-wheeler use as a mainstream mobility option.

Another major restraint stems from increasingly stringent emission regulations imposed on internal combustion engine (ICE) motorcycles. Regions like the European Union, India, and China have introduced strict emission norms (e.g., Euro 5, BS-VI, China IV/V) to curb environmental pollution. These regulations compel manufacturers to adopt cleaner but costlier engine technologies, which increases production costs and retail prices. For cost-sensitive consumers, especially in developing nations, this could reduce the attractiveness of ICE motorcycles. Some OEMs may even be forced to discontinue certain models that can’t meet regulatory standards profitably.

While electric motorcycles are emerging as a promising alternative, they bring their own set of challenges. One of the most prominent is the lack of charging infrastructure, particularly outside major urban centers. Range limitations, long charging times, and insufficient charging or battery swapping stations deter buyers who rely on motorcycles for commercial or long-distance use. Moreover, the higher upfront cost of electric motorcycles, despite long-term savings, remains a barrier in low- and middle-income markets, especially where government incentives are limited or unavailable.

Lastly, economic volatility and shifting mobility trends also pose long-term threats to the motorcycle industry. Inflation, fluctuating interest rates, and credit constraints can negatively impact consumer purchasing power and lead to delays in vehicle purchases. Meanwhile, urban transportation policies in cities like Paris, Delhi, and Beijing are increasingly restricting or taxing motorcycle usage to reduce congestion and pollution. Moreover, the rise of alternative urban mobility solutions such as e-bikes, ride-sharing, and improved public transport networks is changing consumer behavior, potentially reducing the reliance on personal motorcycles in certain demographics and geographies.

Country-Wise Outlook

U.S. Motorcycle Market sees Growth Driven by Rising Popularity of Leisure and Long-Distance Riding

The motorcycle market in the United States is experiencing moderate but steady growth. Unlike many developing countries where motorcycles serve as primary transportation, in the U.S., motorcycles are primarily purchased for recreational, touring, and lifestyle purposes. This positions the market differently, with a stronger emphasis on cruisers, touring bikes, sport motorcycles, and adventure models, particularly from established domestic and international brands.

One of the key drivers of growth is the rising popularity of leisure and long-distance riding, especially among middle-aged and older consumers. Brands like Harley-Davidson, Indian Motorcycle, Honda, BMW, and Yamaha continue to dominate the market, with new offerings catering to both traditional enthusiasts and younger, tech-savvy riders. Moreover, there is a growing trend of off-road and dual-sport motorcycles, fueled by increased interest in outdoor recreational activities post-pandemic.

However, challenges such as high vehicle costs, stringent safety standards, and changing urban mobility preferences especially in cities promoting public transit or micro-mobility, could limit growth. Despite this, the U.S. market remains resilient and well-supported by a strong enthusiast base, robust aftermarket industry, and growing innovation in electric and connected motorcycle technologies.

China witnesses Rapid Market Growth Backed by Economic Modernization

The China motorcycle market is undergoing a significant transformation, driven by a combination of economic modernization, urban mobility needs, and strong policy support for electrification. The Chinese government’s focus on cleaner transportation modes and expanding delivery ecosystems are playing key roles in sustaining market momentum.

A major driver of growth is the surge in electric two-wheeler adoption, supported by national and regional regulations favoring low-emission vehicles. Many major Chinese cities, including Beijing, Shenzhen, and Shanghai, have implemented restrictions or outright bans on gasoline-powered motorcycles, prompting a rapid shift toward electric alternatives. Leading domestic manufacturers such as Yadea, NIU Technologies, and AIMA are capitalizing on this shift by introducing advanced electric scooters and motorcycles with features like swappable batteries, smart displays, and connectivity.

The booming e-commerce and urban delivery sector are another significant growth catalyst. With millions of daily food, parcel, and grocery deliveries, motorcycles especially electric models, serve as the backbone of China’s last-mile logistics network. As companies like Meituan and JD.com expand their delivery infrastructure, demand for fleet-based two-wheelers continues to rise. Moreover, government efforts to improve charging infrastructure and promote battery-swapping stations in densely populated cities are removing key adoption barriers for electric motorcycles used in these services.

At the same time, there is growing consumer interest in premium and mid-displacement motorcycles, especially among younger and more affluent riders. This includes a rising demand for sporty, connected, and stylish two-wheelers suited for leisure and personal expression. International brands such as BMW Motorrad, Harley-Davidson, and Yamaha are increasingly active in China’s higher-end motorcycle segment, which is less affected by low-end ICE restrictions. As the market shifts from basic utility to a blend of utility and lifestyle, China is poised to remain a pivotal global hub for both electric and premium motorcycle innovation.

Japan sees Increasing Adoption of Electric Two-Wheelers Fuels Demand for Motorcycles

The Japan motorcycle market is witnessing steady and moderate growth. Unlike emerging markets where motorcycles are primarily used for basic commuting, in Japan, they serve a more diverse range of purposes including urban transport, recreation, and delivery services. The market is well-established and highly regulated, with strong consumer preferences for technologically advanced, fuel-efficient, and compact two-wheelers. Japan’s well-developed infrastructure and dense urban centers also make motorcycles and scooters a practical choice for short-distance mobility, especially in cities with limited parking.

A major growth driver is the increasing adoption of electric two-wheelers, which is expected to expand at a much faster pace. Government incentives for electric mobility, urban pollution controls, and the introduction of low-speed e-scooters for delivery and personal use are supporting this transition. Leading domestic brands such as Honda, Yamaha, and Suzuki are introducing electric models tailored for city riding, while startups and delivery platforms are also integrating e-motorcycles into their fleets to reduce operational costs and emissions.

The motorcycle industry in Japan is also benefiting from a shift in consumer preferences toward technology-rich and lifestyle-oriented bikes. High demand exists for models equipped with features such as ABS, traction control, GPS, and smartphone connectivity. Touring and sports motorcycles are especially popular among older consumers and hobby riders. However, the market is also affected by demographic challenges, such as an aging population and declining interest among younger generations in motorcycle ownership, which may limit long-term volume growth unless offset by electrification and new use cases like shared mobility.

Despite these challenges, Japan remains a critical innovation hub for the global motorcycle industry. The country’s manufacturers are global leaders in R&D and export performance, often setting benchmarks in design, safety, and efficiency. With ongoing investment in electric powertrains and smart vehicle systems, the Japan motorcycle market is poised to maintain stable value growth, even as unit sales fluctuate. The sector’s evolution reflects a balance of tradition, innovation, and shifting urban mobility needs.

Category-wise Analysis

Up to 150 CC to Exhibit leading by Engine Capacity

The up to 150 CC segment dominates the global motorcycle market in terms of volume and unit sales. This category is particularly popular in emerging economies such as India, Indonesia, Vietnam, and the Philippines, where motorcycles are primarily used for daily commuting, affordability, and fuel efficiency. These models are cost-effective to purchase, operate, and maintain, making them ideal for first-time buyers, students, and low- to middle-income households. Additionally, high fuel prices and congested urban infrastructure further favor lightweight, fuel-efficient motorcycles in this segment. The presence of strong domestic manufacturers like Hero MotoCorp, Bajaj Auto, and TVS Motor in this category ensures a wide product range and competitive pricing.

300 to 500 CC segment is the fastest-growing category, especially in developing regions and among urban millennials seeking a balance between performance, affordability, and versatility. This segment is increasingly preferred by riders who want more power than entry-level bikes offer but still seek manageable handling and reasonable maintenance costs. Growth is further driven by rising interest in touring, weekend riding, and beginner-friendly performance bikes. Brands such as Royal Enfield, KTM, Honda, and Yamaha are expanding aggressively in this range with models that cater to both commuter and enthusiast markets. Moreover, these mid-capacity bikes are often used in motorcycle training programs and ride-sharing platforms, boosting their market presence globally.

Sports to Exhibit Leading by Motorcycle Type

Sports motorcycles dominate the segment in the motorcycle tires market. These bikes demand high-performance tires with superior grip, handling, and cornering stability, especially at high speeds. The growing popularity of track racing, aggressive urban riding, and premium performance motorcycles has led to increased sales of specialized sportbike tires. Key markets like North America, Europe, and Japan are driving this segment, with OEMs and aftermarket players focusing on speed-rated, radial tire innovations.

Adventure motorcycles are the fastest-growing segment, driven by the rising trend of long-distance touring, off-road exploration, and dual-sport riding. These bikes require tires that can handle both highways and rugged terrains, pushing demand for durable, all-terrain, and puncture-resistant tire technologies. The increasing number of cross-country rides, adventure rallies, and global adventure biking communities, particularly in regions like India, Southeast Asia, and Europe, are fueling rapid adoption and sales in this dynamic tire category.

Competitive Analysis

The global motorcycle market is becoming increasingly competitive, with a blend of global giants, regional leaders, and emerging electric vehicle (EV) manufacturers. The competitive landscape is primarily shaped by factors such as product affordability, performance, fuel efficiency, brand loyalty, and dealer networks. Companies are also heavily investing in R&D, product diversification, and geographic expansion to strengthen their positions in a market that caters to both utilitarian and lifestyle buyers.

Japanese manufacturers continue to lead globally, with Honda Motor Co., Ltd. holding the top position due to its wide product range, exceptional reliability, and expansive market reach across Asia, Africa, and Latin America. Yamaha, Suzuki, and Kawasaki also maintain strong global presences, particularly in the mid to premium segments. These players dominate not just in commuter bikes but also in sports, adventure, and touring motorcycles, consistently incorporating advanced features such as ABS, traction control, and digital connectivity to appeal to a wider audience.

In India and Southeast Asia, which are volume-driven markets, regional manufacturers such as Hero MotoCorp, Bajaj Auto, and TVS Motor Company are highly competitive, especially in the sub-150cc and commuter segments. These companies benefit from robust domestic demand, price-sensitive product lines, and growing export strategies targeting Africa and Latin America. Royal Enfield, a niche player in the mid-capacity (250–750cc) segment, has carved a strong brand identity globally by blending classic design with modern features, becoming especially popular in Europe, the U.K., and the U.S.

The premium and electric motorcycle markets are becoming the new battlegrounds. Companies like Harley-Davidson, BMW Motorrad, KTM, and Ducati dominate the luxury and performance segments with advanced bikes that emphasize riding experience, safety, and brand heritage. At the same time, rising EV startups like Zero Motorcycles, LiveWire (Harley’s electric brand), NIU Technologies, and Yadea are rapidly expanding, particularly in urban markets where electric mobility is gaining policy and consumer support. Established OEMs are also entering the EV space aggressively, signaling a shift in competitive priorities toward electrification, connectivity, and sustainability.

Key players in the motorcycle industry include Eicher Motors Limited, Ducati Motor Holding S.p.A., Yamaha Motor Co., Ltd., Bajaj Auto Limited, Suzuki Motor Corporation, Harley Davidson Motor Company Inc., Honda Motor Company, Ltd., Hero MotoCorp Limited, TVS Motor Company Limited, Kawasaki Heavy Industries, Ltd., and other players.

Recent Development

• In July 2025, Matter Motor launched its geared AERA 5000 Plus in India with smart features and aims to sell 10,000 units in 2025 across 30 upcoming dealerships.

Segmentation of Motorcycle Market

• By Engine Capacity :

  • Up to 150 CC
  • 150 to 300 CC
  • 300 to 500 CC
  • 500 to 800 CC
  • 800 to 1,000 CC
  • 1,000 to 1,600 CC
  • Above 1,600 CC

• By Motorcycle Type :

  • Adventure
  • Cruisers
  • Mopeds
  • Sports
  • Standard
  • Touring

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa