Motorcycle Market is Growing at a CAGR of 3.9% by 2035 | Eicher Motors Limited, Ducati Motor Holding S.p.A, Yamaha Motor Co., Ltd., Bajaj Auto Limited, and Suzuki

The global motorcycle market is set for steady expansion, with its valuation projected to grow from USD 121.5 billion in 2025 to USD 179.8 billion by 2035. This growth reflects a compound annual growth rate (CAGR) of 3.9% over the forecast period from 2025 to 2035. The surge is primarily driven by increasing urbanization, the need for affordable and fuel-efficient transportation, and the rise of e-commerce and gig economy demands for last-mile deliveries. As consumers in emerging markets seek convenient mobility solutions, the market is witnessing heightened adoption of electric and premium motorcycles, supported by government incentives for sustainable transport and advancements in battery technology.

Motorcycle Market Segmentation and Trends:

The motorcycle market is segmented by engine capacity, motorcycle type, and region, offering a comprehensive view of its dynamics. By engine capacity, segments include 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, and above 1,600 CC, with up to 150 CC leading in volume due to affordability, while 300 to 500 CC is the fastest-growing for its balance of power and efficiency. By motorcycle type, categories encompass adventure, cruisers, mopeds, sports, standard, and touring, where sports motorcycles hold the largest share at 26% in 2025, and adventure bikes are expanding rapidly amid touring and off-road trends.

Regionally, the market covers North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East & Africa, with over 30 countries analyzed, including the U.S., Canada, U.K., Germany, France, Netherlands, Belgium, Japan, Korea, Nordics, and GCC countries. Trends highlight the shift towards electric motorcycles, driven by sustainability goals, and innovations in connectivity features like app-integrated navigation and safety systems. The market is also seeing growth in premium segments for recreational use, alongside volume-driven models in developing regions.

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Driving Factors Behind Market Growth:

The motorcycle market is propelled by several key drivers. Increasing urbanization and traffic congestion in cities boost demand for agile, fuel-efficient two-wheelers as alternatives to cars. Rising disposable incomes in emerging economies enable consumers to opt for premium and electric models. The e-commerce boom and gig economy heighten the need for motorcycles in last-mile deliveries, particularly in regions like India and Southeast Asia. Government support through incentives, such as India’s FAME-II scheme and the EU’s Fit for 55 package, promotes electric mobility and reduces emissions. Additionally, consumer preferences for recreational and adventure biking, coupled with advancements in battery technology for longer ranges, are accelerating market growth.

Recent Developments and Key Players:

The motorcycle market is competitive, with key players focusing on innovation, electrification, and strategic expansions to capture share. Recent developments underscore the industry's shift towards sustainable and tech-driven solutions. In July 2025, Matter Motor launched the geared AERA 5000 Plus in India, aiming to sell 10,000 units in 2025 across 30 upcoming dealerships, emphasizing performance and accessibility in the electric segment.

Key players 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, and Kawasaki Heavy Industries, Ltd. Competitor analysis reveals a emphasis on R&D for electric and connected motorcycles. Japanese manufacturers like Honda, Yamaha, Suzuki, and Kawasaki lead in technology, while regional players like Hero MotoCorp and Bajaj Auto dominate volume markets. Premium brands like Harley-Davidson and BMW Motorrad focus on leisure segments, with startups entering the EV space.

Regional Insights and Opportunities:

Asia-Pacific dominates the motorcycle market, driven by high demand in India, China, Indonesia, Vietnam, and Thailand, where population density and affordability fuel growth, with India projected at a 5.1% CAGR. Europe emphasizes leisure and electric scooters in markets like Italy, Germany, and France, supported by zero-emission policies. North America, particularly the U.S., focuses on recreational cruisers and growing electric adoption through brands like Zero Motorcycles and Harley’s LiveWire.

Latin America & Middle East & Africa offer opportunities through affordable transport and deliveries, with emerging electrification in underserved areas. Partnerships with local governments and investments in charging infrastructure are key to expansion in high-growth regions like South Asia & Pacific.

Challenges and Future Outlook:

The motorcycle market faces challenges, including rider safety concerns from accidents, stringent emission regulations increasing costs, limited charging infrastructure for electric models, high upfront costs for EVs, economic volatility affecting purchases, and urban policies restricting motorcycle use in cities like Paris and Delhi. However, the future outlook is positive, with opportunities in electric innovations and premium segments. As sustainability and connectivity trends intensify, the market is well-positioned for sustained growth, transforming mobility through 2035.

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