Motorcycle Market Size, CAGR & Forecast, 2025-2035

Asian Commuter Demand and Export Growth Carry the Motorcycle Market Toward USD 206.86 Billion by 2035

Worldwide spending on new motorcycles came to USD 124.60 Billion in 2025, rises to USD 131.08 Billion in 2026 and is forecast at USD 206.86 Billion in 2035, a 5.20% CAGR. Honda estimates that about 50 million motorcycles are sold globally each year, a figure it expects to approach 60 million by 2030.

Radial Insights defines the motorcycle market as the value of new powered two-wheelers sold at manufacturer prices: commuter motorcycles, scooters, sport, cruiser, touring, adventure and off-road models, with internal combustion or battery-electric drive. Mopeds that require registration are included. Bicycles, pedal-assist e-bikes, three-wheelers, ATVs, used motorcycles, parts, apparel and financing revenue are excluded.

The motorcycle market is unusually concentrated in Asia. India sold a record 21.7 million two-wheelers domestically in FY2025-26, China produced 22.11 million motorcycles in 2025, and Indonesia sold 6.41 million units. Honda alone sold 22.101 million units in the year to March 2026. By contrast, Europe's five largest markets registered just over 1 million motorcycles in 2025, and Harley-Davidson retailed 132,535 bikes worldwide.

Electric motorcycles and scooters are the fastest growing propulsion segment at an estimated 13.40% CAGR, while scooters lead the type dimension at 6.10%. Africa is the fastest growing region at 6.80% a year, driven by motorcycle taxis and imports from India and China.

Premium segments grow more slowly in volume, yet they carry high prices, and the 251cc to 500cc class grows fastest by capacity at 6.30% as Indian, Chinese and European brands compete for first-time premium buyers.

Scooters, Electric Drive and Mid-Capacity Premium Bikes Set the Pace in the Motorcycle Market

Most motorcycles sold worldwide are small commuter machines bought for daily transport, so segment growth follows income, credit and fuel prices in Asia, Africa and Latin America. Premium and leisure segments respond to different forces: interest rates, rider demographics and emissions rules in Europe and North America. The table shows Radial Insights' 2025-2035 CAGR by segment.

Commuter Motorcycles Lead by Volume While Scooters Grow Fastest at 6.10%

Standard and commuter motorcycles, mostly 100cc to 160cc machines from Hero MotoCorp, Honda, Bajaj and TVS, still make up the largest type. They grow at 4.60% a year, in line with rural income growth in India and Southeast Asia. Scooters grow at 6.10%, fastest among types. SIAM data show Indian scooter sales rose 18.5% in FY2025-26, against 6.6% for motorcycles, as urban buyers and women riders choose automatic transmissions. Adventure and off-road bikes grow at 5.80% on strong demand for 300cc to 450cc models, while sport bikes grow at 5.40%. Cruisers and touring bikes lag at 3.20% and 3.00% because their core buyers in the United States are older and more rate-sensitive.

Electric Motorcycles Expand at 13.40%, More Than Three Times the Engine Segment

Internal combustion motorcycles still dominate the motorcycle market and grow at 3.90%. Electric two-wheelers grow at 13.40% from a smaller base. China sold 3.51 million electric motorcycles in 2025, and Honda targets 4 million electric sales a year by 2030 with 30 models. Battery costs, swapping networks and city restrictions on combustion bikes in China, Vietnam and Indonesia support the shift.

The 251cc to 500cc Class Grows Fastest at 6.30%

Bikes up to 125cc carry the most units and grow at 4.80%. The 126cc to 250cc band grows at 5.60% as Indian and ASEAN commuters trade up. The 251cc to 500cc class grows fastest at 6.30%, led by Royal Enfield, KTM, Triumph and Harley-Davidson models built in India. Bikes above 500cc grow at 3.40%, held back by weak 2025 demand in Europe and the United States.

Commercial and Delivery Use Grows at 6.70%

Personal riders account for most sales and grow at 4.90%. Commercial and delivery users grow faster at 6.70%, driven by food and parcel delivery fleets, motorcycle taxis in Africa and Southeast Asia, and app-based ride-hailing platforms that need low running costs.

Market Trends

Indian Demand Hits a Record After the GST Cut

In September 2025, India cut GST on two-wheelers up to 350cc from 28% to 18%, effective from September 22. Demand responded fast. In April 2026, SIAM reported record domestic two-wheeler sales of 21.7 million units for FY2025-26, up 10.7%, beating the FY2019 peak. In the same month, TVS Motor reported record sales of 5.889 million units, up 24%, Hero MotoCorp dispatched 6.47 million units, and Bajaj Auto sold 4.32 million two-wheelers. In March 2026, Royal Enfield passed 1 million domestic sales in a fiscal year for the first time.

Exports Become a Second Growth Engine for Asian Makers

In January 2026, the China Motorcycle Chamber of Commerce reported 2025 exports of 13.37 million motorcycles, up 21.33%, worth USD 8.85 billion, while domestic sales fell 3.45%. Indian brands also shipped more abroad: Bajaj's two-wheeler exports rose 18% to 1.97 million units in FY2025-26, and Hero's exports rose 40% to a record 402,786 units. Africa, Latin America and the Middle East absorb most of these shipments.

Consolidation in the Premium Segment

In February 2025, KTM AG's creditors accepted a restructuring plan paying 30% of claims, and in May 2025 Pierer Mobility secured funding of about EUR 600 million for the three KTM plans. In November 2025, Bajaj Auto completed its takeover of Pierer Bajaj AG, gaining control of about 74.9% of Pierer Mobility, now being renamed Bajaj Mobility AG. In August 2025, Harley-Davidson named Artie Starrs as President and CEO from October 2025.

Western Demand Weakens While Riders Downsize

In January 2026, ACEM reported that motorcycle registrations in France, Germany, Italy, Spain and the UK fell 12.9% to 1,002,848 units in 2025, with Germany down 35.7%. In February 2026, the Motorcycle Industry Council reported a 7.6% fall in US motorcycle and scooter sales for 2025, though sport bikes under 750cc rose 13%. Buyers are moving toward smaller, cheaper machines, a shift that favors Asian-built mid-capacity bikes.

Restraints and Challenges

Tighter Emission Rules Raise Costs

Euro 5+ applies to all new motorcycles sold in the European Union from January 2025, requiring catalyst durability over 35,000 km and on-board diagnostics that limit power when emissions exceed thresholds. Parallel work on harmonized two-wheeler emission and diagnostic rules continues at UNECE's World Forum for Harmonization of Vehicle Regulations. Compliance adds sensors and catalyst cost, which hurts small-volume European brands and the cheapest models most.

Weak Premium Demand in Europe and the United States

Harley-Davidson's global retail sales fell 12% to 132,535 units in 2025, and its motorcycle revenue fell 13% to USD 3.58 billion. Its 2026 outlook calls for 130,000 to 135,000 units. High interest rates, an ageing rider base and tariff uncertainty are keeping big-bike demand flat, so growth in the above-500cc class stays near 3.40% a year.

Volatile Domestic Demand in China and Vietnam

China's domestic motorcycle sales fell 3.45% to 8.60 million units in 2025, and Vietnam's domestic sales fell 1.5% to 2.62 million units. City rules on combustion bikes, weak consumer confidence and saturation in urban markets make these countries more dependent on exports and electric models for growth.

Pricing Pressure From Regulation and Safety Features

India's GST cut helped buyers, yet the same reform put motorcycles above 350cc in a higher tax band. ABS mandates and on-board diagnostic rules tracked by SIAM raise costs for entry models. Manufacturers face a narrow margin between compliance cost and what first-time buyers can afford.

Growth Drivers

Rising Incomes and Tax Relief in South and Southeast Asia

India is now the world's largest two-wheeler market by domestic volume, with 21.7 million sales in FY2025-26. The GST cut from 28% to 18% on bikes up to 350cc in September 2025 lowered prices by several thousand rupees per vehicle, and the effect showed up in record results from TVS, Hero, Bajaj and Royal Enfield. Indonesia added 6.41 million sales in 2025, up 1.25%, and Yamaha reported higher unit sales in Indonesia, the Philippines and Thailand in its February 2026 results. Rural road building, easier vehicle loans and the need for low-cost personal transport keep commuter demand strong. Radial Insights estimates that Asian income growth and tax relief contribute about +2.1% of annual growth to the motorcycle market through 2035, the single largest contribution of any driver.

Electrification and New Product Platforms

Honda told investors in January 2025 that it plans 30 electric motorcycle models and 4 million electric sales a year by 2030, aiming for 50% global share. China sold 3.51 million electric motorcycles in 2025, and Indian makers TVS, Bajaj and Hero now sell electric scooters at scale. Battery swapping networks in Taiwan, India and Indonesia cut upfront costs, and city restrictions on combustion bikes push riders to switch. Electric models also widen the market to riders who would not buy a fuel bike. We estimate electrification lifts annual growth by roughly 1.2 percentage points, and the electric segment's own 13.40% CAGR makes it the fastest growing part of the market.

Delivery Fleets, Motorcycle Taxis and Export Markets

App-based food and parcel delivery has created large commercial motorcycle fleets in India, Indonesia, Brazil and the Gulf states, and motorcycle taxis are a main form of public transport across much of Africa. These users ride far more than private owners and replace bikes every two to three years. Chinese exports of 13.37 million units in 2025, Bajaj's 1.97 million two-wheeler exports and Hero's record 402,786 exported units show how this demand is being met. Honda's FY2026 motorcycle operating profit reached a record 731.9 billion yen, partly from strong volumes in emerging markets. Commercial and export demand adds about +0.9% to the motorcycle market's yearly growth rate.

Opportunities

Mid-Capacity Premium Bikes Built in India

The 251cc to 500cc class grows at 6.30% a year in our forecast. Royal Enfield's first million-unit domestic year, Bajaj's control of KTM and joint projects between Indian makers and Triumph and Harley-Davidson give India a cost base for export-ready premium bikes. Brands that combine Indian production costs with European design can win share in Europe, Latin America and Southeast Asia.

Connected Services and Financing

As motorcycles add TFT displays, navigation and app connectivity, makers can earn revenue from software, insurance and service plans. In markets where most bikes are bought on credit, captive finance arms help manufacturers keep customers and data over the life of the vehicle.

Asia Pacific Accounts for 62.00% of Motorcycle Value, While Africa Grows Fastest at 6.80%

Asia Pacific (APAC)

Asia Pacific (APAC) held a 62.00% share in 2025. The APAC motorcycle market was worth USD 77.25 Billion in 2025 and is forecast at USD 132.58 Billion in 2035, a 5.55% CAGR. India sold 21.7 million two-wheelers domestically in FY2025-26, China produced 22.11 million motorcycles in 2025, Indonesia sold 6.41 million and Vietnam 2.62 million. Honda, Yamaha, Hero, Bajaj and TVS all hold their largest volumes in the region.

Europe

Europe held a 14.00% share in 2025. European motorcycle value was USD 17.44 Billion in 2025 and should reach USD 25.57 Billion by 2035, growing at 3.90% a year. ACEM data show the five largest European markets registered 1,002,848 motorcycles in 2025, with Italy at 331,634, Spain at 242,580 and Germany at 159,764. Euro 5+ rules have applied to all new bikes since January 2025.

Latin America

Latin America held a 10.00% share in 2025. The Latin America motorcycle market was worth USD 12.46 Billion in 2025 and is expected to reach USD 21.49 Billion by 2035, a 5.60% CAGR. Brazil is the largest market, with Honda and Yamaha producing in Manaus, while Colombia and Mexico import large volumes of Indian and Chinese bikes. Bajaj and TVS count Latin America among their main export destinations.

North America

North America held an 8.00% share in 2025. North American motorcycle value was USD 9.97 Billion in 2025 and is forecast at USD 13.53 Billion in 2035, growing at 3.10% a year. The Motorcycle Industry Council reported a 7.6% fall in US motorcycle and scooter sales in 2025, and Harley-Davidson's North American retail sales fell 13% to 89,132 units. Sport bikes under 750cc grew 13% in the US.

Middle East

The Middle East held a 3.50% share in 2025. Middle East motorcycle value was USD 4.36 Billion in 2025 and should reach USD 7.31 Billion by 2035, a 5.30% CAGR. Food delivery fleets in Saudi Arabia, the UAE and Kuwait are large buyers of 150cc to 200cc bikes, and Iran and Turkey have sizeable domestic assembly. Indian exporters such as Bajaj and TVS supply much of the commuter segment.

Africa

Africa held a 2.50% share in 2025. The African motorcycle market was worth USD 3.12 Billion in 2025 and is forecast at USD 6.01 Billion by 2035, the fastest regional CAGR at 6.80%. Motorcycle taxis in Nigeria, Kenya, Uganda and Tanzania drive most demand, and supply comes mainly from Chinese exporters and Indian brands. Bajaj's two-wheeler exports rose 18% in FY2025-26 and Hero's exports rose 40%, with Africa among the key destinations.

Recent Developments

• In May 2026, Honda reported Group motorcycle sales of 22.101 million units for the year to March 2026, up 7.4%, with record motorcycle operating profit of 731.9 billion yen.

• In April 2026, SIAM data showed record Indian domestic two-wheeler sales of 21.7 million units in FY2025-26, and TVS Motor reported record sales of 5.889 million units.

• In February 2026, Harley-Davidson reported 2025 global retail sales of 132,535 motorcycles, down 12%, and guided to 130,000 to 135,000 units for 2026.

• In January 2026, ACEM reported that motorcycle registrations in Europe's five largest markets fell 12.9% to 1,002,848 units in 2025.

• In November 2025, Bajaj Auto completed its acquisition of full control of Pierer Bajaj AG, giving it control of KTM through Pierer Mobility, now being renamed Bajaj Mobility AG.

• In September 2025, India cut GST on two-wheelers up to 350cc from 28% to 18%, lowering prices ahead of the festive season.

Honda Holds About 40% of Global Volume, While Indian Makers Gain Fastest

The motorcycle market combines a few very large volume producers with many premium and regional brands. Honda alone sold 22.101 million units in the year to March 2026, close to 40% of global volume. Indian manufacturers grew quickly in FY2025-26 on domestic tax relief and exports, while Western premium brands faced falling registrations and restructuring. Competition turns on price, fuel economy, dealer and service reach, financing, and increasingly on electric models.

Global Volume Leaders

Honda Motor Co., Ltd. leads worldwide, with strong positions in India, Indonesia, Vietnam, Thailand and Brazil and a plan for 30 electric models by 2030. Yamaha Motor Co., Ltd. earned 1,615.1 billion yen from its Land Mobility business in 2025, with growth in Indonesia, the Philippines and Thailand offsetting declines in Europe and the United States. Suzuki Motor Corporation is a major scooter and commuter supplier in India and Southeast Asia.

Indian Manufacturers

Hero MotoCorp Ltd. is India's largest two-wheeler maker by volume, with 6.47 million dispatches in FY2025-26 and record exports. TVS Motor Company posted record sales of 5.889 million units, up 24%, with strong scooter and electric iQube sales. Bajaj Auto Ltd. sold 4.32 million two-wheelers, nearly half of them abroad, and now controls KTM. Royal Enfield, part of Eicher Motors, leads the 350cc to 650cc class and passed 1 million domestic sales in a fiscal year for the first time.

Premium and Heritage Brands

Harley-Davidson, Inc. leads US heavyweight cruisers and touring bikes, with 132,535 retail units in 2025 and a new CEO since October 2025. BMW Motorrad, Ducati Motor Holding, Triumph Motorcycles Ltd. and Kawasaki Motors, Ltd. compete in sport, adventure and touring. KTM AG, restructured in 2025, makes off-road and naked bikes, many built in India by Bajaj. Piaggio & C. SpA leads European scooters with Vespa and Aprilia.

Chinese Manufacturers

Chinese firms such as Loncin Motor Co., Ltd. build engines and complete bikes for domestic and export markets, and also supply European and Japanese brands. Their export push, which helped China ship 13.37 million motorcycles in 2025, puts price pressure on rivals in Africa, Latin America and Southeast Asia.