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The two-wheeler engine market is estimated to grow at a CAGR of 6.82% between 2022 and 2027. The size of the market is forecast to increase by 24.64 million units. The growth of the market depends on serval factors, including rising levels of road congestion due to rapid urbanization, growth of multinational two-wheeler OEMs in emerging countries, and increasing electronic content in two-wheelers.
This report extensively covers market segmentation by application (motorcycles and scooters), technology (ICE and electric), and geography (APAC, South America, North America, Europe, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global two-wheeler engine market as a part of the global auto parts and equipment market within the global auto components market. The global auto parts and equipment market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing electronic content in two-wheelers is notably driving the market growth, although factors such as the growth of the two-wheeler rental market may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Two-Wheeler Engine Market Driver
The increasing electronic content in two-wheelers is notably driving the motorcycle engine market growth. The worldwide demand for two-wheelers is on the rise. There is an increasing demand for enhancing the safety and comfort levels of two-wheelers, which is made possible by the integration of advanced electronics. This demand is enabling the rapid electrification of mechanical components and increasing the adoption of electronic technologies in two-wheelers.
The major goal of the industry is autonomous two-wheelers that are electronically driven by onboard computers. This goal is resulting in the industry adopting new technologies such as start-stop systems. Additionally, the development of electronic fuel injection and ride-by-wire technologies paved the way for the development of motorcycle cruise control mechanisms. Furthermore, the range of consumer needs and OEM offerings has widened to include safety, performance, stability, and comfort, as these parameters are being refined and improved every day. This evolution has outgrown the utility of conventional mechanical components, which lack the capabilities to solve several emerging automotive challenges. It has also led to an upsurge in the growth rate of the automotive electronics market. Thus, these aspects are expected to drive the growth of the global motorcycle engine market during the forecast period.
Significant Two-Wheeler Engine Market Trend
The emergence of dual-sport motorcycles is an emerging trend in the motorcycle engine market growth. Growing competitive intensity in the global two-wheeler industry is leading to the launch of new models across segments. There have been sub-segments within the two-wheeler industry that have emerged in the past few years. The popularity of such segments is rapidly increasing among riders as they boast of the combined benefits of two categories of two-wheelers.
The popularity of dual-sport motorcycles is growing among motorcycle enthusiasts. The broad capabilities and potential associated with such a category of motorcycles make them suitable for use as sports motorcycles while riding through streets or off-roading. These motorcycles are often known as street versions of endure-type off-road motorcycles. These motorcycles come equipped with a large displacement multi-cylinder engine for adequate performance in both on-road and off-road conditions. Some of these motorcycles are also offered with saddlebags. Hence, these factors will fuel the growth of the motorcycle engine market during the forecast period.
Major Two-Wheeler Engine Market Challenge
The growth of the two-wheeler rental market is a major challenge impeding the motorcycle engine market growth. Two-wheelers are mainly used for commuting over short distances, which can be fulfilled by renting a vehicle. The increasing launch of rental services for motorcycles and scooters poses a significant challenge to the sales of two-wheelers as potential buyers do not need to make significant investments in purchasing a two-wheeler but can rather spend a fraction of the cost on hiring or leasing a scooter or a motorcycle for fulfilling their need to commute.
Since 2017, Europe has been witnessing a trend of renting electric two-wheelers using smartphone applications. This trend is hindering the growth of two-wheelers that use conventional ICE technology, as a majority of the customers prefer to opt for economical electric bikes rather than paying a large sum to own a two-wheeler. A number of online electric scooter and other two-wheeler rental companies, such as Lime, COOLTRA MOTOS, SLU (Cooltra), and Bird, have started operating in various major European cities, allowing members to book a scooter conveniently using their smartphones. In addition, India is also picking up on the trend of bicycle and e-bike rentals. This scenario is expected to hinder the growth of the global market during the forecast period.
Key Two-Wheeler Engine Market Customer Landscape
The report includes the adoption lifecycle of the motorcycle engine market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Two-Wheeler Engine Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the motorcycle engine market.
Chongqing YinXiang Motorcycle Group Co. Ltd. - The company operates under one segment. The company is involved in specializing in real estate and research, development, manufacturing, and sales of motorcycles, gasoline engines, and general-purpose engines and equipment. The key offerings of the company include a two-wheeler engine.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the motorcycle segment will be significant during the forecast period. Motorcycles are two-wheeled motor vehicles designed to suit a varied range of purposes, such as long-distance traveling, commuting, cruising, racing, and off-road riding. The motorcycle segment is categorized into commuter motorcycles (up to 125cc engine displacement), mid-premium motorcycles (125cc to 600cc engine displacement), and premium motorcycles (greater than 600cc engine displacement).
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The Motorcycles segment was valued at 40.36 million units in 2017 and continued to grow until 2021. The adoption of motorcycles for commuting is higher in emerging economies, such as India, owing to increasing traffic congestion, whereas the adoption of premium/heavyweight motorcycles is higher in developed economies, such as the US. However, growing disposable income in emerging economies, such as India, and a high proportion of the younger population are increasing the demand for mid-premium and premium motorcycles, which is a positive driver for the motorcycle segment and the concerned market. Furthermore, economical pricing drives the adoption of commuter motorcycles. The demand for such motorcycles is increasing in emerging economies owing to the presence of a large base of middle-income population. Dominant OEMs operating in the commuter segment include Hero MotoCorp Limited (Hero MotoCorp), TVS Motor Co. (TVS Motor), and Bajaj Auto Limited (Bajaj Auto). These OEMs are continuously launching different models in this segment to attract customers. The demand for mid-premium motorcycles is also increasing globally, particularly in emerging economies. This segment recently witnessed the rapid electrification of mechanical components, which led to the adoption of advanced fuel-efficient and high-performance engines. Thus, owing to such factors the segment is expected to grow during the forecast period.
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APAC is estimated to contribute 73% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in APAC is dominated by low-power and affordable geared motorcycles and gearless scooters that are used for commuting. Motorcycles are mainly seen as a personalized and cheap alternative to public transportation and passenger cars. Increasing road congestion and fuel prices, and cost-sensitive buying behavior are the main factors driving the growth of the motorcycles market in APAC. China and India are the dominant countries in the market in APAC.
The Indian and Chinese markets in APAC are to be dominant during the forecast period, led by the rising demand for two-wheelers in the low-powered and heavyweight segments. The heavyweight motorcycle segment is expected to grow significantly in these countries, which will increase the adoption of advanced technologies in the region. Furthermore, rising air pollution in countries like India is forcing governments to increase the stringency of existing two-wheeler emission standards. For instance, India is likely to move to BS-VI two-wheeler emission standards from the currently prevalent BS-IV standards, skipping BS-V in April 2020. Two-wheelers in India are estimated to release about six times the emissions released by four-wheelers. The increased number of two-wheelers on Indian roads leads to two-wheelers emitting higher levels of emissions than four-wheelers. Hence, the Indian government is taking comprehensive measures to raise emission regulations by skipping BS-V and moving directly to BS-VI since 2020, which requires all two-wheelers to be equipped with fuel injection systems. Such developments are expected to propel the growth of the market in APAC during the forecast period.
The COVID-19 pandemic in 2020, hindered the market growth in the region. However, after the lifting of lockdown restrictions, the demand for two-wheelers increased in 2021, which will intensify the competition among two-wheeler engine manufacturers. This will influence them to offer highly differentiated products, including two-wheeler engines, which will drive the growth of the regional market. Furthermore, developed economies in APAC, such as Japan, South Korea, and Australia, were able to control the COVID-19 outbreak due to mass COVID-19 vaccination drives, which helped the market to rebound. Thus, all the above-mentioned factors are expected to drive the demand for two-wheeler engines in APAC during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Two-Wheeler Engine Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.82% |
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Market growth 2023-2027 |
24.64 mn units |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.19 |
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Regional analysis |
APAC, South America, North America, Europe, and Middle East and Africa |
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Performing market contribution |
APAC at 73% |
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Key countries |
India, China, Indonesia, Vietnam, and Malaysia |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Bajaj Auto Ltd., Chongqing YinXiang Motorcycle Group Co. Ltd., Chongqing Zongshen Automobile Industry Co. Ltd., Ducati Motor Holding Spa, Eicher Motors Ltd., Harley Davidson Inc., Hero MotoCorp Ltd., Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Lifan Technology Group Co. Ltd., Loncin General Dynamics Co. Ltd., Luoyang Northern Ek Chor Motorcycle Co. Ltd., Mahindra and Mahindra Ltd., Okinawa Autotech Pvt. Ltd., Piaggio and C. Spa, Suzuki Motor Corp., Triumph Group Inc., TVS Motor Co. Ltd., Yamaha Motor Co. Ltd., and Bayerische Motoren Werke AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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