Global Two-wheeler Engine Market Size By Type (<100 cc, 100-200 cc), By Application (Civil, Military), By Region, And Segment Forecasts, 2023 to 2032

The Global Two-wheeler Engine Market was valued at approximately USD 15.5 billion in 2023 and is expected to grow to USD 23.9 billion by 2031, with a CAGR of 5.5% over the forecast period from 2023 to 2031. Growth in this market is driven by rising demand for fuel-efficient engines, rapid urbanization, and increasing two-wheeler sales, particularly in emerging markets. With advancements in engine technologies aimed at reducing emissions and improving performance, the market is witnessing significant innovation and expansion.

Drivers:

Rising Demand for Fuel Efficiency: Increasing fuel costs and stringent emission regulations are pushing manufacturers to develop fuel-efficient two-wheeler engines.

Urbanization and Growth in Middle-Class Population: Rapid urbanization, especially in Asia-Pacific, is boosting two-wheeler sales, driving demand for reliable and efficient engines.

Technological Advancements: Innovations in engine technology, such as hybrid and electric solutions, are enhancing engine efficiency and attracting eco-conscious consumers.

Restraints:

High Development and Compliance Costs: Adhering to emission norms and investing in R&D for new technologies can be costly for manufacturers, especially in price-sensitive regions.

Growth of Electric Two-Wheelers: The shift toward electric vehicles (EVs) presents competition, challenging the growth of traditional two-wheeler engines.

Opportunity:

Expansion in Emerging Markets: Developing regions with rising disposable income and an increasing preference for two-wheelers offer a lucrative opportunity for market growth.

Integration of Hybrid and Alternative Fuel Engines: Adoption of hybrid or biofuel-compatible engines could open up new segments and provide growth opportunities.

Market by Engine Type Insights:

The Single Cylinder Engine segment held the largest share in 2023 due to its simplicity, cost-effectiveness, and widespread use in low- to mid-capacity two-wheelers. The Multi-Cylinder Engine segment is also projected to grow, primarily driven by increasing demand for high-performance motorcycles.

Market by End-Use Insights:

Based on end-use, the Commuter Bikes segment emerged as the largest contributor in 2023, with its affordability and fuel efficiency appealing to urban riders. However, the Sports and Adventure Bikes segment is expected to grow rapidly due to rising interest in recreational and off-road biking activities.

Market by Regional Insights:

The Asia-Pacific region dominated the market in 2023, accounting for over 65% of the total market share, primarily due to high two-wheeler sales in countries like India, China, and Indonesia. North America and Europe are anticipated to witness growth as premium and adventure motorcycles gain popularity.

Competitive Scenario:

Key players in the Global Two-wheeler Engine Market include Honda Motor Co., Ltd., Bajaj Auto Ltd., Suzuki Motor Corporation, Hero MotoCorp Ltd., Yamaha Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., and KTM AG. These companies are focusing on technology advancements, partnerships, and expanding their geographic presence to strengthen their market position. Recent developments include Honda’s introduction of eco-friendly engines in 2023 and Bajaj Auto’s expansion of its engine technology to improve fuel efficiency across its commuter bike range.

Scope of Work – Global Two-wheeler Engine Market

Key Market Developments

Honda Motor Co., Ltd. launched its latest eco-friendly engine in 2023, aiming to meet stringent global emission norms while improving fuel efficiency.

Bajaj Auto Ltd. expanded its commuter bike engine lineup in 2024 with advanced fuel injection technology, enhancing both performance and mileage.

Suzuki Motor Corporation formed a partnership in 2025 with a leading EV technology provider to explore hybrid engine options for its future models.

FAQs

What is the current market size of the Global Two-wheeler Engine Market?

The market size was valued at approximately USD 15.5 billion in 2023.

What is the major growth driver of the Global Two-wheeler Engine Market?

The market growth is driven by rising demand for fuel-efficient engines and increasing urbanization.

Which is the largest region during the forecast period in the Global Two-wheeler Engine Market?

The Asia-Pacific region holds the largest market share due to high two-wheeler adoption rates.

Which segment accounted for the largest market share in the Global Two-wheeler Engine Market?

The Commuter Bikes segment led the market in 2023 due to its affordability and popularity in urban areas.

Who are the key market players in the Global Two-wheeler Engine Market?

Key players include Honda Motor Co., Ltd., Bajaj Auto Ltd., Suzuki Motor Corporation, Hero MotoCorp Ltd., Yamaha Motor Co., Ltd., and Kawasaki Heavy Industries, Ltd.