Two-Wheeler Logistics Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Two-Wheeler Logistics Market Data

Two Wheeler Logistics Market Analysis

The global two-wheeler logistics market was valued at USD 124.9 billion in 2023, which is expected to grow at a CAGR of 20.5% during the forecast period (2024–2030), to reach USD 458.0 billion by 2030. The key factors responsible for the growth of the market include the convenience and cost-effectiveness of these services, the booming e-commerce industry, and the integration of real-time tracking technology.

The transportation and logistics industries are undergoing significant changes, including the integration of real-time tracking technology. The Internet of Things (IoT) is becoming prevalent within several industries, with transportation and logistics being considered major sectors in this regard. In order to help companies maintain the growing demands, technology is transforming logistics by providing real-time tracking solutions during the delivery process.

Real-time visibility enables companies to identify potential problems and resolve them before escalation. Fully integrated real-time tracking solutions are widely accepted in on-demand logistics as they allow businesses to extend the visibility into the delivery until the last step of the process.

With this next-generation technology in place, companies are livestreaming the process of delivery to establish and maintain a competitive advantage. Thus, the integration of the real-time tracking technology in logistics is driving the market growth.

Two-Wheeler Logistics Market Trends & Drivers

Increased Adoption of Electric Two-Wheelers

• To encourage the use of environment-friendly vehicles with low emissions, reductions in the registration tax and other liabilities, such as subsidies and tax rebates, have been offered by governments in different countries.
• Subsidies have helped the market by making electric scooters and motorcycles more viable for customers for personal and business purposes.
• Such factors are responsible for the rise in the adoption of electric scooters and motorcycles in various countries.
• While the incentive depends on the battery size and vehicle traveling range, some countries have even extended the benefits to electric scooters and motorcycles that are to be used for rather small distances, commercially.
• Due to such incentives, logistics companies are also adopting electric two-wheelers for their business purposes.
• For instance, DHL International GmbH, an international courier, package delivery, and express mail service, announced plans to purchase 8,000 e-bikes and around 14,000 e-trikes (three-wheeled electric cargo bikes) by 2025. The company announced this investment during its strategic meeting held in August 2021.
• In the same vein, Amazon is also planning to deploy 100,000 EVs (including two-wheelers) in its delivery fleet by 2030.

Cost-Effectiveness and Accessibility of Services

• For small and medium-sized companies, there is an age-old debate over how to best handle delivery services. Due to the low production, low market demand, cost factor, and many other issues, several B2B customers are unable to provide sufficient volume of shipping, which leads to no long-term contracts with logistics companies.
• Furthermore, for individual customers, online goods transport companies offer on-demand transportation in both the partial-load and full-load capacities, at convenient prices and time.
• When a customer books for transport through a contractor or on a call, the cost incurred for transportation is hidden. But, on-demand logistics service providers charge on the basis of the distance to be traveled, and the structure of the cost incurred is transparent.
• For instance, in delivering a package of instant noodles to customers, a company is not relying on heavy vehicles, such as trucks and other four-wheelers.
• Utilizing motorcycles becomes a cost-effective option as they are less expensive compared to cars and trucks. Such factors boost the two-wheeler logistics market globally.

Health and Safety Issues Among Riders

• Motorbikes, mopeds, and scooters are becoming an increasingly popular mode of transport, particularly for e-commerce, food, and other delivery companies.
• It has been seen that food delivery is typically done by young workers or by those who have had no job training. They work mostly part-time and on a contractual basis.
• Additionally, food delivery riders work mostly at night between 8 pm and 1 am, when they are often confronted by aggressive or drunken clients. As they work alone and after dark, their job carries perpetual dangers.
• Delivery riders are also at risk of robberies because they handle money. Most of the delivery persons also suffer from back problems because of the heavy weight carried by them on their shoulders for about 40–50 km a day.
• Therefore, it is really important for delivery companies to ensure the safety and health of their delivery riders.

In-Depth Segmentation Analysis

Vehicle Type Insights

• The scooter category holds the largest revenue share and it is also expected to grow at the highest CAGR of 20.8% from 2024 to 2030 in the market. This was because of the growing adoption of scooters due to their ease of mobility, rapid acceleration, and light build.
• Moreover, the structure, machinery, and gears, which are changed by rotating the handlebar, are best suited for traveling shorter distances, which makes them ideal for transporting goods and services within cities.

Further, vehicle types are classified into:

• Moped
• Scooter (Largest and Fastest-Growing Category)
• Motorcycle

Service Analysis

• The e-commerce category dominates the market, with a share of around 45% in 2023. The category's supremacy is ascribed to the growing customer base; however, customers' buying behavior and expectations are also changing, with customers now expecting rapid and free shipping, as well as competitive pricing.
• Traditional logistics systems are being challenged by this rigorous delivery schedule, and enterprises are now concentrating on adjusting their strategies to address this.
• Whereas, food delivery is the fastest-growing category, advancing at a CAGR of 20.9% from 2024 to 2030. This is due to emerging consumer choices, digital transformation, and the convenience of ordering food.
• Additionally, changing lifestyles due to hectic work schedules and demand for quick solutions without wasting time have compelled this category to become the fastest in the market.

During the study, services are categorized into:

• Food Delivery (Fastest-Growing Category)
• Grocery Delivery
• E-Commerce Delivery (Largest Category)
• Parcel Delivery

Propulsion Type Insights

• The electrical category is expected to witness a higher CAGR of 20.7% during 2024–2030. This can be because EVs have proven to be an eco-friendly, efficient, and affordable mode of transport for delivery service providers. Thus, the electrical category is gaining popularity.
• Electric bikes and scooters provide clean and energy-efficient solutions for logistics and simultaneously contribute to emission reduction.
• On the other hand, the conventional fuel-based category held a larger market share of around 75% in 2023. This is associated with their well-established infrastructure, popularity, smooth refueling process, and extensive accessibility.
• Additionally, conventional fuel-based vehicles have a larger capacity for fuel tanks as compared to electrical vehicles, which eliminates the need for frequent refueling and makes them suitable for long journeys.

Further, propulsion types are divided into:

• Conventional Fuel-Based (Larger Category)
• Electric (Faster-Growing Category)

End Use Analysis

• Business-to-consumer (B2C) is the fastest-growing category, advancing at a CAGR of around 80% during 2024–2030 as well as it holds the largest market share.
• The growth of the category is predicted to be fueled by changes in customer purchasing behavior, apparent in the increasing preference for organized and omnichannel shopping, primarily driven by the increasing technical understanding of smartphone apps and internet platforms.
• Furthermore, the rising demand for e-commerce deliveries will compel logistics companies to transport to end consumers in remote locations in emerging economies, as a result of the continued economic growth there, expanding middle-class population, and expanding internet access.

Further, the end-use has two types:

• Business-to-Business (B2B)
• Business-to-consumer (B2C) (Faster and Larger Category)

Regional Overview

• The APAC market is growing at the highest CAGR of 21.0% during 2024–2030 as well as it holds the largest share. This is due to the high demand for two-wheeler logistics services in developing countries like India and China.
• Moreover, the presence of a large population base, rising disposable income coupled with rapid urbanization, and a strong transportation and logistics industry with a base of large shipping and logistics companies are further driving the growth of the regional market.
• Additionally, two-wheelers are highly compact as compared to passenger vehicles as well as inexpensive. They offer high fuel efficiency at low cost, which is the major reason why consumers are giving preference to two-wheelers in the region.

Further, these regions and countries were analyzed for this report:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• APAC (Largest and Fastest-Growing Regional Market)
  • China (Largest and Fastest-Growing Country Market)
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Largest Country Market)
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

There are so many companies in the market that focus on the development and introduction of electric two-wheelers to expand their customer range. Many regional and international players are tirelessly working on advanced approaches to successfully introduce new electric models in the automobile sector to obtain a competitive edge among competitors. Several companies are also involved in partnerships and collaborations, mergers and acquisitions to stay ahead in the market.

Two-Wheeler Logistics Industry News

• Hero Motor Corporation began the production of flex-fuel motorcycles in January 2023 since many OEMs are concentrating on creating ethanol-compliant engines and vehicles. By introducing new technology, the company is willing to grab revenue opportunities rapidly.
• Baja shook hands with Triumph Motorcycles to produce mid-capacity motorcycles for the Indian as well as International Markets in January 2023. This deal is likely to help Bajaj to deliver mid-range motorcycles in the international market.
• Triumph had done the testing of its new electric bike TE1 in June 2022. The model was developed with the help of Warwick Manufacturing Group, Integral Powertrain Limited, and Williams Advanced Engineering.
• TY-E 2.0 electrical trials bike was developed by Yamaha Motor in April 2022 which is ahead in reducing carbon emissions due to EV-powered motorcycling. This model was also scheduled to participate in many rounds of the 2022 FIM Trial World Championship along with gas and electric-driven models.
• Gujarat got an MOU signed by Suzuki in March 2022 for the production of electric vehicles and batteries in India to invest money around USD 1,353.82 million toward carbon neutrality.