U.S. Two Wheeler Logistics Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Two Wheeler Logistics Market Growth Factors

Shift toward Electric Vehicles Is Key Market Trend

• With the rising environmental concerns and sustainability goals in the U.S., there is a surge in the use of electric vehicles for logistics purposes driving the growth of the market.
• In comparison to two-wheelers with traditional fossil fuel engines, electric models have lower operational costs, due to which most businesses, such as food delivery firms, are opting for the latter.
• Additionally, government support and incentives for electric vehicle adoption and the setup of charging infrastructure drive EV adoption.
• In January 2025, the Federal Highway Administration of the U.S. Department of Transportation invested USD 635 million to installation ZEV charging and hydrogen refueling stations.

Technological Integration Is Key Market Growth Driver

• The integration of new technologies, such as route optimization software, GPS technology, internet of things, data analytics, AI, ML, and vehicle telematics technology is a key driver for the market.
• The integration of the route optimization software helps in calculating the most-efficient route for delivery, which is crucial for electric vehicles that have a limited range.
• Additionally, the GPS technology, which is integral to modern logistics, allows for the precise location tracking of deliveries, which, in turn, leads to customer trust.
• Furthermore, the telematics technology helps in the collection of data related to vehicle operations, driving patterns, and maintenance requirements.
• Moreover, the integration of AI and ML helps in predictive analytics, such as for forecasting delivery volumes.
• In December 2024, HERE Technologies entered into a strategic partnership with Pioneer Corporation to develop connected devices and services for two-wheelers, fleet management, and micromobility worldwide.

Rising Fuel Cost is the Key Challenge for the Market Growth

• As per the Energy Information Administration (EIA), the per-gallon gasoline prices in the U.S. rose from USD 3.115 on March 24, 2025, to USD 3.243 on April 7, 2025.
• The rising fuel cost has a direct impact on the two-wheeler logistics sector as it increases delivery charges.
• The rising cost of fuel further creates a challenge in expanding operations in suburban and rural areas, thus hampering the market growth.
• This rising fuel cost can be eliminated with the use of electric vehicles, but they still cost a lot more than conventional two-wheelers and the charging infrastructure is not yet adequate.

U.S. Two Wheeler Logistics Market Segmentation and Category Analysis

Vehicle Type Insights

The scooter category held the largest market share, of 35%, in 2024, due to the affordability of scooters and their popularity among small-to medium-sized enterprises. Scooters now come with larger spaces for carrying goods and are integrated with modern technologies, such as GPS and integrated communication systems.

Bikes will grow at a highest CAGR, of 17%, during the forecast period. This is due to the U.S.’s push for environmental sustainability, as e-bikes reduce carbon emissions more compared to the other vehicles. Additionally, the advancement in battery technology is increasing the range of e-bikes and making them fit for logistics purposes.

Based on vehicle type, the market has the following categories:

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

Propulsion Type Analysis

The conventional fuel-based two-wheelers held the larger market share, of 65%, in 2024 due to the well-established infrastructure for gasoline stations in the U.S. Moreover, ICE scooters and motorcycles have been around for a long time, and people find them convenient to drive and maintain. They are also cheaper than electric variants, and gasoline is more-easily available than EV charging stations.

The electric category will grow at the higher CAGR, of 17.5%, during the forecast period, attributed to the rising environmental concerns and implementation of sustainability goals at the public and enterprise levels. As per the Department of Energy, 1.1 million e-bikes were bought in the country in 2022, which was 400% more than the sales in 2019.

Based on propulsion type, the market has the following categories:

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

End User Insights

The B2C category held the largest market share, of 55%, in 2024, and it will grow at the highest CAGR, of 16.4%, during the forecast period. This growth can be attributed to the rising usage of e-commerce platforms among consumers. Cars and delivery vans are not always able to negotiate the dense traffic and narrow alleys, which forces delivery firms to use two-wheelers. The rise in the demand for fast deliveries of goods, such as food, groceries, and cosmetics, drives the growth of the B2C category.

Based on end user, the market has the following categories:

• B2B
• B2C (Largest and Fastest-Growing Category)
• C2C

Service Type Analysis

Food delivery held the largest market share, of 30%, in 2024. The growth of online food delivery platforms, such as DoorDash and Uber Eats, drives the demand for two-wheelers for delivery as they are the fastest means of transportation. Furthermore, the demand for late-night delivery and on-demand services leads to the category’s dominance.

Grocery delivery will grow at the highest CAGR, of 16.3%, during the forecast period. Grocery delivery services are gaining rapid popularity due to the rising preference of consumers for online shopping as it provides diverse product offerings. The major players in the U.S., such as Instacart, Amazon Fresh, and Walmart Grocery, are utilizing two-wheelers for efficient last-mile deliveries, especially in urban areas with heavy traffic.

Based on service, the market has the following categories:

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

U.S. Two Wheeler Logistics Market Regional Outlook

The Western region in the U.S. held the largest market share, of 35%, in 2024. This is due to the presence of highly urbanized states and their high population densities, which create a strong demand for last-mile deliveries. Additionally, the region has urban centers, such as Los Angeles, San Francisco, and Seattle, which are witnessing a mass transition toward e-commerce activities.

The Southern region will grow at the highest CAGR, of 17.2%, during the forecast period. The growth of the economy and online platforms, such as Uber Eats, DoorDash, and Instacart, in the southern region drives the growth of the market. Moreover, the huge population of the region is shifting to online shopping for its numerous conveniences and encouraged by the easy availability of smartphones and high-speed internet.

The market has been categorized into the following regions:

• Northeast
• Midwest
• West (Largest Regional Market)
• South (Fastest-Growing Regional Market)

U.S. Two Wheeler Logistics Market Competitive Landscape

The U.S. two-wheeler logistics market is fragmented due to the presence of many players, including both international and local companies. There is no one company that holds a dominant share. This is because the major shippers and e-commerce companies often outsource their deliveries to 3PL companies, to save on operational costs and expand their regional reach.

U.S. Two Wheeler Logistics Market News & Updates

• In January 2025, Yadea Group Holdings Ltd. launched electric two-wheelers with sodium batteries in Hangzhou, China. The company also showcased its latest technologies at the CES 2025 in the U.S.
• In September 2024, REE Automotive Ltd. partnered with Motherson Group, a global automotive supplier, to make its supply chain management and cost structure stronger.
• In February 2024, Ryder System Inc. completed the acquisitions of Cardinal Logistics, adding 200 operating locations, 2,900 vehicles, and 3,400 professional drivers to the former’s fleet.