Industrial Blog - Riding the Wave: The Future of Two-Wheelers in Asia Pacific

Riding the Wave: The Future of Two-Wheelers in Asia Pacific

Asia Pacific dominated the two-wheeler market share in 2023. In 2024, the two-wheeler APAC market is projected to reach a revenue of US$98.38bn with a CAGR of 3.12%, resulting in a projected market volume of US$114.70bn by 2029.

Several factors are driving the growth of the two-wheeler market in Asia Pacific, including rapid urbanization, rising incomes, growing demand for affordable transportation, and increasing government support for two-wheelers.

In Southeast Asia, motorcycles are popular because they are affordable, fuel-efficient, and can easily navigate congested cities. They are also favored in rural areas for their versatility on less developed roads.

The largest markets for motorcycles in the APAC are India, Indonesia, and Vietnam. These countries have large populations and a growing middle class, which is driving the demand for motorcycles.

In addition to motorcycles, there is a growing market for electric scooters and bicycles in the region, seen as more environmentally friendly alternatives to traditional gasoline-powered motorcycles. China is the largest market for electric two-wheelers in the region, followed by India and Vietnam.

Trends in the Two-wheeler Market in Asia Pacific

Several trends are shaping the two-wheeler market in Asia Pacific, including:

The growth of electric two-wheelers

The increasing popularity of premium two-wheelers

The rise of shared two-wheelers

The growing importance of safety and security

Adoption of two-wheelers in logistics and e-commerce

The Growth of Electric Two-Wheelers

One of the most significant trends in the two-wheeler market in Asia Pacific is the growth of electric two-wheelers. They are becoming increasingly popular due to low running costs, environmental benefits, and government incentives. Estimated at US$102.5bn USD in 2024, it is expected to reach US$173.4bn USD by 2030, growing at a CAGR of 9.16%. This growth is expected to continue as more consumers switch to electric two-wheelers.

Bearings are crucial components that significantly impact the performance and efficiency of electric two-wheelers. Advanced bearing technology is essential for optimizing the operational characteristics of electric drivetrains. Innovations such as low-friction designs and enhanced durability contribute to extending battery range, improving ride comfort, and reducing overall energy consumption.

As electric two-wheelers become more widespread, there is a growing demand for high-performance bearings that can meet the unique challenges posed by electric motors. These bearings must withstand higher torque loads and operate efficiently at higher speeds. Moreover, they need to provide exceptional durability to support the increased power output and efficiency of electric drivetrains. Manufacturers are also focusing on lightweight and compact designs to enhance energy efficiency and maximize battery range.

The Increasing Popularity of Premium Two-Wheelers

Another trend shaping the two-wheeler market in Asia Pacific is the increasing popularity of premium two-wheelers. Premium two-wheelers are typically more expensive than mass-market models, but they offer various features and benefits that appeal to consumers with higher incomes. In fact, this demand in the premium category is driving up to 14% of the two-wheeler market revenue.

The Rise of Shared Two-Wheelers

The rise of shared two-wheelers is another trend that is shaping the two-wheeler market in Asia Pacific. Shared two-wheelers are available for rent on a short-term basis, offering a convenient and affordable way to get around. In 2024, revenue in the shared two-wheeler market is projected to reach US$7.50bn.

The Growing Importance of Safety and Security

Safety and security are becoming increasingly important in the two-wheeler market in Asia Pacific. Consumers are demanding two-wheelers equipped with safety features such as ABS and airbags. Asia-Pacific is expected to see the highest growth in the two-wheeler ABS market, driven by local governments making ABS mandatory in India and offering subsidies for ABS installation or purchase in Taiwan.

Adoption of two-wheelers in logistics and e-commerce

The global two-wheeler logistics market, valued at USD 124.9 billion in 2023, is projected to grow at a CAGR of 20.5%, reaching USD 458.0 billion by 2030. This surge is driven by the convenience and cost-effectiveness of two-wheelers, coupled with the booming e-commerce industry and online shopping platforms. Two-wheelers have proven to be highly efficient in navigating congested urban areas, thereby reducing delivery times. This efficiency is crucial for e-commerce operations, where rapid and reliable delivery is essential for customer satisfaction and business success. The agility and cost-effectiveness of two-wheelers make them increasingly favored for meeting the growing demands of quick and efficient delivery services.

Schaeffler’s Contribution to the Growing Two-Wheeler Market in Asia Pacific

Schaeffler, the motion technology company, plays a significant role in the burgeoning two-wheeler market in Asia Pacific. With manufacturing plants strategically located in Vietnam and India, Schaeffler produces components such as bearings, clutches, and chain tensioners tailored for major two-wheeler manufacturers in the region.

Schaeffler’s products are designed to meet the specific demands of the two-wheeler market, offering high durability, low friction, and reduced weight. These features are essential for the high-performance requirements of various types of motorcycles and special vehicles, including sports bikes, cruisers, and off-road vehicles. The bearings are engineered to support high-speed performance, minimize noise, and reduce vibration, all of which are critical for enhancing the overall riding experience.

Schaeffler provides a range of bearing solutions for two-wheelers:

Deep Groove Ball Bearings: Used in wheels, gearboxes, engines and electric motors, these bearings provide low friction and high-speed capabilities, making them suitable for electric drives.
Angular Contact Ball Bearings: Ideal for handling combined radial and axial loads, often used in steering systems
Cylindrical Roller Bearings: Known for their high load-carrying capacity and robustness, these bearings are commonly used in higher power-class engines as crankshaft main support bearing and transmissions
Tapered Roller Bearings: These are perfect for applications requiring high load capacity and durability, such as steering heads
Needle Roller Bearings: Compact and lightweight, these bearings are used in applications with space constraints like gearboxes, CVT automatic transmissions and engines.

Moreover, Schaeffler’s commitment to sustainability and regulatory compliance is evident in its products designed to meet stringent emission norms such as Bharat Stage VI in India and Euro 5 in Vietnam. By providing components that support lower emissions and better fuel efficiency, Schaeffler is helping the two-wheeler industry in the Asia Pacific transition towards more environmentally friendly mobility solutions.

Schaeffler's focus on innovation and sustainability aligns with the changing market trends in the region, making it well-positioned to meet the evolving needs of the two-wheeler market in Asia Pacific.