Two-Wheeler Logistics Market Growth Drivers: What to Expect in the Coming Years from Maria Yardena's blog

Key Highlights

The two-wheeler logistics market generated a value of USD 124.9 billion in 2023, and it will touch USD 458.0 billion, propelling at a 20.5% compound annual growth rate, by 2030. 

This growth is mainly because of the cost-effectiveness and convenience of these services, the incorporation of real-time tracking technology, and the thriving e-commerce sector. 

The transportation and logistics sectors are experiencing substantial changes, such as the incorporation of real-time tracking technology. 

IoT is becoming prevalent in many sectors, with logistics and transportation being considered the main industries in this regard. 

To assist businesses in maintaining the surging need, technology is transforming logistics by offering real-time tracking solutions in the process of delivery.

To promote the adoption of eco-friendly automobiles with low emissions, decreases in the registration tax and various other liabilities like tax rebates and subsidies, have been provided by governments across many nations.

Subsidies have assisted the industry by making electric motorcycles and scooters more viable for consumers for business and personal purposes.

These factors are accountable for the surge in the acceptance of electric motorcycles and scooters across different nations. 

Key Insights

• APAC accounted for the leading share of the industry in 2023, and it will further advance at the fastest compound annual growth rate, of 21.0%, in the years to come.

• This will be because of the high need for two-wheeler logistics services in the emerging economies of APAC, including China and India. 

• The scooter category is leading the industry, and it will further propel at the fastest rate, of 20.8%, during this decade. 

• This is attributed to the rising acceptance of scooters because of their rapid acceleration, light build, and ease of mobility.

• The e-commerce category accounted for the dominating share of the industry in 2023, of approximately 45%. 

• This is because of the increasing consumer base; however, consumer’s buying patterns and expectations are also shifting, with consumers now expecting free and rapid shipping, along with competitive pricing.

• Food delivery will propel at the fastest rate, of 20.9%, in the years to come. This will be mainly because of the merging customer choices, the suitability of ordering food, and digital transformation.

• The electrical category will observe a higher growth rate, of 20.7%, in the years to come. This is because electric vehicles have proven to be an environment-friendly, affordable, and efficient means of transportation for delivery service providers. 

• The conventional fuel-based category accounted for a larger share of the industry in 2023, of approximately 75%. This can be attributed to their developed infrastructure, smooth refueling process, widespread accessibility, and popularity.

• Business-to-consumer (B2C) is leading the industry, and it will also propel at the fastest compound annual growth rate, of approximately 80%, in the coming years.

• There are numerous players in this industry that emphasize on developing and launching electric two-wheelers to increase their customer range. 

• Several global and regional companies are tirelessly working on advanced methods to effectively introduce new electric models in the vehicle sector to enhance their market presence. 

• Players are also involved in collaborations, partnerships, acquisitions, and mergers, to enhance their competitiveness.  

Source: P&S Intelligence