Australia Two Wheeler Market: Market Size & Forecast 2026

The Australian two-wheeler market includes internal combustion engine motorcycles, scooters, and increasingly electric-powered alternatives used for commuting, recreation, and commercial delivery. At an estimated $1.76 billion in 2025 and 4.28% annual growth, it represents a mid-sized but mature segment of the country's automotive landscape. Peak industry bodies report annual unit sales in the range of approximately 83,000 to 93,000 motorcycles and related vehicles, reflecting recent cyclical variation rather than a long-term decline.

• •Estimated market value of approximately $1.76 billion in 2025
• •Annual growth rate of 4.28%
• •Unit sales fluctuating between roughly 83,000 and 93,000 vehicles in recent years
• •Market covered includes petrol motorcycles, scooters, and electric two-wheelers

Rising petrol prices across Australia continue to push urban commuters and delivery businesses toward more economical two-wheel options, reinforcing demand for both conventional and electric models. Infrastructure improvements, including expanded motorcycle parking and designated lane access in major cities, make two-wheel travel increasingly practical. Government policy support for zero-emission transport and the introduction of electric two-wheeler incentives are expected to further stimulate market expansion over the forecast period.

• •Rising fuel costs encouraging shift from cars to motorcycles and scooters
• •Growing last-mile delivery and logistics sector increasing fleet demand
• •Government incentives and emissions targets supporting electric two-wheeler adoption
• •Expanded urban infrastructure such as motorcycle parking bays and lanes

Motorcycles dominate the market by volume and value, with scooters capturing a growing share in dense urban environments, particularly in Sydney and Melbourne. Electric two-wheelers remain a smaller but fast-growing segment, with significant uptake in inner-city areas supported by charging infrastructure rollout. Regional Australia shows stronger demand for larger-displacement adventure and cruiser motorcycles, while capital cities lean toward compact scooters and electric commuter models.

• •Electric two-wheeler segment valued at approximately $408.6 million in 2025, growing at roughly 20% annually
• •Major demand concentrated in New South Wales, Victoria, and Queensland due to population density
• •Urban centers favor compact scooters and electric models; regional areas prefer larger motorcycles
• •Adventure and cruiser motorcycle segments prominent in regional and touring markets

What are the recent trends and outlook?

Electrification is the most significant structural trend reshaping the Australian two-wheeler market, with electric scooters and motorcycles expected to capture an increasing share of urban commuter demand through 2034. Shared mobility and subscription-based motorcycle services are emerging in major cities, particularly targeting younger riders seeking flexible access. Looking ahead, sustained population growth, continued urbanization, and tighter emissions standards are likely to underpin consistent market expansion alongside ongoing technology and product diversification.

• •Electric two-wheelers projected to grow at roughly 20% annually, far outpacing conventional segments
• •Subscription and shared mobility models gaining traction in Sydney and Melbourne
• •Younger demographics and female ridership growing, broadening the traditional customer base
• •Ongoing emissions regulations expected to accelerate phase-out of older internal combustion models over the longer term