PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629303
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629303
Used Two Wheeler Market size was valued at USD 41,345.23 Million in 2023, expanding at a CAGR of 5.5% from 2024 to 2032.
A used two-wheeler is a previously used two-wheeler - previously owned motorcycle, scooter, or some other two-wheeler vehicle sold to a new person other than the original owner & now being sold by some seller. They are commonly found in dealerships and markets of second-hand deals with previous owners. Used two-wheelers can be of various makes, models, and conditions. They can almost be new or older models that have been refurbished or altered. What mostly attracts people to two-wheeler used purchases is that they are more economical than new ones and make them a cost-effective form of transport for one looking for an economical form of transport. These automobiles usually have lower depreciation rates, and their value does not drop quickly like in the new versions. Used two-wheelers are kept in good condition & sold with all necessary documents, such as registration, service records, and insurance documents. However, the vehicle's condition & reliability depend highly on its previous usage, maintenance, and age. A used two-wheeler is a cost-effective option for people who want a reliable & efficient personal vehicle without the high upfront cost of a new model.
Used Two Wheeler Market- Market Dynamics
The increasing fuel prices and rising affordability of the used two-wheeler market drive the used two-wheeler market. With the hike in fuel prices worldwide, most consumers have been forced to opt for cheaper alternatives such as two-wheelers. The increase in traffic, especially in cities, leads consumers to prefer smaller vehicles because they are more efficient in terms of fuel usage & other factors. Buying a used two-wheeler has become even easier with affordable pre-owned models and increasing quality from second-hand vehicles. Moreover, online platforms have connected buyers & sellers effectively, thus propelling the market growth.
Government incentives to lower emissions have also triggered the adoption of used electric two-wheelers, contributing to market expansion. There is a lucrative opportunity in the growing electric two-wheeler segment, with government initiatives promoting green transportation. Government subsidies for electric vehicles have encouraged the growth of this segment. Moreover, increasing demand for urban mobility solutions and the availability of financing options for second-hand bikes are making the market reach a wider demographic. However, issues associated with the used two-wheeler market include mistrust & lack of transparency while transacting, especially when dealing with private parties, hindering market growth. Moreover, the lack of quality checks & warranties from amateur sellers also hampers market growth.
Used Two Wheeler Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.5% over the forecast period (2024-2032)
Based on distribution channel segmentation, B2C was predicted to show maximum market share in the year 2023
Based on engine capacity segmentation, 50 to 125cc was the leading application in 2023
Based on region, the Asia Pacific was the leading revenue generator in 2023
The Global Used Two Wheeler Market is segmented based on Distribution Channel, Source, Engine Capacity, Type, and Region.
By Distribution Channel, the market is divided into B2C (Business to Consumer) and C2C (Consumer to Consumer) segments. The B2C segment holds the largest share of the market for used two-wheelers. A dealership provides an organized structure, allowing customers to enjoy warranties, post-sale services, and easier financing options. The dealers also refurbish and service used bikes, which usually results in higher-quality products reaching the customers. This part of the used two-wheeler market is critical for regions such as India, where trust and after-sales services are crucial in deciding the purchase. This B2C segment would experience a healthy growth rate due to rapid urbanization and the quest for cheap personal transportation. This C2C segment grows at the highest rate on account of online platforms and peer-to-peer transactions. This growth in online platforms, where individuals can directly buy and sell used two-wheelers, has significantly contributed to the rapid segment expansion. Many buyers are attracted to easy access to various vehicles & direct price negotiation. Increased use of smartphones and digital payment solutions has also contributed to the C2C segment.
By Engine Capacity, the market is divided into 50 to 125cc, 125 to 250cc, Above 250cc, and Electric Drive. The 50 to 125cc segment held the majority of the market share. This segment acquired the maximum market share because the vehicles have good affordability, adequate fuel efficiency, and can be comfortably used for day-to-day commuting, mainly in populous urban cities. More than 60% of two-wheeler sales in India comprise motorcycles falling into the range of 50 to 125cc, thus underlining its crucial importance on a global level. For most new-time buyers, it forms their choice for this is economical. The electric drive segment is projected to grow at the highest pace, attributed to increasing environmental issues and government incentives. Countries are increasingly adopting used electric two-wheelers, especially those of India, China, and Europe. The growth in used electric two-wheelers is driven by lower operating costs, government subsidies, and advancements in battery technology that have made electric two-wheelers more affordable and practical for daily use.
Used Two Wheeler Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
The Asia-Pacific region is the largest market for used two-wheelers. The reason is the demand for affordable and fuel-efficient transportation in a densely populated country like India, China, and Indonesia. In India, two-wheelers make up nearly 80% of all registered vehicles, and used two-wheelers form a substantial part of the market. Growth is supported by factors such as urbanization, fuel price increases, and the government's efforts to promote EVs. The Asia-Pacific two-wheeler market will likely grow at a healthy CAGR, with India and China being the largest contributors to this expansion. Latin America is the fastest-growing region for the used two-wheeler market. The region is experiencing higher demand for affordable mobility solutions amidst urban congestion & rising fuel costs. Brazil and Mexico are leading the market, with more consumers opting for pre-owned motorcycles and scooters due to their lower cost. The rise in two-wheeler sales in Brazil is expected to continue, supported by favorable financing options and growing consumer confidence in used vehicle transactions.
The competitive landscape of the used two-wheeler market is dominated by a mix of established players & emerging digital platforms. The market is dominated by a robust network of dealerships & certified pre-owned vehicle programs. These companies have offered quality assurance, warranty services, and after-sales support, which have flourished consumer trust. The emergence of online platforms has disrupted the traditional market, allowing peer-to-peer transactions and reducing the need for intermediaries. There is higher demand in regions with a greater smartphone penetration rate, where easy buying & selling of pre-owned vehicles can be completed. Also, fintech companies with easy financing options and easy loans are yet adding to the competition in this market. The market also seems to be experiencing more investments toward digitalization, where there is a greater focus on improvement in the online buying experience using virtual inspection, documentation, and safe payment methods.
January 2024: Blade Motorcycles, the electric motorcycle manufacturer, has entered into a strategic partnership with Mundimoto Europe SL, a leading used motorcycle platform. The company has expanded its presence in the European market by utilizing Mundimoto's vast network & experience in the used motorcycle sector.
February 2024: Batfa Japan Inc., a leading player in the Japanese motorcycle market, announced a major investment in its online platform. This investment will be utilized for enhancing the user experience of the platform, better inventory management, and reach out to new markets.
March 2024: UK-based used motorcycle dealership, Motorbikes 4 All, announced that it has increased its operations by opening up a new dealership in Manchester, England. The dealership will have a wide range of used motorcycles from sports bikes to cruisers and adventure bikes.
April 2024: Motohunt Inc., a leading online marketplace for used motorcycles in the United States, announced a partnership with Used Motorcycle Store (Dealer Spike), a leading provider of dealership management software for powersports dealers. This partnership will integrate Motohunt's platform with Dealer Spike's software, making it easier for dealers to list and sell used motorcycles online.
May 2024: Droom, an Indian online marketplace for used vehicles, launched its "Droom Trust Certified" program for used two-wheelers. The program is aimed at giving buyers more confidence in the quality and authenticity of used two-wheelers listed on the platform.