(MENAFN- GlobeNewsWire - Nasdaq) The UAE two-wheeler market offers significant opportunities driven by urbanization, increased e-commerce and food delivery demands, and a government push for electric mobility. The popularity of electric two-wheelers is rising due to environmental awareness, while challenges include extreme summer temperatures limiting usage.Dublin, Oct. 14, 2025 (GLOBE NEWSWIRE) -- The "UAE Two-Wheeler Market by Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to ResearchAndMarkets's offering.
The UAE Two-Wheeler Market was valued at USD 122.04 million in 2024, and is expected to reach USD 175.6 million by 2030, rising at a CAGR of 6.30%. The market is experiencing notable growth, driven by rising urbanization, increasing traffic congestion, and a growing preference for cost-effective and fuel-efficient transportation solutions. The surge in e-commerce and food delivery services has significantly contributed to demand, particularly for scooters and motorcycles used for last-mile deliveries.
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Additionally, government initiatives promoting electric mobility and sustainable transport are encouraging the adoption of electric two-wheelers. Consumers are increasingly attracted to two-wheelers for their affordability, ease of navigation in congested areas, and lower maintenance costs. Technological advancements and growing environmental awareness are expected to further shape the market's expansion in the coming years.
Electric vehicles accounted for 13% of total car sales in the UAE in 2023, a sharp rise from 3.2% in 2022 and just 0.7% in 2021, according to the Ministry of Energy and Infrastructure. With approximately 260,000 new vehicles sold in 2023, as reported, this rapid increase in EV adoption highlights a significant consumer shift toward sustainable mobility. The surge reflects growing environmental awareness, improved EV infrastructure, and strong government support key factors that are driving the growth of the electric vehicle market in the UAE, including rising interest in electric two-wheelers for urban and last-mile transport.
Key Market Drivers
Growth of E-Commerce and Food Delivery Services: One of the primary drivers of the UAE two-wheeler market is the rapid expansion of e-commerce and food delivery services. With the rising popularity of online shopping and the increasing number of digital consumers in the UAE, demand for fast, last-mile delivery solutions has surged. Two-wheelers, particularly scooters and motorcycles, are ideal for navigating urban areas quickly and efficiently, making them the preferred choice for delivery operators.
Major food delivery companies like Talabat, Deliveroo, and Zomato, as well as logistics providers servicing platforms like Amazon and Noon, rely heavily on two-wheelers to fulfill quick delivery promises. These businesses often purchase fleets of bikes or enter into leasing agreements with riders, thereby contributing directly to the growth of the two-wheeler market. The continuous expansion of online commerce, alongside the booming appetite for convenience, is expected to sustain this upward trajectory.
Key Market Challenges
Extreme Climatic Conditions: One of the most significant challenges hindering the growth of the two-wheeler market in the UAE is the country's extreme weather conditions, particularly during the summer months. The UAE experiences scorching temperatures that often exceed 45C (113F) between June and September. These harsh climatic conditions make riding two-wheelers uncomfortable and even dangerous during the peak of summer.
For personal users and delivery riders, long exposure to high temperatures can lead to health issues such as dehydration, heat exhaustion, or heatstroke. As a result, many individuals prefer using air-conditioned cars or public transportation during the hotter months, limiting the seasonal usability of two-wheelers. Even logistics and food delivery companies often experience a dip in two-wheeler usage during summer, which can disrupt operational efficiency and fleet utilization.
Key Market Trends
Rising Adoption of Electric Two-Wheelers: A prominent trend transforming the UAE two-wheeler market is the growing adoption of electric two-wheelers. Driven by sustainability goals and increasing environmental awareness, both consumers and businesses are shifting toward eco-friendly mobility solutions. Electric scooters and motorcycles are emerging as a viable alternative to conventional petrol-powered models, particularly for short-distance commuting and last-mile delivery. As of 2024, the UAE had over 147,000 electric and hybrid vehicles on its roads, with electric vehicle registrations alone increasing by more than 25% year over year. Total new vehicle sales in the country reached 316,000 units during the year, reflecting the growing momentum toward cleaner and more sustainable transportation options.
The UAE government's commitment to reducing carbon emissions under its Vision 2030 and Net Zero 2050 strategies is encouraging the use of electric vehicles. Startups and international brands are actively launching electric two-wheeler models, and micro-mobility companies are introducing shared electric scooter services in urban areas like Dubai and Abu Dhabi. These efforts are supported by growing investments in charging infrastructure and favorable policies such as reduced registration fees or import duties on electric vehicles.
Key Players Profiled in UAE's Two-Wheeler Market:
Sociedad Comercial Gildemeister S.A. Suzuki Motor de UAE S.p.A. Yamaha Motor UAE Ltda. Kawasaki Motors UAE Ltda. Harley-Davidson UAE S.p.A. KTM UAE S.p.A. Al Yousuf LLC AL Futtaim Group Single Person Company L.L.C Husqvarna Motorcycles UAE S.p.A. MV Agusta UAE S.p.A.
Report Scope
In this report, the UAE Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
UAE Two-Wheeler Market, by Vehicle Type:
UAE Two-Wheeler Market, by Propulsion Type:
UAE Two-Wheeler Market, by Region:
Dubai Abu Dhabi Sharjah Ajman Rest of UAE
Key Attributes
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