Two Wheeler Insurance Market was valued at USD 20 Billion in 2022 and is projected to reach USD 35 Billion by 2030, growing at a CAGR of 7% from 2024 to 2030.
The global two wheeler insurance market has experienced significant growth in recent years and is expected to continue expanding over the next 5 10 years. The market size was valued at approximately USD 60 billion in 2023 with a projected compound annual growth rate CAGR of around 7% during the forecast period. The increasing number of two wheelers on the roads particularly in emerging economies coupled with the rising awareness about the importance of insurance coverage has played a crucial role in this growth.
Key factors driving the growth of the market include the rising disposable incomes in developing regions the growing trend of e commerce deliveries and a shift towards electric two wheelers. Additionally advancements in digital insurance platforms and the adoption of telematics in insurance policies are also contributing to the market’s expansion. Increasing concerns regarding road safety and the need for protection against accidents theft and natural calamities are further supporting the uptake of two wheeler insurance.
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Rising Number of Two Wheelers: As urbanization increases the number of two wheelers especially motorcycles and scooters is also growing. This trend coupled with the convenience of two wheelers in congested cities has significantly increased the demand for two wheeler insurance.
Government Regulations: Many countries have made two wheeler insurance mandatory which boosts the market growth. Governments are increasingly enforcing laws that require motorcyclists and scooter riders to have third party insurance which fuels the demand for these products.
Growing Awareness: The rise in consumer awareness regarding the importance of insurance coverage especially in emerging markets like India and Southeast Asia has led to an increase in insurance penetration.
High Premiums: Despite increasing awareness many consumers in developing economies still find the premiums for comprehensive two wheeler insurance policies expensive which can limit adoption.
Limited Penetration in Rural Areas: In rural regions especially in low income countries insurance penetration remains low due to a lack of awareness and limited access to insurance agents and digital platforms.
Electric Two Wheelers: With the global shift towards electric vehicles the rising popularity of electric two wheelers presents a unique opportunity for insurance providers to create tailored policies for these vehicles.
Technological Advancements: The use of artificial intelligence machine learning and telematics for personalized insurance products is expected to offer new opportunities for growth. Insurers are increasingly offering policies based on the real time behavior of drivers through connected devices.
Expansion in Emerging Markets: The increasing number of motorcycles and scooters in countries like India China and Brazil offers significant growth potential for the market. Insurers are targeting these regions to expand their customer base.
Technology: The role of technology in the two wheeler insurance market cannot be overstated. Insurtech companies are leveraging big data AI and IoT Internet of Things to offer more accurate pricing models risk assessments and fraud detection. Furthermore mobile applications are enabling customers to purchase and manage insurance policies easily providing a seamless customer experience.
Regulations: As mentioned several countries mandate two wheeler insurance and these regulations are tightening over time particularly regarding third party liability coverage. Such regulations increase the market’s potential by ensuring a larger pool of insured riders.
Sustainability: With the rising popularity of electric two wheelers insurers are focusing on developing green insurance policies tailored to electric vehicles which will likely become a trend in the coming years. This move aligns with global sustainability efforts and government incentives for eco friendly vehicles.
Comprehensive Insurance: This type of insurance covers damages to the insured vehicle as well as third party liability. It is the most popular type of coverage among riders who wish to protect their two wheelers comprehensively.
Third Party Insurance: This is mandatory in many countries and covers damages caused to third party property or individuals. It remains a popular choice for cost conscious customers.
Liability Insurance: Primarily aimed at covering legal liabilities arising from accidents this policy segment is expected to grow as new regulations increase its importance.
Individual Consumers: The largest segment of the two wheeler insurance market individual riders seek coverage for their personal vehicles.
Commercial Users: Commercial fleets including delivery services and ride sharing companies are increasingly adopting insurance policies for their two wheelers. The demand for commercial policies is growing particularly with the rise of the e commerce sector.
Asia Pacific: The Asia Pacific region dominates the two wheeler insurance market with countries like India and China having the highest number of two wheelers. The market in this region is driven by the increasing number of motorcycles and scooters and mandatory insurance laws.
North America: In North America the market is driven by the growing number of motorcycles especially in the U.S. and a higher emphasis on premium and customized insurance products.
Europe: In Europe two wheeler insurance is strongly regulated with countries like Italy and France having high penetration rates. The market is expected to grow with the rise in demand for electric motorcycles.
Latin America and Middle East & Africa: These regions show strong growth potential due to increasing two wheeler usage and improving insurance awareness.
ICICI Lombard General Insurance: A leading player in India’s two wheeler insurance sector offering comprehensive coverage options including protection against natural calamities theft and accidents.
New India Assurance: One of India’s largest insurance providers offering competitive policies for motorcycles and scooters with additional services like roadside assistance.
HDFC ERGO: Known for providing personalized two wheeler insurance plans and innovative offerings like the ‘Zero Depreciation’ policy which covers the full cost of vehicle parts.
Allianz: Allianz provides global coverage and is increasingly focusing on the growing demand for electric two wheeler insurance policies.
Bajaj Allianz: A key player in the Indian market known for its affordable policies and quick claim settlement process.
Telematics in Insurance: The incorporation of telematics where insurance premiums are based on real time riding behavior is gaining traction. This personalized pricing model is expected to transform the market.
Electric Two Wheeler Insurance: With the shift towards electric vehicles insurance providers are offering specialized policies for electric two wheelers which are generally at lower risk for accidents but come with unique repair challenges.
Digitalization of the Insurance Process: Many insurance companies are now offering fully digital platforms for purchasing and renewing policies making the process more efficient and user friendly for customers.
Pricing Pressure: Intense competition and price sensitivity among customers especially in developing countries make it challenging for companies to offer competitive premiums while maintaining profitability.
Regulatory Barriers: Compliance with changing insurance regulations especially in emerging markets can be difficult for insurers leading to additional operational costs.
Adopting Advanced Technology: Insurers should adopt AI driven analytics to improve pricing models and risk assessments. The use of telematics can help insurers offer dynamic pricing based on individual riding behavior.
Customized Products: Offering tailored products for specific regions types of two wheelers and customer needs can help address the diverse market demands and foster customer loyalty.
The two wheeler insurance market is poised for steady growth in the coming years driven by the increasing adoption of digital insurance solutions rising demand for electric vehicles and regulatory developments. The future will likely see more personalized policies including usage based insurance and an expansion into underserved regions particularly in
ETA Services Ltd
Evans Insurance Brokers Ltd
HDFC ERGO General Insurance Company Limited
National Insurance Company Limited
Bajaj Allianz General Insurance
Universal Sompo General Insurance Co.Ltd
Liberty General Insurance Limited
ICICI Lombard GIC Ltd
Progressive Casualty Insurance Company
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Global Two Wheeler Insurance Market
Online
Offline
Based on Types the Market is categorized into Below types that held the largest Two Wheeler Insurance market share In 2023.
Third Party Insurance
Comprehensive Insurance
Distributor
Global (United States, Global and Mexico)
Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
South America (Brazil, Argentina, Columbia, etc.)
Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
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1. Introduction of the Global Two Wheeler Insurance Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Global Two Wheeler Insurance Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Global Two Wheeler Insurance Market, By Type
6. Global Two Wheeler Insurance Market, By Application
7. Global Two Wheeler Insurance Market, By Geography
Global
Europe
Asia Pacific
Rest of the World
8. Global Two Wheeler Insurance Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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