PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1750379
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1750379
The U.S. two-wheeler logistics market is on a high-growth trajectory, fueled by the exponential rise in e-commerce and the growing demand for swift, efficient last-mile delivery solutions. Valued at USD 30.2 billion in 2024, the market is projected to surge to USD 99.3 billion by 2032, expanding at a strong CAGR of 16.2% from 2025 to 2032.
A key catalyst in this growth is the increasing adoption of electric two-wheelers, spurred by environmental concerns and government support for clean transportation. Enhanced battery technologies are making electric vehicles more practical and cost-effective for logistics applications. Notably, federal initiatives including a USD 521 million investment to expand EV charging networks across 29 states in August 2024, are accelerating the integration of electric mobility in logistics operations.
Key Insights
Scooters dominated the market in 2024 due to their agility and cost-efficiency, especially in densely populated urban areas where maneuverability is crucial.
E-bikes are forecasted to grow at the fastest CAGR of 17%, driven by continual battery advancements and increasing preference for eco-friendly logistics solutions.
Electric two-wheelers are set to outperform traditional fuel-powered models, with a projected CAGR of 17.5%, thanks to rising sustainability awareness, government subsidies, and lower operational costs.
The B2C end-user segment captured a 55% market share in 2024 and is expected to maintain momentum, growing at a CAGR of 16.4%. The proliferation of e-commerce and consumer expectations for rapid deliveries are driving this segment's expansion.
Among service types, food and grocery deliveries lead the market, benefitting from the convenience and speed two-wheelers offer. E-commerce and parcel delivery services are also witnessing accelerated growth amid the surge in online shopping.
Geographically, the Western U.S. held the largest market share at 35% in 2024, owing to its urban density and infrastructure conducive to two-wheeler logistics. Meanwhile, the Southern region is anticipated to grow the fastest, with a CAGR of 17%, as urbanization and online commerce continue to expand.
The integration of GPS, IoT, AI, and machine learning is transforming the logistics ecosystem. These technologies enhance delivery accuracy, optimize routes, and ensure real-time tracking-key features that improve customer satisfaction and operational efficiency.
The competitive landscape is characterized by a mix of local and international players offering a range of innovative solutions. Companies are focusing on partnerships, technology adoption, and service diversification to differentiate themselves in a rapidly evolving market.
A major boost to the electric logistics movement came in January 2025, when the U.S. Department of Transportation's Federal Highway Administration allocated USD 635 million to develop zero-emission vehicle charging and hydrogen refueling infrastructure, further supporting sustainable logistics operations.