11 11 © TechSci Research Automotive Industry Brief The increasing demand from e - commerce delivery services and growing popularity of two - wheeler sporting activities to drive the S audi Arabia two wheeler market in the forecast period. According to TechSci Research report, “ Saudi Arabia Two Wheeler Market - By Region, Competition, Forecast and Opportunities, 2017 - 2027 ”, the Saudi Arabia two wheeler market stood at USD 44 . 52 million in 2021 and is expected to grow at a steady CAGR of 8 . 97 % to reach a value of USD 73 . 63 million by 2027 . The government of Saudi Arabia is promoting the automotive industry by releasing supportive initiatives and policies . International companies are partnering up with local importing companies to expand their dealer and distributor networks in tier 2 and tier 3 cities . Also, the high demand for premium motorcycles among the youth population is expected to impact sales of two wheelers significantly . The young population prefers to invest in big bikes with great specifications to travel to the office, college, and on adventurous trips . The income of the middle - class population is growing rapidly, and the growing demand for leisure and recreational activities among the youth population is expected to boost the sales of premium bikes . However, the market is majorly import dependent, and the high demand for four - wheeler vehicles among consumers may restrain Saudi Arabia two - wheeler market growth for the next five years . The Saudi Arabia two - wheeler market is segmented on the basis of vehicle type, engine capacity, type of sales, regional distribution, and competitive landscape . Based on vehicle type, the market is bifurcated into motorcycle and scooter/moped . The motorcycle segment dominated the market in 2021 and accounted for a market share of 98 . 00 % . The design of motorcycles makes them suitable for different purposes such as long - distance travel, commuting, racing, and off - road activities . Manufacturers are focusing on research and development activities to find innovative solutions to upgrade the existing version of motorcycles . Improvement in fuel efficiency and mileage and integration of Bluetooth speakers, air - cooled engines, and other advanced technology in motorcycles are expected to create lucrative growth opportunities for Saudi Arabia two - wheeler market over the next five years . The growing popularity of racing among racing enthusiasts and the preference of consumers to prefer bikes as luxurious modes of transportation for tour and traveling is expected to influence the market demand . Based on engine capacity, the market is divided into till 125 cc, 126 - 250 cc, 251 - 500 cc, above 500 cc . Above 500 cc segment led the market in 2021 with a market share of 35 . 37 % . The segment is expected to maintain its dominance in the next five years . The rise in the youth population and the growing disposable income of the consumers are driving the demand for high power capacity two wheelers for recreational and off - road activities . On the basis of regional analysis, the western region captured the highest market share of 39 . 32 % in 2021 . The western region of Saudi Arabia consists of countries like Jeddah, Mecca, and Medina, in which majority of people have high disposable income . The region is home to a number of international trading ports, sight - seeing locations, and e - commerce industries . Major market players operating in Saudi Arabia two - wheeler market are Suzuki Barayan (Saleh Omar Barayan Sons Co Ltd), Harley - Davidson Inc . (M . A . Al - Mutlaq Sons Co . ), Yamaha Motor Co . , Ltd . (Al Khorayef Commercial Co . Ltd . ), KTM AG (Tristar Motorcycles LLC), Moto Guzzi (Tristar Motorcycles LLC), Honda Motor Company Limited (Abdullah Hashim Company Ltd . ), Kawasaki Motors Ltd . (Arabian Auto Agency Co . Ltd . ), BMW Motorrad (Mohamed Yousuf Naghi Motors Co . ), Hero MotoCorp Ltd . (M . A . Al - Mutlaq Sons Co . ), Ducati Motor Holding S . p . A . (Saudi Arabian Marketing and Agencies Company . Ltd (SAMCO Marine)) “The growing popularity of e - commerce channels owing to the digital transformation of the country and the growing per capita income of consumers are driving the demand for two wheelers . The two wheelers are actively used for delivery services like food delivery, grocery delivery, and parcel delivery . Market players are offering the delivery of products at the consumer's doorstep without needing to move out of their houses physically . Also, the ease of transmission and comfortable riding experience, and presence of additional foot resting area is expected to fuel the Saudi Arabia two wheeler market growth till 2027 ” said Mr . Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm .