Global Market Study on Motorcycles: Demand for Electric/Hybrid Two-wheelers Set to Rise Over Coming Years
Motorcycles Market Segmented By Standard Motorcycles, Cruiser, Sports Motorcycles, Mopeds, Electric Motorcycles and Standard Scooters, Maxi Scooters, Enclosed Scooters, Three-wheeled Scooters, Electric Scooters
Global motorcycle market revenue totalled US$ 124 Bn in 2021, with Y-o-Y growth for 2021 at 4%. The market is projected to expand 1.5X over the next ten years to top US$ 181 Bn valuation by 2031. Demand for motorcycles to be mostly catered to by the top 5 manufacturers in the world, who together hold around 2/3 market share.
Find Out More about the Report Coverage
- Triumph Motorcycles Ltd.
- Bajaj Auto Ltd.
- BayerischeMotorenWerke (BMW) AG
- Ducati Motor Holding S.p.A.
- Eicher Motors Limited
- Harley-Davidson, Inc.
- Hero MotoCorp Ltd.
- Honda Motor Co., Ltd.
- KTM AG
Key Points Addressed in Market Study on Motorcycles:
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Motorcyclesand How to Navigate
- Recommendation on Key Winning Strategies
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Sales of Motorcycles from 2016 to 2020 Vs Demand Projections for 2021 to 2031
Historically, from 2016 to 2020, the motorcycle market progressed at a moderate CAGR of 3.2%, wherein, regions such as North America, Europe, and South Asia & Pacific held a significant share in the global market.
Demand for efficient and affordable modes of transportation is predicted to rise significantly in the future years as the global middle-class population expands. Motorcycles are increasingly being seen as a viable option, and thus, demand for motorcycles and scooters is anticipated to rise.
Incorporation of cutting-edge technology in motorcycles and scooters by manufactures has led to improved safety, comfort, and ergonomics. In addition, new and advanced two wheelers are attracting college students, young working professionals, and avid travellers.
In recent years, e-mobility has witnessed significant increase. Electric vehicles are projected to have an advantage over conventional motorcycles due to a variety of characteristics such as fuel efficiency, quiet operations, and minimal noise. Moreover, as emission standards become stringent, demand for alternate modes of transportation is anticipated to rise.
Considering these statistics and shift in dynamics, the market is forecasted to expand at a CAGR of around 4% over the coming 10 years.
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What are the Key Opportunities for Motorcycle Manufacturers?
Demand for motorcycles and scooters has increased significantly in rural areas as a result of rising disposable income and lack of well-established public transportation. In comparison to urban infrastructure, rural infrastructure is still in its primitive stage.
Consumers in rural regions are also turning to motorcycles to avoid high selling price and tax rates of four-wheelers. Increased employment, improvements in disposable income, and rising traffic congestion is fueling demand for motorcycles in developing regions such as South Asia.
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What are the Major Challenges Faced by Motorcycle Companies?
While motorcycles are gaining prominence due to their numerous benefits, increased risk of road accidents for motorcyclists typically acts as a market restraint. According to the European Commission (EC), around 80% of motorcyclists involved in road accidents on European roads suffered head injuries, with brain injuries being the most serious in half of these cases.
Various campaigns and initiatives aimed at raising awareness about the usage of helmets and other safety precautions are expected to aid manufacturers in overcoming these limitations. It is also expected that deployment of safety features in motorbikes such as improved braking systems, and incorporation of innovative software such as riding modes and traction control will reduce such threats.
Will Technological Enhancements Drive the Market for Motorcycles?
Motorcycles have become more advanced in terms of convenience, luxury, and safety, as a result of adoption of cutting-edge technologies by manufacturers. Anti-lock brake systems (ABS), for example, is indirectly fueling sales owing to their high performance and instant braking ability.
Slipper clutches are common on modern motorbikes, and are designed to partially disengage acceleration to the rear tyre when the engine runs at a power that is usually higher than its own potential. Slipper clutches, which were originally designed for high-performance super-sport bikes and race track vehicles, are now more widely used especially owing to their safety benefits.
Which Region Offers the Largest Opportunity for Sales of Motorcycles?
With an absolute dollar opportunity of around US$ 27 Bn, South Asia & Pacific is expected to be the most lucrative market for motorcycle manufacturers. India is leading the South Asian market, and is expected to witness double-digit growth during 2021-2031.
High availability of raw materials, advanced manufacturing facilities, and growing demand for motorcycles are expected to bolster demand and sales of motorcycles in the region.
What is Driving Motorcycle Sales in East Asia?
The market for motorcycles in East Asia is projected to expand at around 3% to 4% CAGR from 2021 to 2031. China accounted for more than 4/5 of the market share of East Asia in 2020.
Investments in infrastructure and rapidly growing economy have provided a boost to motorcycle sales in this region. Highly competitive market landscape and government incentives further aid the growth and development of the market in East Asia.
Why is the Scope of Growth for Motorcycles in Germany?
In terms of value, the market in Germany is projected to progress at a CAGR of close to 2% from 2021 to 2031. It is considered to be one of the largest markets for motorcycles in Europe.
Germany is a lucrative market for motorcycle producers, owing to advanced manufacturing hubs and increased demand for various types of motorcycles.
What are the Market Projections for Motorcycles in the U.S.?
The U.S. market is anticipated to expand at a CAGR ranging from 3% to 4% from 2021 to 2031. In the U.S., high demand for a wide range of motorcycles such as cruisers, standard, touring, and others is fuelling market growth.
In addition, increasing number of motorcycle clubs focusing on cruiser motorcycles, pioneered by Harley-Davidson and Indian motorcycles, is expected to spur the sales of motorcycles.
What is the Future Outlook of Motorcycle Sales in France?
The market in France holds a prominent position and has lucrative growth potential. France is expected to expand a high CAGR of close to 4% from 2021 to 2031.
Rise in domestic demand has provided an impetus to the growth of the market in the country. Increasing inclination toward high-end motorcycles has bolstered demand for cruisers and sports bikes, with the trend expected to continue over the coming years.
What Makes Mexico a Prominent Market for Motorcycles?
Motorcycle manufacturers are focusing on Mexico for the expansion of their business. This has resulted in motorcycle companies setting up manufacturing plants in Mexico and establishing collaborations with domestic market players.
- Recently in 2021, Hero MotoCorp Ltd, a leading two-wheeler manufacturer from India, signed a distribution agreement with Grupo Salinas in Mexico.
The market in Mexico is expected to expand at a CAGR between 3%-4% over the forecast period.
Which Product Holds High Significance in the Market?
By product, motorcycles are expected to dominate the market, accounting for close to 80% market share by the end of 2031. Standard, cruiser, and sports motorcycles hold a major chunk of the market share, and are anticipated to exhibit significant CAGRs throughout the forecast period.
Will IC Engine Motorcycles Be Popular?
IC engine technology is expected to expand at a CAGR of close to 4% from 2021 to 2031. The segment is expected to hold majority of the market share over the coming years. The Up to 150cc category plays a prominent role and is expected to be a lucrative segment as well.
What is the Impact of COVID-19 on Motorcycle Sales?
COVID-19 significantly impacted the automobile industry. The motorcycle industry experienced a negative impact especially due to lockdowns imposed by governments of different countries, shutdown of manufacturing plants, and disruptions of the supply chain.
However, due to the impact of COVID-19, demand for personal mobility is expected to rise significantly. Increase in demand for sustainable means of transportation coupled with government initiatives is set to boost demand for motorcycles across the globe.
As a result, the second half of 2020 witnessed strong sales of two wheelers, and the trend is expected to continue throughout the forecast period. Introduction of subsidies, regulations, and incentives for electric two-wheelers is likely to augment market growth.
Majority of companies have focused on product launches and expanding their manufacturing units in developing regions. Strategies include innovation, collaborations with key players, partnerships, strategic alliances, and strengthening of regional and global distribution networks.
Some of the key developments are:
- In May 2021, Piaggio unveiled the Piaggio ONE - a new generation electric scooter.
- In May 2021, Harley-Davidson launched the new all-electric motorcycle brand – Livewire.
- In 2020, Ducati initiated production of the new Multistrada V4, which is claimed to be the world's first motorcycle equipped with front and rear radar technology.
- In 2020, BMW launched the new ACC system. The new BMW Motorrad Active Cruise Control (ACC) is expected to provide utmost comfort and safety to the rider.
Similarly, recent developments related to companies manufacturing motorcycles have been tracked by the team Persistence Market research, which are available in the full report.
Historical Data Available for
US$ Mn for Value
Key Regions Covered
Key Countries Covered
Key Segments Covered
Key Companies Profiled
Available upon Request
Key Market Segments Covered
- Standard Motorcycles
- Sports Motorcycles
- Electric Motorcycles
- Standard Scooters
- Maxi Scooters
- Enclosed Scooters
- Three-wheeled Scooters
- Electric Scooters
- IC Engine Motorcycles
- Up to 150cc Motorcycles
- 151-300cc Motorcycles
- 301-500cc Motorcycles
- Above 500cc Motorcycles
- All Electric Motorcycles
- FAQs -
As per industry analysis, the global motorcycle market is set to close in on a valuation of US$ 125 Bn in 2021.
Sales of motorcycles are projected to increase at around 4% CAGR during 2021-2031, with the market expanding 1.5X over the same time period.
China, Japan, India, and ASEAN are markets expanding at high CAGRs. Together, East Asia and South Asia & Pacific are projected to hold more than 3/4 market share through 2031.
The global market for motorcycles of consolidated among the top 6players such as Hero MotoCorp Ltd., Yamaha Motors Co., Ltd., TVS Motor Company Ltd., Suzuki Motor Corporation, Bajaj Auto Ltd., BMW AG, and Honda Motor Co., Ltd., who together accounted for close to 60% share of global revenue in 2020.
India, China, and Japan are countries that account for most of the exports of motorcycles around the world.
Increasing demand for electric/hybrid motorcycles & scooters, rise in adoption of personal mobility owing to ease of accessibility & convenience, and inclination of young adults towards sports motorcycles are shaping market expansion.
The U.S., India, China, Japan, and Italy are considered to be the top 5 countries that will continue to drive demand for motorcycles & scooters.
The market in North America is progressing at a steady CAGR of around 3%, with the U.S. holding 90% market share in the region.
India, China, Italy, the U.S, and Japan are key producers of motorcycles & scooters, and account for bulk of manufacturing activities.
Due to the presence of key brands such as Yamaha and Honda in the region, after China, the market in Japan and South Korea is expanding at around 4% CAGR.