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A31857 | Pages: 310 | Charts: 55 | Tables: 137 |
The global motorcycle market size was valued at $105.52 billion in 2021, and is projected to reach $233.51 billion by 2031, registering a CAGR of 8.6% from 2022 to 2031.
A motorcycle, also referred to as a bike or a motorbike, is a type of two-wheeled motor vehicle with a frame made of metal and fiber. Motorcycles are produced with both two-stroke- and four-stroke-cycle engines and with up to four cylinders. Most are air-cooled, though a few are water-cooled. Engines are generally limited to displacements of about 2000cc. Moreover, motorcycles are made for a wide range of uses, including commuting, cruising, long-distance travel, sports activities, racing, and off-road riding. Although, there are three major types of motorcycles categorized into street, off-road, and dual purpose. Currently, there are many sub-types of motorcycles for different purposes. There is often a racing counterpart to each type, such as road racing and street bikes, or motocross including dirt bikes.
At present, the youth consumers are very selective about the performance and comfort of motorcycles, which leads to attractive marketing strategies by manufacturers with the launch of various designs of motorcycles. Meanwhile, motorcycle manufacturers are also focusing on new inventions related to frame metals, riding styles, and shapes to make them more advanced. For instance, in October 2022, BMW AG upgraded its S 1000 R with advancement in the aerodynamics area. The newly designed external fairing is made of exposed visible carbon fiber with a higher windscreen that reduces the aerodynamic drag and increases the top speed significantly in conjunction with optimized airflow around the rider.
In addition, the increase in demand for motorcycles, particularly in the Asia-Pacific region, because of rising fuel costs and developing tourist industry are the main drivers for the growth of the global motorcycle industry. Thus, governments are supporting the purchase of electric mobility through tax credits and incentives to promote the use of these eco-friendly vehicles. For instance, the Indian government announced a plan in June 2019 to reduce the goods and service tax (GST) on electric vehicles from 12% to 5% in order to promote their adoption more quickly. Additionally, infrastructure facilities provided by governments, such as public charging stations, significantly increase the adoption of electric motorcycles by users, driving the market's expansion. Similarly, China has strengthened its industry leadership by making profits across all scopes of the supply side of electric motorcycles including current & projected production of e-motorcycles and their components, such as electric motors and lithium-ion battery cells. For instance, China launched various initiatives for green transportation and implemented regulations regarding emissions, which drive the market toward a positive growth.
[TYPEGRAPH]
The factors such as increase in demand for two-wheeler due to traffic congestion, growth in investment by manufacturers in motorcycle industry for superior performance and comfort and rise in adoption of electric motorcycles supplement the growth of the motorcycle market. However, high risk of accidents and high cost associated with sports bikes are the factors expected to hamper the growth of the motorcycle market. In addition, incorporation of cutting-edge technology in motorcycles and rise in popularity & evolution in motorcycles events in developed economies creates market opportunities for the key players operating in the motorcycle market.
The global motorcycle market is segmented on the basis of type, propulsion type, price range, and region. By type, the market is divided into standard, sports, cruiser, and adventure. By propulsion type, it is fragmented into internal combustion engine (ICE) and electric. By price range, it is categorized into low, mid, and high. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The leading players operating in the motorcycle market are Bayerische Motoren Werke (BMW) AG, Harley-Davidson Inc., Honda Motor Co., Ltd., KTM AG, Piaggio & C. SpA, Suzuki Motor Corporation, Triumph Motorcycles, TVS Motor Company Ltd., Yamaha Motor Co., and Zero Motorcycles, Inc.
Increase in demand for two-wheeler due to traffic congestion
Motorcycles are the most common means of transportation to get from one place to another. It allows the riders to maneuver through confined spaces, is quick and nimble, and provides an exhilarating experience when riding on various surfaces. Thus, several types of motorcycles, such as sports bikes, cruiser bikes, and touring bikes have been launched over the years to meet the needs of different customers. Also, demand for motorcycles and scooters has increased significantly in rural areas owing to the lack of well-established public transportation. Consumers in rural regions turned to buy motorcycles to avoid the high selling prices and tax rates of four-wheeler.
Thus, increased employment, improvements in disposable income, and rise in traffic congestion are fueling demand for motorcycles in developing regions such as South Asia, thereby fostering the global motorcycle market.
[PROPULSIONTYPEGRAPH]
Rising adoption of electric motorcycles
Increase in global carbon emission by fuel combustion has been one of the major concerns for governments and environmentalists from the past few decades. This, in turn, boosts the demand for electric motorcycles across the globe, thereby supplementing the growth of the motorcycle market. Meanwhile, governments of various countries are taking initiatives to reduce the carbon footprints by encouraging the use of electric motorcycle/scooter, electric vehicles, and bicycles, owing to increase in awareness toward the hazardous effects of using vehicles running on fossil fuels. Furthermore, to encourage the use of these environment-friendly vehicles, governments around the world are supporting the purchase of electric mobility, in terms of tax credits and incentives. For instance, in June 2019, the Indian Government announced a plan to lower the goods & service tax (GST) on e-vehicles from 12% to 5% for faster adoption of electric vehicles. Also, infrastructure facilities such as public charging stations in many countries by the governments significantly boost the adoption of electric motorcycle by users, thereby propelling the growth of the market.
[PRICERANGEGRAPH]
High risk of accidents
The motorcycle market is frequently constrained by the rising risk of road accidents for riders, despite the fact that motorized two-wheelers have advanced quickly due to their many benefits and improvements. Data from the European Commission show that head injuries were present in around 80% of motorcycle fatalities. In Europe, more than 6,500 two-wheeler riders lose their lives each year, and the risk of mortality for riders is 20 times more than that of passengers, according to the report, which cites two-wheelers as the most hazardous mode of transportation on roadways. However, to encourage the use of helmets and to take preventative measures, a number of programs and campaigns are being proposed. This will aid manufacturers in getting around this restriction. Similar to cars, motorcycles are anticipated to lower these dangers thanks to better safety features.
[REGIONGRAPH]
Rising popularity & evolution in motorcycles events in developed economies
Motorcycle racing was first introduced in the UK. This type of motorcycle racing takes place on physically demanding off-road tracks. Motocross racing events are held in almost all-weather conditions making it more difficult for the participants. Currently, motocross has evolved as a major sport worldwide, and riders or racers need to focus on different aspects of this sporting event. For instance, motocross has garnered more fans in China after the Motocross World Championship, the most influential of the sport's events globally, hosted its annual showcase at the China International Import Expo in Shanghai for two consecutive years from 2020 to 2021. The event entered China for the first time in 2019, filling the gap in first-class motocross events in the country. Also, growing number of women participations in motocross events and increased focus on R&D in the Motorcycles & their ability to improve their reliability and safety, especially regarding the safety of the riders and the spectators, supported the market’s growth. Hence, the rise in popularity & evolution of motocross events primarily is expected to offer lucrative growth opportunities for the global motorcycle market.
Key Market Segments
Key Market Players