Used Bike Market Expected to Reach $66.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Used Bike Market," The used bike market was valued at $38.7 billion in 2021, and is estimated to reach $66.2 billion by 2031, growing at a CAGR of 5.6% from 2022 to 2031.

Asia-Pacific currently dominated the used bikes market in 2021. This was primarily due to the rise in fuel and new bike prices and the adoption of new technology in the used-motor vehicle industry. China has a propensity for producing and selling cutting-edge bicycles that are utilized for both everyday commuting and a variety of adventure-related activities. Meanwhile, there are many chances for the expansion of the used bike industry across the nation due to the presence of various local bike manufacturers who offer a wide selection of customized used bikes and modified used off-road motorbike products.   

Moreover, Japan abandoned two-wheelers in favor of automobiles. Additionally, it ranks third globally in terms of the number of new car registrations and is one of the top manufacturers in the automotive sector. Additionally, due to its severe emission regulations, Japan is the world's largest exporter of used bikes, while the country has a low market for used cars. For instance, the Japanese company TSUKISHIRO Co. Ltd., which has been in the business of importing and exporting new and used motorcycles for more than 30 years, reported that all its branches dispatch more than 4,000 units per month of a wide range of commercial scooters, scooters, and classic bikes.

Furthermore, the nations of Malaysia, Indonesia, the Philippines, Singapore, and Thailand are members of the Association of Southeast Asian Nations (ASEAN). Due to the expansion of the automotive sector, rising adoption of innovative urban mobility, population growth, affordability, higher GDP growth rate, and expansion of the rental bike market, ASEAN countries are anticipated to be the primary growth drivers for the used bike market.

Europe is the second largest market for the used bikes. The rise in popularity of motocross events and modification of used bikes for such events are expected to primarily drive the growth of the used bikes market in European countries. Other factors that drive the growth of the used bike market include modified used bikes, an increase in demand for electric bikes, and a rise in tourism activities. The U.K. is becoming one of the leading markets for used bikes in Europe owing to the independent nature of two wheels compared to public transport. In addition, in the past year, riding a motorcycle or scooter to work has grown in popularity. Moreover, the rise in presence of online platforms and used bike dealers to provide certified used bikes are expected to fuel the growth of the used bike market across the U.K. during the forecast period. 
The customer-to-customer (C2C) segment's expansion is fueled by low prices and simple document transfers. The market's expansion is, however, hampered by the prevalence of fraudulent online platform transactions and false merchants. Therefore, one of the key elements that generate scope for the C2C segment in the used bike market is direct one-on-one interaction between buyers and sellers.

Moreover, any bike's sales are significantly influenced by the business dealership. The expansion of business-to-customer (B2C), particularly in the used bike industry, is fueled by a number of factors, including accessibility to the vehicle, pre-owned certified vehicles, immediate delivery of the vehicle, and brand trust. The important market trends for B2C market players also include negotiated prices, various product tests, the growth of online infrastructure, and post-sale services. Therefore, it is projected that brand trust and the opportunity to test drive a variety of cars right away would open chances for the secondhand bike industry.

One major reason that is projected to contribute to a rise in the demand for used bikes produced locally during the forecast period is the increase in traffic congestion in both developed and developing countries. A range of motorcycle types, including ordinary bikes and scooters, have increased in quantity throughout time to meet the wants of varied clientele. Due to the lack of dependable public transportation, there has been a significant increase in the demand for motorcycles in rural areas as well. This is expected to accelerate the expansion of domestically produced bikes in the market for used bikes.

KEY FINDINGS OF THE STUDY

• By distribution channel, the C2C segment is anticipated to exhibit significant growth in used bikes market in the near future..
• By source, the domestically manufactured segment is anticipated to exhibit significant growth in used bikes market in the near future..
• By engine capacity, the 125 to 250cc segment is anticipated to exhibit significant growth in used bikes market in the near future.
• By Type, the standard segment is anticipated to exhibit significant growth in used bikes market in the near future..
• By propulsion, the ICE segment is anticipated to exhibit significant growth in used bikes market in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global used bikes market include Batfa Japan Inc., Blade Motorcycles, Droom, India Kawasaki Motors Pvt. Ltd., Motohunt Inc., Motorbikes4All, Mundimoto Europe SL, Triumph Motorcycles, Used Motorcycle Store. Com (Dealer Spike), and Yamaha Certified Pre-Owned.