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A09641 | Pages: 461 | Charts: 60 | Tables: 174 |
The global used bike market size was valued at $38.7 billion in 2021, and is projected to reach $66.2 billion by 2031, growing at a CAGR of 5.6% from 2022 to 2031.
The second-hand vehicle that can be sold is a used bike. Used bikes can be purchased from a variety of places, including franchise and independent auto dealers, rental bike businesses, auctions, private party sales, and leasing agencies. Due to the high expense of vehicles and the maintenance of personal bikes, millennials own fewer bikes overall. Additionally, millennials prefer to save money on their bikes and frequently choose used bikes for transportation. Additionally, the high cost of new bikes prevents many people from purchasing them, which increases demand for used bikes.
The used bike market is segmented into Distribution channel, Source, Engine capacity, Type and Propulsion.
E-commerce players have made use of digital transformation to increase their footprint in their respective markets. E-commerce breaks down geographic barriers for companies and allows sales in places that can be challenging to reach with traditional models, owing to which the used bike market players across the globe are shifting their focus to online sales channels. Owing to all these factors, the growth of internet-based sales is expected to propel the demand for used bikes during the forecast period.
Three-phase DC motors are used instead of engines in electric motorcycles (EV) as a particularly effective deterrent against the ever-tightening exhaust gas laws. Furthermore, there is an increasing demand for high-performance, fuel-efficient, and low-emission electric vehicles as a result of stricter regulations on carbon emissions, falling battery costs, and rising gasoline prices. Thus, growth in the market's demand for electric bikes is anticipated in the near future. Additionally, old electric vehicles that have been officially reconditioned or refreshed have begun to be offered by manufacturers of electric vehicles, which supports the market's expansion. For instance, in January 2023, Swedish electric motorcycles manufacturer CAKE, announce the launch of a new program- re:CAKE, offering customers the option to purchase a certified pre-owned CAKE bike. In addition, the re:CAKE program offers customers the opportunity to buy a refurbished bike that has been thoroughly inspected, overhauled, and given the Cake stamp of approval.
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In Europe, France receives the most international visitors. Due to rising tourism, bike-taxi and car-rental services are becoming more popular in France. Drivers and companies that offer vehicle rental services have a greater need for used motorcycles as a result. Additionally, purchasers' attention is being drawn to used vehicles, especially used bikes for occasional use, as a result of the European Union's intentions for transactions involving electric vehicles. Additionally, there is a growing preference for high-end used bikes, and this tendency is projected to support the market for cruisers and sports bikes in the near future.
Increase in demand for two-wheeler due to traffic congestion, high cost associated with new bikes, rise in internet-based sale, and rising popularity & evolution in motorcycles events in developed economies are the major factors that propel the used bikes market growth. However, the high risk of accidents and other industrial vehicles, and rise in maintenance issues related to used bikes are the major factors that hamper the growth of the used bikes market. Furthermore, an increase in demand for bike taxi services, and the rising adoption of electric motorcycles are the factors that are expected to offer growth opportunities for the market during the forecast period.
The used bike market segmentation is based on the distribution channel, source, engine capacity, type, propulsion, and region. By distribution channel, it is divided into C2C (Consumer-to-consumer), and B2C (Business-to-consumer). By source, it is classified into domestically manufactured and imported bikes. By engine capacity, it is categorized into 50 to 125cc, 125 to 250cc, above 250cc, and electric drive. By type, it is divided into standard, sports, cruiser, mopeds, and others. By propulsion, it is bifurcated into ICE and electric. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Asia-Pacific comprises China, India, Japan, ASEAN, and the Rest of Asia-Pacific has one of the most advanced automotive sectors across the globe. Rest of Asia-Pacific includes Australia, South Korea, New Zealand, and others. Countries such as China, Japan, India, and others in the region are highly developed in terms of infrastructure and automotive manufacturing facilities. In addition, the Asia-Pacific is one of the leading markets for used bikes, owing to growth of ride-hailing services or bike taxi services in the region.
The Indian bike industry accounts about 40% of global sales. The growth of the used bike market is driven by multiple factors such as affordability, improvement in online buying infrastructure, lower tax rates on used bikes compared to new bikes, and huge online platforms to buy and sell used bikes and vehicles drive. For instance, in January 2022, CredR, a used two-wheeler buying and selling platform announced to invest $15 million (around Rs 110 crore) in 2022-23 to expand its business. It plans to open 50 CredR showrooms for used two-wheelers in FY22-23 and over 100 showrooms by 2024. Such developments by online service providers are expected to drive the growth of the market across the country during the forecast period.
U.S. is largest market for used bikes in North America region. The development of online platforms and new facilities or centers for used bikes by present automakers and bikes manufacturers across the country is a key factor that is expected to drive the growth of the market across the U.S. during the forecast period. For instance, in July 2021, Harley-Davidson launched an online portal on its official website called the HD-1 Marketplace. This facility is for buying and selling pre-owned Harley-Davidson motorcycles, which are currently available only in the U.S.
The HD-1 Marketplace enables customers to look for used Harley-Davidson motorcycles across the manufacturer’s dealer network. Apart from browsing the available options, customers can also customize their motorcycles online before making the purchase. The online portal also offers existing customers the chance to sell their motorcycles directly to official dealers that are willing to buy them. These additional features also help to boost the market across the region.
Some leading companies profiled in the used bike market report comprises Bafta 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.
Key Developments:
The leading companies are adopting strategies such as product launch and expansion to strengthen their market position. In May 2022, Yamaha launched a certified pre-owned platform to ensure second-hand bikes quality. The new Certified Pre-Owned platform gives customers a ‘one stop shop’ to search for approved used Yamaha motorcycles or scooters, where customers can see all the UK Franchised Dealer stock in one place. In addition, in February 2022, Mundimoto raised $22.6 million to expand its platform beyond its home country of Spain and into Europe, starting with Italy and Holland. Mundimoto is an online motorcycle buying and selling startup. It plans to hire 50 engineers and 250 new employees to advance the technology product and support international expansion.
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Increase in demand for two-wheeler due to traffic congestion
A significant issue in a number of developing urban regions around the world is growing traffic congestion. Due to the way society currently functions, everyone now has to deal with traffic congestion during rush hour. The numerous time zones worldwide have inevitably resulted in daily congestion of the current highways. The worrying situation is that, despite numerous solutions being tried to ease traffic congestion, there hasn't really been any significant improvement in this area. With each passing year, traffic is becoming worse. Thus, the rise in traffic congestion is fueling the demand for used bikes in developing regions, thereby fostering the global used bikes market.
Moreover, bikes 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 increased in number 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 used motorcycles to avoid the high selling prices and tax rates of four-wheelers. Such factors are expected to drive the growth of the market during the forecast period.
High cost associated with new bikes
The high cost associated with new bikes is the major factor that is expected to fuel the growth of the global used bikes market. Prices for bikes increase periodically. This is due to the characteristics of the industry. Many companies position their bikes in markets where they can turn a sufficient profit and keep their stock moving. Notably, too inexpensive bikes would not cover the expenditures of manpower and supplies. The material used in motorcycles is a significant reason they cost more or as much as cars. Materials such as carbon fiber come in several shapes and grades, and the better the carbon fiber, the more expensive it is. This also covers the cost of the additional maintenance needed during refrigerated storage and transportation.
Moreover, new sport bikes/motorcycles are typically outfitted with high-performance shocks, brakes, and engines that can withstand the demands at the expense of comfort, fuel economy, and storage in comparison with other motorcycles for riding. As a result, new sports motorcycles can range in price from a few hundred dollars to several thousand. Hence, the upsurge in adopting sport motorcycles in other than developed countries, such as China and the U.S., is limited by high costs. Therefore, the craze for sports bikes and their high costs is a significant factor that is anticipated to create demand for used bikes or motorcycles.
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High risk of accidents
The motorcycle and used bikes industry is frequently constrained by the rising risk of road accidents for riders, even though 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 due to better safety features.
Increase in demand for bike taxi services
Bike taxis enable passengers to hail a vehicle using online platforms and provide door-to-door services to their customers owing to which it is one of the most convenient means of transportation. Moreover, while hailing a ride, information about the driver and the passenger is exchanged which makes ride-hailing services much safer than traditional taxi services. Used bikes are less expensive than brand-new bikes and the value of the motorcycle and, consequently, the insurance premium are both diminished by its age. Owing to this, bike taxi service providers and drivers connected with online platform services mostly used pre-owned bikes in their fleets to minimize investment costs.
In recent years, demand for ride-hailing services has increased significantly, especially among office commuters. Moreover, a significant rise in the preference for on-demand services such as taxis, passenger vehicles, and charter vehicles, which provide tracking of vehicles, real-time feedback, and rating for service experience provided to the end customers has encouraged the consumers to opt for ride-hailing services. Furthermore, ride-hailing services ensure that customers can accurately locate the vehicles and track their journey alongside offering safety to the occupants.
In addition, an increase in the bike taxi services offered by the leading market players, including LIMOBIKE, Rapido, Uber, & Ola, and the option to choose convenient pick-up and drop locations have encouraged consumers to opt for ride-hailing services, which in turn is expected to boost the demand for used bikes market during the forecast period.
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Key Market Segments
Key Market Players