Connected Motorcycle Market Size, Share & COVID-19 Impact Analysis, By Communication Type (Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I)), By Network Type (Cellular and Dedicated Short Range Communication (DSRC)), By Connectivity Type (Embedded, Integrated, and Tethered), By Application (Motorcycle Approach Indication (MAI), Intersection Movement Assist (IMA), Forward Collision Warning (FCA), and Left Turning Assist (LTA)), and Regional Forecast, 2023-2030

The global connected motorcycle market size was valued at USD 88.4 million in 2022. The market is projected to grow from USD 98.2 million in 2023 to USD 256.9 million by 2030, exhibiting a CAGR of 14.73% during the forecast period.

Connected motorcycle is a system that provides the rider with a range of infotainment solutions on the motorcycle’s instrument cluster through various connectivity devices such as cellular and Dedicated Short Range Communication (DSRC) modules. The system interacts with various environments to provide riders with riding info such as road navigation, vehicle warnings, and others.

The growth of the market is heavily influenced due to the safety regulations imposed by various governments to improve road infrastructure and increase vehicle safety on roads. However, many regions are yet to mandate this technology, which might slow product adoption during the initial years of the forecast period. Due to Europe's stringent road and driving safety regulations, many regions are expected to adopt similar rules, which is projected to drive the market globally.

COVID-19 IMPACT

Temporary Shutdowns Led to Reduced R&D Projects Leading to a Slower Adoption of Connected Motorcycle Technology

The unprecedented outbreak of COVID-19 led to temporary lockdowns across all the continents to contain the spread of the virus. The shutdown of various businesses due to the pandemic affected the revenue generation capacity of various companies along with a disrupted supply chain of procurement and distribution of various products. The automotive industry was no different as it underwent similar situations leading to various capital and funding cuts for numerous R&D projects, including connected technology. The connected motorcycle market growth also suffered as private and commercial vehicle owners redirected their investments to recover losses.

However, the post-pandemic situations created lucrative opportunities as many automotive businesses shifted toward gaining stability and control to restore the market position and supply chain management. The pandemic provided OEMs and auto-tech suppliers the opportunity to recuperate a better growth strategy. This led to new product launches and the integration of newer vehicle technologies such as connected vehicle technology, autonomous driving solutions, electrification, and others.

LATEST TRENDS

Implementation of Next Generation Connected Motorcycle such as eCall and bCall Technology to Boost Market Growth

The automotive industry is shifting toward developing and designing advanced technologies to provide enhanced connectivity solutions, advanced safety features, and improved in-vehicle user experience. Leading players in Europe, such as Robert Bosch and BMW, are highly active in introducing safety features to motorcycles, such as emergency calls and breakdown call systems on motorcycles, to improve roadside assistance and infrastructure. Similarly, major two-wheeler manufacturers aim to integrate connected technology into their models to enhance vehicle connectivity and improve road safety and riding situations.

Major players, including Robert Bosch, Honda, BMW, and Continental AG are introducing connected vehicle technologies such as Motorcycle Approach Indication (MAI), Intersection Movement Assist (IMA), and others. These notify the vehicle driver and motorcycle rider informed about the vehicle approach. Moreover, the trend of connected cars is expected to impel the launch of innovative products in the market.

DRIVING FACTORS

Rising Number of Motorcycle Fatalities to Fuel Market Growth

Rising traffic congestion and a high rate of road accidents raise safety concerns among consumers. This has led to an increasing inclination toward enhanced safety and security for on-road vehicles and motorcycles. According to the Insurance Institute of Highway Safety, motorcycle fatalities in 2021 increased by 21% compared to 2019.

Automotive manufacturing companies are installing these systems in vehicles due to the rising safety concern of drivers and passengers and to reduce road fatalities and provide quick relief services to injured people. This is ultimately surging the demand for these systems in the automotive industry. Thus, major players are introducing innovative technologies to minimize road fatalities due to the rising concerns for safer and connected road infrastructure.

Growing Traffic Congestion in Urban Areas to Drive the Market Growth

Due to rapid urbanization, most of the population prefers living in urban locations due to the ease of accessibility and connectivity of urban areas and metro cities. However, this has led to a mass shift in the urban city population, leading to more vehicles and motorcycles on the road. This resulted in congested roads and long traffic hauls.

Besides, an increasing number of people switched toward a cheaper, more efficient, and mobile mode of commuting by opting for motorcycles and scooters. This resulted in a high demand for two-wheelers in densely populated areas such as Asian and some European countries, with growing demand for nimble commutation and connected vehicle technology. Owing to these factors, urban areas are set to emerge as a growing market for connected bike technology during the forecast period.

RESTRAINING FACTORS

Potential Risks of Data Hacks and Unrestricted Data Access Issues May Restrain Market Growth

The connected vehicle technology has proven to greatly benefit vehicles, improving the overall driving experience while enhancing road safety conditions. However, this has created a new issue that automakers struggle to address. Within connected vehicle technology, vehicles interact with various environments passing and collecting information. Under certain conditions, if the data stored in the vehicle is not secured and protected, it is left exposed to potential data hacks and unauthorized access to personal information stored on the motorcycle or vehicles.

Various cases of vehicle data hacks and unrestricted data access to the vehicle have hampered the adoption rate of connected vehicle technology in vehicles. They are expected to restrain the market growth. However, increased efforts from automakers and connected vehicle technology providers toward strengthening data protection security are expected to reduce the impact of this restraint during the forecast period.

SEGMENTATION

By Communication Type Analysis

Growing Demand for Advanced Technologies in Connected Vehicles to Drive the Vehicle-to-Vehicle (V2V) Segment

Based on communication type, the market is bifurcated into Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I).

In 2022, the Vehicle-to-Vehicle (V2V) segment held the largest share in the global market. The demand is attributed to the growing integration of V2V technologies in vehicles and motorcycles. Vehicle-to-vehicle communication allows vehicles and motorcycles to communicate and exchange data with each other over short ranges, reducing the risk of potential fatalities and road accidents. The implementation of V2V technologies is expected to reduce road fatalities and drive the market demand during the forecast period.

The Vehicle-to-Infrastructure (V2I) segment is expected to grow at the highest CAGR during the forecast period. The market growth is attributed to the rising adoption and development of connected infrastructure in metro cities and major European economies. Moreover, the growing government initiatives toward enhanced road safety issues are expected to propel the global market.

By Network Type Analysis

Growing Demand for V2V applications to Fuel the Market for DSRC Network Type

Based on network type, the market is divided into cellular and Dedicated Short Range Communication (DSRC).

The Dedicated Short Range Communication (DSRC) segment dominated the connected motorcycle market share owing to soaring demand for several vehicle-to-vehicle applications. The DSRC network allows the motorcycle to interact with other vehicles and the rider’s smart devices to display information on the instrument cluster.

The cellular segment is expected to hold an appreciable share due to the long-range ability of cellular network communication delivering at higher speeds compared to DSRC. As vehicle-to-infrastructure applications develop, it is expected that the cellular network would grow significantly during the forecast period.

By Connectivity Type Analysis

Increasing Demand for Advanced Motorcycle Connectivity Solutions to Fuel the Demand for Embedded Connectivity

By connectivity type, the market is segmented into embedded, integrated, and tethered.

The embedded segment is estimated to grow at a substantial CAGR over the forecast period. This is due to the increased incorporation of advanced technology that would provide the rider with a range of motorcycle data. The segment held the largest market share in the connectivity type segment in 2022 and is set to dominate the market over the forecast period. The solutions integrate various communication and data collection modules, such as telematics boxes and sensors.

The integrated segment is expected to grow significantly during the forecast period. This is owing to the growing R&D efforts and the launch of new technologies in the digital motorcycle instrument cluster. The tethered segment is also expected to grow steadily over the study period due to the integration of numerous features such as smartphone mirroring and short-range communication between motorcycles and smart devices.

By Application Analysis

Growing Demand for Enhanced Traffic and Road Navigation to Increase the Product Adoption in Motorcycle Approach Indication (MAI)

By application, the market is segmented into Motorcycle Approach Indication (MAI), Intersection Movement Assist (IMA), Forward Collision Warning (FCA), and Left Turning Assist (LTA).

The Motorcycle Approach Indication (MAI) segment is expected to dominate the market globally. This is due to increased road fatalities of motorcycles caused by unawareness of motorcycle approaches on roads.

During the forecast period, forward collision warning and left turn assist applications are expected to grow significantly. This is due to the growing need for efficient communication among vehicles and motorcycles during lane crossing, overtaking, and turns. Applications such as forward collision and left turn provide motorcyclists with data on road conditions and accidents by warning the motorcyclists through the vehicle’s instrument cluster.

REGIONAL INSIGHTS

Stringent Adoption of Connected Motorcycle Systems to Fuel the Market Demand in Europe

Based on region, the market is segmented into North America, Europe, Asia Pacific, and the rest of the world.

Europe dominated the market share in 2022 owing to the region's stringent driving and safety norms. The regional market was valued at USD 54.5 million in 2022. The region's dominance is due to the high popularity of the product among consumers in this region toward motorcycles and well-suited connected vehicle technological infrastructure. Moreover, the increased government regulations toward road safety and vehicle safety rules further drive the demand for connected bikes in the European regional market.

Asia Pacific was the second-largest market for connected motorcycles in 2022. This is due to the growing safety concerns in Japan, China, and other Asian countries. However, the growing focus on connected vehicle infrastructure and government policies is expected to drive market growth in the region.

North America and the rest of the world are also expected to grow significantly over the forecast period. The demand is attributed to the government's and consumers' growing concerns about road fatalities and accidents. Some major players, such as BMW, Harley Davison, and a few others, also provide connected motorcycle models.

KEY INDUSTRY PLAYERS

Integration of Smartphone Connectivity with Motorcycles to Boost the Market Revenue of Major Players

A few major connected motorcycle players operate in the market as it is an emerging technology. The competitive landscape of the market covers major players such as Honda, Yamaha, Robert Bosch, and others. The industry players are focused on developing and integrating various connected technologies such as motorcycle approach indication, forward collision warning, and others.

Major players in the industry, including BMW, Robert Bosch, and Continental provide innovative solutions in the motorcycle industry. BMW is focusing on integrating new safety features into its upcoming motorcycles to comply with stringent road and safety regulations. Additionally, these players are focusing on introducing new technologies in Europe due to the high demand for safety systems on account of strict transportation laws.

LIST OF KEY COMPANIES PROFILED:

• Continental AG (Germany)


• Robert Bosch GmbH (Germany)


• Telit (U.K.)


• Yamaha Motors (Japan)


• KTM (Austria)


• Ducati (Italy)


• Honda (Japan)


• Panasonic Corporation (Japan)


• BMW Motorrad (Germany)


• Harley Davidson (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 – BMW Motorrad updated the intelligent emergency call, which will be equipped for the upcoming 2023 models. The new update will be a standard feature on selected models with the option to customize a few other models. The system will automatically connect an emergency center agent with the rider when emergency calls are placed in cases of emergency. 


• May 2023 – Nvidia and Mediatech announced their partnership deal on connected vehicle technology. The companies aimed to introduce a power-advanced vehicle infotainment system to improve the entertainment and voice assistant driver assistance features experience for users.


• March 2023 – TVS racing performance gear launched its new series of Bluetooth communication devices, S10X and S20X. The company aimed to elevate connectivity during the ride by integrating these advanced Bluetooth modules. The company also launched TVS CONNECT 2.0, which offers various connectivity engagement features.


• October 2022 – Continental AG announced the development of its in-house hardware and software platform solutions for connected motorcycles. The company aimed to release a connected infotainment box which provides an array of services that include turn-by-turn navigation and stolen vehicle tracking.


• September 2021 – Autotalks launched its connectivity system that integrates V2X to enhance two-wheeler safety on roads. The Zooz platform uses a V2X device and smart V2X sign, which allows motorcycles and scooters to be on the connected vehicle grid.

REPORT COVERAGE

The market research report provides a detailed industry analysis and focuses on key aspects such as leading companies, product types, and leading network types. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 14.73% from 2023 to 2030
Unit	Value (USD Million)
Segmentation	By Communication Type Vehicle-to-Vehicle (V2V) Vehicle-to-Infrastructure (V2I)
By Network Type Cellular Dedicated Short Range Communication (DSRC)
By Connectivity Type Embedded Integrated Tethered
By Application Motorcycle Approach Indication (MAI) Intersection Movement Assist (IMA) Forward Collision Warning (FCA) Left Turning Assist (LTA)
By Geography North America (By Communication Type, By Connectivity Type, By Network Type, and By Application) U.S. (By Connectivity Type) Canada (By Connectivity Type) Mexico (By Connectivity Type) Europe (By Communication Type, By Connectivity Type, By Network Type, and By Application) U.K. (By Connectivity Type) Germany (By Connectivity Type) France (By Connectivity Type) Italy (By Connectivity Type) Rest of Europe (By Connectivity Type) Asia Pacific (By Communication Type, By Connectivity Type, By Network Type, and By Application) China (By Connectivity Type) India (By Connectivity Type) Japan (By Connectivity Type) South Korea (By Connectivity Type) Rest of Asia Pacific (By Connectivity Type) Rest of the World (By Communication Type, By Connectivity Type, By Network Type, and By Application)