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The global connected motorcycle market size was USD 44.1 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with connected motorcycles witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market witnessed a decline of 6.0% in 2020. The market is projected to grow from USD 47.0 million in 2021 to USD 70.0 million in 2028 at a CAGR of 5.9% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
On a global scale, the automotive industry is witnessing major technological advances in manufacturing processes, design, electronics, etc. Connected motorcycles are technologically advanced motorcycles equipped with the internet of things (IoT) devices and driven by artificial intelligence (AI) that provides a seamless internet connection, coupled with intelligent and smart mobility to customers. The connectivity system in these motorcycles monitors comfort and safety features such as thermal management and advanced lighting, tire pressure monitoring, keyless bike start, and emergency call.
Technologically advanced systems (such as GPS, safety, and security systems) assist riders in monitoring vital areas, including bike status, riding data, system upgrades and updates, battery charging, and other alerts. The rider can control the system through the dashboard.
COVID-19 Impact: Growing Concerns Over Travelling Via Public Transport to Boost Sales
The rapid spread of the COVID-19 pandemic has had a tremendous impact on the health and lifestyle of people. It has also impacted the economy to a huge extent. However, post lockdown, industries are progressively managing with damages, but the retrieval rate is steady.
The motorcycle industry is expected to experience a growth post-COVID pandemic as avoiding public transportation is the best option considered by people globally. Local buses, trains and other public transport are prone to contamination as they are crowded more often. Therefore, people are likely to opt for private mobility mode, with two-wheelers being a preferred choice owing to their affordability and convenience. During the pandemic in China and Western Europe, consumers have reported a new need for mobility due to people maintaining their distance from others and using separate devices to clean and untouched by others.
According to industry professionals and motorcycle manufacturers such as Honda, Harley-Davidson, and Triumph Motors, as cities emerge from the quarantine phase in various regions, motorcycles are increasingly seen as the ideal transportation. Moreover, government restrictions on public transport due to social distancing guidelines have led to commuters opting for motorcycles as their daily mode of transportation. For example, according to the New York Times, in March 2020, sales of motorcycles in the United States increased by 85%. Therefore, the electric motorcycle industry is one of the industries expected to achieve better growth post-pandemic.
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Increasing Trend of 5G Connectivity to Bring a Disruptive Change in the Connected Mobility
5G networks offer high-speed connectivity for devices, machines, and objects. The growing adoption of this network is leading to enhanced safety in motorcycles and achieving more reliable communications. Besides, 5G technology significantly reduces the air latency by about one millisecond, thereby providing a faster response to device requests. Also, numerous telecommunications companies are innovating advanced 5G networks to enable improved communication between these motorcycles and external devices.
The adoption of 5G technology will also bring economic benefits. For example, according to a study by the 5G Automobile Association, the deployment of collaborative intelligent transportation systems (C-ITS) can prevent more than 60% of road accidents and provide Europe with about 43 million euros in revenue by 2035, the largest of which is generated from traffic efficiency and improvement in the road safety. Therefore, the integration of 5G connectivity into the connected mobility is expected to bring a disruptive change in this market.
For instance, in October 2019, Vodafone and Idea announced 5G IoT connectivity solutions for electric two-wheelers. Under the partnership, Vodafone Creative Business Services provides Revolt Intellicorp with an exclusive IoT-based solution with features such as bike locator, geofencing, and real-time bike data and analysis.
Growing Adoption of Technologically Advanced Systems to Spur Demand
Over time, smartphones have changed the definition of connection. People want to keep in touch with the outside world even when they travel. Nowadays, connectivity has become a top priority, and automakers adopt connectivity solutions to increase their sales. Several prominent companies have emphasized the rising hope of connected motorcycles. Several connectivity solutions have been integrated into the latest motorcycles that require internet connectivity to perform their particular functions.
The connected devices include a built-in GPS, SIM card, and accelerometer to obtain all mobility information. IoT-supported motorcycles are equipped with biosensors that can measure the health of riders to reduce traffic accidents. Multinational companies use the IoT to design mobile applications to achieve interconnection between the motorcycles, owners, and service facilities. These technology trends in motorcycles are anticipated to augment the connected motorcycle market growth. For example, in May 2019, Telefonica, a telecommunications company, equipped Honda motorcycles with a networked device that can track the location of motorcycles in real-time.
Growing Focus on Providing Safety Features to Propel Market Growth
Connected motorcycles consist of a technologically advanced system that can read the roads and issue warning notifications regarding road curves, potholes, traffic, buildings, and other obstacles. The Connected Motorcycle Consortium (CMC) is an association between researchers, manufacturers, and dealers to include motorcycles into connected transportation. Moreover, CMC is developing motorcycles to provide enhanced safety to riders, thereby preventing road fatalities. For instance, a traffic jam warning (TJW) warns drivers about the traffic jams and shows alternate routes to the riders or reduces their speed to avoid this situation. The motorcycle approach indication (MAI) is a safety feature in these motorcycles that warns the riders about the motorcycle approaching them.
The growing inclination towards long-distance biking and the rising trend of cross-country bike riding have stimulated strong motorcycle sales worldwide. Considering the global data regarding road accidents due to two-wheelers, several motorcycle manufacturers are obligated to integrate advanced driver assistance systems in their newly manufactured motorcycles to improve rider safety.
For instance, motorcycle approach indication (MAI), a safety feature in the motorcycle, alerts the rider about vehicles approaching him, even if the rider cannot see the approaching object. In addition to this, a traffic jam warning (TJW) warns riders about the traffic jam, owing to which riders can choose a different route or reduce its speed to avoid it. Thus, several features offered in the market are anticipated to boost growth.
High Risk of Data Hacking May Hamper Market Growth
Connected motorcycle technology is expected to improve safety and traffic flow. However, it also epitomizes potential threats by cybercriminals and hackers. The increasing complexity in communications and software glitches makes these motorcycles to be highly susceptible to cyber-attacks. Besides, appropriate safety and security measures and effective and powerful network security solutions are necessary because network violations may cause loss of data privacy, negative impact on vehicle safety, and may even lead to accidents. Furthermore, it comprises GPS services for locating and providing navigation to motorcycles with high accuracy. Thus, anyone can access data from the GPS satellites in the public domain to control the vehicle's route and direct the rider in the wrong direction. This poses a safety and security concern for the rider. Hence, data hacking may restrain the growth of the market.
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Driver Assistance Segment to Hold Largest Market Share
Based on service type, the market is segmented into driver assistance, infotainment, safety, insurance, vehicle management, and telematics.
The driver assistance segment accounts for the largest share and is expected to dominate the market during the forecast period. This dominance is attributed to the rapid growth in the demand for warn and alert systems to stabilize the speed and avoid possible road fatalities and crashes. For instance, according to the World Health Organization (WHO) statistics, most of the total road fatalities are caused by cyclists, motorcyclists, and pedestrians. Driver assistance services comprise lane change warnings, traffic jam warnings, onboard signage, green light augmented speed recommendations, etc. The development and design of these systems are aimed at helping end-users to operate and obtain a pleasant bike riding experience easily. Therefore, these developments are expected to showcase considerable growth in the forthcoming years.
Infotainment services contain features such as music control, turn-by-turn navigation, calling, and messaging. Motorcycle navigation systems can be linked to the helmets or headsets via Bluetooth and smartphones that provide audible instructions to commuters. This development is expected to have a positive impact on the infotainment service segment.
The vehicle management and telematics services segments are expected to provide new growth opportunities for the OEMs. The in-built sensors store essential motorcycle data, such as speed, riding mode, parking location, travel information, etc. This information can come needy during the process of a warranty claim. For example, Vodafone Automotive SpA announced its association with several OEMs to implement advanced telematics and mobile connectivity services in two-wheelers. The automotive sector of the telecommunications industry is offering embedded telematics systems for a series of new two-wheelers, including models of Yamaha TMAX SX and TMAX DX.
ICE Segment to Lead
Based on the propulsion type, the market is segmented into ICE and electric motorcycles.
The internal combustion engine (ICE) segment holds the major share due to its wide usage across regions. The ICE motorcycles have deep penetration in the market and comprise an extensive range of conventional fueled motorcycles offerings, facilitating the key players to achieve a significant market share globally.
The electric motorcycle segment is gaining considerable demand and is expected to be the future of the connected motorcycle industry. This development is attributed to the rapidly rising vehicular emission problems and the growing awareness among people related to environmental conservation. Also, the increasing investment by government agencies for developing electric vehicle charging infrastructure is expected to boost the market. Besides, prominent players produce electric motorcycles with maximum torque and high power to adapt to the expanding market trend of high-performance and long-distance riding.
Embedded Segment to Remain Dominant
Based on the connectivity type, the market is segmented into integrated, embedded, and tethered.
The embedded segment holds the major share in the global market and is expected to grow further at a faster pace owing to the increasing demand among the automotive industry as well as the intensifying usage owed to its non-dependency on external devices. The embedded connection module includes a GSM module, electronic control unit, GPS, and other sensors. Integrating cloud technology into embedded hardware to connect with other vehicles and road infrastructure may help it dominate the market. Besides, the reliability of embedded hardware owes more to its cellular capabilities. The dependence on real-time security of connected systems (such as vehicle GPS units) and other fast communication systems increases the demand for embedded connectivity.
The tethered segment is expected to gain momentum as the hardware is evolving technologically continuously by using advanced software algorithms, which eventually enhances safety and security.
The integrated segment also offers several advantages such as lowering overall cost, standard features, and regular updates. Therefore, the segment shall also witness steady growth over the forecast period.
Vehicle to Vehicle (V2V) Segment is Likely to Lead
Based on the communication type, the market is segmented into vehicle to vehicle (V2V) and vehicle to infrastructure (V2I).
The vehicle to vehicle (V2V) communication type segment accounts for the largest share in the global market. This due to the safety of vehicles equipped with communication systems has improved significantly. Moreover, they are manufactured following government regulations and do not directly rely on external networking infrastructure for connectivity. V2V communication can help motorcycles use similar protocols to access information about the location and speed of other V2V-enabled motorcycles around it. This data can alert the riders of the potential threats and help reduce traffic congestion and road accidents. This technology can enable the bikers to move safely and predictably during the entire journey, which is expected to boost market growth.
As per analysis, in several countries, the vehicle-to-infrastructure (V2I) communication type segment may grow faster because an increasing number of people are getting aware of the limitations of V2V communication and newly developed V2I infrastructure. This technology allows vehicles to communicate with road infrastructure, other vehicles, and other road users, thereby helping riders avoid road accidents and avoid hazardous situations.
Cellular V2X Segment to Hold Prominent Position
Based on the network type, the market is segmented into cellular V2X and dedicated short-range communication (DSRC).
The cellular V2X network type segment accounts for the largest share in the global market. Cellular V2X is a modern cellular communication technology that includes a low latency, beamforming and multiple-input multiple-output (MIMO), downlink speed of approximately 100Mbps, and transporter aggregation increases the channel bandwidth and various other functions. The cellular V2X network provides direct device-to-device communication. It supports operations in areas with poor network connectivity, even at higher vehicle speeds, thereby facilitating rapid connections between roadside infrastructure and vehicles.
The increasing availability of 5G is projected to fuel the growth of cellular-based vehicle-to-all communications. 5G-based cellular communication accomplishes the necessities for better scalability, mobility support, and reliability. Also, AUDI AG, Qualcomm Technologies, Inc., Ducati Motor Holding S.p.A and Ford Motor Company demonstrated cellular V2X direct communication technology at CES 2019.
Asia Pacific Connected Motorcycle Market Size, 2020 (USD Million)
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Asia Pacific stood at USD 21.46 million in 2020 and is expected to dominate the global connected motorcycle market during the forecast period. This dominance is owing to the growing urbanization and rapid growth in motorcycle sales in the region over the last two decades. According to the Society of Indian Automobile Manufacturers (ISAM), the two-wheeler sales in India grew at around 7% during the 2015-19 period. The Indian motorcycle industry is the world's largest motorcycle market, accounting for about 40% of global sales.
The continuous development of Japanese OEMs such as Kawasaki, Yamaha, Honda, and Suzuki is expected to boost the market in the region. For example, Yamaha introduced TMAX SX and TMAX DX scooters with connectivity services provided by Vodafone. These services aid riders in evaluating vehicle performance through dedicated smartphone applications. Yamaha will be applying this technology to their other models as well. Furthermore, the rise in disposable income, the growing adoption of technological innovations, and the rapid increase in premium motorcycles in the region are estimated to drive the regional market growth.
Europe has a developed and well-established market for connectivity technologies in motorcycles. The region has a strong position of prominent market players such as Robert Bosch GmbH, BMW AG, KTM AG, and Triumph Motorcycles. BMW has launched connected motorcycles in the European market, such as R 1250 GS, R 1250 GS Adventure, F 750 GS, and F 850 GS. The growing collaborations and partnerships among the prominent companies have led to the increased adoption of advanced technologies in the regional market.
North America holds a substantial share in the market due to the significant demand for an extensive range of motorcycles such as standard, sports, cruisers, and touring, propelling growth in this region. The increasing adoption of advanced technologies such as 5G connectivity will help the regional market show healthy growth in the forthcoming years.
The demand for connected motorcycles is moderate to low in the Rest of the World region. The key restraining factor for such growth is the lack of essential infrastructure and high prices of motorcycles. However, many Asian companies are introducing their low-cost products to test the hidden market potential in these countries.
Growing Adoption of IoT Application to Enhance Market Share of Panasonic Corporation
Panasonic Corporation is a leading technology partner and a global supplier of automotive infotainment and connectivity system solutions. The Japan-based company leverages its strengths in Immersive Entertainment, Mobility Solutions, and Sustainable Energy to achieve business-to-business customers. They use highly reliable and highly advanced products and IoT solutions for each industry and are committed to working with customers to create a better society. As an irreplaceable technology partner, they pursue assistance to realize their vision and solve their operational challenges with a sense of perseverance.
For instance, in January 2018, Panasonic collaborated with Ficosa and started mass production of the telematics control unit to develop a new product. Panasonic develops the TCU, which is assimilated with their wireless communication technology and the automotive antenna technology developed by Ficosa and a cloud server that interfaces with the TCU. The Honda vehicles in Thailand have been integrated with this TCU as accessory parts since the beginning of January 2018.
Other prominent players such as BMW AG, Kawasaki Heavy Industries, Ltd, Honda Motor Company Ltd., and Yamaha Motor Co., Ltd. emphasize collaborating with communication technology and software companies such as Robert Bosch GmbH, Continental AG, and Starcom Systems. These companies aim to enhance their product offerings and services to increase their connected motorcycle market share.
An Infographic Representation of Connected Motorcycle Market
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The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. 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 major factors contributing to the market's growth over recent years.
Value (USD Million) Volume ( Thousand Units)
By Propulsion Type
By Service Type
By Connectivity Type
By Communication Type
By Network Type
Fortune Business Insights says that the global market size was USD 44.1 million in 2020 and is projected to reach USD 70.0 million by 2028.
In 2020, Asia Pacific stood at USD 21.46 million.
The market is projected to grow at a CAGR of 5.9% and will exhibit steady growth during the forecast period (2021-2028).
The driver assistance segment is expected to be the leading segment in this market during the forecast period.
The growing adoption of technologically advanced systems and connectivity solutions will drive market growth.
Panasonic Corporation is the leading player in the global market.
Asia Pacific dominated the market share in 2020.
The rise in safety features provided by the manufacturers will boost the market growth.
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