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The global motorcycle market size was USD 278.07 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with motorcycles witnessing a positive demand shock across all regions amid the pandemic. Based on our industry analysis, the global market will exhibit a stellar growth of 6.87% in 2021. The market is projected to grow from USD 298.58 billion in 2021 to USD 485.67 billion in 2028 at a CAGR of 7.2% in 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.
A motorcycle, often known as a motorbike or bike, is a two-wheeled motor vehicle built with metallic and fiber frames. They are equipped with an engine and multiple electronic and mechanical components. The design of the motor bikes varies significantly to suit a variety of different purposes including commuting, cruising, long-distance travel, sports activities, racing, as well as off-road riding. In the past decade, bikes have been increasingly adopted as cost-effective private transportation. Although advances in the automotive industry have greatly boosted sales, macroeconomic factors such as increased disposable income and increased urban population have further promoted cross-regional market sales.
Also, the manufacturers are focusing on improving the mileage, and other features such as larger fuel tanks, air-cooled engines, bucket seats, unique horns, and Bluetooth speaker systems, which will create opportunities for the market in the forthcoming years. According to a report released by Motorcycles Data in December 2020, the ATV/RUV segmentation promoted the U.S. motor bikes industry in 2020, which reported a massive growth. As per the data, the increase in demand is likely to lead to a more than 4% increase in U.S. production in 2020.
Market to Gain Greater Demand Post COVID-19 Pandemic
The rapid spread of the COVID-19 pandemic across the globe has had a severe impact on people's health and lifestyle, thus prompting the world’s economy to tumble down. However, post lockdown, industries are progressively managing with damages, but the retrieval rate is steady. This industry is expected to experience growth post-COVID pandemic as people will steer clear from public transportation to protect themselves from catching or spreading the virus.
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, two-wheelers are increasingly seen as ideal transportation. Moreover, because of the government restrictions on public transportation owed to social distancing guidelines, commuters are opting for motor bikes as their daily transportation mode. For example, according to the New York Times, in March 2020, sales of motorbikes in the United States increased by 85%. Therefore, the electric motorcycle industry is one of the industries expected to achieve a better growth after Covid-19.
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Electric Motorcycles: Mega-Trend in the Industry
As the world is gradually depleting fossil fuels, larger companies are launching their electric motorbikes and considering this. It can be said that the future of two-wheelers will be electric. Therefore, the focus will be more on electric bikes hereafter. The first wave of these electric bikes was costly, and their riding ability was very restricted. However, futuristic motor bike brands like Damon have indeed made breakthroughs in bike technology. As a result, many predictions of this technology have become a reality in 2020. The adaptability of AI for every rider, Vehicle-to-vehicle (V2V) communication, and changes in the ergonomic designs drastically change the motor bike world. Moreover, governments of various countries are taking additional efforts to encourage eco-friendly vehicles by supporting electric motorbikes and scooters in terms of incentives and tax credits.
For example, in June 2019, the Indian government announced a plan to reduce the Goods and Services Tax (GST) for electric vehicles from 12% to 5% to accelerate electric vehicles' adoption. Also, the plan proposes to sell only electric bikes from March 2025 onwards. Furthermore, infrastructure facilities such as the installation of charging stations across countries by the governments significantly boost the adoption of electric bikes, thereby propelling the market growth.
Adoption of Advanced Technologies by the Makers to Boost the Market Growth.
With the increased adoption of cutting-edge technologies, motorbikes have become more complex and modish in terms of safety, comfort, and luxury. For example, the invention of the anti-lock braking system (ABS) is gaining great acceptance among the makers, indirectly boosting sales. ABS uses ABS and throttle control and inertial measurement (IMU) data to maintain the bike's stability during sharp turns and emergencies. The manufacturers are now introducing hands-free and Bluetooth options in helmets to improve connectivity with other riders and save the trouble of answering calls or navigating with smartphones. Moreover, modern bikes are usually equipped with a slip clutch designed to be partially disengaged when the rear wheel tries to drive the engine at a faster speed than its power. The slip clutch was originally developed for high-performance super sports bikes and equipment used only for track and field sports and has now been more widely used.
For instance, Honda has promised to increase the installation of advanced braking systems due to its commitment to the European Road Safety Charter. This is eventually aiding the increase in the demand for bikes across the world.
Increasing Demand for Motorcycles to Promote the Market Growth
In the past five years, with the rapid advancement of motorbike technology, it can be said that the future of motor bikes has arrived. The increasing disposable income of consumers, improvement in living standards, the increase in the number of young people, and the changing preference of the elderly to own a vehicle instead of taking public transportation are also changing, which has increased the demand for these bikes.
Also, the launch of effective and better products, the increase in sports bike users, and the growing trend of customization are factors aiding the growth of the market. Moreover, the technological development in manufacturing processes, designing, and electronics and the growing demand for safety features and driver assistance to provide a safe and comfortable environment, especially for long-distance riding, is further propelling the demand for motor bikes. Apart from that, several manufacturers are inventing techniques to build bikes that will run on eco-friendly solar energy, gas, or electricity resources. These efforts are gaining the attraction of environmentalists.
High Risk of Accidents may hamper the Market Growth
Despite the rapid development of motorized two-wheelers owing to their various advantages and advancements, the increasing risk of road accidents for riders often becomes a factor limiting the market. According to data from the European Commission, about 80% of bikers killed on the roads suffered head injuries. As the report states, the use of these bikes is the most dangerous way to travel on roads, and in the European Union, more than 6,500 two-wheeler riders die every year in Europe, and the risk of death for riders is 20 times that of the passengers.
However, several initiatives and campaigns are being proposed to endorse using helmets and take other preventive measures to help manufacturers overcome this limitation. Similarly, the use of advanced safety features in motorbikes is expected to reduce these risks.
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Standard Segment Dominates the Market
Based on type, the market is segmented into standard, sports, and cruiser. The standard segment holds the largest motorcycle market share in the global market. The standard is the oldest motorized bike style. They use a combination of advanced technology along with a classic design to comfortably place the handles in the upright seat position, while the feet are in a natural position, and the pedals and controls are within reach. Standard motorbikes are positioned on the lower end of the power spectrum as they are very upfront and comfortable, making them excellent beginner bikes. Kawasaki’s Z series and Honda’s CB series are a few of the best picks, with prices ranging from under USD 5,000 to over USD 10,000. India and Japan's motorbikes industry are the major contributors to the global motorized two-wheeler industry due to the presence of prominent two-wheeler companies. Besides, there is also a huge market for lower-capacity (less than 300 ccs) motor bike, mainly concentrated in the African and Asian countries, while produced in India and China.
Sports bikes are high-performance-oriented categories that feature a powerful engine and a lightweight body frame. Whereas the cruiser bikes are usually designed for comfortable and relaxed riding, having an upright riding position and powerful engines with loads of low-end torque. The increase in the income level, the growing trend for high performance and long-distance motorbikes, and the increasing off-roading and sports activities have fueled the demand for sports and cruiser bikes, especially among the young population around the globe.
ICE Segment holds the Largest Market Share
Based on the propulsion type, the market is segmented into ICE and electric. The internal combustion engine (ICE) segment accounts for the largest share globally due to its wide usage across regions. The ICE segment have deep penetration in the global market and comprise a large portfolio of conventional fueled vehicle offerings, which has helped the prominent companies to gain a significant market share in the global market. More than 2 million petrol-fueled bikes are involved in courier services every day, running on roads throughout the day. Besides, with the opening of a large number of food and beverage stores in major tier 1 and tier 2 cities, the high demand for fast and convenient transportation methods continues to grow, which provides an opportunity for the motor companies to offer transportation methods low-maintenance and cost-effective.
The electric motorbike market is also gaining a lucrative demand and is expected to be the industry's future. This development is attributed to the rapidly growing vehicular emission concerns and increasing awareness among people related to air pollution. Also, government agencies' increased investments in the development of electric vehicle charging infrastructure are expected to create more opportunities for the electric bikes market. Moreover, prominent players are developing e bikes with maximum torque and high power to adapt to the expanding market trend of high-performance and long-distance riding.
For example, in October 2018, Tarform, Inc. introduced two new road electric bikes in the market. The Café and Scrambler models are equipped with a 43-horsepower engine and a 7 kWh lithium-ion battery for improved performance that can travel up to 200 miles on city roads.
Asia Pacific Motorcycle Market Size, 2020 (USD Billion)
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The market size in Asia Pacific stood at USD 110.41 billion in 2020. The region holds dominance in the global market due to high demographic growth, larger middle, lower-middle-class income population, and increasing inclination towards private transportation mode over public transport. The Indian motorbike industry is the world's largest market, accounting for about 40% of global sales. Although Honda has a 14% market share as an independent entity, the Indian original equipment manufacturers (OEMs) occupy 77% of the total market. Whereas Hero MotoCorp is a significant participant along with TVS Motor and Bajaj Auto. The Indian government is also taking initiatives such as FAME-II to provide subsidies and tax exemptions to consumers to encourage electric two-wheelers in the country. Moreover, the highest sales and production in China, the increasing demand for affordable electric motorbikes for short commutes in developing economies, and the government that promotes electric two-wheelers are expected to boost the Asia-Pacific market during the forecast period.
North America holds a significant share in the global market owing to the large demand for an extensive range of bikes such as standard, sports, cruisers, and touring, among others is propelling growth in this region. According to a report "U.S. Motorcycle Trends" issued by the U.S. Bureau of Transportation Statistics on May 21, 2017, the number of motorcycle registrations in the U.S. has increased each year from 3,826,373 in 1997 to 2006. 6,678,958. The overall growth rate is 75%, and it has been increasing at a higher rate since then. The demand for motorized bikes is also growing steadily in Latin America, owing to growing per capita income and the number of riders in the region.
Europe comprises a well-established motorbike market and is expected to increase further over the forecast period. With the adoption of advanced technologies and the presence of highly advanced manufacturing hubs coupled with the increasing demand for various types of bikes, the regional market is highly lucrative for the manufacturers. According to a report released by Motorcycles Data in January 2021, the German motorbike industry is considered one of the world's fastest-growing industries.
Honda Motor Company, Ltd. is a Key Player in the Market
Honda Motor Co., Ltd. is the world's largest motorbikes manufacturer. The company is one of the leading internal combustion engine manufacturers with a production capacity of more than 14 million internal combustion engines per year. The total production volume of 2019 had reached up to 400 million units. They envision being the leader in advancing mobility by developing the world’s first technologies and providing top-notch safety to the riders.
Moreover, other players, including Eicher Motors, Yamaha, Bajaj, and TVS Motors are focusing on entering the electric vehicle market by introducing new production plants and converting the existing motorbikes and scooters into electric vehicles.
An Infographic Representation of Motorcycle Market
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The global market research report provides a detailed industry analysis and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the motorcycle market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the key market over recent years.
Value (USD Billion) & Volume (Thousand units)
By Propulsion Type
Fortune Business Insights says that the global market size was USD 278.07 billion in 2020 and is projected to reach USD 485.67 billion by 2028.
In 2020, the Asia Pacific market size stood at USD 110.41 billion.
The market is projected to grow at a CAGR of 7.2% and will exhibit steady growth during the forecast period (2021-2028).
The standard type segment is expected to be the leading segment in this market during the forecast period.
Advanced technologies adopted by the makers will drive the market growth
Honda Motor Co. Ltd. is the leading player in the global market.
Increasing demand for motorbikes is expected to drive the market growth.
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