Motorcycle Market Size, Share & COVID-19 Impact Analysis, By Motorcycle Type (Standard, Sports, Cruiser, Touring, and Others), By Propulsion Type (ICE and Electric), and Regional Forecasts, 2023-2030

The global motorcycle market size was USD 75.63 billion in 2022. The market is projected to grow from USD 79.57 billion in 2023 to USD 124.09 billion by 2030, exhibiting a CAGR of 6.6% during the forecast period.

A motorcycle is a two-wheeled automobile powered by a motor without pedals. They are designed for higher speeds and have high-speed handling characteristics and better acceleration. These are capable of slow urban commutes or highway speeds and even beyond. They have an engine attached to the middle of the frame rather than sitting on the rear suspension and a gas tank placed above it. Most of them have 100cc or even lower engines and the maximum capacity also exceeds 1000 and further. The driver sits astride the vehicle engine with the gas tank in front.

Over the past decade, they  have become increasingly used as a low-cost means of personal transportation. Advances in the automotive industry have boosted sales significantly. Also, macroeconomic factors such as rising disposable incomes and urban populations continue to drive sales of two-wheelers across regions.

COVID 19 IMPACT

Reduced Dependence on Public Transport Led toMarket Gain and Greater Demand Post-COVID-19 Pandemic

The rapid spread of the COVID-19 pandemic across the globe has had a tremendous impact on people's health and lifestyle and the world’s economy to a huge extent. However, industries are progressively managing damages post-lockdown, but the retrieval rate is very steady. The disruptions in the supply chain of automotive components have impacted the product demand for this industry. However, it is expected to experience growth post-COVID pandemic, as customers are focusing on avoiding public transportation during such a pandemic. All public transport facilities were prone to contamination due to overcrowding. Therefore, people shifted towards private mobility options, with the motorcycle being a preferred choice for transportation due to its 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 become socially distanced.

Many industry professionals and OEMs, such as Honda, Harley-Davidson, and Triumph Motors, reported that they are an ideal mode of transportation as cities emerge from the quarantine phase in various regions. Moreover, because the government restricts public transportation due to social distancing guidelines, commuters opt for two-wheelers  instead of public transportation.

LATEST TRENDS 

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Electric Motorcycles are the Preferred Mode for a Sustainable Future

As the world gradually focuses on reducing fossil fuel use, larger two-wheeler companies are launching electric motorcycles. Based on this scenario, it can be analyzed that the future of such vehicles will be electric. Therefore, the focus will be more on electric hereafter. The first wave of electric models was costly, and their riding ability was very restricted. However, futuristic vehicle brands such as Damon have made motorbike technology breakthroughs. As a result, many predictions of motorbike technology became a reality in 2021. The adaptability of AI for every rider, Vehicle-to-vehicle (V2V) communication, and changes in ergonomic designs are drastically changing the two-wheeler world. Moreover, governments of various countries are making additional efforts to encourage the use of eco-friendly vehicles by supporting the purchase of electric motorcycles and scooters in terms of incentives and tax benefits.

• 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 the adoption of electric vehicles. Also, the plan proposes to sell only electric bikes from March 2025 onwards.

Furthermore, infrastructure facilities such as the governments' installation of charging stations across countries significantly boost the adoption of electric models, thereby propelling the motorcycle market share.

DRIVING FACTORS

Rapid Urbanization Coupled with the Urban Traffic Congestion is Likely to Drive the Market Growth  

Urban populations are rapidly growing. According to United Nations Conference on Trade & Development (UNCTAD) statistical handbook, the proportion of the world's urban population increased from 51.6% in 2010 to 56.2% in 2020. The proportion of the urban population has increased rapidly over the last decade.

Urbanization over the past decade has been most definite in developing regions such as Asia and Oceania. Moreover, according to the United Nations (UN) Department of Economic and Social Affairs, by 2050, almost 68% of the world's population is expected to live in urban areas. Problems with this rapidly growing urbanization include high population density, road congestion, lack of parking spaces, inadequate mobility infrastructure and climate change.

Therefore, in both developed and developing countries, road congestion, lack of parking spaces and other problems related to urbanization have increased the demand for motorcycles for compact mobility solutions such as two-wheeled vehicles. It is likely to spur market growth in the coming years.

Emerging markets in the Asia Pacific region, such as India, where urbanization is increasing at an average annual rate of around 3%, with a significant increase in metropolitan areas, are expected to accelerate market growth during the forecast period.

RESTRAINING FACTORS

Rising Safety Concerns Regarding Riding Two-Wheelers are Expected to Limit the Market Growth

Four-wheelers such as sedans, SUVs, and other cars provide more comfort, safety, and convenience than two-wheelers. Therefore populace prefers four-wheelers for long-distance rides. For instance, four-wheelers are equipped with various safety devices such as airbags, anti lock braking systems,  lock braking systems, seat belts, and other safety equipment, ensuring the driver's and passengers' safety. In contrast, two-wheelers have the least protective features for the occupants, with minimal inbuilt safety-related parts and devices. Hence, raising safety concerns regarding riding two-wheelers is hindering the market growth in the future.

In addition, an increasing number of accident cases involving two-wheelers is further anticipated negatively impact global two-wheeler sales.

• For instance, according to the National Crime Records Bureau (NCRB), in India, the share of two-wheeler occupants' death was 20.7% of total road deaths in 2009, which reached roughly 38% in 2019.

The data also mentions that in 2009 fatalities of two-wheeler occupants were 26,219, whereas in 2019, the number increased to 58,747. Therefore, the rising fatalities due to two-wheeler accidents generate safety concerns among the populace, further limiting the market growth.

SEGMENTATION

By Motorcycle Type Analysis

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Ideal Combination of Design, Riding Posture, and Fuel Economy Makes Standard Type to Dominant the Market

Based on type, the market is classified into standard, sports, cruiser, and touring. The standard segment holds the largest share of the global market. The standard type is the oldest style. They use advanced technology and a classic design to adjust the rider comfortably. India and Japan's industries are the major contributors to the global industry due to the presence of prominent two-wheeler companies. Besides, there is a huge market for lower-capacity (less than 300 cc) models, mainly concentrated in African and Asian countries, while produced in India and China. The affordable pricing of the standard type is expected to fuel the market demand for these vehicles.

Sports bikes are a high-performance-oriented category of motorbikes that feature a powerful engine and a lightweight body frame.

Cruiser bikes are usually designed for comfortable and relaxed riding with an upright position and powerful engines with loads of low-end torque. The increase in income level, a growing trend for high-performance and long-distance models, and the increasing off-roading and sports activities have fueled the demand for sports and cruiser bikes, especially among the young population across the globe.

By Propulsion Type Analysis

Infrastructure and Ease in Availability Propels ICE Segment to Hold Largest Market Share

Based on the propulsion type, the market is segmented into ICE and electric-propelled motorcycles. The internal combustion engine (ICE) segment accounts for the largest global market share owing to its wide usage across regions. The IC engine-based models have deep penetration in the global market and comprise a large portfolio of conventional fueled offerings, which has helped prominent companies gain a significant market share worldwide. Every day, more than 2 million petrol-fueled are involved in courier services, running on roads throughout the day. In addition, with the opening of many food and beverage stores in major tier 1 and tier 2 cities, the demand for fast and convenient transportation methods continues to grow, which provides an opportunity for motor companies to offer transportation methods low-maintenance and cost-effective.

The electric motorcycle market growth is also gaining high demand and is expected to be the future of the two-wheeler industry. This development is attributed to the rapidly growing vehicular emission concerns and increasing air pollution awareness. Also, the increased investments by government agencies in developing electric vehicle charging infrastructure are expected to create more opportunities for the electric model market growth. Moreover, prominent market players are working to develop electric models with maximum torque and high power to adapt to the expanding market trend of high-performance and long-distance riding.

REGIONAL INSIGHTS

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Increasing Adoption of Electric Vehicles to Propel the Market Growth in Asia Pacific 

Asia Pacific will share the maximum market share in 2022. The Asia Pacific region dominates the global market owing to high demographic growth, a larger number of middle and lower-middle-class populations, and an increasing inclination towards a private mode of transportation over public transport in this region. The Indian industry is one of the largest markets, accounting for a significant share of global motorcycle sales. The Indian government is also taking initiatives such as FAME-II to provide subsidies and tax exemptions to consumers to encourage the use of electric two-wheelers in the country. Moreover, the highest sales and production in China, the increasing demand for affordable electric models for short commutes in developing economies, and the government promoting electric two-wheelers are expected to boost the Asia Pacific market during the forecast period.

North America holds a substantial share of the global market owing to the great demand for an extensive range of sports, cruisers, and touring, propelling growth in this region.

Europe comprises a well-established two-wheeler market and is expected to grow further over the forecast period. The regional market is highly lucrative for OEMs due to the adoption of advanced technologies, highly advanced manufacturing hubs, and the increasing demand for various types of motorbikes.

KEY INDUSTRY PLAYERS

The Reliability, Versatility, and Comfort Provided by Honda Motor Company have Made it a Key Player in the Market

Honda Motor Co., Ltd. is the world's largest two-wheeler manufacturer. The company is one of the leading internal combustion engine manufacturers, with an annual production capacity of more than 14 million internal combustion engines. The total production volume of 2019 reached up to 400 million units. They envision being the leader in the advancement of mobility by developing the world’s first technologies and providing top-notch safety to riders.

Moreover, other players, including Yamaha, Bajaj, and TVS Motors, are focusing on entering the electric vehicle market by introducing new production plants and converting existing motorcycles and scooters into electric vehicles.

LIST OF KEY COMPANIES PROFILED:

• Honda Motor Co., Ltd. ( Japan)


• TVS Motor Company Ltd. (India)


• Bajaj Auto Ltd. (India)


• Yamaha Motors Co. ( Japan)


• Suzuki Motor Corporation (Japan)


• Triumph Motorcycles (U.K.)


• Bayerische Motoren Werke (BMW) AG (Germany)


• Harley-Davidson, Inc. (U.S.)


• Hero MotoCorp Ltd. (India)


• Kawasaki Motors Corp (Japan)

KEY INDUSTRY DEVELOPMENTS:

• February 2023, Japanese motorcycle manufacturer Yamaha updated its entire two-wheeler range in India to the On Board Diagnostic (OBD-II) system from April 2023. Under this, the company will introduce a traction control system (TCS) in its 150cc offerings, namely the FZS-Fi V4 Deluxe, FZ-X and MT-15 V2 Deluxe models, as standard safety equipment. According to the company, TCS will help control the ignition timing and fuel injection volume to avoid excessive slippage, ensuring efficient power delivery to the rear wheel and minimizing wheelspin, enabling better rider control of the vehicle, especially while cornering. The company also announced its gasoline offerings by the end of 2023.


• March 2023, Hero MotoCorp, (India) collaborated with Zero Motorcycles (California, USA), with Hero MotoCorp investing up to US60 million in Zero. In this collaboration, Zero motors will develop power trains with the scale of manufacturing, sourcing and marketing of Hero MotoCorp moto electric motorcycles.


• January 2023, India’s largest two-wheeler maker, Hero MotoCorp, announced of starting trial production of e20 fuel two-wheelers capable of taking any combination of e10 and e20. It has started commercial production trials for flex fuel motorcycles which will be introduced in the 100-125 cc mass market


• January 2023, Bajaj Auto will be stepping into the premium two wheeler segment by aspiring to manufacture higher displacement (above 390cc) KTM bikes for the domestic and global markets. The models will be considered in the production plan in the coming months.


• December 2022, Royal Enfield announced the  commencement of a new CKD plant in Brazil. This is the company’s fourth CKD assembly plant after Thailand, Colombia and Argentina. This new plant will be beneficial for brand growth in Latin America.

REPORT COVERAGE

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The market research report provides detailed market analysis and focuses on  many key aspects such as leading companies, product types, and 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 factors that have contributed to the growth of the market over recent years.

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