GLOBAL MARKET OUTLOOK

The global motorcycle market size was valued at USD 119.33 billion in 2021. The market is projected to grow from USD 127.44 billion in 2022 to USD 223.50 billion by 2029, exhibiting a CAGR of 8.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

Based on our analysis, the global bike market exhibited a growth of 8.11% in 2020 as compared to 2019.

A motorcycle, often known as a bike, is a two-wheeled motor vehicle built with metallic and fiber frames. Motorbikes are equipped with an engine and multiple electronic and mechanical components. The design of these bikes varies significantly to suit various purposes, including commuting, cruising, long-distance travel, sports activities, racing, and off-road riding. Bikes have been increasingly adopted as cost-effective private transportation in the past decade. 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. bike industry in 2020, which reported massive growth. As per the data, the increase in demand is likely to lead to a more than 4% increase in the U.S. production in 2020.

COVID-19 IMPACT

The rapid spread of the COVID-19 pandemic across the globe had a severe impact on people's health and lifestyle, thus prompting the world’s economy to tumble down. However, industries are progressively managing damages post lockdown, but the retrieval rate is steady. This industry is expected to witness growth post the pandemic since people will steer clear from public transportation to protect themselves from catching or spreading the virus.

Trains, local buses, and other public transport are prone to contamination as they are often crowded. Therefore, people are expected to settle for private mobility mode, with two-wheelers being their preferred choice due to affordability and convenience. During the pandemic in China and Western Europe, consumers reported a new necessity for mobility to maintain social distance and use separate devices that are clean and untouched.

According to industry professionals and bike manufacturers, such as Honda, Harley-Davidson, and Triumph Motors, as cities emerge from the quarantine phase in various regions, two-wheelers are increasingly perceived as ideal transportation. Moreover, attributed to government restrictions on public transportation due to social distancing guidelines, commuters are opting for these type of bikes as their daily transportation mode.

For example, according to the New York Times, in March 2020 sales of motorbikes in the U.S. increased by 85%. Therefore, the electric motorbike industry is expected to achieve better growth after COVID-19.

DRIVING FACTORS

With the increased adoption of cutting-edge technologies, motorbikes have become more complex and modish in 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 motorbikes 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 worldwide.

INCREASING DEMAND

In the past five years, with the rapid advancement of motorbike technology, it can be said that the future of motorbikes 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 bikes.

Also, the launch of effective and better products, the increase in sports bike users, and the growing customization trend are factors aiding the market's growth. 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, further propels bikes. Several manufacturers invent techniques to build bikes that will run on eco-friendly solar energy, gas, or electricity resources. These efforts are gaining the attraction of environmentalists.

SEGMENTATION

The market is segmented into standard, sports, and cruiser based on type. The standard segment holds the largest share in the global market. The standard is the oldest motorized bike style. It uses advanced technology and a classic design to comfortably place the handles in the upright seat. At the same time, the feet are in a natural position, and the pedals and controls are within reach. Standard bikes 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 best picks, with prices ranging from under USD 5,000 to over USD 10,000. Due to prominent two-wheeler companies, India and Japan's two wheeler industries are the major contributors to the global motorized two-wheeler industry. Besides, there is also a huge market for lower-capacity (less than 300 ccs) bikes, mainly concentrated in African and Asian countries, while produced in India and China.

Sportsbikes are high-performance-oriented bikes that feature a powerful engine and a lightweight body frame. 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 rising income level, the growing trend for high performance and long-distance bikes, and increasing off-roading and sports activities have fueled the demand for sports and cruiser bikes, especially among the young population around the globe.

Source:

Forbes Business Insights, https://www.fortunebusinessinsights.com/motorcycle-market-105164