Motorcycling in America is changing as industry leaders and new technology competitors are trying to attract newer/younger riders who want something different from Harley-Davidson’s big cruisers or screaming Japanese and European performance bikes.
The changes are in response to younger riders who are attracted to the efficiency and fun of two-wheel travel associated with e-motorcycles, while older riders are losing interest, or simply becoming unable to ride any longer.
At present, e-motorcycles remain a niche market. Riders are typically city dwellers in their early 40s–slightly younger than the average age of a U.S. motorcycle rider, which is 47, according to the Motorcycle Industry Council’s U.S. Motorcycle Owner Survey — and uses the bike to commute.
“Millennials and Gen X’ers, they aren’t always seeking to make motorcycling a lifestyle, where it’s kind of everything you live for,” said Tim Buche, past President and CEO of the Motorcycle Industry Council. These younger riders are looking for motorcycles suited to a more casual relationship rather than a serious commitment. The kind of people who “tend to have both the discretionary income to go and just buy a brand-new electric motorcycle and have the mindset to be an early adopter of technology,” according to Sam Paschel, CEO of Zero Motorcycles.
Almost 70% of millennial riders are interested in e-motorcycles, according to the 2018 Motorcycle Industry Council ownership survey. Women, who account for 20% of motorcycle riders, make up 40% of e-motorcycle owners.
Like electric cars, e-motorbikes make up about 1% of the national market for new vehicles purchases, but the segment is expected to grow as battery prices come down in price. E-motorcycles currently cost about 50% more than their g-powered motorcycles but are expected to reach price parity by 2025.
Motorcycle sales, particularly in the United States, have been struggling ever since the 80’s. The industry is hoping that e-motorcycles might be the key to attracting new riders. According to Market Research Future, they expect the global electric motorcycles market to witness a 10.35% CAGR from 2019 to 2025.
The market for electric motorcycles in the Asia Pacific is projected to rise at the highest CAGR. This is due to increasing concerns about carbon and greenhouse gas emissions, which contribute to a rise in the need for fuel-efficient vehicles. The growing population, the rise in traffic congestion, the dropping prices of electric motorcycles, and increasing environmental issues add to the growth in the Asia Pacific sector. Constantly growing demand for e-motorcycles in developing countries, such as India and Thailand, is expected to provide growth opportunities in the global market for e-motorcycles.
Factors Contributing To The Growth of Electric Motorcycles
- A supported network of DC Fast Charge (DCFC) stations that are easy to locate with mobile telephone Apps. Riding an e-motorcycle to a station and charging up is easy with many convenient stations.
- Regenerative braking.
- Low noise levels.
- With an electric motor, there’s no need to shift gears, which is easier for American drivers to ride.
- Electric motorcycles also qualify for federal and state tax credits, like those for electric cars, although in smaller amounts. Any e-motorcycle that can go at least 45 mph is eligible for a 10% tax credit, up to $2,500.
- The bikes also don’t have hot engines and exhaust pipes that can burn riders, especially kids.
- They are built for higher speeds, quick acceleration and high-speed handling at the same time they are capable of slow urban trips.
- Some industry experts estimate the cost of running an e-bike is about one-tenth that of a conventional motorcycle — but you can still ride longer on a tank of gas.
Some Tradeoffs:
- E-motorcycles have the same disadvantages as e-cars. The price for a new car is very high and the range is limited. E-motorcycles can only accommodate a small battery, so they have a lot less range than traditional motorcycles. The range diminishes greatly during high-speed highway cruising because the bike’s e-motor has to compensate for increased wind resistance against the rider’s body.
- The distribution network, especially for smaller less known brands, is still very low and concentrated in major metropolitan cities.
- The effect of COVID-19 on the overall motorcycle industry is high due to the closure of manufacturing facilities, which has resulted in a decline in motorcycle and e-motorcycle production. Delays in product launches and delays in distribution and final assembly also impede the growth of the industry.
- In the future, when shutdowns are lifted, the rebound of the manufacturing sector is expected to improve the production and sales of e-motorcycles.
E-powered motorcycles are catching on at a rapid pace. These new motorcycles may not have the deep, rumble of their gas-engine counterparts, but the payoff for comes in cost efficiency, eco friendliness and quick acceleration. PSR
Michael Aistrup is a Senior Analyst at Power Systems Research
