GLOBAL REPORT
The global motorcycle market is growing at a healthy CAGR of 5.48%, according to Power Systems Research. Revenue for 2021 was approximately $107.1 Billion and projected to be $146.6 Billion by 2030.
Growth during this period is primarily due to increasing demand from China, India, and ASEAN countries. In addition, growth in traditional markets such as Europe and North America is also anticipated.
The growth of drivers for the Motorcycle industry come from the requirement for cost-effective private transportation among people around the world.
Other drivers of growth are:
- Increasing demand for energy-efficient transportation supported by government tax rebates and subsidies for the use electric bikes.
- The cost of petroleum.
- Increasing disposable income of middle class consumers.
- The rise in demand for sports bicycles due to the increased use of bicycles in trekking and leisure activities. An increase in the number of cycling events and biking expeditions to difficult terrains, including steep mountain ranges.
- Development of cutting-edge technologies to enhance safety, luxury, and comfort in motorcycles increases profitability.
- Rapid urbanization, change in lifestyle, surge in investments and increased consumer spending.
- The increasing number of appealing and high mileage motorcycles.
Restraints/Challenges faced by the Motorcycle Market. An increased risk of on-road accidents for motorcyclists is expected to slow market growth. The risk of death for motorcyclists is known to be 20 times that of car occupants.
High cost associated with sports bikes is projected to challenge the motorcycle market in the forecast period. However, various campaigns are initiated by governments and NGOs to use helmets and other protective measures while driving.
Regional Markets. Asian markets, including India, China and ASEAN countries are considered the largest market for motorcycles. With demand for motorcycles on the rise in developing countries, OEMs are gradually establishing new production facilities in these countries. This enables them to avoid import duties and enables them to maximize profits from the growing markets.
Investment in Electric motorcycles has pushed a rapid adoption across regions owing to their favorable environmental profiles and reduced operational costs per mile compared to traditional Internal Combustion Engine vehicles. This positive impact has helped investment in Electric Motorcycles. Investments being made by key industry players coupled with continued R&D efforts will further support market expansion.
Conclusion. Motorcycles have become one of the most preferred modes of transportation, especially among the middle-class population. Consumers are considering electronic bikes as an ideal substitute for smart cars, public transport and scooters. Around 200 million motorcycles are said to be in use around the world, or about 33 motorcycles per 1000 people. These bikes are highly beneficial in tackling traffic congestion as these bikes are smaller in size and attain higher speed. PSR
Michael Aistrup is Senior Analyst at Power Systems Research
