Motorcycling in America is most definitely getting a new makeover. Competitors seeking daily how to attract new riders who desire something different from Japanese and European performance bikes or Harley-Davidson’s big cruisers.
All these changes are in response to young riders who are more or less attracted to the efficiency and fun two-wheel means of travel. Due to this stream of thought processes from the young riders, older companies like Harley-Davidson have decided to divert from their retro designs and create new electric motorcycles.
This study examines the global motorcycle industry. Motorcycles are segmented into:
Internal combustion engine (ICE), including scooters, mopeds, and motorbikes; light motorcycles; and medium and heavy motorcycles
Electric, which include electric bicycles, mopeds, scooters, and motorcycles
Based on a study presented by the Persistent Market Research, the global motorcycle market is estimated to be valued at US$ 115,720.5 Million by the end of 2018 and reach US$ 156,903.0 Million by the end of 2026, with a CAGR of 3.9% over the forecast period.
The global motorcycles market is anticipated to represent an incremental opportunity of US$ 41,182.58 Million between 2018 and 2026
Factors Influencing Growth of Global Motorcycles Market
Income and Standard of Living.
Given that demand is directly back up by the ability to pay, the demand for motorcycles is thus directly driven by the increasing middle class population across the globe, which in turn is surging exponentially the demand for affordable means of transport, such as motorcycles and scooters.
This is mostly due to the low standard of living worldwide and the desire of the low income earners to have a personal means of transportation.
Manufacturers are gearing their creativity on manufacturing conventional motorcycles with a sportier look featuring air cooled engines as these types of engines are increasingly popular among younger riders and consumers in general.
People prefer these motorcycles as they are generally equipped with larger displacement engines and provide good fuel efficiency as compared to smaller displacement engines.Economy segment motorcycles have most definitely maintained their prominence in the motorcycle market.
Improving on the mileage as well adding other advantages such as larger fuel tanks, low cost of maintenance and longevity are responsible for the preference of these motorcycles over scooters. All such features are expected to further increase the demand of motorcycles and scooters, thereby creating opportunities for the augmentation of the market in the near future.
There is this class amongst society, particularly in the affluent nations in Europe and North America that are extremely active in recreational sports such as country-side riding with high-engine capacity conventional motorcycles.
As such, this trend of recreational activities has changed the perception of conventional motorcycles in these regions and the key demographic to focus on is men above the age of 35 years.
These consumers are helped by a highly disposable income allowing them to indulge in leisure activities that revolve around conventional motorcycles such as biking stunts, racing, and off-roading.
In addition to this, the rise in motorcycling clubs of cruiser motorcycles symbolized by the iconic American giant Harley-Davidson and Indian motorcycles has spurred the growth of the global conventional motorcycles market.
Bumper-to-bumper traffic benefits the global conventional motorcycles market
The public transportation systems (taxis, buses, trains etc.) in emerging economies in Latin America, Africa, and Asia are not exactly known for their efficiency. This is the primary reason why customers in these highly populated countries prefer to commute with their self-owned vehicles.
As the per-capita income here is much lower than that of developed nations, the vehicle of choice is usually a conventional motorcycle. Conventional motorcycles have the dual benefit of being more convenient in addition to being cost-effective.
A report by Moovit states that the average commuter in Mexico spends nearly 90 minutes every day while using public transport that can be avoided by using conventional motorcycles.
The global conventional motorcycles market is approx. twice the size of the global conventional scooters market with expected sales of more than 33 million units in 2017 and a market value of over US$ 84 Bn.
Economical motorcycles triumph over scooters in the global arena
Economical motorcycles happen to dominate the global conventional motorcycles market and are highly popular in emerging economies that take into consideration fuel-efficiency over performance.
Motorcycles have numerous advantages over scooters such as a lower cost of maintenance in the long run, a larger fuel tank, and greater longevity. However, that doesn’t mean that motorcycle manufacturers have not made their products any less stylish to appeal to fashion savvy buyers.
More often than not, conventional motorcycles have a sportier look and better performance than conventional scooters, offering their buyers the best of both worlds.
Motorcycle Market Segmentation and Forecast
The global motorcycles market can be segmented based on product type, vehicle type, technology and region.
According to product type, the global motorcycles market can be segmented into motorcycles and scooters.
On the other hand, the market can be segmented on the basis of motorcycle type into standard, mopeds, sports, electric, cruiser and others.While on the basis of scooter type, the market can be further segmented into standard, maxi, enclosed, three-wheeled and electric.
Significant regions covered in the report include North America, Latin America, Europe, South East Asia & Pacific, India, China, ASEAN and the Middle East & Africa.
Motorcycle Market Analysis by Product Type
Based on the study carried out by the Persistent Market Research, the motorcycle segment is projected to account for a 67.1% volume share in the global motorcycles market by the end of 2026 with a CAGR of 3.6% over the forecast period.
The motorcycle segment bore the largest share of the motorcycle market in 2016 as a consequence of an increase in usage rate and presence of key market players putting into place the development of an extensive product portfolio.
The manufacturers happened to be more focused on developing motorbikes with smaller engines, simple designs, and affordable pricing with a view to catering to a new generation of power-sports enthusiasts and low income earners.
On the other hand, scooters segment is anticipated to be the fastest growing segment owing to advantages such as ease of use, amenability and low fuel consumption.
Recent developments in this segment have led to the increase in the engine capacity up to 582 cc, taking the case Honda’s Silver Wing ABS which is a scooter with an engine capacity of 582 cc.
Furthermore, scooters are cheaper as compared to motorbikes and are more affordable, thus making them accessible to the lower class populations.
Global Motorcycles Market Analysis by Technology
Given the rate at which technology is making breakthroughs in the motorbike sector, the electric segment is expected to grow with a significant rate over the forecast period. The segment is expected to grow with a volume CAGR of 4.9% during the forecast period. Electric bikes pose a huge challenge for conventional motorcycles.
With increasing rates of pollution globally, countries across the world have begun to search for alternate forms of energy and also tightening their fuel emission and pollution norms and imposing heavy penalties on offenders.
China, being one of the world’s largest conventional motorcycles market, is actively promoting electric bikes and this can have a substantial impact on the global conventional motorcycles market.
Electric bikes are energy efficient, emission free, low-cost, and do not require a license or any sort of registration and these factors can pose a challenge for conventional motorcycle makers.
Furthermore, the tax rate in some countries such as India has considerably increased on items perceived to be in the luxurious category. This can be seen with the increase of up to 31% tax rate levied on bikes with an engine capacity above 350cc. This will most likely decrease the motorcycle market in this dynamic country.
Global Motorcycles Market Analysis by Region
Based on the study done by the Persistent Market Research, from a regional perspective, India is estimated to represent 37.9% of the market volume share in 2018 with an anticipated volume CAGR of 4.2% over the forecast period.
The sales revenue of motorcycles in India is expected to reach US$ 57,819.3 Million by the end of 2026 with a CAGR of 4.3% over the forecast period. Market growth in ASEAN countries is expected to remain high as compared to the global average between 2018 and 2026.
The sales of motorcycles worldwide will be stimulated by rising standards of living in developing nations. China will most likely remain by far the largest national market, with India and Indonesia also important due basically to their large populations with the means to purchase inexpensive motorcycles.
There is a strong correlation between average income levels and motorcycle demand up to a certain point. In emerging economies where motorcycles are an attractive alternative to walking, riding a bicycle, or utilizing mass transit, strong growth in motorcycle sales is triggered once certain per capita income thresholds have been reached.
Due to the superior fuel efficiency these machines provide compared to automobiles and other light vehicles, motorcycle demand gains will also be supported by higher petroleum costs.
Furthermore, a rebound from the 2007-2009 recessions in developed countries like the US will lead to higher product sales, particularly of medium and heavy motorcycles, as economic conditions become more favorable and consumers resume purchasing these expensive recreational items.
Global Motorcycles Market: Key Players
Some of the key market participants reported in this study of the global motorcycles market include Bajaj Auto Ltd., Bayerische Motoren Werke (BMW) AG, Ducati Motor Holding S.p.A., Eicher Motors Limited, Harley-Davidson, Inc., Hero MotoCorp Ltd., Honda Motor Co., Ltd., KTM AG, Piaggio & C. SpA, Suzuki Motor Corporation, Triumph Motorcycles Ltd., TVS Motor Company Ltd., Vmoto Limited, Yamaha Motors Co., Ltd. and Zero Motorcycles, Inc.
Basically in the motorcycle industry, personal income levels, standard of living, lifestyle and interest rates tend to drive demand. Profitability often depends on the quantity of sales that can be achieved in any given year.
An emphasis on accessories and add-ons with high margins help to improve profitability, while larger companies like Harley Davidson can also influence profitability by using economies of scale and customization.
In America, the motorcycle industry is focused in in carlifornia in terms of sales, given that the state has the highest number of registered bikes.
Factors that will possibly hinder the growth of the motorcycle market are basically an aging population and an increase in the number of imports available in the United States.
Motorcycles are often looked at as a way to experience freedom on the open road. As numerous households cope with stagnant or falling wages, but increased costs, there is less overall disposable income available.
This means working households are not buying bikes, which is why the average age of a motorcycle owner has been steadily rising over the last decade. If the motorcycle industry can begin to adapt to some of these external influences, then there is the possibility to experience a surge in interest and sales.
Source : Persistent Market Research, Inkwood Research and Money CNN