The global connected motorcycle market was valued at USD 69 million in 2021. It is expected to reach USD 1,424 million by 2030, growing at a CAGR of 39.9% during the forecast period (2022–2030). The connected motorcycle is an innovation that has come out recently to help people move around intelligently. Connectivity solutions to add networking features to a motorcycle also make riding safer and more comfortable. The connectivity system monitors the safety, comfort, and security features of a connected motorcycle. These features include advanced light and heat management, keyless starting of the bike, tire pressure monitoring, emergency call, and others. Smartphones or music players can be paired with the motorcycle so the rider can use them for navigation and streaming music. The rider can control these devices directly from the dashboard.
The global connected motorcycle market is expected to grow due to the growing popularity of connectivity solutions in vehicles and the safety features of connected motorcycles. However, the growth of the market is slowed by the risk of data hacking and the lack of infrastructure that makes connections easy and uniform. Conversely, the use of 5G connectivity to power connected mobility is expected to give the connected motorcycle market a great chance to grow during the forecast period.
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Over time, smartphones have changed what it means to be connected. People want to stay in touch with the outside world even when traveling. Now that connectivity is more critical than ever, vehicle companies are using connectivity solutions to boost sales. People expect their vehicles to be able to do things like computers and smartphones. Adding connectivity features to a vehicle has become essential for automakers. Modern motorcycles have a lot of ways to connect to the Internet that need to be connected to the Internet to work. Leading automotive manufacturers are also putting connectivity systems in motorcycles so they can know everything about how people move.
For example, in May 2019, Telefonica, a company that makes phones, added a connected device to Honda motorcycles that make it possible to track their location in real-time. Also, the connected device has a GPS, a SIM card, and an accelerometer to get all the data it needs about movement. Additionally, in case of an emergency or accident, the GPS in the motorcycle sends the exact coordinates so that the medical team can get there as quickly as possible. Therefore, the growth of the connected motorcycle market is driven by the rising popularity of connectivity solutions in vehicles.
Connected motorcycles have a very advanced system that reads the roads and alerts the riders about traffic, potholes, construction, obstacles, road curves, etc. The Connected Motorcycle Consortium (CMC) is a group of manufacturers, suppliers, researchers, and others working to make motorcycles part of connected mobility. CMC is also working on motorcycles to make them safer for riders by preventing accidents on the road.
One of the primary jobs of a connected motorcycle is to warn the rider when there is a chance of danger. For example, a safety feature on a connected motorcycle called motorcycle approach indication (MAI) lets the rider know when another motorcycle is coming up behind him, even if the rider cannot see it. Also, a traffic jam warning (TJW) lets the rider know that a traffic jam is coming up, so the rider can choose a different route or slow down to avoid it. Therefore, the growth of the market is likely to be helped by the number of features connected motorcycles offer.
Connectivity technology in motorcycles should improve traffic flow and keep riders safer, but they could also be a target for hackers and cybercriminals. Cyberattacks are becoming more likely because communications and software interfaces are getting more complicated. Also, it is crucial to have suitable safety measures and strong and effective cyber security solutions because cyber breaches can lead to personal data loss, make vehicles less safe, or even cause accidents.
Connected motorcycles use GPS services to find locations and provide accurate guidance. Anyone can access the data from the GPS satellites because it is in the public domain. Hackers can also change the GPS data to make vehicles go in the wrong direction or control where they go. This makes it hard for the rider to feel safe and secure. Therefore, the threat of data hacking will likely slow the growth of the market for connected motorcycles.
Connected motorcycles use the Internet to link systems and services both on the motorcycle and away from it. This lets the rider access the motorcycle's data and enjoys a smoother ride. The vehicle's human-machine interface, warning sensors, and data transfer are still in the early stages of development on the connected motorcycle. Also, the main goal of a connected motorcycle is to keep the rider in touch with the outside world. To do this, the rider must always have access to the Internet, even when moving.
Consumers expect their motorcycles to do things like their computers and smartphones. However, the connected motorcycle may not be as helpful if it cannot always stay connected to the Internet. This stoppage is mainly caused because service providers' networks are not always the same in different areas. Therefore, the growth of the connected motorcycle market is held back by the lack of seamless and uniform connectivity infrastructure.
After 2G, 3G, and 4G, 5G is the fifth generation of mobile networks and the new global standard for wireless connections. The 5G network offers a new kind of network that connects everything and everyone, including objects, machines, and devices. Adopting 5G in connected mobility makes communication more reliable and makes smart cities and connected motorcycles safer. It also reduces latency by about one millisecond over the air, making devices more responsive to requests. The 5G technology is expected to positively affect the economy.
For example, a 5G Automotive Association study found that deploying Cooperative Intelligent Transport Systems (C-ITS) could give Europe about €43 million by 2035. Most of these benefits would come from improved road safety and traffic flow. So, adding 5G connectivity to power-connected mobility would be an excellent way for companies in the connected motorcycle market to grow.
The global connected motorcycle market is segmented by connectivity network and service.
Connectivity network-wise, the global connected motorcycle market is classified into Cellular and Dedicated Short-Range Communications (DSRC).
Cellular Network accounts for the maximum market share and is expected to grow at a CAGR of 39.7% during the forecast period. A cellular network is a high-speed, high-capacity data and voice communication network that supports cellular devices with improved multimedia and seamless roaming. Cellular networks are also the best way for connected motorcycles to talk to each other reliably because they are becoming more popular. This is gaining popularity in the global market.
Dedicated short-range communication is two-way wireless communication that works over short to medium distances and lets a lot of data be sent. This is very important for active safety applications that rely on communications.
Service-wise, the global connected motorcycle market is divided into Driver Assistance, Safety, and Entertainment.
Safety Service accounts for the largest market share and is expected to grow at a CAGR of 37.6% during the forecast period. Safety in connected motorcycles means that the bike can give the rider information that helps them make safer and better-informed decisions to avoid accidents. It can also share driving information with other connected vehicles so that they can take safer routes.
A Driver Assistance system uses satellite images to help the driver. It was first thought of as a car application but later began to be used in motorcycles. This system uses a GPS device to determine where the user is on the road. Using the rider's current location, the system can tell them how to reach their destination.
During the forecast period, the connected motorcycle market for entertainment is expected to grow swiftly because more people want to connect their vehicles to the Internet. The trend of fleet vehicles is the main reason behind the demand of customers to have connectivity to propel entertainment services while driving. The entertainment services include video and audio streaming while riding the motorcycle in a fleet by establishing a smart and seamless network connection between the motorcycles.
The global connected motorcycle market is primarily segmented into four regions, namely North America, Europe, Asia-Pacific, and the Middle East and Africa.
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Europe is the biggest contributor to the global market for connected motorcycles and is expected to grow at a CAGR of 35.8% during the forecast period. Top automotive manufacturers and insurance companies are working together to create a new line of connected motorcycles that will make roads safer and reduce accidents. Additionally, manufacturers are adding new ways to call for help in an emergency, making connected motorcycles safer and eventually leading the European market to earn the highest revenue among other regions.
North America accounts for the second-largest share of the market and is expected to reach USD 213 million, growing at a CAGR of 41.3% during the forecast period. North America comprises the United States, Canada, and Mexico, wherein the United States has the most influence on the North American market. Mexico, on the other hand, is expected to grow at a speedy rate over the next few years. Breakdown call (bCall) technology companies are releasing a new range of connectivity technologies for connected motorcycles. This is expected to help the market grow in North America.
Leading motorcycle companies in Asia-Pacific are joining the connected motorcycle consortium. This is a group of manufacturers, suppliers, and others working together to develop connected motorcycle technologies. This is expected to boost the connected motorcycle market in the Asia-Pacific region. In the APAC region, China and Japan together make up about 56.9% of the market, with China accounting for 37.8% of the market. India and South Korea are expected to earn a comparatively higher CAGR of 50.5% and 46.6% during the forecasted period.
The major key players in the global connected motorcycle market are Aeris, Autotalks Ltd., BMW AG, Hero Motocorp Ltd., Kawasaki Heavy Industries Ltd., KTM AG, ROBERT BOSCH GmbH, Triumph Motorcycles, etc.