On-Road Motorcycle Market

Market Overview

The global on-road motorcycle market size was valued at USD 55.6 billion in 2021 and is projected to reach USD 93.94 billion by 2030 at a CAGR of 6% from 2022 to 2030.

A motorcycle, also known as a bike, is a two-wheeled motor vehicle with metallic and fibre frame construction. Motorcycles feature a motor and multiple electronic and mechanical components. The design of these bicycles varies greatly to accommodate a variety of uses, including commuting, cruising, long-distance travel, sports activities, racing, and off-road riding. In the past ten years, bicycles have gained popularity as a low-cost mode of personal transportation. Despite the fact that advancements in the automotive industry have substantially increased sales, macroeconomic factors such as an increase in disposable income and urban population have further bolstered sales in interregional markets.

Market Dynamics

Drivers For The Global On-Road Motorcycle Market

The Rising Demand For Two-Wheelers Drive The Market

The future of motorcycles has arrived in the last five years due to the rapid development of motorcycle technology. The increasing disposable income of consumers, the improvement in living standards, the increase in the number of young people, and the changing preference of the elderly to own a vehicle rather than rely on public transportation have all contributed to the increase in demand for bicycles.

In addition, the introduction of more efficient and superior products, the rise in the number of sports bike users, and the escalating trend toward personalisation all contribute to the expansion of the market. Moreover, technological advancements in manufacturing processes, design, and electronics, as well as the rising demand for safety features and driver assistance to provide a safe and comfortable environment, especially for long-distance riding, further propel the growth of the bicycle industry. Multiple manufacturers invent techniques for constructing bicycles that run on eco-friendly solar energy, gas, or electricity sources. Environmentalists are becoming interested in these efforts.

Adoption Of Advanced Technologies Propels The Market Growth

Motorcycles have become more sophisticated and stylish in terms of safety, comfort, and opulence as a result of the widespread adoption of cutting-edge technologies. For instance, the invention of the anti-lock braking system (ABS) is gaining widespread acceptance among manufacturers, which indirectly increases sales. ABS uses data from the throttle control and inertial measurement unit (IMU) to maintain the bike's stability during sharp turns and emergency manoeuvres. Manufacturers are incorporating Bluetooth and hands-free options into helmets to improve connectivity with other riders and eliminate the need to answer calls or use smartphones for navigation. In addition, modern motorcycles are typically equipped with a slip clutch that partially disengages when the rear wheel attempts to propel the engine at speed greater than its power. The slip clutch was initially designed for high-performance super sports motorcycles and equipment used exclusively for track and field sports, but its use has since expanded.

As an example, Honda has pledged to increase the installation of advanced braking systems as part of its commitment to the European Road Safety Charter. This ultimately contributes to the global increase in bicycle demand.

Restraints For The Global On-Road Motorcycle Market

The Risk of Accidents Restricts The Market

Despite the rapid development of motorised two-wheelers as a result of their numerous advantages and advancements, the increasing risk of road accidents for riders frequently acts as a market restraint. According to data from the European Commission, approximately eighty per cent of motorcyclists killed on the roads sustained head injuries; as stated in the report, two-wheeled vehicles are the most dangerous way to travel on the roads, and in the European Union, more than 6,500 two-wheeler riders die each year, and the risk of death for riders is twenty times that of the passengers.

Opportunities For The Global On-Road Motorcycle Market

The EV Segment Is Expected To Bring In New Opportunities

As the world's fossil fuels are gradually depleted, larger companies launch electric motorcycles and consider this. It can be said that electric motorcycles are the future. Consequently, the emphasis will shift to electric bikes in the future. The first wave of these electric bicycles was expensive and had very limited riding capabilities. However, futuristic motorcycle brands such as Damon have advanced motorbike technology. In 2020, many predictions regarding this technology had been realised. The adaptability of TAI for every rider, Vehicle-to-vehicle (V2V) communication, and modifications to ergonomic designs have a profound effect on the two-wheeler industry. Moreover, governments in various nations are making additional efforts to promote eco-friendly vehicles by providing incentives and tax credits for electric two-wheelers and scooters.

In June 2019, for instance, the Indian government announced a plan to reduce the Goods and Services Tax (GST) on electric vehicles from 12 per cent to 5 per cent in an effort to accelerate the adoption of electric vehicles. In addition, the plan proposes selling only electric bicycles beginning in March 2025. Moreover, infrastructure facilities, such as the installation of charging stations across nations, significantly boost the adoption of electric bikes, thereby driving market expansion.

Regional Analysis

In 2021, Asia-Pacific accounted for more than 60 percent of the total revenue. According to Mark Lines Co., Ltd., India and China accounted for the majority of the on-road motorcycle market's revenue in 2020. Due to the high demand for on-road motorcycles in emerging Asian nations such as India, Japan, Indonesia, and Vietnam, original equipment manufacturers (OEMs) are constructing manufacturing facilities in these nations to avoid import duties and gain a competitive edge in the motorcycle industry. Thus, it is anticipated that the aforementioned factors will contribute to the revenue of the region's market for on-road motorcycles.

From 2022 to 2030, Europe is anticipated to experience the second-highest CAGR, at 6%. According to the European Association of Motorcycle Manufacturers (ACEM), in 2020, major European countries such as Germany, Italy, France, the United Kingdom, and Spain accounted for approximately 80 percent of revenue. The expansion of Europe's travel and tourism industry has led to an increase in bike-rental services, thereby boosting demand for on-road motorcycles.

Honda Motor Co., Ltd. is the largest manufacturer of bicycles in the world. With over 14 million internal combustion engines produced annually, the company is one of the leading manufacturers of internal combustion engines. Up to 400 million units were expected to be produced in total during 2019. It aspires to be the leader in advancing mobility by creating the world's first technologies and providing riders with the highest level of safety.

Segmental Analysis

This market can be segmented on the basis of product, application, regions and competitors. Based on Product, the market is divided into 50-100CC, 101-125CC, 125-150CC, 151-300CC, 301-500CC, 501-800CC, 801-1000CC, and Others segments. Because Sports bikes have a powerful engine with rising performance and are light compared to other Motorcycles, the 1000CC segment is anticipated to experience the highest market growth during the forecast period. Increasing trends for high performance, as well as an increase in off-roading and certain sports, have resulted in the highest product type in the modern marketplace.

The market is divided into Sports Motorcycles and General Motorcycles on the basis of Application. During the predicted period, the market for General Motorcycles is anticipated to grow the most. This is the earliest motorcycle design. A combination of modern technology and vintage motorcycle design resulted in the inverted placement of the motorcycle's handlebars. The General motorcycle is on the lower end of the power spectrum when compared to a sports motorcycle. Therefore, the general has the highest CAGR during the anticipated period.

Recent Developments

• Piaggio and Zongshen collaborated on a new 150 cc scooter engine in January 2022. The new engine features liquid cooling and electronic fuel injection.
• Yamaha introduced the Yamaha EMF, an electric scooter powered by the company's interchangeable batteries, in January 2022. The Yamaha EMF designed to operate within the Gogoro battery is powered by the Gogoro battery. -swapping
• Piaggio plans to launch 'Make in India' motorcycles by 2023, as of January 2021. Piaggio intends to manufacture a motorcycle in India for the Indian and international markets. By the end of 2023, the company will concentrate on manufacturing 300cc to 400cc engines.
• - May 2021 - Yamaha Motor Co., Ltd. launched the new YZF-R7 supersport model in Europe and the United States, with a 700 cc engine based on Yamaha's Crossplane Concept and a lightweight chassis, with a domestic launch in Japan scheduled for the winter of 2021.