Demand for motorcycles has increased steadily over the past years due to their affordability factor, fuel efficiency, and wide variety on offer. While the outbreak of COVID-19 put a standstill to manufacturing motorcycles initially, recovery has taken place at quite a rapid pace. High demand for cruiser motorcycles is further fueling the sales for motorcycles manufacturers across geographies.
While growth of the automotive industry has become prominent over the last decade, manufacturers have come up with a flurry of inventions in order to increase their sales footprint. According to a report published by the Select USA, the United States has one of the largest automotive markets in the world. As per its report, since Honda opened its first U.S. plant in 1982, almost every major European, Japanese and Korean automaker has produced vehicles and invested more than US$75 billion in the United States.
The latest report by an ESOMAR-certified market research and consulting firm projects a steady growth rate of 3.5% CAGR for the global motorcycle market through 2031.
Key Takeaways from Motorcycle Market Study
- Asia Pacific remains the largest market for motorcycles, with its epicenter in India, holding over half of the regional market share.
- Europe to emerge as the second-largest market for motorcycles, with Germany holding more than 21% market share.
- The United States to hold more than 90% of market value for the world’s third-largest market for motorcycles – North America.
- Japan and South Korea to maintain a positive outlook throughout the forecast period, while Australia, France and the United Kingdom, to remain lucrative pockets.
- High demand for cruiser motorcycles to propel the growth of manufacturers across regions.
- Motorcycles with engine capacity of 801-1000 CC to exhibit hegemony.
“Demand for various types of motorcycles such as mopeds, sports, standard, and others, especially cruisers, is forecast to grow over the coming years,” said an analyst.
Rise in Demand for Cruiser Motorcycles Boosting Growth
Being popular for their style, comfort, slower acceleration, maneuverability and handling, cruiser motorcycles are highly demanded across the globe. As more people are inclined to purchase this type of motorcycle, manufacturers are experiencing increase in sales. According to the United States Motorcycle Industry Council, approximately 40% of bikes in the U.S. are cruiser motorcycles.
Owing to their recognizable upright riding position, usually big engine displacement with a lot of torque in low RPM, and unique look, cruiser motorcycles are gaining rapid traction among the young generation. As stated by the Motorcycle Industry Council, 24% of college graduates own a motorcycle in the United States, which is higher than 20% in the year 2014.
Who is Winning in this Space?
The global motorcycle market is getting tighter in terms of competition, while flourishing on the back of key players in the market. In order to leverage the market potential, key players are investing heavily along with launching new range of products.
- Honda Motor Company Limited reached 100,000-unit automobile production in Vietnam in 2020, and is constantly working on increasing its sales footprint further.
- A division of Eicher Motors Limited, Royal Enfield, has created the mid-sized motorcycle segment in India with its unique and distinctive modern bikes, which expanded at 32% CAGR from CY2010 to FY 2020, and is growing further exponentially.
These insights are based on a report on Motorcycle Market by Fact.MR.