The global market for motorcycle components, including those for electric bicycles (e-bikes) and electric motorcycles (e-cycles), is forecast to expand 7.5 percent annually to $119.5 billion in 2017, according to The Freedonia Group, an international business research company.
The company reports that the Asia/Pacific region, which has both the highest motorcycle production and the most motorcycles in use, will continue to dominate worldwide demand, representing four-fifths of total motorcycle parts demand in 2017. Demand for OEM motorcycle parts is directly related to motorcycle production, whereas aftermarket demand is tied to the motorcycle stock. Both output and stock are expected to grow as a result of rising standards of living in developing nations. OEM motorcycle parts will continue to account for the majority of the market total in 2017, representing 55 percent of all sales.
Engine and drivetrain parts will remain the largest component product category in dollar terms because they account for the greatest percentage of total parts costs, regardless of the model. Products in this segment, as well as those included in the structural group, derive the vast majority of their sales from OEM applications. Almost all of these parts have low replacement rates, as they are designed to last the useful life of a motorcycle. Tires and the products in the electrical, electronic and other miscellaneous component categories tend to have higher replacement rates, and suppliers rely on aftermarket parts sales for the bulk of their revenue.
The fastest growth among major motorcycle component categories will be registered by tires, with the replacement market accounting for more than four-fifths of incremental demand generated from 2012 to 2017. Sales of electrical and electronic parts will climb at the second-fastest rate, supported by growth in the motorcycle stock and rising output of e-bikes and e-cycles, many of which use more expensive batteries than those installed in conventional internal combustion engine (ICE) motorcycles.
|Item||2007||2012||2017|| % Annual
|Motorcycle Component Demand||64550||83150||119500||5.2||7.5|
|Central & South America||2545||3675||5315||7.6||7.7|