World Demand for Motorcycles to Reach 124 Million Units

World demand for motorcycles powered by internal combustion engines (ICEs) and electric motors (“e-cycles”) will grow 7.0 percent annually through 2015 to 124 million units, reflecting both the expected rebound in the developed “triad” markets (the US, Western Europe and Japan) and continued increases in demand in emerging markets.  Sales revenues will expand strongly as well, increasing 8.7 percent annually to $67 billion in 2015 as the triad markets return to economic health.  These and other trends, including market share and product segmentation, are presented in World Motorcycles, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Motorcycles powered by ICEs, the dominant segment worldwide, will experience slower growth than e-cycles, expanding 6.4 percent annually to 85 million vehicles in 2015.  Electric-powered cycles have risen to prominence due to their explosive growth in China, which in 2010 represented 93 percent of the total market.  ICE motorcycles will remain dominant throughout the forecast period.  Light motorcycles offer greater power and better performance than scooters, mopeds and motorbikes, but have lower price tags and are less expensive to operate than medium and heavy motorcycles.  As a result, they will outsell other ICE product types, and maintain their position as the largest single segment in terms of unit volume in the motorcycle market.

The North American market will experience the strongest growth through 2015 as the US begins to regain some of the ICE motorcycle volume lost during the “Great Recession” and sees additional e-cycle growth.  Absent of US rebound effects, the fastest-growing market would be the Africa/Mideast region due to its rapidly expanding population and rising income levels.  Eastern Europe is projected to be another fast-growing region, expanding from a small base.  Population increases and higher standards of living will also stimulate demand in the Asia/Pacific region and Central and South America.

Product demand will expand at a more moderate rate in the developed countries of Western Europe and in Japan, where light vehicles are the primary form of personal transportation, and motorcycles are generally considered to be luxury goods used for recreational purposes.  Nevertheless, high energy prices, city center congestion (especially in Western Europe) and personal income growth will provide some momentum to motorcycle sales advances in these areas.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.