The global connected motorcycle market size is projected to grow from USD 55 Million in 2021 to USD 757 Million by 2027, at a CAGR of 54.7%. Factors such as rising premium motorcycle sales around the world, growing demand for motorcycle safety and driver assistance along with growing demand for usage-based insurance and infotainment systems in motorcycles will boost the demand for the connected motorcycle market. The upcoming regulations for rider safety in motorcycles in countries around the world will also boost the market.
Commercial segment is estimated to account for the largest market during the forecast period
Commercial users of connected motorcycles include fleet managers, insurance providers, and other service providers. All these stakeholders rely on real-time vehicle data collected using a tracking device. For instance, a tracking device in a vehicle can be installed under the bonnet or on the windscreen. It collects vehicle data for analysis by a network provider. The network provider then provides information to the insurance provider.? Vodafone Automotive offers usage-based insurance for vehicles in partnership with Generali Group. These insurers also offer additional value-added services such as theft alerts, crash assistance, roadside recovery, and emergency services including eCall and bCall. Usage-based insurance reduces the cost of premiums while offering easy claims. An accident/crash scene can be accurately reconstructed using the collected data. Hence, it helps reduce the number of false claims. Companies like Hertz Ride, Bikesbooking, Eagle Rider, Riderly, MdorNomad, RentaRide, Edelweissbike, Indian Motorcycle, and RetroVentures provide motorcycle leasing services for private individuals and corporations. They use connected vehicle features for their ride-hailing services. Many logistics companies also use connectivity services on their motorcycles to enable location tracking and vehicle dynamics for their delivery personnel. This leads to a rise in demand for connected motorcycles in the commercial vehicle sector.
With increasing technical developments in cloud platforms and the availability of 5G networks, intelligent instrument clusters are expected to become a standard feature in the premium two-wheeler segment. The availability of a fast and reliable 5G network enables OEMs to process a large volume of real-time data on the cloud. For instance, if a connected car ahead applies brakes or lowers the speed suddenly, the connected motorcycle behind must anticipate that event on time so that the rider can act quickly. Also, other safety features such as brake assistance and collision warning analyze data that demands higher bandwidth and low latency cellular connectivity for the proper functioning of safety features. Hence, OEMs are shifting from onboard processing to cloud-based solutions. Cloud solutions comprise faster processing units with built-in algorithms that can process a large amount of data quickly and provide real-time predictions and features. As cloud infrastructures are maintained by OEMs or third-party cloud providers, these initiatives would eliminate the need for costly onboard control units and reduce the chances of failure. Further advancements in cellular connectivity would increase the adoption of connected services for motorcycles.
Asia Pacific is expected to be the fastest-growing market in the forecast period.
The Asia Pacific region comprises major motorcycle markets such as China, India, Indonesia, the Philippines, and Vietnam. The region accounted for more than 90% of the global motorcycle sales in 2020. As two-wheelers are a preferred mode of transportation due to affordability and low maintenance, Asian countries such as India, Thailand, Indonesia, and Vietnam have a high motorcycle penetration. Mid and budget-segment motorcycles dominate the market in these countries. However, with a steady increase in disposable income and rising demand for high-performance motorcycles, the region has attracted a number of premium motorcycle manufacturers.
