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Connected Motorcycle Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

Connected Motorcycle Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

  • September 2021
  • 96 pages
  • ID: 6155654
  • Format: PDF
  • Mordor Intelligence LLP


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The connected motorcycles market was valued at USD 70 million in 2020, and it is expected to reach USD 800 million by 2026, registering a CAGR of more than 40%, during the forecast period (2021 - 2026).

The COVID-19 pandemic had a negative impact on the connected motorcycle market. The worldwide lockdown and social distancing norms implemented due to the pandemic have reduced the number of vehicles sold, worldwide, consequently reducing the market potential for connected motorcycles. Additionally, with virtually no activity in tourism, the aftermarket segment of the connected motorcycle did not register much growth. However, post-pandemic, due to the gradual lockdown relaxation and increasing awareness for advantages of connected vehicles, the market looks forward to economic revival and further growth during the forecast period.

The factors driving growth in the market are growing technological advancements in communication technologies, such as improvement in internet connectivity and speed with the introduction of 5G services to support vehicle-to-vehicle and vehicle-to-infrastructure, along with the increase in demand for features, like driving assistance system, real-time safety, navigation, and GPS monitoring.

Scenario-based safety may be improved if nearby vehicles communicate with each other, with the integration of existing safety systems, such as motorcycle stability control, traction control, etc.
With the increasing income of people in the world, end users prefer technologically advanced products and are equipped with equipment that improves safety while riding and decreases the probability of any road accident. With the inclusion of connectivity features, like Bluetooth, it is expected to be easier for the driver to manage their calls while driving. Thus, this may also reduce the possibility of accidents.

Key Market Trends

Rider Assistance System is Expected to be the Market Leader

The rising number of vehicles on the road is one of the reasons for increasing road accidents. This has generated demand for warn and alert systems to notify the riders regarding the increasing speed or any other malfunctioning vehicle, which can be a possible reason for the accident. ADAS System in motorcycles includes adaptive cruise control, forward collision warning, traffic sign recognition, active brake system, and lane departure warning.

The inclusion of the ADAS system in motorcycles may provide more safety and traction control for the vehicle, enhancing the driving experience of the rider. The adaptive cruise control system is expected to have huge potential due to its capability to adjust the speed according to the surrounding environment. This system is likely to help in avoiding speed limits violations and increase fuel efficiency.

Major players are forming strategic partnerships to improve rider-assist systems for better traction in the market. For instance,

In April 2021, Minda Corporation Limited partnered with Ride Vision to use Artificial Intelligence-enabled Collision Avoidance Systems to be implemented in the Indian motorcycle market.
In December 2019, VTT and KTM Nordic Oy (KTM) started cooperation to equip the KTM motorcycle. The vehicle safety systems and sensors are intended to make motorcycles more visible to other vehicles and traffic safer and more efficient than before.
In March 2019, Suzuki revealed that they are working on an advanced rider assistance system based on radar technology.

Asia Pacific is Expected to be the Market Leader During the Forecast Period

The Asia Pacific connected motorcycles market is estimated to grow significantly during the forecast period. This growth is primarily due to increased urbanization and vehicle sales in the region. For instance, in 2020, major two-wheeler markets, like India, reported huge vehicle sales, despite the pandemic. With India recording 11,214,640 units in sales of two-wheelers in FY 2020, the opportunity for the connected motorcycles market is huge in the country.

Major ASEAN countries registered high volumes of two-wheeler sales in 2020. For instance, major countries, like Thailand, registered 1,516,100 units of motorcycles in 2020, and the Philippines registered a total of 1,206,370 units, indicating the huge market potential for the connected motorcycle market in the ASEAN countries and the Asian region as a whole.

The increased usage of motorcycles for leisure travel is another important market area for the connected motorcycle market. Better safety and warning systems for the riders in high-speed riding scenarios can be achieved via connected motorcycle systems, which can be vital for vehicle and rider safety. Additionally, with constantly growing leisure travel and tourism in the Asian and European regions, these regions are expected to present great opportunities and register a high growth rate for the connected motorcycle market.

Competitive Landscape

The connected motorcycles market is highly fragmented, with several players accounting for significant amounts of shares in the market. Some prominent companies in the connected motorcycles market are Continental AG, TE Connectivity, Panasonic Corporation, Aeris, and others. The major players are investing heavily in the R&D of products and the incorporation of new technologies.

For instance, in January 2020, Canada’s Damon motorcycles revealed connected motorcycles. The motorcycle is equipped with the BlackBerry QNX technology. Its 360-degree advanced warning system has various sensors, such as cameras and radar and non-visual sensors, to detect these threats on the road.
BOSCH introduced its Advanced Rider Assistance Systems (ARAS) in 2019, with front collision avoidance and Help Connect (for emergency). The ARAS was chosen to be equipped in motorcycles manufactured by Ducati, Kawasaki, and KTM by mid to end of 2020.
In October 2019, Vodafone Idea Intellicorp to provide 4G IoT connectivity solutions to the electric two-wheeler. Under the partnership, Vodafone Idea Business Services may provide exclusive IoT-enabled solutions to Revolt Intellicorp to enable features, such as geofencing, bike locator, and real-time bike information and diagnostics.

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