Connected Motorcycle Market Size, Share & Trends Analysis Report By Service, By Hardware, By Network Type, By Communication Type, By End-user, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global connected motorcycle market size was valued at USD 38.9 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 48.4% from 2020 to 2027. The automotive sector is witnessing technological advancements in design, electronics, and manufacturing processes across the world. The connected motorcycle is the latest technology integrated into motorcycles to offer intelligent and smart two-wheeler mobility. The rider can monitor various key areas of the motorcycle such as bike status and alerts, battery charging, system upgrades, and updates, and ride data. Furthermore, the increasing customer demand for driver assistance and safety features for a safe and comfortable riding experience is expected to drive the market demand. Connected motorcycles have technologically advanced systems such as GPS, safety, and security system that predominantly read the road and offers alerts to the bike rider for road curves, obstacles, traffic, or potholes.

This technology collects and records information, which can be accessed by the end-user from anywhere. In addition, end-users can monitor the real-time performance of their motorcycle. In 2020, the market is expected to have a noteworthy impact due to the COVID-19 pandemic. The stringent measures and recent lockdown to contain the COVID-19 pandemic have paralyzed motorcycle retail business activity across the world. The pandemic has rigorously disrupted supply chains and manufacturing operations. This situation is particularly challenging for motorcycle manufacturers and dealers. However, the fear of public transportation is anticipated to motivate some customers to commit to purchasing motorcycles in 2020-21.

Additionally, vehicle telematics has opened new growth opportunities for third-party service providers and OEMs. The on-board sensors store necessary motorcycle information such as parking locations, trip information, riding mode, and speed, among others. The manufacturers can analyze this data and profile end-users according to their driving history. This data may be useful for manufacturers for the warranty claim process. Moreover, manufacturers can notify the consumer about the latest service maintenance to avoid costly repairs.

Innovations in the automobile industry have paved the way for a better and improved vehicle with security and safety features which has contributed to the market growth. However, the high cost of connected motorcycles and the systems limit the buyer's group to consumers with higher spending capacity, which may also hinder the connected motorcycle market growth over the forecast period. The price of the connected motorcycle is expected to fall further and come at par with other competing technologies once the demand picks up.

Moreover, the increasing trend of long-distance bike riding and rising preference for off-road biking are expected to boost motorcycle industry growth in the coming years. Additionally, the growing demand for electric motorcycles, which is one of the new state-of-the-art technologies in the two-wheeler industry, is anticipated to drive market growth. Also, prominent market players are involved in the development of smartphone applications to enhance vehicular connectivity. For instance, mySPIN two-wheelers is a smartphone integration solution for motorcycles compatible with Android and iOS apps.

Service Insights

The infotainment service segment led the market and accounted for more than 30.0% share of the global revenue in 2019. By service, the market is segmented into vehicle management & telematics, infotainment, safety, driver assistance, and insurance. Infotainment service includes features such as turn-by-turn navigation, calls and messages, and music controls, among others. The motorcycle navigation systems can be connected with smartphones to the helmet or headset through Bluetooth and offer audible directions to the commuter. Such developments are projected to foster a positive influence on the infotainment service market.

The driver assistance service segment is expected to be the second dominating segment due to the growing demand for alert and warn systems to manage speed and avoid possible accidents. For instance, according to the World Health Organization (WHO), more than half of all road traffic accident deaths are arising among road users such as cyclists, pedestrians, and motorcyclists. Driver assistance service includes features such as traffic jam warning, green light optimized speed advisory, lane change warning, and in-vehicle signage, among others. These systems are developed and designed to help the end-user maneuver with ease for an enjoyable bike riding experience. Thus, the market is expected to witness considerable growth over the next seven years.

The vehicle management and telematics service segment are expected to expand at the highest CAGR of 50.2% from 2020 to 2027. This is owing to the extensive usage of low-cost Bluetooth modules in motorcycles and the requirement for timely diagnosis of high-performance engines and easy access to e-motorcycle battery charging status. For instance, Vodafone Automotive SpA has been collaborating with OEMs to enable advanced mobile connectivity and telematics services in two-wheelers. The automotive segment of the telecom market player is providing an embedded telematics system in several new ranges of connected scooters such as Yamaha TMAX DX and TMAX SX models.

Hardware Insights

The embedded hardware segment led the market and accounted for more than 70.0% share of the global revenue in 2019. By hardware, the market is segmented into embedded and tethered. The embedded connectivity module includes an electronic control unit, a GSM module, a GLONASS/GPS system, and other essential sensors. The growing demand for embedded hardware from the OEMs due to its non-dependency on external devices, in turn, is further expected to drive market growth.

Additionally, the growing dependency on connectivity devices such as fast communication systems and an on-board GPS unit for real-time security and safety accelerates the demand for embedded systems. Moreover, the connectivity devices cannot depend on other inferior quality dongles or smartphones for real-time security and safety features. Hence, an embedded connectivity module will be a preferred choice of motorcycle OEMs to provide reliable safety and security features.

Moreover, the tethered hardware segment is expected to expand at the highest CAGR of 51.7% from 2020 to 2027. Tethered hardware devices for a connected motorcycle have technologically advanced software algorithms along with several pieces of hardware systems to offer security and safety. The tethered safety products for connected motorcycles are considerably effective and precise, which will propel the tethered segment growth.

Communication Type Insights

The vehicle-to-vehicle communication type segment led the market and accounted for more than 50.0% share of the global revenue in 2019. By communication type, the market is segmented into vehicle-to-vehicle (V2V), and vehicle-to-infrastructure (V2I). Vehicle-to- infrastructure (V2I) technology helps the rider avoid road collisions and prevent dangerous circumstances by allowing vehicles to communicate with road infrastructure, other vehicles, and other road users.

Vehicle-to-vehicle communication type technology has a great impact on vehicle safety. This type of vehicle-to-vehicle communication helps motorcycles to access information about the position and speed of other V2V-enabled vehicles surrounding it using a similar protocol. This data can be used to alert riders of potential dangers, helping to lower traffic congestion and accidents. The vehicle-to-vehicle communication type technology has the power to make bike riding a safe and more predictable activity for everyone on the road; this, in turn, is further expected to drive the market growth.

End-user Insights

The commercial segment led the market and accounted for more than 50.0% share of the global revenue in 2019. By end-user, the market is segmented into commercial and private. The integrated and connected motorcycles help inform the rider about vehicle maintenance to reduce the bike's unexpected breakdown. This major factor leads to an upturn in demand from the end-user for commercial use, which is expected to witness considerable growth over the next seven years.

Besides, newer collaborations involving telecom operators, technology companies, government policymakers, suppliers, and automobile manufacturers are ensuring a better-connected motorcycle driving experience with enhanced security and safety through technological innovations. However, the private end-user segment is anticipated to grow at a substantial rate over the forecast period. The growth is mainly because of the rise in per-capita income of individuals and comprehensively increasing disposable income in developing and developed nations.

Network Type Insights

The cellular V2X (C-V2X) network type segment led the market and accounted for more than 50.0% share of the global revenue in 2019. Based on the network type, the market can be segmented into cellular V2X (C-V2X) and Dedicated Short Range Communication (DSRC). Cellular V2X is the modern cellular communications technology, which includes low latencies, multiple-input multiple-output (MIMO) and beamforming, downlink speeds of about 100Mbps, carrier aggregation increased channel bandwidths, and many other features. C- V2X network facilitates fast connectivity between roadside infrastructure and vehicles.

Previously, the Long-Term Evolution (LTE) 3GPP release 13 did not support vehicle-to-everything infrastructure owing to its high latency and low speed. Therefore, automobiles in poor network coverage regions were not able to communicate. Afterward, the LTE release 14 included much-needed support for vehicle-to-everything infrastructure. It supports operation in areas with poor connectivity networks and offers direct device-to-device communication even at higher vehicle speeds.

The growing availability of 5G is expected to be instrumental in the growth of cellular-based vehicle-to-everything communications. 5G-based cellular communication fulfills the requirements for better mobility support, scalability, and reliability. In addition, Qualcomm Technologies, Inc., AUDI AG, Ford Motor Company, and Ducati Motor Holding S.p.A demonstrated cellular V2X direct communication technology at the CES 2019. Thus, these factors are expected to drive cellular-based communication growth in the market.

Regional Insights

Europe dominated the market and accounted for over 45.0% share of global revenue in 2019. The region has a strong foothold of market players, such as Triumph Motorcycles, KTM AG, Robert Bosch GmbH, and BMW AG. BMW AG has launched connected motorcycles such as R 1250 GS Adventure, R 1250 GS, F 850 GS, and F 750 GS in the European market. Furthermore, Europe is home to several component manufacturers such as Robert Bosch GmbH, Starcom Systems Ltd., and Continental AG.

Besides, Asia Pacific is expected to be the most attractive regional market as the region comprises key motorcycle markets such as India, China, Japan, Vietnam, the Philippines, and Indonesia. Furthermore, increasing disposable income, growing adoption of technological innovations, and growing sales of premium bikes in the region are projected to fuel the regional market growth over the forecast period. Moreover, the presence of Japanese motorcycle manufacturers in the region such as Suzuki Motor Corporation, Honda Motor Company Ltd., Kawasaki Heavy Industries Limited, and Yamaha Motor Co., Ltd. is expected to drive the market growth. For instance, Yamaha Motor Co., Ltd. launched its TMAX DX and TMAX SX scooters with connectivity services provided by Vodafone.

Key Companies & Market Share Insights

The key players that dominated the global market in 2019 include BMW AG, Suzuki Motor Corporation, Honda Motor Company Ltd., Kawasaki Heavy Industries, Ltd., and Yamaha Motor Co., Ltd. These industry players emphasize collaborations with communication technology and software companies to enhance their product offerings and services to increase their market share. For instance, in April 2020, Yamaha Motor Co., Ltd, Honda Motor Company Ltd., Suzuki Motor Corporation, and BMW AG signed a Memorandum of Understanding (MoU) to start the discussion to continue their cooperation beyond 2020. MoU aims to enhance rider safety by ensuring that scooters and motorcycles sustain their role in future mobility developments.

Other third-party solution providers operating in the market are Würzburger Institut für Verkehrswissenschaften GmbH, ALPS ALPINE CO., LTD., Autotalks Ltd., and Alpinestars, among others. The market players continuously undertake strategic initiatives such as new product launches, joint ventures, contracts and agreements, and partnerships in sustaining their market position. Some of the prominent players in the connected motorcycle market include:

• BMW AG

• Triumph Motorcycles

• Robert Bosch GmbH

• Panasonic Corporation

• Vodafone Automotive SpA

• Continental AG

Connected Motorcycle Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2027. For the purpose of this study, Grand View Research has segmented the global connected motorcycle market report on the basis of service, hardware, communication type, network type, end-user, and region:

• Service Outlook (Revenue, USD Million, 2017 - 2027)

  • Driver Assistance

  • Infotainment

  • Safety

  • Vehicle Management & Telematics

  • Insurance

• Hardware Outlook (Revenue, USD Million, 2017 - 2027)

  • Embedded

  • Tethered

• Network Type Outlook (Revenue, USD Million, 2017 - 2027)

  • Cellular V2X (C-V2X)

  • Dedicated Short Range Communication (DSRC).

• Communication Type Outlook (Revenue, USD Million, 2017 - 2027)

  • Vehicle-To-Vehicle (V2V)

  • Vehicle-To-Infrastructure (V2I)

• End-user Outlook (Revenue, USD Million, 2017 - 2027)

  • Commercial

  • Private

• Regional Outlook (Revenue, USD Million, 2017 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Rest of the World