Rising premium motorcycle sales worldwide, growing demand for motorcycle safety and driver assistance, and increasing demand for usage-based insurance and infotainment systems in motorcycles boost the demand for the Connected Motorcycle Market to cross about $ 757 million by 2027.
According to the new market research report - Connected Motorcycle Marketby hardware, calling service, communication, network, end-user, service, application, propulsion & region - Global Forecast to 2027,published by MarketsandMarkets, the global market size is projected to grow at a CAGR of 54.7% from $ 55 million in 2021.
In addition, the upcoming regulations for rider safety in motorcycles in countries around the world will also boost the market.
The report said that the 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 provide 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, the research company said.
Vehicle telematics provides new revenue opportunities for OEMs and other third-party service providers. The onboard sensors collect essential vehicle information such as speed, riding mode, trip information, and parking locations. OEMs analyse this data and profile riders according to their driving behaviour. This data can ease the warranty claim process. OEMs now have the facility to void the warranty if the rider has intentionally violated warranty regulations by overspeeding and using wrong driving modes. In addition, OEMs can inform the rider about upcoming service maintenance to avoid costly repairs. This data is also useful for other third-party service providers. After analysing the vehicle data, service providers can offer tailored services for individual riders. More such implications would boost the demand for connectivity services in motorcycles during the forecast period, the report noted.
E-commerce companies will also be prominent consumers of connected motorcycles due to their door-to-door delivery services in many populated countries. Companies like Amazon and Walmart have already been using connected technology in motorcycles.
According to MarketsandMarkets, eCall is estimated to account for the largest market size during the forecast period. The eCall system comprises components such as positioning system (GPS [global positioning system]/GLONASS [global navigation satellite system]), communication system (GSM [global system for mobile communications]), and electronic control units. Once the vehicle sensors detect a crash or collision, the system automatically dials the emergency number and contacts the nearest emergency call centre. The systems also collect a minimum set of data such as time of the accident, accurate position, and description of the crashed vehicle. The eCall function can be manually triggered if the rider wants to contact the emergency centre. The system is expected to increase the chances of survival in case of fatal crashes. However, the eCall service providers must comply with the data privacy regulations. According to upcoming EU regulations, the European eCall services will be activated only in case of an accident. Hence, the systems cannot track the vehicle all the time. The eCall services would benefit motorcyclists, which are accident-prone road users.
The connected motorcycle market is dominated by Major OEMs, including Yamaha, Suzuki, Kawasaki, BMW and Harley Davidson, and component manufacturers include Bosch and Continental.
In addition, many software providers, including Starcom Systems, KPIT and e-Novia, work with platform providers like IBM and Amazon AWS and network providers like Vodafone and Verizon to develop product and service offerings for the connected motorcycle ecosystem. They have initiated partnerships to develop their connected motorcycle technology and provide finished products to their respective customers for the connected motorcycle market.
Fastest-growing Market
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. As a result, 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.
The region is home to some of the most innovative motorcycle manufacturers, such as Honda, Kawasaki, Yamaha, and Suzuki. These OEMs are actively participating in the Connected Motorcycle Consortium to develop connectivity services for motorcycles. As a result, they have already launched bestselling motorcycles in the budget segment with connectivity features, the report mentioned.
The region is also home to some of the world's top connected motorcycle software providers. Companies like Delphi Automotive, Infineon Technologies, and KPIT have been working to develop automotive technologies, including connected mobility and autonomous technology. This has increased the demand for connected mobility devices in the APAC region. In addition, increasing collaborations to provide a safe and comfortable riding experience will boost the adoption of connected motorcycles in the region, the research firm noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: BMW Motorrad.