Connected Motorcycle Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Connected Motorcycle Market Analysis

The global connected motorcycle market generated revenue of USD 147.2 million in 2023, which is expected to witness a CAGR of 60.2% during 2024–2030, to reach USD 3,960.1 million by 2030. This is on account of the technology transition and increasing demand for the safety and comfort of motorcyclists.

Furthermore, the growing trend of long-distance bike riding and the increasing preference for off-road biking find significant resonance in the demand for motorcycles.

Considering the road fatalities data, involving motorcycles and their riders, bike manufacturers are forced to include advanced rider-assistance systems in their upcoming motorcycles to increase rider safety.

With an increase in such initiatives and product inceptions by road safety authorities and motorcycle manufacturers, and the need to minimize fatal road accidents, the connected motorcycle market is bound to witness high proliferation. The effectiveness of these features will be manifolded if motorcycles are made capable of communicating with other vehicles and infrastructure on roads.

Moreover, more than the pull, push factor from the consumer side is driving the technology change. Motorcycles are considered a less safe means of transport, owing to a significant share of road accidents and fatalities. Connected motorcycles come with solutions to cater to such challenges categorically in less-developed economies of the world, where road density is less and inversely proportional to fatalities and accidents.

Advancement in communication technologies and lowering of hardware equipment in vehicles across the globe are push factors that would work for the industry to capture high growth.

Connected Motorcycle Market Trends & Drivers

Rise in Traffic Congestion in Cities

• The market is projected to grow significantly because of the increasing traffic congestion in urban areas. This growth is owing to rapid urbanization due to which most of the population is moving toward urban and metropolitan cities for enhanced connectivity and ease of accessibility for resources.
• This is resulting in mass migration, resulting in a higher number of vehicles and motorcycles on the roads. This, in turn, has caused traffic congestion and longer commute times.
• Furthermore, a large population of people have two-wheelers, including motorcycles and scooters, due to their efficiency, affordability, and mobile mode of transportation.
• This has resulted in a significant demand for motorcycles in Asian and some European countries. These countries have a rising need for flexible commuting choices and connected vehicle technology.
• As a result of these, metropolitan areas are poised to become a key market for connected motorcycle technology in the coming years.

Rising Incidents of Motorcycle Accidents Drives the Market

• The rise in traffic congestion as well as an increase in incidences of road fatalities related to motorcycles is one of the major factors driving the market.
• For instance, according to the Insurance Institute for Highway Safety/Highway Loss Data Institute, approximately, 6,084 motorcyclists died in crashes in 2021. There was a 21% increase, with the highest number since 2019.
• In addition to that, in 2021, the motorcycle deaths reported were 14% of all motor vehicle accident deaths and this was roughly triple the deaths caused by motorcycles recorded in 1997.
• Hence, these numbers result in the rising inclination for improved security as well as safety for on-road vehicles and motorcycles.
• To ensure higher safety concerns for passengers and drivers, automotive companies are installing these connected vehicle systems in every vehicle to reduce road fatalities and offer speedy services to injured people.

Unrestricted Access of Data and Potential Hazard of Data Hacks

• There are various significant benefits related to connected vehicle technology, which include advanced road safety and enhanced driving experience.
• Despite that, a new challenge that is experienced with the use of this technology is the vehicle engagement with various other environments and exchanging and gathering information.
• If the data stored in the vehicle is not adequately secured and protected, it could be vulnerable to data breaches and unauthorized access, potentially compromising personal information stored in the vehicle's software.
• Incidents of vehicle data breaches and unauthorized access have restricted the adoption of connected vehicle technology. These issues are expected to hamper the market growth in the forecast period.
• Nevertheless, automakers and technology providers are increasing their efforts to enhance data protection measures, which is projected to decrease the impact of these challenges in the coming years.

In-depth Segmentation Analysis

Hardware Insights

• The embedded category held the larger market share, of around 70%, in 2023. This embedded connectivity comprises a GSM system, an electronic control unit, a GLONASS/GPS, including other essential sensors.
• Further, OEMs boost the demand for embedded hardware. This is because of its non-dependency on other external devices.
• Moreover, the increasing dependence on connectivity systems, including onboard GPS units and fast communication systems, designed for real-time safety and security, boost the demand for embedded systems.
• In addition, these connectivity devices cannot rely on other lower-quality dongles or smartphones for real-time security and safety functions. As a result, an embedded connectivity system will be an ideal choice for motorcycle OEMs to offer dependable safety and security features.
• Whereas, the tethered hardware category is projected to have the higher CAGR, of 60.5%, during the forecast period. Through technologically advanced software algorithms and a range of hardware systems, tethered hardware devices for connected motorcycles provide security and safety features. Also, these tethered safety products are highly effective and accurate.

During the study, we have analyzed two hardware types in the report:

• Embedded (Larger-Growing Category)
• Tethered (Faster-Growing Category)

Application Analysis

• The MAI category accounted for the larger market share, of 35%, in 2023. This is ascribed to the rising road fatalities, which are caused by ignorance of motorcycle tactics on roads.
• Furthermore, during 2024–2030, the forward collision warning category as well as the left turn assist applications category are anticipated to have a significant market share.
• This is attributed to the rising necessity for effective communication among vehicles and motorcycles at the time of turns, overtaking, and lane crossing.
• These applications offer data about road situations as well as the indication of any accidents to motorcyclists by alerting them with the vehicle’s instrument cluster.

The following application categories are covered in the report:

• Motorcycle Approach Indication (MAI) (Largest and Fastest-Growing Application Category)
• Intersection Movement Assist (IMA)
• Forward Collision Warning (FCA)
• Left Turning Assist (LTA)

Communication Insights

• The vehicle-to-vehicle (V2V) category held the larger market share, of around 70%, in 2023. This is majorly due to the enhanced safety of vehicles equipped with communication systems, manufacturing as per government regulations, and less focus on external infrastructure.
• On the other hand, as per analysis, the vehicle-to-infrastructure (V2I) category would grow faster during the forecast period, owing to the increase in realization of shortfalls of V2V communications and newly developed infrastructure for V2I in many countries.

Below are the major communication types used in connected motorcycles:

• Vehicle-to-Vehicle (V2V) (Larger Communication Category)
• Vehicle-to-Infrastructure (V2I) (Faster-Growing Category)

Service Provider Analysis

• The OEM category holds the larger market share and it is also expected to witness faster growth during 2024–2030. This is because OEMs analyze essential information, such as speed, riding mode, parking location, and profiles of drivers according to their driving behavior.
• With this information, OEMs can inform the drivers about upcoming service maintenance and can offer warranty and tailormade services to the riders.

Below are the two types of service providers:

• Original Equipment Manufacturer (OEM) (Larger and Faster-Growing Category)
• Third-Party

Asia-Pacific will Grow With Massive CAGR

• Geographically, APAC is the fastest-growing market, advancing at a CAGR of 60.8% during 2024–2030. This can be due to a high parc number and preference for motorcycles in the region.
• Connected features have been introduced in the sport and luxury motorcycle category and will eventually trickle down to the economy motorcycle category. Thus, an increase in penetration of such connected motorcycles in the APAC region will drive the growth of the market.
• On the other hand, Europe held the largest market share, of around 45%, in 2023. This dominancy is due to the stringent safety and driving norms in the region.
• In addition to that, the high popularity of connected motorcycles in this region among consumers is driving the growth of the market in this region.

Further, regions and countries analyzed for this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe (Largest Regional Market)
  • Germany (Largest Country Market)
  • UK (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market Nature - Fragmented

The market has a high degree of fragmentation, owing to many domestic and international players. The continual appearance of new entrants is impacting the established and new service providers. Organizations can choose any service to fulfill their particular cybersecurity needs, due to the presence of numerous players.

Key companies are increasingly focusing on collaborations with software and communication technology companies to enhance their services and increase their market share.

Connected Motorcycle Industry News

• BMW Motorrad has announced the new intelligent emergency call feature update for all of its upcoming model year 2024. The company will add this feature as a standard on some models and will be providing this feature as an option on other models. This feature will include a loudspeaker, an SOS button, and a microphone on the right-side control handlebar. The system will be automatically activated in case of new vehicle delivery to the customer and connect a rider to an agent whenever the SOS button is pushed or when a crash is detected.
• Nvidia Corporation and MediaTek Inc. announced a strategic collaboration on power advanced vehicle infotainment systems technology. This technology can successfully stream video, games, as well as interact with drivers with the help of artificial intelligence.
• The development of a complete software and hardware platform for always-on connectivity in motorcycles was recently announced by Continental AG. In the upcoming years, the company will be able to provide its riders with a connected infotainment box. This box will enable the usage of digital services, including stolen vehicle tracking, and turn-by-turn navigation, even without a connection to a smartphone.