SOURCE: The Freedonia Group, Inc.

 

CLEVELAND, OH--(Marketwire - February 7, 2008) - Global demand for motorcycles is forecast to advance 6.0 percent annually to 59 million units in 2011, representing $49 billion in manufacturers' sales. This growth emanates from a mix of developed market incremental improvements and emerging market expansions. Demand for all categories of motorcycles is expected to remain healthy, despite the plateauing of growth in key markets such as China, which is rapidly transitioning away from motorcycles and toward cars for its transportation needs. These and other trends, including market share and company profiles, are presented in "World Motorcycles," a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The most rapid growth will occur in developing markets, where rising income levels and the introduction of higher quality machines featuring the latest technologies will fuel demand. This growth will be tempered in part by the increasing number of restrictions or outright bans on motorcycle use in urban areas in Asia. In developed markets, fuel prices and increasing restrictions on car use in some regions such as Western Europe are stoking interest in the exceptional fuel economy and cost effectiveness motorcycles offer. While the market for large and expensive high displacement motorcycles will also remain moderately strong, concerns regarding future demand have emerged due to the aging of the customer base, especially in the United States and Western Europe.

Two separate motorcycle markets exist. The first centers on the industrialized Triad (the US, Japan and Western Europe), where motorcycles are seen as pleasure vehicles. The other, much larger market in unit terms exists in the emerging economies of Asia, Latin America and the Africa/Mideast region, where motorcycles are seen as primary family and work vehicles. While Asia is dominant in terms of unit volume, most key players derive far higher revenues per unit from sales in developed markets such as North America.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product and market forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.