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The motorcycle rental market size is estimated to grow at a CAGR of 11.52% between 2022 and 2027 and the size of the market is forecast to increase by USD 220.68 million. The growth of the market depends on several factors, such as an increase in road-trip tourism, a rise in motorcycle tourer communities and events, and an increase in congestion and overcrowding in cities
This report extensively covers market segmentation by product (commuter motorcycles and luxury motorcycles), application (motorcycle tourism and commutes), and geography (North America, APAC, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The number of tourists taking motorcycle tours has increased as a result of an increase in road trip tourism and traffic congestion in countries like India and the United States. In India, adventure tourism is expanding at a rate of 5% to 7% annually on average. Additionally, domestic adventure tourism is expanding by 20% to 25%. The market for motorcycle rentals is anticipated to expand as a result.
Furthermore, foreign tourists who own a valid driving license from their origin country are eligible to receive an Indian driving license without having to register. The increase in motorcycle enthusiast participation in the SaddleSore challenge is also driving the market for motorcycle rentals. The SaddleSore challenge is certified by the Iron Butt Association (IBA). Due to these factors, the market is expected to grow during the forecast period.
More than 47% of the world's population was estimated to have Internet access in 2021, according to the most recent World Bank data. By 2023, more than half of the world's population will have access to the internet, with the greatest penetration occurring in the emerging economies of APAC, the Middle East, Africa, Central and Eastern Europe, and Central and South America. The global e-commerce industry has grown strongly thanks to improved internet connectivity.
Furthermore, Buying a car is sometimes unsuitable for urban residents, where the working-class population travels on the same route by office transport on weekdays. Renting a self-drive car through online media is convenient. This trend is seen in many Tier 1 cities of emerging countries, such as Bangalore, Mumbai, and Beijing. Rising acceptance and success of e-commerce sites have paved the way for startups focusing on providing services on online portals. Hence, the rental market is gaining traction among customers of emerging countries which will grow the market during the forecast period.
The rise in on-demand taxi operators is the major challenge to the growth of the motorcycle rental market. The number of people choosing on-demand taxi operators is rising in South Asia owing to government restrictions regarding buying a private car. Factors such as lack of parking space for a self-drive rental car, and aggressive discount offers given by the on-demand taxi operators to attract more customers. Additionally, unlike motorcycle rental companies, on-demand taxi operators do not need to maintain a fleet but rather make a taxi available to a potential customer through the means of a mobile app. Hence, the business model is flexible and easier to manage than self-drive car rental companies.
Moreover, the on-demand taxi market in India will see rapid growth following the attention gained from huge funding and competitive pricing strategies. For instance, Ola Cabs, a popular on-demand taxi operator, introduced a new category, micro, which operates fares that are comparatively lower than fares operated by auto-rickshaws of about USD 0.09 per hour to capture the market. The company introduced its microservice to attract new customers. Additionally, the demand for taxis is increasing in India, with the apps such as Ola, Uber, and Rapido being the prominent market players which may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Motorcycle Rental Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The commuter segment will account for a major share of the market's growth during the forecast period. Motorcycles mainly consist of scooters and motorcycles with an engine capacity of less than 300 cc. These are priced lower compared to luxury models. Many congested urban cities in developing regions are showing rising penetration of commuter motorcycles owing to their ease of traveling and last-mile connectivity in high-traffic conditions.
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The commuter segment was valued at USD 160.02 million in 2017 and continued to grow until 2021. Factors such as increasing levels of congestion and the rising number of tourists in Europe are driving the market for the commuter segment of motorcycles in the region. Tourists stay within the city, and they opt to drive scooters. The distance between various tourist destinations in Europe is short, and growing levels of congestion on roads, and lack of parking space cause tourists to prefer scooters and motorcycles with low-capacity engines. Hence, the demand for motorcycle rental is expected to grow, which will have a positive impact on the growth of the global market in focus during the forecast period.
Moreover, in the luxury segment, tourists on road trips prefer a cruiser motorcycle, which has an engine that delivers superior torque at low revolutions per minute (RPM). For instance, Harley-Davidson motorcycles generate a peak torque of 4,000-5,000 RPM compared with sports bikes, where the peak torque comes at 8,000-9,000 RPM. Harley-Davidson Motorcycles is the most preferred motorcycle brand in the US for road trips and long motorcycle tours. The younger population between 30 and 40 years of age prefers to rent out these two-wheelers. Rising concerns about motorcycles are expected to drive the growth of the market focus during the forecast period.
Based on application, the market has been segmented into motorcycle tourism and commutes. The motorcycle tourism segment will account for the largest share of this segment motorcycle tourism has become popular because more people seek unique travel experiences and adventures. The desire to explore scenic routes, cultural landmarks, and off-the-beaten-path destinations on a motorcycle has contributed to the rising demand for rental motorcycles. These provide accessibility and convenience for travelers who prefer not to transport their bikes for long-distance trips. Renting motorcycle tourism is more cost-effective than purchasing or transporting a motorcycle for a specific trip for tourists who want some adventure and unique experiences during their trips. Hence, the rising popularity of renting bikes among tourists is expected to have a positive impact on the growth of the global market in focus during the forecast period.
The commutes segment is a growing segment of this market. Cities become more populated, and factors such as traffic congestion and limited parking options have made commuting by car or public transportation. Many individuals are turning to bikes because this is a convenient and efficient mode of transportation for short to medium distances. This also led to increasing demand for motorcycle rentals in areas where public transportation options are limited or unreliable. In addition, rental fees for motorcycles are often lower as compared to car rentals or public transportation costs. Thus, the growing demand for motorcycles may positively impact the growth of the global motorcycle rental market
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Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. High demand for luxury cruiser motorcycles like Harley-Davidson is rising due to the customer preference toward renting luxury motorcycles over commuter models. Harley-Davidson motorcycles are preferred for renting in North America, followed by Ducati, BMW Motorrad, and Triumph.
In addition, the growth of motorcycle touring is the key growth factor of the motorcycle rental market in North America. The average age of motorcyclists in the US is 45 to 48 years. Moreover, individuals over 50 years of age control 77% of the total net worth in the US, a huge target audience for ultra-luxury and luxury motorcycle original equipment manufacturers, such as BMW and Ducati Motor Holding. Furthermore, the decrease in fuel prices and the fall in unemployment rates have increased the sales of passenger cars in the US. This positively affects the motorcycle rental market as people would prefer to rent out a motorcycle for a seasonal road trip rather than purchase a new one during the forecast period.
In 2020, the growth of the automotive industry has shown a negative impact in North America due to the outbreak of COVID-19. However, the large-scale vaccination of COVID-19 vaccines and the lifting of restrictions on travel raise the demand for the motorcycle rental market in North America. With a rising focus on sustainability and reducing carbon footprints, motorcycle tourism is seen as more environmentally friendly. This is expected to have a positive impact on the growth of the regional motorcycle rental market during the forecast period.
The motorcycle rental market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Motorcycle Rental Market Scope |
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Report Coverage |
Details |
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Page number |
152 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.52% |
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Market growth 2023-2027 |
$ 220.68 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
11.0 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, India, China, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aloha MotorSports, AutoEurope LLC, BikesBooking, Edelweiss Bike Travel, Harley Davidson Inc., Hertz Global Holdings Inc., IMTBIKE TOURS SL, J.C. Bromac Corp., Kizuki Co. Ltd., Krabi Moto Rentals, MotoDreamer, MotoQuest, MOTOROADS Sole Trade Ltd., Orange and Black, Polaris Inc., Rentrip Services Pvt Ltd., Riders Share Inc., Royalbison Autorentals India Pvt. Ltd, SMTOURS d.o.o., and West Coast Motorcycle Hire |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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