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The motorcycle rental market size is forecast to increase by USD 354.4 million, at a CAGR of 15.42% between 2023 and 2028. The market growth relies on various factors, including the upsurge in road-trip tourism, the expansion of motorcycle tourer communities and events, and the escalation of congestion and overcrowding in urban areas. The growing popularity of road-trip tourism reflects a desire for freedom and exploration, driving demand for vehicles and related accessories. Simultaneously, the rise of motorcycle tourer communities and events highlights a subculture embracing adventure and camaraderie, stimulating market growth for motorcycles and associated gear. Additionally, urban congestion prompts individuals to seek alternative modes of transportation, such as motorcycles, for commuting and leisure, further fueling market demand. These interconnected trends present opportunities for businesses in the automotive and tourism industries to innovate and cater to the evolving needs of consumers seeking adventure, convenience, and escape from urban congestion. The market forecasting also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market forecast report includes historic market data from 2018 to 2022.
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The market serves a diverse clientele, from tourists and travelers seeking adventure to urban commuters embracing energy-efficient e-bikes. Luxury motorbikes cater to enthusiasts craving style and performance, while two-wheelers offer convenient mobility solutions in congested urban areas. Bike stores and garages facilitate rentals, ensuring smooth transactions for customers and maintaining product quality. As urbanization accelerates, the demand for commute applications and booking channels grows, allowing seamless access to rental services. Advanced technologies like artificial intelligence, machine learning, and robotic efficiency enhance operational accuracy and consistency, while active safety systems and driver assistance ensure a safe riding experience. The market's growth is fueled by infrastructural development and an increasing demand for luxury bikes and energy-efficient e-bikes. Moreover, in the wake of economic revival, motorcycle rentals present lucrative opportunities for vehicle OEMs and entrepreneurs, particularly in developing nations where transportation needs are evolving rapidly. Motorcycle rental services are not just about mobility but also about providing memorable experiences and fostering sustainable transportation solutions. Our researchers analyzed the data with 2023 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 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.
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.
BikesBooking: The company offers motorcycle rental services where there will be instant online booking with customer services.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 motorcycles 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 motorcycles segment was valued at USD 175.80 million in 2018. 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.
North America is estimated to contribute 34% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that 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. Maintaining reliable performance, motorcycle chains are crucial components ensuring smooth acceleration and longevity for rental fleets catering to enthusiasts and tourists alike.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the market, catering to the diverse needs of tourists or travelers is paramount, facilitated through various booking channel and informative websites. Customers can choose from a wide type of motorcycles, including common motorcycles and specialty bike type featured in motorcycle racing events. Competitive effectiveness hinges on factors like attractive features, competitive pricing, and embracing novel technologies to streamline production costs and enhance the product folio. As demand drivers evolve, shifting OEM preferences and fluctuating prices necessitate agile strategies from strategy formulators and sales managers. Moreover, with a focus on sustainable mobility, motorcycle rentals complement existing public transport systems and offer flexible solutions for urban commuters and adventurous travelers alike. Investors keen on tapping into this thriving market must understand the winning strategies and efficient processes driving success in the motorcycle rental products.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.42% |
Market Growth 2024-2028 |
USD 354.4 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.1 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, India, Germany, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
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, and Market condition analysis for the forecast period. |
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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