Two-wheeler Connectivity Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The two-wheeler connectivity systems market was valued at USD 128.03 million in 2021, and it is expected to reach USD 1278.96 million by 2027 while registering a CAGR of above 46% during the forecast period 2022-2027.

The COVID-19 pandemic hindered the growth of the motorcycles market due to shutdowns of manufacturing units and travel restrictions. In addition, with virtually no activity in tourism, the aftermarket segment of the connectivity systems in the motorcycle market also witnessed a slowdown. As the market is gaining momentum, it is expected to witness positive growth in the forecast period.

Smart connection systems provide a better experience and greater safety measures for commuters. Due to linked system solutions, riders will have access to digital information and entertainment while riding their two-wheelers. The rise of linked two-wheelers is expected to create possibilities for connected motorcycles and app developers. Market companies must improve existing applications and develop two-wheeler-specific apps. After the advent of electric motorbikes, the market for two-wheeler connection systems has seen tremendous expansion. The necessity of knowing vital facts such as battery state, driving range, and so on is a major factor in developing electric two-wheeler networking systems.

Factors like technology advancements, advancements in vehicle safety, the introduction of driver-assist systems in motorcycles, and rapidly growing logistics in the retail and e-commerce sectors have been significantly driving demand for the connected motorcycle market.

Increasing internet penetration and improvements in internet connectivity and speed 5G to support vehicle-to-vehicle and vehicle-to-infrastructure, along with the increase in demand for features, like driving assistance systems, real-time safety, navigation, and GPS monitoring, are expected to contribute to market growth.

Key Market Trends

Sale of Electric Two-wheelers Poised to Boost Market Growth

The demand for electric motorcycles is growing around the world. As technological advancements in electric motorcycles are increasing, and the market is witnessing the entry of new players, demand will continue to grow over the years to come.​

Concerns over emissions, increasing consumer awareness, and increasing investments by government authorities to develop EV charging infrastructure are expected to propel the demand for electric motorcycles. Incentives offered by the governments of various countries have a crucial role to play in boosting this demand. One such incentive is:​

• In July 2020, the regional government of Madrid announced that it would allocate EUR 2.5 million in 2020 and EUR 3 million in 2021 to encourage residents to purchase non-polluting vehicles. Each citizen will be able to receive up to EUR 750 to buy a motorbike, bike, or scooter. Madrid will provide financial assistance of approximately 50% of the final price of the scooters, bicycles, mopeds, or electric motorbikes that have been purchased. ​

With the growing demand for electric motorcycles, many new players have gained a significant market share over the past few years, and existing conventional motorcycle manufacturers are also trying to enter this market. For instance, ​

Zero’s current product portfolio includes FX, a small on- and off-road capable “dual-sport” motorcycle starting at USD 9,300, and the SR/S sports bike, which starts at USD 20,000. The SR/S bike can reach 124 miles per hour and has a range of about 200 miles when equipped with an enhanced battery. Zero offers its motorcycles with an app that lets users modify the bikes' various performance parameters, like maximum speed, power, torque, and regenerative braking.​

India is one of the major two-wheeler markets in the world. For the past few years, the country has attracted various global players and several new startups into the market with the launch of new electric motorcycles. Moreover, this trend is likely to continue as many new players have announced new product launches for 2021. For instance,​

• In August 2021, Ola unveiled its much-awaited S1 and S1 Pro electric scooter models. The top of the range Ola S1 Pro will have a 3.97 kilowatt-hour (kWh) battery pack rated for a range of 181 kilometers and will have a top speed of 115 kilometers per hour. The cheaper S1 has a smaller 2.98 kWh battery pack.
• In January 2021, Ultraviolette Automotive Pvt. Ltd announced it would soon be launching electric sports bikes in India. This bike features a connectivity feature, which includes bike overview, location, performance tuning, remote diagnostics, ride history, and analysis.

Europe Expected to Lead the Market

Europe is anticipated to hold the major share in the two-wheeler connectivity systems market over the forecast period. A total of 949,400 motorcycles were registered in the main European markets in 2021, compared to 880,700 units in 2020.

Germany, France, and Italy are witnessing an increasing number of startups and established conventional motorcycle manufacturers launching new two-wheeler connectivity systems in the market. For instance,

Bosch’s rider assistance systems provide adaptive cruise control, forward collision systems, and blind-spot detection. Bosch claims that these systems can prevent one in seven accidents. This technology of Bosch will be adopted in bikes ranging from Ducati and KTM. Bosch is also developing connectivity systems that will alert two-wheelers on the network about the speed and position of other vehicles. This system would be very useful during low visibility situations and blind corners. In case of an accident, an emergency call feature will automatically notify emergency services with GPS coordinates of the bike.

Audi and Ducati jointly showcased C-V2X technology as part of the Ducati 2025 roadmap. The technology performs intersection collision warning, cross-traffic turn collision risk warning, and warning in case of sudden braking of the vehicle ahead.

Competitive Landscape

The two-wheeler connectivity systems market is not dominated by a handful of players, but it is marked by several new startups and established players. Bosch, one of the market leaders, has an integrated connectivity cluster that is a rider information system and connects motorcycles and smartphones. It is used to operate apps and its connectivity control unit to connect motorcycles with the cloud. Manufacturers are showing their presence in this new market, which earlier was dominated by startups, tech companies, and suppliers. For instance,

• In April 2021, Autotalks Ltd and Commsignia successfully completed C-Roads cross-border testing in Austria and France, proving that Commsignia’s ITS-G5 V2X solutions, the RS4 roadside unit (RSU) and OB4 on-board unit (OBU), which use Autotalks V2X radios with verification acceleration and embedded HSM Hardware Security Module, are fully compliant with the pan-European C-Roads project specifications for ITS-G5 communication.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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