Germany Two-wheeler Growth Opportunities

Transformational Growth of Electric Two-wheelers Will Drive the Expansion of the Aftermarket and the Development of Safety Technologies and Charging Infrastructure

The study assesses the two-wheeler (2W) market in Germany, comprising both internal combustion engine (ICE) vehicles and electric 2Ws (e2Ws). The study's objective is to examine factors transforming the 2W space and how Germany, as a market, is transitioning towards electric solutions. It incorporates an in-depth country analysis, looking at macro factors - political, economic, social, technological, legal, and environmental (PESTLE) - and identifying strengths, weaknesses, opportunities, threats (SWOT), and various market drivers.

The study projects the market growth for ICE vehicles and e2Ws and gives insights into the 2W segment by type, identifying the dominant market players regarding price and market share. It provides a snapshot of market opportunities by providing cost analyses, opportunities by fuel type, growing business models within each space, and opportunities for electric vehicle (EV) products and solutions.

From 2017 onward, the sales trend in the German ICE 2W market has been a positive one. In 2020, despite the pandemic, the 2W market achieved its highest sales in the last 10 years. The need for small-capacity 2Ws for personal transportation and large-capacity 2Ws for leisure motorcycling drove sales. Germany is the largest market in Europe and the 4th-largest globally. Large displacement motorcycles (>500cc) dominate ICE 2W sales in the country.

The country is a pioneer in 2W advanced driver assistance systems (ADAS) and connected technology adoption and is fast-tracking e2W adoption. Original equipment manufacturers (OEMs) are intensifying their focus on advanced rider assistance systems (ARAS) and self-balancing technology. An increase in spending on leisure riding, particularly in the >950cc motorcycle segment, indicates a demand for performance-oriented 2Ws and e2Ws. Consumers are expressing increasing interest in e2Ws for private ownership and ridesharing services. Small-capacity commuter ICE 2Ws are likely to get replaced by e2Ws due to higher restrictions inside the city. Established parts distribution channels and professional service support will increase the number of 2Ws in operation.