IBISWorld, a trusted independent source of market research, published an updated report on the US Motorcycle, Bike & Parts Manufacturing market. First, let’s mention that the subject of the research consists of businesses that manufacture motorcycles, mopeds, scooters, bicycles or tricycles. It also includes businesses that manufacture equipment and parts for these vehicles. This industry has slowed over the five years to 2013 with revenue declining at an annualized rate of 0.9% to $6.7 billion.
The industry is highly influenced by the prosperity of US consumers; when customers have little disposable income and a negative outlook on the state of the economy, the industry suffers. As such, the recession caused steep declines in industry revenue as consumers held back on discretionary purchases. Revenue declined 21.4% in 2009, indicative of falling motorcycle demand in the United States, and in the same year, major player Harley-Davidson reported a 10.7% decline in sales. Although the industry has since reversed its decline, motorcycle and bicycle manufacturers face a sluggish revenue increase of 0.3% in 2013.
Over the five years to 2018, the industry is expected to reorganize its efforts to attract different customers, penetrate emerging markets and achieve more efficient production capacity. Industry players are increasingly concentrating on customers who have not purchased a motorcycle before. Middle-aged males comprised the largest industry market segment in the five years to 2013, but this demographic will shrink as the population ages. Higher disposable income and an increase in the number of younger customers will increase demand for motorcycles and bicycles. For more information, visit IBISWorld’s Motorcycle, Bike & Parts Manufacturing in the US industry report page.