Global demand to grow 6% annually through 2009 Worldwide demand for motorcycles is forecast to advance 6.0 percent annually to 43 million units in 2009. Demand for scooters, mopeds and light motorcycles is expected to be particularly strong, driven by continued rising income levels in emerging markets such as India, China, and Southeast Asia as well as by rising fuel prices and (in some markets) continued restrictions on car use in developed regions.

The market for larger displacement motorcycles will also remain strong, at least through 2009, though concerns regarding demand have emerged due to the aging of the customer base, especially in the United States and Western Europe. The implementation of new exhaust emissions regulations could trigger an increased demand for newer, cleaner engine designs in emerging markets where mobile source pollution has become a primary concern.

Triad motorcycles seen as pleasure vehicles Within the industrialized Triad (i.e., the US, Japan and Western Europe), motorcycles are seen as pleasure vehicles by consumers who already have one or more automobiles. These motorcycles on average tend to be larger, more powerful machines which cost on average about $4500 to $7500 (in the US and Europe), and somewhat less in Japan.

Emerging markets see motorcycles as family, work vehicles The other, much larger market in unit terms is found in the emerging economies of the Asia/ Pacific region, where motorcycles are seen as primary family and work vehicles. These vehicles are cheaper, smaller and less powerful than Triad motorcycles.

Future demand growth in these emerging economies will be tempered somewhat by the ?substitution effect? of passenger cars for motorcycles as income levels rise. Developed markets generate higher revenues While the Asia/Pacific region is dominant in terms of unit volume, most key players derived far higher revenues from sales in developed markets such as North America.

Honda, for example, sells over 75 percent of its unit volume in the Asia/Pacific region, but gains less than 25 percent of its total motorcycle-related revenues from these sales. In North America, the situation is reversed, with 7 percent of unit sales generating over 30 percent of revenues.

The clear profitability implications of this difference reveals why so many manufacturers compete so hard to sell machines in North America. Study coverage This Freedonia industry study, "World Motorcycles" provides historical US demand data (1994, 1999, 2004) and forecasts to 2009 and 2014 by product, world region and for 19 countries. The study also considers market environment indicators, evaluates market share and profiles 21 producers worldwide.