Motorcycle, Bike & Parts Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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This mature industry has been the focus of high international trade, with imports and exports growing over past years. The race is on in a somewhat volatile environment with technology changing production, efficiency and style. Although high gas prices and environmental awareness push consumers to fuel-efficient motorcycles and bikes, low disposable income is keeping spending on the industry's discretionary products at bay. For these reasons, industry research firm IBISWorld has added a report on the Motorcycle, Bike & Parts Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Increasing motorcycle and bike imports have lead many firms to offshore to reduce costs

The Motorcycle, Bike and Parts Manufacturing industry hit the brakes over the past five years: Industry revenue is forecast to decline 6.7% per year to $4.9 billion over the five years to 2012. “The industry is highly influenced by the prosperity of US consumers,” says IBISWorld industry analyst Antonio Danova, “and industry firms suffer when their customers have little disposable income and are pessimistic about the future of the economy.” As such, the recession caused steep declines in industry revenue because consumers held back on discretionary purchases. This trend yielded an industry-wide revenue decline of 21.4% in 2009, indicative of falling motorcycle demand in the United States. In fact, Harley-Davidson, the industry's largest manufacturer, reported a decline of 23.4% in sales over the year. Declining sales continued into 2010, with consumers remaining cautious about purchasing motorcycles.

Cheap imports produced with low-cost labor have also been challenging the industry, says Danova, so domestic producers have been responding by closing facilities or relocating facilities abroad to compete. Honda Motor Company, formerly the industry's second-largest manufacturer, ended production in the United States in late 2008, ceasing production of about 70,000 units in favor of importing them from company-owned facilities in Japan. This move directly affected the total number of establishments operating in the United States, reducing the number 3.4% per year to 407 in the five years to 2012. A high level of brand loyalty limits the extent that foreign-based players can take revenue away from domestic producers, though; motorcycle consumers tend to identify with a brand and stick with it. In the United States, the Motorcycle, Bike and Parts Manufacturing industry is heavily concentrated; Harley-Davidson, the only major player, controls a large percentage of the market.

Over the five years to 2017, the industry is anticipated to reorganize its efforts to attract different customer segments and to penetrate emerging markets. Industry players are increasingly concentrating on customers that have not purchased a motorcycle before. The largest market segment of the past five years was middle-aged males, but as this group ages, it will be less likely to purchase motorcycles. Firms in this industry are also expected to focus on exporting to high GDP-growth countries to take advantage of attractive growth segments abroad. As a result of these trends, industry revenue is anticipated to grow steadily in the five years to 2017. For more information, visit IBISWorld’s Motorcycle, Bike & Parts Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry consists of businesses that manufacture motorcycles, mopeds, scooters, bicycles or tricycles. It also includes businesses that manufacture equipment and parts for these vehicles.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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