Declining leisure time may stall bike sales, but higher incomes will fuel demand
London, United Kingdom (PRWEB) September 09, 2012
Motorcycles are generally viewed as a cheaper and more practical alternative to car ownership. However, when the recession hit in 2008-09, all bets were off. According to IBISWorld industry analyst Aries Nuguid, “motorcycle sales plummeted due to lower incomes and dismal consumer confidence”. One of the reasons for this is that often motorcycles, particularly trail and supersport bikes, are used for leisure rather than commuting purposes. These leisure-oriented bikes can be quite expensive and not that fuel efficient. The crash of the pound's value did not help matters either, as it led to a rise in the price of imported motorcycles, which further hurt demand. Consequently, revenue of the Motorcycle Sales & Repair industry is expected to drop by an annualised 2.9% over the five years through 2012-13.
The industry is forecast to generate revenue of £2.42 billion in 2012-13, a 1.8% increase on the previous year. Growth has been driven by greater demand for component sales and repair services. However, new motorcycle sales are expected to be poor over the year due to the poor economic conditions in the United Kingdom and much of Europe, which are making households wary of spending money on non-essential items. The next five years will be more positive for motorcycle dealers due to an expected recovery in motorcycle demand following the recession. Industry revenue is forecast to rise over the five years to 2017-18. Nuguid adds, “there will be hurdles ahead, however, in the form of less leisure time available to consumers and continued negative public perceptions of motorcycling”. Uncertainty about the United Kingdom's economic performance will also hinder growth over the next five years.
Market share concentration in the Motorcycle Sales & Repair industry is low. The top four players are expected to account for less than 30% of revenue. Most companies in the industry do not stand out in terms of market power and most enterprises are owner-operators. This trend, which has not changed much over the past decade, is expected to continue over the next five years. Major companies include Harley-Davidson Europe Limited.
For more information on the Motorcycle Sales & Repair industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in this industry sell motorcycles (including mopeds), parts and accessories. Businesses that repair, service and maintain motorcycles are also included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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