Motorcycle sales benefit from growing export demand.
London, United Kingdom (PRWEB) March 29, 2013
The Motorcycle Manufacturing industry peaked in the 1960s and has been consolidating since. Only one major manufacturer remains in the United Kingdom, however its success has been driving the industry forward. Nonetheless, the remaining companies in this industry have managed to find their place on the global market, with exports accounting for over half of revenue. According to IBISWorld industry analyst Lewis Sutton, “accelerating demand from European markets has supported growth over the past five years”. As a result, industry revenue is forecast to expand at a compound annual rate of 10.4% over the five years through 2012-13 to reach £418.5 million.
Production stalled in 2009-10 and 2010-11, mainly in response to plummeting consumer confidence during the economic downturn. However, revenue is estimated to have rebounded 20% in the 2011-12 due to improved demand and rejuvenated export markets. Industry revenue is forecast to grow 7.3% in 2012-13 due to product development and continued improvements in demand.
Industry profitability declined over the past five years due to the financial crisis, which led to a drop in demand. The closure of inefficient manufacturers helped maintain positive profit margins. Profitability has been recovering since the downturn due to tighter cost controls and better capacity utilisation brought about by higher output. The industry continues to consolidate with the number of enterprises expected to fall at a compound annual rate of 1.2% over the five years through 2012-13.
Sutton adds, “over the next five years, demand will be supported by trends toward fuel-efficient travel, higher congestion, urban lifestyles and a weak pound”. Motorcycles are more fuel-efficient than cars and have the added advantage of mobility. Over the five years through 2017-18, revenue is forecast to continue to increase but at a slower pace than experienced in the previous five years.
The Motorcycle Manufacturing industry has a medium level of market share concentration with the four largest manufacturers accounting for an estimated 64% of industry revenue, Triumph alone accounts for an estimated 61.2% of industry revenue, as it is the only major motorcycle manufacturer left in the United Kingdom. All other industry operators have a market share of 1.2% or less.
For more information on the Motorcycle Manufacturing 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 manufacture motorcycles, mopeds and cycles fitted with an auxiliary engine. They also produce engines, sidecars and other motorcycle parts and accessories such as saddles. This industry does not include bicycle manufacturers.
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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