#None #Vehicle Diagnostics #Connected Motorcycles #Electric Two-Wheelers

Overview of the Connected Motorcycle Market

The connected motorcycle segment is poised for significant growth, anticipated to achieve a market valuation of USD 3.40 billion by the year 2032. This marks a dramatic rise from its current valuation of USD 0.46 billion in 2025, reflecting a robust compound annual growth rate (CAGR) of 33.1%. This burgeoning market is fundamentally reshaping the motorcycle industry, pushing brands to prioritize advanced technology and connectivity features.

Major Players Leading the Charge

Key Original Equipment Manufacturers (OEMs) such as Honda, Yamaha, BMW Motorrad, and Ducati are spearheading the integration of advanced safety and connectivity technologies. Their innovations include radar-based cruise control, blind-spot detection, crash notifications, and cloud-connected diagnostics, all aimed at enhancing rider safety and vehicle awareness. Additionally, electric motorcycle manufacturers like Ather Energy, NIU, and Zero Motorcycles are making extensive connectivity a hallmark of their offerings, ensuring it becomes a standard expectation rather than an optional feature, particularly for models in the rapidly expanding 125-300cc electric sector.

The Rise of Scooters and Mopeds

A notable trend in this market is the dominance of scooters and mopeds, which are projected to capture a substantial share by 2032. Currently, scooters and mopeds represent more than 70% of electric two-wheelers sold globally, with leading brands such as NIU and Ather bundling connectivity as a basic feature across their product lines. These developments reflect a shift toward urban mobility solutions as cities increasingly embrace electrification.

In particular, Asia Pacific markets, including India and China, lead the charge, contributing over 80% of the global scooter sales. Government initiatives, such as India’s FAME II scheme and China’s electric vehicle (EV) quotas, further accelerate the adoption of electric two-wheelers equipped with connectivity features vital for urban logistics. The explosion of demand from last-mile delivery services, like Swiggy and Zomato, has also necessitated the integration of real-time telematics for improved operational efficiency.

Diagnostics as a Critical Component

As the market for connected motorcycles continues to grow, the vehicle health diagnostics segment stands out as the fastest-growing area. This success stems from the increasing importance of electrification and predictive maintenance. OEMs are now viewing diagnostics as a crucial component that transforms motorcycles from simple mechanical devices into data-driven platforms. Innovations in battery health monitoring and charging diagnostics are no longer optional but essential, particularly in the context of widespread EV deployment throughout Asia.

High-end motorcycle brands, such as BMW and Harley-Davidson, are now incorporating predictive diagnostics within their connected ecosystems, allowing for real-time updates and maintenance alerts.

Europe's Regulatory Landscape

Regionally, Europe is leading the charge in regulatory-driven integration of connected technologies. The implementation of stringent cybersecurity mandates by UNECE is pushing OEMs to develop secure diagnostics as standard operational practices. Meanwhile, in the U.S. market, a focus on linking insurance with telematics and fleet management is reshaping operational strategies across various brands.

In Europe, growth is forecasted at a 14.1% CAGR through the forecast period, driven by environmental regulations and a consumer base that increasingly values connectivity and advanced safety features. Regulations, such as mandates for eCall devices for automatic crash responses, are compelling manufacturers to innovate rapidly.

Conclusion

The trajectory of the connected motorcycle market indicates a transformation fueled by connectivity, safety regulations, and electrification trends. With major players rethinking their strategies around data and technology, the industry is becoming not just about transportation but also about creating a holistic, responsive mobility experience. As the landscape shifts, stakeholders must adapt to the new normal where connectivity is paramount, ensuring they remain competitive in this rapidly evolving market landscape.