This Frost & Sullivan analysis of two-wheeler (2W) connectivity provides insights into the technological development and innovations that will transform the 2W industry. It outlines future growth opportunities in major connected technology areas, such as connected services, advanced rider assistance systems, shared mobility services, and electric 2W (E2W) strategies. Frost & Sullivan has elaborated forecast scenarios based on several factors that are likely to accelerate the adoption of 2W connectivity technology. The geographic coverage includes leading 2W markets in Asia, Europe, North America, and Latin America.
Two-wheeler connectivity technologies allow a vehicle to communicate with other devices using embedded, tethered, and Bluetooth communication technologies. Tethered connectivity technology relies on the rider’s smartphone to enable the 2W’s connectivity features, for which the smartphone’s Bluetooth or WiFi connection pairs the smartphone application with the 2W dashboard. The system is relatively inexpensive but offers limited functionality. In contrast, embedded connectivity technology relies on the 2W’s telematics control unit (TCU) to enable 2W’s connectivity features 24/7. A TCU’s embedded subscriber identity module (eSIM) establishes a cellular connection, offering seamless and independent connectivity functions. This technology enables many connectivity functions.
The penetration rate of connected E2Ws and internal combustion engine (ICE) 2Ws will grow at a compound annual growth rate (CAGR) of 39% and 43.3%, respectively, between 2023 and 2028. By 2028, connectivity technology’s penetration rate will reach 80% in E2Ws and 60% in ICE 2Ws. While tethered connectivity technology is predominant in ICE 2Ws, software-centric E2W platforms feature embedded connectivity technology. Regarding the industry’s structure, start-ups dominate the 2W market, and the entry of traditional OEMs in the next 2 to 3 years will accelerate E2W markets and drive connectivity technology adoption. Embedded connectivity, V2X, and IoT are important areas that will undergo rapid advancements in 2Ws in the next 3 to 5 years.
Author: Deepan Chinnaswamy
The Impact of the Top 3 Strategic Imperatives on Connectivity Technology in the Two-wheeler Industry
Innovative Business Models
Why
- Two-wheelers (2Ws) can offer a new perspective for data such as traffic movement, new map routes, and road conditions.
- Unlike in cars, advanced rider-assistance system (ARAS) technology in 2Ws is relatively nascent.
Frost Perspective
By offering subscription-based plans for riders, industry players can use 2Ws as data collection platforms.
- In-vehicle sales and vehicle-to-everything (V2X) connectivity are the main 2W business opportunities in the next 3 to 5 years.
Competitive Intensity
Why
- Smartphone penetration across all regions has been rapidly increasing since 2020.
- Connected technology offers scope for advancements in typical 2W architecture.
Frost Perspective
Integrating smartphones with 2Ws via smartphone apps will remain a major trend driving 2W sales this decade.
- Advancements in connectivity technology to allow access to more smartphone apps using a 2W human-machine interface (HMI) will be a significant driver.
Disruptive Technologies
Why
- Software-defined electric two-wheelers (E2Ws) with embedded connectivity technology will extend the application of 2Ws beyond personal, shared, and last-mile delivery.
- V2X connectivity for 2Ws will accelerate the automotive connected ecosystem.
Frost Perspective
Original equipment manufacturers (OEMs) for E2Ws must explore opportunities to monetize the data that vehicle sensors capture.
- The flexibility and wide application of 2Ws will enable them to communicate more with the Internet of Things (IoT) at any given point than other automobile segments.
Segmentation by 2W Type
Mopeds
Mopeds fall under the L1-B vehicle category.
- Mopeds have a power output of less than 4 kilowatts (kW).
- Internal combustion engine (ICE) mopeds have an engine capacity of less than 50 cubic centimeters (cc).
- A moped’s top speed is less than 45 kilometers per hour (kmph).
- Scooters
- Scooters fall under the L3-A1 category.
- Electric and ICE scooters have a power output of 4 kW to 11 kW.
- A scooter’s top speed is more than 45 kmph.
- Motorcycles
- Motorcycles fall under the L3-A2 and L3-A3 categories.
- Electric and ICE motorcycles in the L3-A2 category have a motor power of 4 kW to 11 kW, while L3-A3 motorcycles have a motor power of more than 11 kW.
- A motorcycle’s top speed is more than 45 kmph.
- Electric Bikes (eBikes)
- An eBike falls under the L1e-A category.
- An eBike is a bicycle with an electric motor.
- The eBike falls under the pedaled vehicle classification and has a top speed of up to 25 kmph and a motor power output between 250 watts (W) and 1 kW.
Key OEM Competitors by Region
Competitors
Asia-Pacific
- Yadea
- NIU
- Zeeho
- QJ Motors
- Honda
- Yamaha
- Suzuki
- Gogoro
- Horwin
- SurRon
- Talaria
- South Asia
- Ather Energy
- Ola Electric
- Bajaj Auto
- TVS Motors
- Royal Enfield
- Jawa
- Yezdi
- Southeast Asia
- Gesits
- Deco
- Hsem
- AJ
- VinFast
- North America
- LiveWire
- Zero Motorcycles
- Indian Motorcycles
- Latin America
- Zynch
- Vammo
- Voltium
- Citio
- Italika
- Europe
- BMW Motorrad
- Ducati
- Triumph
- KTM
- Silence
- Maeving
- RGNT
- Askoll
- Nuuk
Competitive Environment
| Number of Competitors | 50 with revenue more than $1 million |
| Competitive Factors | Price, performance, technology, reliability, and aftersales service |
| Main End-user Industry Verticals | Commuting, leisure riding, ridesharing, and last-mile delivery |
| Leading Competitors | Honda, Hero MotoCorp, and Yamaha |
| Revenue Share of Top 5 Competitors (2023) | 90% |
| Other Notable Competitors | TVS Motors, Bajaj Auto, and Suzuki |
| Distribution Structure | OEM-authorized retail, licensed distribution, and direct-to-customer |
| Notable Acquisitions and Mergers | KTM AG’s acquisition of a majority stake in MV Agusta Motor |
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on Connectivity Technology in the Two-wheeler Industry
Scope of Analysis
Segmentation by 2W Type
Segmentation by 2W Connectivity Technology
Key OEM Competitors by Region
Segmentation by Region
Competitive Environment
Key Competitors by Major Components
Connected Technology in 2Ws—Key Findings
Tethered and Embedded Connectivity
Select Players in the Connected Two-wheelers Ecosystem
Connectivity Type Adoption by Select OEMs—Overview
Cybersecurity in 2Ws
Evolution of 2W Connectivity
Tethered and Embedded Connectivity in 2Ws
Distribution Channels
Growth Metrics
Growth Drivers
Growth Restraints
Forecast Considerations
Connected Technology Adoption in ICE 2Ws—Global
Connected Technology Adoption in ICE 2Ws—Asia
Connected Technology Adoption in ICE 2Ws—Europe
Connected Technology Adoption in ICE 2Ws—North America
Connected Technology Adoption in ICE 2Ws—Latin America
Connected Technology Adoption in E2Ws—Global
Connected Technology Adoption in E2Ws—Asia
Connected Technology Adoption in E2Ws—Europe
Connected Technology Adoption in E2Ws—North America
Connected Technology Adoption in E2Ws—Latin America
Forecast Analysis
Connected 2W Ecosystem
Key OEM and Supplier Partnerships
Connected 2W Technology Landscape
Competitive Environment
Connected Motorcycle Consortium (CMC)
C-ITS Roadmap
2W HMI Characteristics
Connected 2W Value Chain
Top 10 Connectivity Features in E2Ws
Top 10 Connectivity Features in ICE 2Ws
Key Trends Defining the Future of Connected 2Ws
2W Connectivity Hardware Roadmap
ICE 2W OEM Smartphone App Landscape
ICE 2W OEM Smartphone App Landscape (continued)
E2W OEM Smartphone App Landscape
E2W OEM Smartphone App Landscape (continued)
Connectivity Transformations in Motorcycles 2022–Q12024
Connected Motorcycles—Market Development
Key Trends in the Global 2W Industry
Top Trends Driving 2W Connectivity
1. Electrification
2. Smartphone App Integration
3. Data Analytics
4. OTA Updates
5. Cybersecurity
6. V2X
7. AI-powered Assistants
8. Cloud Connectivity
9. IoT Integration
10. Consortiums
Honda—OEM Feature Strategy
Honda—Roadmap
BMW Motorrad—OEM Feature Strategy
BMW Motorrad—Roadmap
Harley-Davidson—OEM Feature Strategy
Harley-Davidson—Roadmap
LiveWire—OEM Feature Strategy
LiveWire—Roadmap
Ather Energy—OEM Feature Strategy
Ather Energy—Roadmap
Niu Technologies—OEM Feature Strategy
Niu Technologies—Roadmap
Growth Opportunity 1—Growing Demand for Electric Two-wheelers
Growth Opportunity 1—Growing Demand for Electric Two-wheelers (continued)
Growth Opportunity 2—Ride-sharing and Last-mile Delivery Services
Growth Opportunity 2—Ride-sharing and Last-mile Delivery Services (continued)
Growth Opportunity 3—Enhanced Rider Safety and Security Systems
Growth Opportunity 3—Enhanced Rider Safety and Security Systems (continued)
Best Practices Recognition
Frost Radar
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
List of Figures- 2W Connectivity: Distribution Channel Analysis, Global, 2023
- 2W Connectivity: Growth Metrics, Global, 2023
- 2W Connectivity: Growth Drivers, Global, 2024–2028
- 2W Connectivity: Growth Restraints, Global, 2024–2028
- Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Global, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Asia, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Europe, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, North America, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Latin America, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, E2Ws, Global, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, E2Ws, Asia, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, E2Ws, Europe, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, E2Ws, North America, 2022–2028
- Connected 2Ws: Adoption Rates and Forecast, E2Ws, Latin America, 2022–2028
- Connected 2Ws: Top Market Trends, Global, 2024
- Connected 2Ws: E2W Unit Sales Forecast, Global, 2022–2028
- Connected 2Ws: Main Components of Smartphone App Integration, Global, 2024
- Connected 2Ws: Sensors in Modern 2Ws, Global, 2024
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This Frost & Sullivan analysis of two-wheeler (2W) connectivity provides insights into the technological development and innovations that will transform the 2W industry. It outlines future growth opportunities in major connected technology areas, such as connected services, advanced rider assistance systems, shared mobility services, and electric 2W (E2W) strategies. Frost & Sullivan has elaborated forecast scenarios based on several factors that are likely to accelerate the adoption of 2W connectivity technology. The geographic coverage includes leading 2W markets in Asia, Europe, North America, and Latin America.
Two-wheeler connectivity technologies allow a vehicle to communicate with other devices using embedded, tethered, and Bluetooth communication technologies. Tethered connectivity technology relies on the rider s smartphone to enable the 2W s connectivity features, for which the smartphone s Bluetooth or WiFi connection pairs the smartphone application with the 2W dashboard. The system is relatively inexpensive but offers limited functionality. In contrast, embedded connectivity technology relies on the 2W s telematics control unit (TCU) to enable 2W s connectivity features 24/7. A TCU s embedded subscriber identity module (eSIM) establishes a cellular connection, offering seamless and independent connectivity functions. This technology enables many connectivity functions.
The penetration rate of connected E2Ws and internal combustion engine (ICE) 2Ws will grow at a compound annual growth rate (CAGR) of 39% and 43.3%, respectively, between 2023 and 2028. By 2028, connectivity technology s penetration rate will reach 80% in E2Ws and 60% in ICE 2Ws. While tethered connectivity technology is predominant in ICE 2Ws, software-centric E2W platforms feature embedded connectivity technology. Regarding the industry s structure, start-ups dominate the 2W market, and the entry of traditional OEMs in the next 2 to 3 years will accelerate E2W markets and drive connectivity technology adoption. Embedded connectivity, V2X, and IoT are important areas that will undergo rapid advancements in 2Ws in the next 3 to 5 years.
Author: Deepan Chinnaswamy
| Deliverable Type | Market Research |
|---|---|
| Author | Deepan Chinnaswamy |
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Two-Wheeler Connectivity Technologies |
| Keyword 2 | Connected Two-Wheeler Market |
| Keyword 3 | Connectivity Technology |
| List of Charts and Figures | 2W Connectivity: Distribution Channel Analysis, Global, 2023~ 2W Connectivity: Growth Metrics, Global, 2023~ 2W Connectivity: Growth Drivers, Global, 2024–2028~ 2W Connectivity: Growth Restraints, Global, 2024–2028~ Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Global, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Asia, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Europe, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, North America, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, ICE 2Ws, Latin America, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, E2Ws, Global, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, E2Ws, Asia, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, E2Ws, Europe, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, E2Ws, North America, 2022–2028~ Connected 2Ws: Adoption Rates and Forecast, E2Ws, Latin America, 2022–2028~ Connected 2Ws: Top Market Trends, Global, 2024~ Connected 2Ws: E2W Unit Sales Forecast, Global, 2022–2028~ Connected 2Ws: Main Components of Smartphone App Integration, Global, 2024~ Connected 2Ws: Sensors in Modern 2Ws, Global, 2024~ |
| Podcast | No |
| WIP Number | MH56-01-00-00-00 |
Growth Opportunities in Connectivity Technology in the Two-wheeler Market, 2024 2028
Growth Opportunities in Connectivity Technology in the Two-wheeler Market, 2024 2028
Two-wheelers' Multiple Applications and Electrification Policies Will Create Growth Opportunities for Revenue-driven Business Models Using Connectivity Technology in Two-wheelers
RELEASE DATE
02-Aug-2024
02-Aug-2024
REGION
Global
Global
Deliverable Type
Market Research
Market Research
Research Code: MH56-01-00-00-00
SKU: AU_2024_909
$4,950.00
In stock
SKU
AU_2024_909