Motorcycle Dealers Industry Profile

Companies in this industry sell new and used motorcycles, scooters, motorbikes, all-terrain vehicles, personal watercraft, and other motor vehicles; they also may offer repair services, parts, and accessories. No major companies dominate the industry; most have a single retail outlet.

Global sales for motorcycles are expected to reach about $129 billion by the end of 2023 and are expected to have revenues of about $167 by 2027, according to Statista. Demand is expected to be driven primarily by urbanization and industrialization in emerging markets, as well as by rising interest in electric motorcycles and bicycles.

The US motorcycle dealer industry includes about 7,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion.

COMPETITIVE LANDSCAPE

Discretionary personal income and interest rates drive demand, since motorcycles are high-ticket purchases and often financed. The profitability of individual companies depends on volume and sales of higher-margin goods like heavyweight motorcycles. Large dealers have advantages in broad inventory selections and negotiating power with manufacturers. Small dealers can compete effectively by providing superior customer service or offering unique services, like bike customization.

Major companies include private market sellers, other recreational vehicle dealers, service center chains, and independent service shops. The US industry is highly fragmented: the 50 largest companies generate about 20% of industry sales.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include new and used motorcycles, scooters, and motorbikes (about 70% of US revenue); boats and other ...