Motorcycle and Bicycle Manufacturers NAICS 336991

Dec 28, 2025 - Faster Growth Forecast

• The US motorcycle and bicycle manufacturers industry is projected to grow at a CAGR of 4.84% between 2025 and 2029, faster than the overall economy's anticipated growth, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the durable goods manufacturing industries including motorcycle and bicycle manufacturers. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. The forecast noted that a tighter immigration policy could limit the expansion of the labor supply and job growth for durable goods manufacturing industries. However, labor productivity could still improve due to new technologies such as AI and 3-D printing as well as adjustments forced by the pandemic.
• Consumer sentiment in December 2025 reflected a cautious economic outlook, shaping demand for motorcycle and bicycle manufacturers. The University of Michigan Index rose 3.7% month over month to 52.9 but remained about 30% below year earlier levels, and 63% of consumers still expect unemployment to increase. Inflation expectations eased to roughly 4.2% for the next year and 3.2% long term, yet overall confidence stayed muted. The Conference Board’s index also declined to 89.1, signaling softer views on current conditions and continued uncertainty. For manufacturers, this environment points to pressure on discretionary purchases, slower demand for higher priced models, and greater price sensitivity. Entry level motorcycles, commuter bicycles, e bikes, and value oriented product lines are likely to remain more resilient as consumers prioritize affordability and practical mobility.

• According to a report in iMotorbike, Polaris is divesting its majority stake in Indian Motorcycle to private equity firm Carolwood LP, positioning the iconic brand for independent operation in 2026. While Polaris retains a minority interest, the move allows Indian to chart its own strategic path under new CEO Mike Kennedy, a former Harley-Davidson executive. For the motorcycle sector, this transition signals potential shifts in brand positioning, innovation, and competition. Indian Motorcycle is expected to maintain the majority of its existing sales, service, and support network following the transition. Polaris acquired the Indian Motorcycle brand in 2011.
• Transportation equipment manufacturing, which includes motorcycle and bicycle manufacturers, is one of the 11 manufacturing industries reporting contraction in September’s Manufacturing ISM Report on Business. Transportation equipment manufacturers reported growth in order backlogs, increases in raw materials prices and inventories, and faster supplier deliveries, while reporting a decline in new orders, a decrease in production, and lower employment. Other manufacturing industries reporting contraction during the period were Wood Products; Apparel, Leather & Allied Products; Plastics & Rubber Products; Paper Products; Furniture & Related Products; Chemical Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Machinery; and Computer & Electronic Products. Five industries reporting growth were Petroleum & Coal Products; Primary Metals; Textile Mills; Fabricated Metal Products; and Miscellaneous Manufacturing. Overall, economic activity in the manufacturing sector contracted for the seventh consecutive month in September, with the Manufacturing PMI registering 49.1%.