Motorcycle and Bicycle Manufacturers

The 423 manufacturers in the US produce motorcycles, bicycles, and scooters, as well as related parts, components, accessories, and apparel. Various models of cycles, which include on-road and off-road cycles, offer different types of rides. Firms may specialize in a particular type of bike. Channels of distribution include wholesalers, distributors, dealers, and retailers. Firms may also sell products directly to riders through websites.

Competition from Foreign Manufacturers

Foreign manufacturers dominate the global and domestic motorcycle and bicycle market, due to lower material and labor costs.

Competition from Used Cycles

Demand for new motorcycles typically drops when the supply of used cycles rises or when the price of used cycles decreases.

Jun 25, 2026 - Harley Signals Market Recovery

• Harley-Davidson's first-quarter results suggest improving retail demand but continued profitability challenges for the broader US motorcycle manufacturing industry. Harley-Davidson reported a 14% increase in North American retail motorcycle sales (including 16% growth in the US), indicating stronger demand for heavyweight motorcycles, while global retail sales increased 8%. However, motorcycle shipments declined 3%, operating margin fell from 10.8% to 1.8%, and higher tariffs, promotional activity, and restructuring costs significantly reduced earnings. The company also cut dealer inventories 22%, reflecting a broader industry focus on aligning production with retail demand rather than overstocking dealerships. Looking ahead, Harley-Davidson's strategy of expanding lower-priced, entry-level motorcycles, strengthening dealer profitability, and increasing parts and accessories sales highlights how US manufacturers are adapting to affordability concerns while seeking growth through aftermarket revenue and more disciplined inventory management rather than relying solely on new motorcycle sales.
• Consumer confidence remained subdued in mid-2026, creating a challenging demand environment for US motorcycle and bicycle manufacturers. The Conference Board Consumer Confidence Index slipped to 93.1 in May from 93.8 in April, while the Present Situation Index fell to 121.2 and the Expectations Index rose to 74.4, remaining below the level often associated with recession concerns. Separately, the University of Michigan's Consumer Sentiment Index increased 9.2% to 48.9 in June, with the Current Economic Conditions Index rising to 48.4 and the Consumer Expectations Index climbing to 49.3, though overall sentiment remained 19.4% below a year earlier. The cautious consumer outlook, coupled with rising prices and elevated inflation expectations, may lead households to delay discretionary purchases of motorcycles and higher-priced bicycles, softening demand for manufacturers.
• Dealer Spike's State of the Dealer 2026 report, drawn from over 6,800 dealerships, reveals a widening performance gap in the US motorcycle and powersports sector. Top-performing dealers generate 4.5x more leads and turn inventory 54% faster than peers. With 54% of customer traffic occurring after hours, dealerships face pressure to invest in digital retailing tools to capture online shoppers. Rising cost-per-click (CPC) is squeezing acquisition budgets, while dealers conducting weekly inventory reviews show measurable gains. The report signals that US motorcycle and powersports dealerships must modernize digital experiences and leverage data-driven strategies to sustain growth amid tighter margins and increasingly demanding consumers.
• US motorcycle manufacturers are facing continued uncertainty as shifting tariff policies disrupt costs and planning, according to a recent RevZilla report. Despite a Supreme Court decision overturning earlier tariffs, a new 10% import tariff introduced in 2026 remains in place—at least temporarily—highlighting ongoing volatility. The uncertainty has already forced manufacturers like Kawasaki to seek refunds on previously paid duties, underscoring the financial impact of prior tariffs. With the current tariff set to expire July 24, 2026, unless extended, companies must plan amid unclear policy direction. For the US motorcycle industry, this fluid environment complicates pricing, sourcing, and investment decisions, increasing operational risk and making long-term strategy more difficult in an already competitive market.

Industry size & Structure

The average US motorcycle or bicycle manufacturer operates out of a single location, employs less than 20 workers, and generates about $9.3 million annually.

• The motorcycle and bicycle manufacturing industry consists of about 423 firms that employ over 8,500 workers and generate about $4.9 billion annually.

• The industry is highly concentrated; the top four companies account for about 65% of industry revenue.

• Large motorcycle manufacturers include Harley Davidson, Indian (Polaris), Honda, and Kawasaki. The largest bicycle manufacturers started as US companies but were eventually acquired by foreign firms, such as Giant (Taiwan), United Wheels (Hong Kong), and Pon Holdings (The Netherlands). Most US firms are low-volume producers that specialize in niche products for hard-core bikers. Large domestic firms include Trek and BCA.

• The median age of a motorcyclist is 50 years old, according to the Motorcycle Industry Council. Over 80% of riders are male. The median household income of motorcyclists is $62,500.