Motorcycle and Bicycle Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 400 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.
Industry size & Structure
The average US motorcycle or bicycle manufacturer operates out of a single location, employs less than 10 workers, and generates about $4.7 million annually.
- The motorcycle and bicycle manufacturing industry consists of about 400 firms that employ over 9,000 workers and generate about $5.9 billion annually.
- The industry is highly concentrated; the top four companies account for almost 85% 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.
Industry Forecast
Motorcycle and Bicycle Manufacturers Industry Growth
Recent Developments
Feb 20, 2025 - Manufacturing Expands, Labor Costs Up
- US manufacturing activity expanded in January 2025, following 26 months of contraction for the Manufacturing PMI, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 50.9% in January, up 1.7 percentage points from the 49.2% recorded in December. A reading above 50% indicates manufacturing expansion. Eight industries reported contraction including Textile Mills; Primary Metals; Petroleum & Coal Products; Chemical Products; Machinery; and Transportation Equipment. In addition, producer prices for motorcycle, bicycle, and parts manufacturing increased 3.3% in December 2024 year over year, according to the US Bureau of Labor Statistics (BLS). Employment by firms in the other transportation equipment manufacturing industry, which includes motorcycle, bicycle, and parts manufacturing, grew 4.5% in December 2024 compared to the previous year. Average wages for nonsupervisory employees in the industry increased 5.9% in January 2025 compared to a year ago, reaching $35.88 per hour.
- Harley-Davidson has forecast its 2025 motorcycle revenue to be flat to under 5%, as consumers are expected to exercise caution with big-ticket purchases, according to a report by Reuters in MSN. Sales of leisure vehicles have fallen off since the pandemic. Lackluster sales have been compounded by lingering inflation and high borrowing costs, as US consumers have prioritized spending on necessities. According to the report, Harley-Davidson has lost the business of some younger consumers who are instead purchasing modern, feature-packed, and affordable bikes from different manufacturers. Harley-Davidson’s revenue in 2024 was 11% lower than the previous year, marking the second consecutive year of declining sales. The company has announced it is boosting its investment in entry-level offerings and expanding its small bike line up, per a report by Top Speed.
- Bicycle manufacturers based in America are having difficulties finding components made in the US, according to a recent Wall Street Journal report. The report cited the Guardian Bikes company that shifted its production from China to the US in 2022, yet its CEO Brian Riley said the firm still has to rely on parts made in China due to few components being available in the US. Industry estimates show that almost all bicycles sold in the US are imported, and most are made in China or assembled from Chinese parts. Riley said he thought the tariffs planned by President Donald Trump may help him shift to US components faster by making American-made bikes and parts more competitive against Chinese-made ones. Currently, components from China make up 90% of the total cost of Guardian’s parts. Riley said he hopes to reduce it to 20% by the end of 2026, after starting up the manufacturing of the company's own bike frames and finding more stateside sources. US tariffs on China during the previous Trump administration saw some bike manufacturers move production to other countries less affected by tariffs such as Taiwan, Thailand, Vietnam, and Cambodia.
- Motorcycles are on a list of American products that the European Union may target for tariffs if US President Donald Trump moves forward with trade taxes on European imports, according to The Telegraph. The report said the European Commission’s “Trump taskforce” has developed the list of products, which come from states identified as being vulnerable to losing their Republican representatives in the 2026 midterm elections. The commission hopes the congressmen will pressure Trump to abandon the tariffs. Trump has said he would impose a 10-20% tariff on all foreign imports with a tariff up to 60% on Chinese imports. In 2023, the US was the largest market for EU exports of goods, and the US is the EU’s second-largest trading partner for imports.
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