Connected Motorcycle Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Connected Motorcycle Market Trends and Insights

5G Roll-Outs Enabling Ultra-Low-Latency V2X

With stand-alone 5G networks achieving radio latency in the millisecond range, features like collision warnings and cooperative adaptive cruise control are becoming a reality for riders. Autotalks and Rolling Wireless have unveiled a 5G-V2X chipset family set for series production, which is compatible with both cellular V2X and the older DSRC modes. Japan has allocated a dedicated frequency band solely for V2X, laying the groundwork for its nationwide pilot corridors. Meanwhile, in the U.S., efforts are underway to expand V2X coverage on highways. Such initiatives firmly establish 5G as the cornerstone of the connected motorcycle market, enabling advanced safety features and seamless communication for riders over the coming decade.

Government Cyber-Security Mandates (UNECE R155/156)

UNECE Regulation 155 obliges every new motorcycle type-approval from July 2029 to include a full Cyber Security Management System, while Regulation 156 codifies software-update logging and validation. These rules apply to category L vehicles and push security hardware costs into even entry-level models. Tier-one suppliers respond with bundled telematics and ABS units that amortize certification expense. Smaller manufacturers must weigh white-label platforms against in-house solutions, a strategic fork that can alter brand differentiation. Early adoption helps firms avoid future production bottlenecks as the deadline approaches.

Surging Integration of eSIM-Based Telematics

eSIM modules displace physical SIM cards, allowing motorcycles to roam se amlessly and switch carriers without hardware swaps. Qualcomm’s QWM2290 chipset combines LTE/5G connectivity and GNSS into one package, trimming board space and certification cycles^{[1]"Qualcomm® QWS2290/ QWM2290 Processors", Qualcomm, qualcomm.com}. Fleet operators use the technology to optimize coverage and service fees, while Sentiance reports 30-40% claim reductions on bikes fitted with behavior-tracking telematics. Partnerships like Sibros with PIERER Mobility illustrate how over-the-air platforms shorten feature rollouts and reduce dealership visits. Collectively, these developments strengthen the connected motorcycle market across premium and mainstream segments.

OEM Push Toward ADAS-Ready Two-Wheelers

Motorcycle makers emulate automotive safety roadmaps by embedding adaptive cruise control, blind-spot detection, and emergency call functions. Bosch's radar-based cruise control on the Ducati Multistrada V4 and BMW R 1250 RT, combining its inertial measurement unit with front-facing sensors to maintain safe distances^{[2]Edward C. Fatzinger, William Gonzaga, "An Evaluation of the Bosch Radar-Based Adaptive Cruise Control System on a 2022 Ducati Multistrada V4S", ResearchGate GmbH, www.researchgate.net}. BMW’s ConnectedRide initiative integrates motorcycles into Car-to-X networks, allowing other vehicles to receive proximity alerts from two-wheelers. Higher safety ratings support insurance discounts, enlarging the total addressable connected motorcycle market.

High Incremental BOM Cost for Mass-Market Bikes

Entry-level motorcycle manufacturers are experiencing a squeeze in their margins, as the addition of telematics, displays, and secure gateways increases component costs by over USD 200 per unit. Renesas is addressing this challenge with its single-chip telematics controllers, which reduce both PCB area and firmware overhead. However, costs are further increased by UNECE R155 compliance, which requires comprehensive cybersecurity audits. To maintain their edge, manufacturers such as Hero MotoCorp are turning to smartphone-based dashboards. These dashboards shift much of the processing burden to the rider’s device. Yet, this integration complexity can detract from the overall user experience. Such challenges are curbing the rapid adoption of connected motorcycles, especially in price-sensitive segments.

Li-Ion Thermal-Runaway Recalls Dampen OEM Appetite

High-profile battery fires in 2024-2025 highlighted the risk of thermal runaway in compact electric motorcycles, triggering official safety investigations. Regulators responded by strengthening battery-test protocols, which now include thermal-propagation and vibration checks, thereby raising the compliance bar for every new model. OEMs consequently scrutinize add-on electronics that sit near the battery enclosure, and telematics modules draw special focus because they introduce continuous power consumption in a confined space. Engineers counter the risk with ultra-low-sleep-mode designs and layered battery-management controls that isolate failing cells before temperatures escalate. 

Segment Analysis

By Service: Driver Assistance Surges as Collision Avoidance Scales

Infotainment held 34.31% of 2025 revenue, indicating the current center of gravity for the connected motorcycle market. Driver assistance services are projected to grow at a rate of 44.21% between 2026 and 2031, the fastest among all service categories. Mandatory eCall functions, as outlined by the European Commission, transform safety services into non-optional add-ons. Meanwhile, remote diagnostics and firmware updates satisfy UNECE security rules, and usage-based insurance gains favor with risk-averse insurers in high-traffic regions. The combined pull of regulation and insurer incentives positions driver assistance as the lead growth engine over the forecast horizon.

Regulation influences adoption priorities, encouraging OEMs to invest in over-the-air capabilities while leaving infotainment dependent on discretionary spending. Driver assistance sits between crowd-pleasing features and mandatory functions, giving it a balanced mix of regulatory and market support. Commercial fleets tend to prioritize vehicle management for cost control, whereas private riders prefer a balance of entertainment and safety. As a result, service portfolios diverge by customer group, and suppliers craft tiered offerings that align with each segment’s willingness to pay. This dynamic ensures the connected motorcycle market continues to diversify its revenue streams.

Note: Segment shares of all individual segments available upon report purchase

By Hardware Type: Tethered Smartphone Solutions Gain as Cost Pressures Mount

Embedded control units commanded 54.82% of 2025 deployments, reflecting their ability to provide always-on connectivity and seamless over-the-air updates. Premium brands embed these units under the seat or fairing to deliver integrated navigation, diagnostics, and rider-assistance alerts. Rising production volumes gradually trim bill-of-materials costs, but budget-conscious OEMs still seek lower-priced alternatives to address price-sensitive buyers. Tethered smartphone solutions, forecast to grow at a 37.51% CAGR through 2031, answer that need by using the rider’s handset for data processing and network access. Although tethering lacks automatic crash notification if the phone is absent, it offers a compelling entry point for first-time connected motorcycle customers.

Hybrid architectures sit between both extremes, combining a small embedded module for mandatory safety functions with a phone-based app for infotainment and ride analytics. This split hardware model helps OEMs comply with regulations while avoiding the full cost of a high-spec ECU. Integrated cockpit clusters, which incorporate a color display and telematics modem into the instrument panel, appeal to touring riders who spend long hours on the road and expect rich mapping capabilities on demand. Suppliers continue to shrink display bezels and improve sunlight readability, enhancing perceived value. As these advances roll into mid-range models, hardware diversity broadens the connected motorcycle market size and keeps competition active across price tiers.

By End User: Commercial Fleets Drive Telematics Adoption Through Operational ROI

Private consumers represented 68.31% of the 2025 demand, illustrating the continued role of motorcycles in leisure touring, sport riding, and daily commuting. Riders appreciate theft-recovery tracking and navigation support that smartphone apps or embedded clusters readily provide. They also value safety enhancements that deliver forward-collision and blind-spot warnings without diminishing the sense of control. Subscription pricing remains a hurdle for some retail buyers, but bundled data plans and pay-once upgrades ease adoption friction. As premium motorcycles filter into emerging economies, private uptake remains the volume backbone of the connected motorcycle market.

Commercial fleets, however, are projected to expand at a 32.11% CAGR through 2031, reflecting a clear operational payback on telematics investment. Delivery platforms, ride-hailing operators, and rental agencies utilize live vehicle data to optimize routing, curb reckless driving, and demonstrate compliance with local transportation regulations. Predictive maintenance alerts help keep bikes on the road during peak demand periods, which is critical when profit margins depend on high utilization rates. Usage-based insurance discounts further strengthen the business case, since premiums align with actual mileage and driving style rather than fixed risk tables. This cost-benefit loop supports a rapid shift from pilot projects to fleet-wide deployments, expanding the connected motorcycle market size in the enterprise channel.

By Network Type: Cellular Dominates as Satellite-IoT Targets Coverage Gaps

Cellular technologies accounted for a 59.31% market share in 2025 and are expected to grow at a 41.11% CAGR through 2031, driven by the widespread availability of 4G and 5 G networks. These networks strike a balance between bandwidth, latency, and cost, enabling both infotainment streaming and real-time hazard alerts under a single subscription. OEMs benefit from mature supply chains that deliver pre-certified modules with embedded SIMs, shortening development cycles. Regulatory bodies are increasingly viewing cellular-based eCall services as a baseline safety requirement, thereby solidifying the technology’s role. Continuous infrastructure upgrades ensure that even suburban and secondary roads gain reliable coverage over the forecast period.

Dedicated short-range communications and satellite-IoT solutions fill performance or coverage gaps rather than compete head-on with cellular. DSRC and C-V2X links offer ultralow latency for vehicle-to-vehicle messaging along test corridors, paving the way for future integration into broader safety frameworks. Satellite-IoT modules offer a fallback option for riders exploring remote deserts, mountains, and forest trails where terrestrial towers are scarce. This non-terrestrial layer supports asynchronous services such as stolen-vehicle recovery and emergency location beacons. By combining cellular reach with spot-coverage enhancers, OEMs create resilient connectivity packages that broaden the connected motorcycle market share across diverse geographies and riding styles.

Geography Analysis

The Asia-Pacific region generated 41.73% of 2025 revenue and is projected to grow at a rate of 35.81% through 2031, giving the area the steepest slope of the connected motorcycle market growth curve. China’s mandate for V2X-ready smart roads accelerates adoption in every major city. Japan and South Korea favor tethered architectures because high smartphone penetration lowers incremental hardware cost. At the same time, Southeast Asian fleets deploy telematics across food-delivery and ride-hailing bikes to control operating expenses and raise safety. Together, these demand vectors strengthen supply-chain resilience and encourage component vendors to localize production lines, shortening lead times. Government initiatives that pair smart infrastructure funding with tax incentives further boost momentum.

North America follows with a 24.92% forecasted CAGR as state-level insurance discounts prompt riders to accept telemetry in exchange for lower premiums. Federal agencies have not yet mandated eCall; however, proposed safety rules continue to put pressure on OEMs to embed crash-notification capability before regulations are finalized. Europe advances at 23.99% despite strict GDPR compliance burdens that elevate development costs. Germany, France, and the United Kingdom dominate regional spending due to their high per-capita incomes and established touring cultures. Eastern Europe lags as patchy cellular coverage limits the utility of telematics beyond urban zones.

South America, the Middle East, and Africa grow from smaller bases yet show pockets of rapid uptake. Brazilian riders in congested cities value theft-recovery services, but exchange-rate fluctuations constrain upgrade cycles. Gulf states are investing in smart-city corridors that require V2X compliance for all new vehicles, thereby driving demand for premium connected models. Africa’s vast rural expanses favor hybrid cellular-satellite modules that ensure emergency connectivity where cellular towers are scarce. As terrestrial networks spread, suppliers position low-cost retrofit kits to tap the vast installed base of unconnected motorcycles.