|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
8.7 Billion
|
|
CAGR
(2023-2028)
|
2.8%
|
|
Fastest
Growing Segment
|
Motorcycle
|
|
Largest
Market
|
Java
|
Market Overview
Indonesia Two-Wheeler Market
has valued at USD 8.7 Billion in 2022 and is anticipated to project robust
growth in the forecast period with a CAGR of 2.8% through 2028. The Indonesia
Two-Wheeler Market stands as one of the most vibrant and significant segments
within the country's automotive industry. Indonesia, with its large population
and diverse geography, presents a unique landscape for the two-wheeler market.
Motorcycles and scooters play an integral role in the daily lives of
Indonesians, serving as essential means of transportation for both urban and
rural areas. The market's prominence is underscored by its sheer size and
scale. Indonesia ranks among the world's largest two-wheeler markets, driven by
factors such as population density, traffic congestion, and the need for
cost-effective mobility solutions. Motorcycles and scooters are widely favored
for their affordability, fuel efficiency, and agility in navigating Indonesia's
congested roads. A key contributor to the growth of the Indonesia Two-Wheeler
Market is the country's expanding middle class and increasing urbanization. As
more Indonesians achieve higher income levels, the demand for personal mobility
options surges. Two-wheelers offer a practical and accessible solution,
especially in urban areas where traffic congestion is a prevalent issue. Indonesia's
geography, which comprises a mix of bustling cities and remote villages, also
plays a role in shaping the market. Two-wheelers serve as versatile vehicles
that can navigate both urban streets and rural terrains. The market's diversity
extends to a wide range of vehicle types, from traditional motorcycles to
modern scooters and even electric two-wheelers as the country embraces
sustainable mobility solutions.
Key Market Drivers
Population
Density and Demographics
Indonesia's vast
population is a primary driver of the two-wheeler market. With over 270 million
people, the country has a large pool of potential consumers. The sheer number
of individuals seeking affordable and practical transportation solutions fuels
the demand for two-wheelers. Motorcycles and scooters offer a cost-effective
means of mobility for a wide range of consumers, from urban dwellers to rural
residents.
Urbanization
and Traffic Congestion
Rapid urbanization has led
to increased traffic congestion in Indonesian cities. Two-wheelers offer a
solution to navigate through congested streets, providing agility and ease of
movement. In densely populated urban areas, motorcycles and scooters allow
commuters to bypass traffic jams, reducing travel time and improving overall
convenience.
Affordability
and Accessibility
The affordability of
two-wheelers compared to four-wheeled vehicles makes them accessible to a
broader range of consumers. For many Indonesians, motorcycles and scooters are
the most cost-effective option for personal transportation. The relatively low
upfront cost, coupled with lower operating expenses in terms of fuel
consumption and maintenance, positions two-wheelers as an attractive choice for
transportation.
Income
Distribution and Middle-Class Growth
Indonesia's expanding
middle class drives demand for improved mobility options. As more individuals
achieve higher income levels, they seek enhanced transportation solutions
beyond traditional modes. Two-wheelers cater to this segment by providing
convenient, affordable, and versatile means of commuting, contributing to the
market's growth.
Rural
Connectivity
Indonesia's diverse
geography includes both urban centers and remote rural areas. Two-wheelers play
a critical role in connecting people in these regions where four-wheeled
vehicles may face challenges. Motorcycles and scooters enable access to
essential services, employment opportunities, and education, serving as a
lifeline for many rural communities.
Regulatory
Framework and Incentives
Government policies and
regulations significantly influence the two-wheeler market. Incentives for
low-emission vehicles, safety standards, and fuel efficiency requirements shape
manufacturers' offerings. These policies encourage the development and adoption
of more technologically advanced two-wheelers that align with environmental and
safety goals set by the government.
Fuel
Efficiency and Operating Costs
Rising fuel prices and the
need for economical transportation contribute to the demand for fuel-efficient
vehicles. Two-wheelers, especially scooters, are known for their fuel
efficiency, making them an appealing choice for consumers seeking to save on
operating costs. This driver becomes especially pertinent when considering the
overall cost of ownership over time.
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Key Market Challenges
Traffic
Congestion and Urbanization
Rapid urbanization in
Indonesian cities has led to increased traffic congestion. While two-wheelers
offer agility in navigating congested streets, the rising number of vehicles, including
motorcycles and scooters, can exacerbate traffic issues. This challenge affects
not only the efficiency of two-wheeler travel but also overall road safety and
transportation systems.
Safety
Concerns
Safety is a significant
challenge in the Indonesia Two-Wheeler Market. High accident rates and
inadequate enforcement of traffic rules contribute to road safety risks.
Inadequate helmet usage, reckless driving behaviors, and a lack of proper
infrastructure for two-wheeler safety exacerbate these concerns. Improving road
safety education, awareness, and infrastructure is crucial to address this
challenge.
Environmental
Impact
The popularity of
two-wheelers in Indonesia has environmental implications, particularly in terms
of air quality and emissions. Many older models lack advanced emission control
technology, contributing to higher pollution levels. The challenge lies in
transitioning to cleaner and more efficient two-wheelers that comply with
stricter emission standards, balancing the benefits of mobility with
environmental responsibility.
Infrastructure
Limitations
The availability of
appropriate infrastructure for two-wheelers is a challenge, especially in
rapidly growing urban areas. Insufficient parking facilities, inadequate road
design for two-wheelers, and a lack of designated lanes hinder safe and
convenient two-wheeler travel. Addressing these limitations requires urban
planning that accommodates the unique needs of two-wheeler commuters.
Market
Saturation and Competition
The Indonesia Two-Wheeler
Market is highly competitive and saturated, with numerous manufacturers vying
for consumer attention. This can lead to pricing pressures and a focus on
cost-cutting measures that might compromise quality. The challenge for
manufacturers is to differentiate their products while maintaining
affordability and meeting consumer demands.
Consumer
Behavior and Preferences
Consumer behavior and
preferences can pose challenges to market growth. While many consumers prefer
the affordability and convenience of two-wheelers, changing preferences toward
four-wheeled vehicles or emerging alternative mobility solutions could impact
demand for two-wheelers. Understanding and adapting to shifting consumer
preferences is essential for sustained market success.
Regulatory
Complexities
Regulatory changes and
uncertainties can impact the market. Shifting emission standards, safety
regulations, and government policies can affect manufacturers' strategies and
product offerings. Adapting to evolving regulations while maintaining product
quality and affordability requires a balance that can be challenging to
achieve.
Key Market Trends
Rise of
Electric Two-Wheelers
The trend toward
electrification is gaining momentum in the Indonesia Two-Wheeler Market.
Electric two-wheelers, including electric motorcycles and scooters, are
becoming more prominent as environmental awareness grows. With a focus
on reducing emissions and promoting sustainability, manufacturers are
introducing electric models that offer quieter operation, lower operating
costs, and reduced environmental impact.
Connected
and Smart Features
Technological advancements
are driving the integration of connected features in two-wheelers. Smartphones
and digital platforms are being paired with two-wheelers to offer navigation,
connectivity, real-time vehicle data, and even remote diagnostics. These
features enhance the rider’s experience, provide convenience, and allow
manufacturers to offer personalized services.
Safety
Enhancements
Improved safety features
are a growing trend in the market. As road safety concerns gain attention,
manufacturers are introducing advanced safety technologies such as anti-lock
braking systems (ABS), traction control, and electronic stability control.
These features enhance stability and control, contributing to safer rides and
reducing accidents.
Customization
and Personalization
Customization is becoming
a significant trend as consumers seek to express their individuality through
their two-wheelers. Manufacturers are offering more customizable options,
allowing consumers to personalize their vehicles with unique colors, graphics,
and accessories. This trend caters to consumers who value self-expression and
want their vehicles to stand out.
Rise of
Ridesharing and Mobility Solutions
The trend of urbanization
has led to increased traffic congestion and a shift toward shared mobility
solutions. Ride-sharing platforms are expanding to include two-wheelers,
offering an alternative to conventional taxis and rideshare services. These
platforms provide affordable and convenient transportation options,
particularly in congested urban areas.
Emission
Standards and Environmental Awareness
Stricter emission
standards and growing environmental awareness are pushing manufacturers to
develop cleaner and more efficient two-wheelers. This trend aligns with global
efforts to reduce air pollution and combat climate change. Manufacturers are
introducing technologies like fuel injection, catalytic converters, and hybrid
options to meet emission targets.
Shift
to Premium and Performance Models
As consumers' disposable
incomes rise, there is a growing demand for premium and performance-oriented
two-wheelers. This trend is driving the introduction of higher-end models with
advanced features, better performance, and enhanced styling. Manufacturers are
expanding their product portfolios to cater to this segment of enthusiasts.
Segmental Insights
Vehicle Type Insights
In Indonesia, motorcycles command the largest market
share amongst two-wheeled vehicles. This dominance can be attributed to several
factors. Firstly, the affordability of motorcycles makes them a popular choice
among many Indonesians who fall into the middle-income group. Secondly, the
country's often congested roadways make motorcycles an ideal choice for
navigating through heavy traffic. Lastly, the widespread presence of
motorcycle-taxi services like Go-Jek and Grab Bike has further boosted the
popularity of motorcycles in the country.
Fuel Type Insights
In Indonesia, the two-wheeler market is predominantly
dominated by petrol-based engines, owing to their widespread availability and
cost-effectiveness. However, a noticeable shift towards electric two-wheelers
is being observed, driven by growing environmental consciousness and government
incentives promoting green transportation. Despite these advancements, the
adoption rate of electric two-wheelers remains relatively low, primarily due to
concerns regarding battery lifespan and the lack of charging infrastructure
across the country. Thus, while petrol remains the preferred fuel type for
two-wheelers in Indonesia, an impending shift towards electricity is evident.
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Regional Insights
Java, the world's most
populous island and home to the vibrant capital city of Indonesia, Jakarta,
holds the largest share of the two-wheeler market in Indonesia. With its dense
population, bustling cities, and prevalent use of motorcycles for daily commuting,
Java significantly surpasses other regions like Sumatra, Kalimantan, Sulawesi,
Maluku, and Papua, as well as Bali and Nusa, in terms of two-wheeler market
size. This dominance can be attributed to the island's extensive road network,
well-established distribution channels, and a strong motorcycle culture deeply
ingrained in the daily lives of its residents. From the congested streets of
Jakarta to the scenic rural areas, the sight of motorcycles weaving through
traffic is a common and integral part of Java's dynamic transportation
landscape.
Recent
Developments
- In 2023, Indonesian
government is allocating around USD 455 million to subsidise the electric
motorcycles sales in the country.
- In 2023, Indonesian
coal miner PT TBS Energi Utama and PT GoTo Gojek Tokopedia has formed a
joint venture called PT Energi Kreasi Bersama to launch an electric
scooter plant in West Java (Indonesia).
Key Market Players
·
Honda Motor Co., Ltd.
·
Yamaha Motor Co., Ltd.
·
Suzuki Motor Corporation
·
Kawasaki Heavy
Industries, Ltd.
·
Bajaj Auto Ltd.
·
Harley-Davidson Inc.
·
Piaggio Group
·
KTM AG
·
TVS Motor Company
|
By
Vehicle Type
|
By
Propulsion Type
|
By
Region
|
|
|
|
- Sumatra
- Kalimantan
- Sulawesi
- Maluku
& Papua
- Bali
& Nusa
- Java
|
Report
Scope:
In this report, the Indonesia
Two-Wheeler market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Indonesia Two-Wheeler Market, By Vehicle Type:
o Scooter/Moped
o Motorcycle
- Indonesia Two-Wheeler Market, By Propulsion Type:
o ICE
o Electric
- Indonesia Two-Wheeler Market, By Region:
o Sumatra
o Kalimantan
o Sulawesi
o Maluku
& Papua
o Bali
& Nusa
o
Java
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the Indonesia Two-Wheeler Market.
Available
Customizations:
Indonesia Two-Wheeler
market report with the given market data, Tech Sci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
Indonesia Two-Wheeler market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]