Motorcycle Chain Sprocket Market will reach at a CAGR Value of 6.0% from 2019 – 2027
Demand for motorcycle chain sprocket, in Asia Pacific, is expected to grow at a steady year-on-year rate of 5.3 percent, in 2019, as per a recently released market intelligence study by Future Market Insights (FMI). Motorcycle chain sprocket being the lightest transmission possible compared to gear mechanism, in addition to being highly cost-effective in terms of manufacturing versus gear trains, will significantly contribute to the sales of motorcycle chain sprocket, in the coming years.
Moreover, apart from ease of installations and servicing, lightweight feature of the chain sprockets will remain the most rewarding factor, thereby, increasing its installations in motorcycles. FMI forecasts that global motorcycle chain sprocket market revenues will reach approximately US$ 1.9 Billion, by 2019-end. The size of the market is based on estimates of the number of chain sprockets shipped, during the same time period.
“The global market for motorcycle chain sprocket continues to grow with increasing product and sales of motorcycle specifically in emerging markets, paradigm shift towards light weight vehicle components to control the automobile emission and increase the vehicle life, and flourishing aftermarket for motorcycle chain sprocket determined by factors, such as distance driven, number of vehicles in operation, and ownership time” Senior Analyst, FMI.
Electric Bikes and Tax on Luxury Items Continue to Strain Revenue
However, several government initiatives such as the introduction of electric bikes—aimed at controlling vehicular pollution, could substantially restrict the demand for conventional motorcycles, and thereby chain sprockets used in such vehicles. China, being one of the largest markets for two-wheelers is aggressively promoting electric bikes for transportation, considering its low cost, energy efficient, emission-free systems, and no license and registration.
Tax on luxury items has considerably increased in some markets of Asia Pacific, such as India. The Indian government has increased the tax to 31 percent on conventional motorcycles with engines greater than 350cc, which in turn could slow down the sales of luxury and heavy engine capacity conventional motorcycles. Furthermore, Singapore has adopted a new system of additional registration fees (ARF), which will add more costs to conventional motorcycles and therefore, render them expensive, leading to a decrease in the sales of conventional motorcycles and adversely affect the motorcycle chain sprockets market.
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Competition to Remain Relatively High; Manufacturers Favor APEC Markets
- The top 8 companies in the global motorcycle chain sprocket market are estimated to hold approximately 16-21 percent of the overall market in terms of value.
- Tsubakimoto Chain Co., Regina Catene Calibrate Spa, Jomthai Asahi Co.,Ltd, L.G.Balakrishnan & Bros Ltd., and Rockman Industries Ltd. are some of the leading global and local manufacturers of motorcycle chain sprockets.
- While the tier-1 and tier-2 companies generate over US$ 50 Mn and between US$ 20 Mn to US$ 50 Mn through the sales of motorcycle chain sprocket, respectively, the tier-3 companies generate less than US$ 20 Mn, as per the report.
- Focus remains on manufacturing low maintenance and high efficiency motorcycle chain sprocket to improve the overall functioning and life of drive chain.
- Manufacturers are focusing on entering into long-term supply contracts with OEM of two wheelers in order to gain a strong hold in the domestic markets of APEC.
- Apart from expanding its product portfolio, manufacturers of motorcycle chain sprockets are also focusing in expanding their production or sales capacities in developing regions.
- FMI predicts heavy investments in research and development initiatives to bring innovation in the manufacturing processes to develop differentiated products.
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Regionally, developing regions are expected to remain highly lucrative for new market entrants given the easy availability of raw materials and minimal infrastructure requirements combined with lack of stringent government regulations, thereby creating a favorable investment environment.