Motorcycle Loan Market By Type (Scooters, Sport Bike, Mopeds) , By Providers (Banks, NBFS (non-banking financial services) , OEM (original equipment manufacturer) , Other) By Tenure (Less than 3 Years, 3-5 Years, More than 5 Years) : Global Opportunity Analysis and Industry Forecast, 2024-2032
Motorcycle Loan Market
The motorcycle loan market was valued at $141.3 billion in 2023 and is projected to reach $250.7 billion by 2032, growing at a CAGR of 6.5% from 2024 to 2032.
Motorcycle loan is a form of installment credit, obtained for the purchase of new or used motorcycle. The loan is offered by different institutions, including banks, online lenders, credit unions, and manufacturers or dealerships. The loan availed for the purchase of motorcycle can be secured, where the vehicle serves as the collateral, or unsecured, where collaterals are not required. Secured loans generally offer a low interest rate as compared to unsecured loans.
Increase in disposable income of individuals has boosted the purchase of motorcycles, thereby driving the growth of the motorcycle loan market. In addition, the assimilation of lucrative promotional offers with the loans is encouraging consumers to avail motorcycle loans to accomplish their purchase. With rising popularity of bikes in recreational activities, the motorcycle loan market is witnessing notable growth. The trend of customization in motorcycle loans that cater to diverse requirements of customers is poised to acquire traction in the future. Flexibility in terms of repayment options, loan conditions, and interest rates is projected to enhance the adoption of motorcycle loans.
However, the purchase of motorcycles remains highly dependent on recessions and economic downturns such as inflation or geopolitical instability. This leads to uncertainty in the motorcycle loan market. Moreover, most financial institutions offer loans based on individual credit scores, deterring individuals with limited credit records from availing loan. This hampers the growth of the motorcycle loan market. Despite the restraints, the motorcycle industry is growing globally, which is anticipated to open new avenues for the motorcycle loan market. According to MotorCyclesData, the widest motorcycles database, the global motorcycle industry was up by 0.9% in the first quarter of 2024, with a strong impetus by the Indian market.
Segment ReviewThe motorcycle loan market is segmented into type, providers, tenure, and region. On the basis of type, the market is divided into scooters, sport bike, and mopeds. Depending on providers, it is classified into banks, NBFS (non-banking financial services), OEM (original equipment manufacturer), and other. As per tenure, it is categorized into less than 3 years, 3-5 years, and more than 5 years. Region wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and MEA.
Key FindingsOn the basis of type, the mopeds segment held the highest market share in 2023.
Depending on providers, the banks segment dominated the market in 2023.
As per tenure, the less than 3 years segment acquired a high stake in the market in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global motorcycle loan market include Ally Financial Inc., Bank of America Corporation, GM Financial Inc., Capital One Financial Corporation, Ford Motor Credit Company, Citigroup, Toyota Financial Services Corporation, JPMorgan Chase & Co, Manba Finance, and Wells Fargo. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy TypeScooters
Sport Bike
Mopeds
By ProvidersBanks
NBFS (non-banking financial services)
OEM (original equipment manufacturer)
Other
By TenureLess than 3 Years
3-5 Years
More than 5 Years
By RegionNorth America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Latin America
Argentina
Brazil
Colombia
Rest of Latin America
MEA
Saudi Arabia
South Africa
UAE
Rest of MEA
Key Market Players
Ally Financial Inc.
Bank of America Corporation
GM Financial Inc.
Capital One Financial Corporation
ford motor credit company
Citigroup
Toyota Financial Services Corporation
JPMorgan Chase & Co
Manba Finance
Wells Fargo