The global two-wheeler ABS market is anticipated to register a CAGR of about 9% during the forecast period (2020 - 2025).
- According to the Insurance Institute for Highway Safety (IIHS), fatal crashes can be reduced by 31% for motorcycles equipped with optional ABS compared to those same models without ABS.
- Increasing road traffic and congestion, the low maintenance cost of bikes, people's willingness to buy 2 wheelers are some of the factors which are driving the global 2-wheeler ABS market.
- The governments are imposing strict regulations for reductions in fatalities during road accidents, for instance, the European Union parliament mandated anti-lock braking systems as the standard equipment in motorcycles built from 2016. The Insurance Institute of Highway Safety reported that 8.9% of registered motorcycles were required to have anti-lock brake systems in 2017. This number increased steadily since 2002 when anti-lock brake technology was considered a standard form of equipment on only 0.2% of motorcycles.
- The modern electronics of brake systems offer motorcyclists more safety, and on onus with that make driving much more comfortable. Some of the other benefits of ABS are provided stable braking characteristics on all road surfaces, maintains steerability, and reduces the braking distance, which reduces tire wear and tear.
Key Market Trends
Government Regulations Driving the Adoption of ABS in the 2-wheeler.
In Europe, The European Union parliament mandated anti-lock braking systems as the standard equipment in motorcycles built from 2016. Europe is one of the first regions that has made the ABS compulsory and also holds a significant share in the global 2-wheeler market. For instance, according to the European Association of Motorcycle Manufacturers (ACEM) total of 1,079,524 motorcycles were registered in 2019 in the EU which is increased by 8% compared to 2018. The largest motorcycle markets in Europe are Italy 231,712 units, France 197,470 units, and Spain 177,037 motorcycles.
The increasing safety standards in the automotive industry, globally, are driving the countries to follow the developed regions, where all new two-wheelers are sold with ABS as a standard feature. For instance, Japan's Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) constructed amendments in the safety standards for road transport in 2015 but it came into effect in 2018. In the new law, the requirement for all new motorcycles of more than 125cc is to be equipped with Anti-lock Braking Systems (ABS) as a standard. Whereas, two-wheelers below 125cc must come with either ABS or CBS. However, the dirt bikes are exempted from the law.
Asia-Pacific is projected to witness the highest growth in 2-wheeler ABS Market
Asia-Pacific 2-wheeler ABS market is anticipated to grow at a rapid rate over the forecast period. China, India, and Japan are the major economies in the regional market that are anticipated to influence the global market. The region has the top five countries which are the largest market for two-wheelers. In 2019 India which is one of the largest 2-wheeler markets has seen a 7.9% increase of 2 wheelers sale from 20.2 million units in 2018 to 21.18 million units in 2019.
Local governments are making ABS compulsory by passing various laws. For instance, in India from April 2019, all four and two-wheelers manufactured in the country will have to be compulsorily equipped with an Anti-Lock Braking System. As per the norms, all new two-wheelers with an engine displacement over 125cc will have to be equipped with ABS while models with an engine displacement of less than 125cc will have compulsory fitment of the combi-braking system (CBS).
In 2019, the Taiwan government has announced that they will subsidize the installation or purchase of a new scooter or motorcycle with an anti-lock braking system (ABS), in which the government will contribute US$ 130 to equip or buy a vehicle with ABS. This subsidy will be available for two years starting from 2019, and only for scooters and motorcycles with less than 125cc engine capacity.
The global two-wheeler ABS market is dominated by major players, such as Robert Bosch GmbH, Autoliv Inc., Continental Reifen Deutschland GmbH, DENSO Corporation, and ZF Friedrichshafen AG, among others. The companies are strategically investing, making acquisitions, and entering into partnerships in key technologies. Also, almost all the passenger vehicles are equipped with the anti-lock braking system, which is majorly driving the market growth. For instance,
- In 2018, Continental AG, inaugurated two new lines for Anti-lock Braking System and Electronic Stability Control assembly at its manufacturing plant in Gurgaon India. This increase in capacity is to address the market requirements for mandatory ABS in passenger cars and 2-Wheelers from April 2019.
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Table of Contents
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
- 4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Type
- 5.1.1 Single channel
- 5.1.2 Dual channel
- 5.2 By Two-wheeler Type
- 5.2.1 Motorcycle
- 5.2.2 Scooter
- 5.3 By Propulsion Type
- 5.3.1 IC Engine
- 5.3.2 Electric
- 5.4 By Displacement Type
- 5.4.1 less than 125
- 5.4.2 126-250cc
- 5.4.3 251-400cc
- 5.4.4 above 400cc
- 5.5 By Component Type
- 5.5.1 ECU
- 5.5.2 Sensors
- 5.5.3 Hydraulic Pump
- 5.5.4 Solenoid Valve
6 COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Company Profiles
- 6.2.1 Robert Bosch GmbH
- 6.2.2 Continental Reifen Deutschland GmbH
- 6.2.3 Brembo S.p.A
- 6.2.4 Shandong Shunanda Automobile Technology Co., Ltd.
- 6.2.5 BWI Group
- 6.2.6 AISIN SEIKI Co., Ltd.
- 6.2.7 ZF Friedrichshafen AG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS