Motorcycle Insurance Market

Growing demand for the motorcycle is driving the market growth

Market CAGR for motorcycle insurance is being driven by the rising adoption of motorcycles globally. An increasing number of motorcycle owners are seeking insurance policies offering flexibility, comprehensive coverage, and affordability. The inclusion of advanced technologies like telematics and AI has changed the landscape of motorcycle insurance. Government rules have an important role in modeling the market of the motorcycle market. There has been a significant rise in the number of motorcyclists due to the increasing cost of fuel and the rising popularity of motorcycling as an economical and efficient mode of transportation.

The users are increasingly demanding policies that provide easy access and competitive rates to support the service.

The Global Motorcycle Insurance Market Industry is experiencing growth driven by a rise in motorcycle ownership across various demographics. As urbanization continues to expand, more individuals are opting for motorcycles as a cost-effective and efficient mode of transportation. In 2024, the market is valued at approximately 69.8 USD Billion, reflecting the increasing demand for motorcycle insurance products. This trend is particularly evident in developing regions where motorcycle ownership is seen as a practical solution to traffic congestion and rising fuel costs. Consequently, the need for comprehensive insurance coverage is likely to grow, further propelling the market forward.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Motorcycle Insurance market dominates the market as it has a large number of motorcycle owners and a rising number of riders, owing to the rising popularity of motorcycles as a mode of transportation and the rising demand for recreational activities like off-road riding. There is also the availability of affordable insurance policies, thus boosting the growth of the motorcycle insurance market in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Motorcycle Insurance Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Motorcycle Insurance market accounts for the second-largest market revenue due to the rise in the number of motorcycle owners, motorcycle-associated accidents, and the rising price of medical and repair bills. Further, the German Motorcycle Insurance market held the largest market share, and the UK Motorcycle Insurance market was the rapid-growing market in the European region.

The Asia-Pacific Motorcycle Insurance Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the rising popularity of motorcycles and increasing demand for insurance coverage, and the increasing number of motorcycle owners due to increasing affordability in the region. Moreover, China’s Motorcycle Insurance market held the largest market share, and the Indian Motorcycle Insurance market was the rapid-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Motorcycle Insurance market grow even more. Market participants are also undertaking a various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Motorcycle Insurance industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Motorcycle Insurance industry to benefit clients and increase the market sector. In recent years, the Motorcycle Insurance industry has offered some of the most significant advantages to the automotive industry. Major players in the Motorcycle Insurance market, including Liberty Mutual, HDI Global SE, AXA Inc., Allianz Global Investors, Cardinal Health, State Farm Insurance, Munich Re Group, Zurich Services, and Prudential, Allstate, and others, are attempting to increase market demand by investing in research and development operations.

Liberty Mutual, founded in 1912, is an American global insurer and the sixth-largest casualty and property insurer in the United States, based in Boston. The company offers a large range of insurance products and services, including homeowners, personal automobiles, compensation of workers, commercial automobiles, multiple commercial perils, general liability, group disability, group specialty, and many more.

AXA is also a casualty and property insurance and reinsurance company, providing insurance and risk management services to all sizes of companies. It offers its services to cyber insurance, property insurance, professional liability insurance, accidental and health insurance, construction insurance, and many more. AXA offers reinsurance products to insurance companies as well. The company also offers insurance services for artworks, collectible, high-value goods, and properties to individuals with ultrahigh net worth. In July 2021, AXA and Liberty Mutual declared a collaboration for providing motorcycle insurance in the US.

HDI Global SE is one of the leading partners for B2B services in Risk Management and Insurance. It is a one-stop center for innovative solutions as per the specific needs of the clients. The company creates bespoke concepts of insurance mainly tailored to the operating risk faced by every size and type of company.

In April 2021, HDI Global SE and Allianz Global Investors, which is a firm of global investment management with offices in over 20 locations operating throughout the world, a company owned by the global financial services group Allianz, both the companies introduced a strategic collaboration in order to provide the motorcycle insurance in Germany.