Motorcycles - Nigeria

Nigeria

The Motorcycles market in Nigeria is projected to generate a revenue of ₦US$1.22bn in 2024.
This revenue is expected to experience a steady annual growth rate (CAGR 2024-2028) of 2.37%, resulting in a projected market volume of ₦US$1.34bn by 2028.
The largest segment in this market is On-road Motorcycles, which is anticipated to have a market volume of ₦US$0.73bn in 2024.
Furthermore, the unit sales of Motorcycles market in Nigeria are expected to reach 712.20k motorcyles by 2028.
The volume weighted average price of Motorcycles market in Nigeria is projected to be ₦US$1.83k in 2024.
With a motorcycle unit sales share of 0.0% in 2024, Bajaj Motorcycles is expected to hold the highest market share in Nigeria.
Additionally, the value market share of Bajaj Motorcycles in Nigeria is anticipated to stand at 0.0% in 2024.
Taking an international perspective, it is evident that in India will generate the highest revenue in the Motorcycles market, amounting to ₦US$31,140.00m in 2024.
Despite the challenges of poor infrastructure and high import tariffs, Nigeria's motorcycle market is flourishing due to its affordability and suitability for urban transportation.

Key regions: Thailand, Italy, Indonesia, Spain, Germany

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Analyst Opinion

The Motorcycles market in Nigeria has been witnessing significant growth in recent years.

Customer preferences: One of the main reasons for the development of the Motorcycles market in Nigeria is the increasing demand for affordable and convenient transportation options. Motorcycles provide a cost-effective solution for commuting in congested urban areas and also offer flexibility in navigating through narrow roads and traffic. Additionally, motorcycles are preferred by many Nigerians due to their fuel efficiency and low maintenance costs.

Trends in the market: A key trend in the Motorcycles market in Nigeria is the rising popularity of motorcycles for commercial purposes. Many individuals are using motorcycles as a means of livelihood, particularly in the transportation and delivery sectors. This trend is driven by the need for quick and efficient transportation of goods and services in a country with limited infrastructure for logistics. The popularity of ride-hailing services using motorcycles has also contributed to the growth of the market.

Local special circumstances: Nigeria's population is rapidly urbanizing, with a significant portion of the population residing in densely populated cities. This urbanization trend has led to increased demand for motorcycles as a means of transportation, as they are more maneuverable in congested areas compared to cars. Additionally, the lack of reliable public transportation systems in many parts of the country has further fueled the demand for motorcycles.

Underlying macroeconomic factors: The economic growth and rising income levels in Nigeria have also played a role in the development of the Motorcycles market. As more people enter the middle class and have disposable income, they are able to afford motorcycles for personal or commercial use. The affordability of motorcycles compared to cars makes them an attractive option for many Nigerians. Furthermore, the government of Nigeria has implemented policies to support the growth of the Motorcycles market. For instance, the introduction of favorable financing options and tax incentives for motorcycle manufacturers and buyers has encouraged the expansion of the market. These policies have made motorcycles more accessible to a larger segment of the population, further driving market growth. In conclusion, the Motorcycles market in Nigeria is experiencing significant growth due to customer preferences for affordable and convenient transportation options, the rising popularity of motorcycles for commercial purposes, the local special circumstances of urbanization and limited logistics infrastructure, and the underlying macroeconomic factors such as economic growth and government policies. As these factors continue to drive market growth, the Motorcycles market in Nigeria is expected to further expand in the coming years.

Methodology

Data coverage:

Data encompasses B2C enterprises. Figures are based on motorcycle sales and revenue excluding scooters/mopeds under 50cc category.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use manufacturer websites, national statistics offices, motorcycle associations, motorcycles sales websites. Next we use relevant key market indicators and data from country-specific associations such as GDP per capita, consumer price index, consumer spending, and population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the forecasting is done on a make level for Motorcycles, using a mix of standard approaches, e.g., exponential smoothing, and uses parameters which best fit the historical data. The main drivers are GDP per capita, consumer price index, consumer spending, and population.

Additional Notes:

The market is updated once a year.