Selecting the Right 2-Wheel Manufacturer as an Infotainment, Telematics, or ADAS Tech Provider

The 2-wheel vehicle market is a complex landscape consisting of premium and mass market segments, each with unique demands and technological requirements. While the commuter segment focuses on enhancing urban transportation safety, the premium segment prioritizes performance and recreational features. This divergence creates an opportunity for technology-driven differentiation, essential for Original Equipment Manufacturers (OEMs) looking to thrive in this evolving market.

To help technology suppliers identify suitable partners, ABI Research has developed a competitive assessment, evaluating various vendors based on innovation and implementation criteria. This article will outline key findings, highlighting the strengths of leading OEMs in the 2-wheel vehicle market.

Two-Wheel Vehicle Innovation Criteria

The following innovation criteria were used to assess the capabilities of OEMs in the 2-wheel segment:

• Digital Cockpit: The digital cockpit serves as the focal point of digitization, emphasizing Human-Machine Interface (HMI) design. Vendors are evaluated on their ability to provide large, high-resolution displays and robust Short-Range Wireless (SRW) technologies, such as Wi-Fi and Bluetooth®. Additional points are awarded for compatibility with smartphone integration protocols like Apple CarPlay and Android Auto.
• Electrification: OEMs are assessed based on their transition to Electric Vehicle (EV) powertrains, including the adoption of lithium-ion battery chemistries and the development of EV-specific services.
• Safety Technologies: This criterion ranks OEMs on their success in improving rider and pillion safety outcomes, particularly in the context of Killed or Severely Injured (KSI) statistics. Points are awarded for initiatives aimed at enhancing driver awareness, as well as contributions to Advanced Rider Assistance Systems (ARAS) and Vehicle-to-Everything (V2X) technology.
• Connected Services: OEMs are evaluated on the strength of their telematics offerings, including Emergency Call (eCall), Breakdown Call (bCall), vehicle tracking, multimedia streaming, and navigation services.

Top EV Innovators

1. BMW (Innovation Score: 88/100)

BMW stands out in the 2-wheel market due to its advanced digital cockpit technology, featuring displays larger than 10 inches that enhance user interaction through the ConnectedRide application. This app provides users with navigation, music streaming, and messaging functionalities, offering a seamless experience. The brand is also actively pursuing electrification with the introduction of models like the CE 02 and CE 04, although more development is needed to fully align with market expectations.

However, BMW's adoption of smartphone integration protocols like Android Auto and Apple CarPlay has lagged behind competitors, which may become critical in the premium segment moving forward.

2. Harley-Davidson (Innovation Score: 83.7/100)

Harley-Davidson maintains a robust competitive edge with its impressive 12.2-inch Thin Film Transistor (TFT) display and Skyline OS in the 2024 Street Glide. This innovative digital cockpit allows for a highly customizable interface that adjusts based on different driving modes, enhancing user experience.

The company is making strides in electrification with the LiveWire model, which supports long-distance touring, though its exploration of advanced safety technologies has been somewhat limited. Nonetheless, Harley-Davidson offers a comprehensive suite of connected services, including vehicle tracking and multimedia control.

3. Yamaha (Innovation Score: 76.3/100)

Yamaha is a well-established brand in the 2-wheel market, recognized for its strong connected services and digital cockpit offerings. The company has rolled out various digital displays across its models, including the MT-07, which features a reconfigurable display tailored to different riding modes.

While Yamaha is cautious in its electrification efforts, it has made initial steps with the Yamaha NEO electric moped, which offers a modest range suitable for urban commuting. Notably, Yamaha leads in safety technologies, scoring a perfect 10/10 by integrating ARAS into its models. Additionally, its companion applications deliver a wide array of connected services (e.g., multimedia, route navigation, diagnostics, etc.), ensuring a score of 9.2/10 in that category.

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Two-Wheel Vehicle Implementation Criteria

The implementation criteria focus on the practical application of connected technologies:

• Shipment Volumes: Unlike the passenger vehicle market, where technologies initially appear in luxury models, the 2-wheel segment sees rapid adoption in commuter vehicles. Therefore, OEMs with substantial shipment volumes will score higher.
• Shipment Growth: To identify vendors on a growth trajectory, OEMs are ranked based on their shipment growth in 2023 compared to market averages.
• Revenue Growth: This criterion helps identify vendors with healthy revenue trends, with those exceeding market averages ranked more favorably.
• Geographic Reach: Vendors are assessed on their presence in key regions, particularly in high-demand markets such as India, China, Indonesia, and Vietnam, along with performance in the United States and Western Europe.
• Segment Reach: Given the commuter segment's influence on technology trends, OEMs with access to commuters will score higher. The performance segment will also be an important market in the longer term as use cases are better supported.

Top 2-Wheel Vehicle Implementation-Enabling OEMs

1. Honda (Implementation Score: 83.7/100)

Honda has long been the largest manufacturer of 2-wheel vehicles, achieving top marks in shipment volumes due to its extensive reach in key markets like China and India. Despite modest shipment growth in 2023, Honda increased its revenue from the 2-wheel segment by over 10%, demonstrating resilience amid market challenges.

The company's diverse lineup includes both cost-effective commuter vehicles and premium performance models, allowing it to cater to a wide range of customers. Honda's strong geographic presence and ability to adapt its offerings across different segments contribute to its high scores in both geographic reach and vehicle segments.

2. TVS (Implementation Score: 74/100)

TVS has emerged as a high-volume manufacturer, outperforming its competitors in the Indian market with shipment volumes of 4.2 million in 2023. The company reported an impressive shipment growth rate of 13.8%, far exceeding the global average, and achieved revenue growth of 20.5%, solidifying its position as a strong contender in the market.

TVS offers a broad spectrum of models, from commuter mopeds to more performance-oriented bikes, aligning well with the preferences of the Indian consumer base. This diverse product range allows TVS to maintain a competitive edge and earn high scores for both shipment growth and segment reach.

3. Hero (Implementation Score: 72.9/100)

Hero has solidified its position as the leading manufacturer in India's commuter segment, shipping 5.6 million vehicles in 2023. The company continues to demonstrate strong shipment growth, with a 5.5% increase and impressive revenue growth of 15.6%, reflecting its dominance in the mass market.

Hero's ability to address the enormous potential of the Chinese market remains a key opportunity for future expansion. Furthermore, the partnership with Harley-Davidson enhances Hero's brand and enables it to venture into performance-oriented vehicles, providing a pathway for growth into premium segments and enhancing its overall market presence.

Conclusion

The competitive landscape of the 2-wheel vehicle market presents unique challenges and opportunities for suppliers of connected technologies. This assessment highlights leading OEMs like BMW, Harley-Davidson, Yamaha, Honda, TVS, and Hero, providing critical insights for technology partners as they navigate this evolving space. Understanding the strengths and weaknesses of these manufacturers will be essential for successfully transitioning from the passenger vehicle market to the burgeoning 2-wheel sector.

To explore more in-depth analysis and gain valuable insights into the 2-wheel vehicle manufacturers' market, download ABI Research’s  2-Wheel Vehicle Manufacturers report.