Worldwide demand for motorcycles remains strong despite the slowdown in growth in key markets such as China, which is rapidly transitioning toward cars for its transportation needs, according to a November study by the Freedonia Group, Inc.

The industrial market research firm's report forecasts global demand for motorcycles to advance 4.9 percent annually through 2009 to 41.6 million units, valued at almost $40 billion. However, this is still down from a 6.8 percent annual increase from 1999 through 2004, as an article in IndustryWeek this week pointed out.

Demand for all categories of motorcycles is expected to remain healthy, and increased growth in all categories will be seen in developed markets, where rising fuel prices and — in some markets — continued restrictions in car use "are stoking interest in the exceptional fuel economy and cost-effectiveness of motorcycles," the Cleveland-based research firm noted. So fuel efficiency and continued restrictions on car use in developed markets were cited as reasons for the continued growth.

However, while the market for expensive high-powered motorcycles also is expected to remain strong, its aging United States and Western European customer base is raising concerns. As well, restrictions on motorcycle use in China's large metropolitan areas and some other Asian countries will likely cause a shift in demand away from urban areas to more rural markets, according to the Freedonia Group's "World Motorcycles" report.

The new study breaks down into essentially two separate motorcycle markets: one is centered in the industrialized Triad (i.e., the U.S., Japan and Western Europe), where motorcycles are seen as pleasure vehicles by consumers already owning one+ automobile(s); the other, a much larger market in unit terms, is found in the emerging economies of Asia, where motorcycles are seen as primary family and work vehicles. The latter vehicles are cheaper, smaller and less powerful than Triad motorcycles.

While Asia is dominant in terms of unit volume, most major manufacturers focus their efforts on developed markets such as North America, as they derive far higher revenues per unit via sales in these developed markets.

I suppose, in terms of unit-volume domination, then, Asia would be considered the, um, leader of the pack.

Soybean Motorcycle…with a Slight Hum
Also worth noting while on the topic of motorcycles: a new motorcycle coming out soon may just run on soybeans or sunflower oil. Really. The bike can run on hydrogen stripped from bio fuels such as ethanol or soybeans, among others. Except for a bit of heat and some drinkable water, the "emissions-neutral vehicle" (ENV) produces no emissions, said Intelligent Energy, a British company that recently opened an office in California to launch its hydrogen fuel-cell bike in the U.S.

Except for a slight humming sound, the ENV motorcycle is almost silent. A single, five-ounce canister of hydrogen will power the bike up to 100 miles, and it has a top speed of 50 mph (though that's not really that fast, is it?). The fuel cell on each bike is about the size of a small suitcase, weighs 40 lbs. and can be removed in a single piece. The motorcycle gets an acceleration boost from a battery pack that is charged by the fuel cell, and the entire bike weighs less than 200 lbs., which increases its fuel efficiency.

The first ENV motorcycles are expected to be available in the U.S. and United Kingdom in 2007 for $6,000 to $8,000.