GLOBAL BICYCLE MARKET
- The Global bicycle market is highly fragmented and includes many international and regional players.
- Asia-Pacific, China and Japan are the leading countries that have adopted e-bikes as sports equipment because of its environmental benefits and to help reduce traffic congestion in these countries.
- Google search volume for bicycles has doubled worldwide within the last 12 months.
- In Europe, the demand for e-bikes is higher than that of conventional bicycles, especially in Italy, Germany, France, and Netherlands.
- With the increase in bicycle renting operations throughout the world specially in Europe and Asia, the global bicycle market is growing significantly.
- Mountain bicycle segment is anticipated to expand at a rapid rate. Rising popularity in line with the increasing media coverage for mountain bicycle racing events and the establishment of new mountain biking circuits are expected to drive the growth.
- The U.S. imported $1.4 billion worth of non-electric bikes last year, up $200 million, or 16%, from 2019. By units, bike imports were up 31.9%. Imports of some other key bike products like tires, tubes, and saddles, were also up significantly from 2019 figures.
- The popularity of cargo bikes in European cities is steeply growing. Major cargo bike producers recorded the growth rate of demand to reach up to 60 per cent last year. The prospects are even more promising since the sales are estimated to grow by 53 per cent.
- 30 per cent of all households in German cities over 500,000 inhabitants use the bicycle as the sole mean of transport. More than 80 per cent of Germans use bicycles, especially when travelling 15 km or fewer. That makes them one of the leading cycling nations.
- The Berliners have gone one step further – it is estimated that there are 710 bicycles per 1,000 inhabitants. With 620 km of dedicated cycle paths, Berlin also belongs among cities with the highest rate of bike commuting in the world. Especially among young people, the interest in cycling skyrocketed and now is regarded hip among young communities.
- UK’s Prime Minister, vowed earlier this year to bring about the golden age of cycling. Earlier this year, he made an announcement that has lived up to cycling campaigners’ expectations. There’ll be protected lanes, tax cuts for e-bikes, vouchers for bike repairs and much more. The cost adds up to £2 billion.
- It has been found that adding street improvements such as bike lanes boosted business and employment in the retail and food service sectors across nations.
- German bike brand Canyon has asked owners of its new Aeroad CF SLX and CFR aero road bikes to stop riding them following the incident at the Le Samyn race, when a portion of Mathieu van der Poel’s handlebar broke and fell off during the race. Canyon-sponsored teams have discontinued riding and racing the Aeroad as well.
- Haro Bicycles is working with the U.S. Consumer Product Safety Commission to recall about 510 Masi Evoluzione and Gran Corsa bicycles, model years 2017-2020. The company has received five reports of the bikes’ carbon steerer tubes breaking. The incidents include three reports of minor injuries.
- The UK investment firm Cairngorm Capital Partners LLP has made a strategic partnership and investment in Whyte Bikes Limited, a British brand founded in 1999.
Bicycles are used as an effective tool of transportation that not only is great for physical fitness but also helps to curb pollution, globally, and hence are widely promoted by authorities as an environmentally-friendly transportation medium.
Since its inception, the bicycle has undergone continual adaptation and improvement. These innovations are supported by the advent of modern materials, automated operation and increase in the use of computers and software for design building purposes, allowing for a variety of specialized bicycle types, improved riding safety, and comfort.
BICYCLE MARKET SEGMENTATION
The bicycle market is segmented by:
- Mountain Bicycles
- Hybrid Bicycles
- Road Bicycles
- Mid- Range
- Low Range
- Motor Assisted
BICYCLE MARKET DYNAMICS
Individuals all across the globe are increasingly becoming more aware of their fitness, which is eventually resulting in the growing demand for the bicycle as an alternative way of transport. Compared to conventional bicycles, currently, the overall demand for e-bicycles is evolving and is expected to become mainstream during the forecasted period.
There’s been a significant growth in the demand for bicycles due to COVID-19 as now consumers are trying to avoid public transportation due to fear of contracting the virus. Moreover, with growing health-conscious consumers, bicycles are now seen as an increasingly dependable and healthy mobility option. For example, Dutch e-bike brand VanMoof has seen a significant increase in sales simultaneous to the Covid-19 outbreak in Europe and, latterly, the USA.
Seven cities in the EU-28 are now using road pricing to intelligently reduce car traffic and congestions, simultaneously improving the local environment and increasing quality of life for residents.
The goal of increasing the costs of transport is not to punish people, to generate revenues or to impede mobility. The current transport system is inefficient due to false prices, resulting in a high congestion level and severe environmental effects. With true prices, more environmentally friendly modes of transport will become more attractive as an adequate alternative for many car trips in the upcoming years
The Global Bicycle market is expected to grow as more and more people are resorting to bicycling as a regular means of transportation. Events, such as Tour de France and Ronde van Vlaanderen, are further adding to the popularity of these vehicles. Meanwhile, a rise in bicycling events being organized in various countries from Asia, Africa, and the Middle East is fuelling the sales of the mountain as well as road bicycles.
EUROPE BICYCLE MARKET
In Europe, an increase in demand for bicycles as a form of recreation and both fitness and leisure is helping the growth of the market in this region.
The expanding bicycle market had to witness a strong growth halt due to massive disruptions in the manufacturing and supply chain of bicycle and bicycle accessories amid the global COVID-19 outbreak but with ease in lockdown measures, newly found market demand for bicycles is being substantially met
Moreover, because of growing environmental concerns and bicycles being seen as an environment-friendly option has further aided this cause. In Europe, the demand for e-bikes is higher than that of conventional bicycles, especially in Italy, Germany, France and Netherlands.
Indeed, some nations rewarded the purchase of new bikes or bike maintenance expenditures in a bid to encourage ridership during the pandemic. Italy, for example, allocated €210m toward a cash-back programme through which Italian residents who purchased a vehicle without an engine were eligible for a €500 stipend, while France has established a similar programme.
Shortly after authorities ended the lockdown in spring, the former French government established that in only a few weeks, the Covid-19 crisis has won more for cycling than years of bicycle advocating. With a promise to triple the number of cyclists in the country and to support the cycling policy, the French government announced to spend €20 million on emergency cycling measures comprising costs of individual bike repairs up to €50 per citizen.
Later, the budget was increased to €60 million, enabling more people to take advantage of the pro-cycling campaign. Besides covering the costs of fixing their current bikes, the state subsidies can help people with purchasing e-bikes.
ASIA BICYCLE MARKET
Asia-Pacific is the largest and also the fastest-growing region in the global bicycle market. China, Japan, Australia, India, and South Korea are some of the top contributing countries in the region.
Moreover, these countries have started hosting numerous cycling tournaments, which, in turn, will increase the popularity and demand for sports bicycles. For instance, the Asian Cycling Championships is an annual continental cycling championship for road bicycle racing and track cycling held every year.
In Asia-Pacific, Governing bodies like the Cycling Federation of India and The Chinese Cycling Association are promoting road racing, touring, leisure cycling, and other cycling events, which have helped in increasing the popularity of cycling in these countries.
However, the looming lack of the infrastructure necessary to support and encourage bicycle commutation, particularly in developing economies, such as India, is expected to hinder the growth of the bicycle market. Similarly, lightweight bicycles made using composite materials make them expensive, which does not bode well for market expansion.
Hero Cycles, a market leader in India with more than 40% share in the market sought reduction in GST on bicycles to 5 per cent from the current rate of 12 per cent recently, to make them affordable for all sections of society. The company also asked the government to focus on developing road infrastructure which is amenable to cyclists.
Alternatively, favourable government and employer initiatives have helped out in driving the market in some regions. As for e-bikes, China and Japan are some of the leading countries which have adopted e-bikes as sports equipment because of its environmental benefits and to help reduce traffic congestion in these countries.
NORTH AMERICA BICYCLE MARKET
United States holds the highest revenue share in this region with trendy mountain bikes and e-bikes being most popular among the US millennials.
U.S. cycling sales through all retail channels grew 75% in April to a total of about $1 billion in retail sales for the month. April was the first month in the cycling market that sales have reached $1 billion in a single month. Typically, April sales fall between $550 and $575 million.
Bikes for family use, and neighborhood riding and lower price-points showed the strongest year-over-year sales gains. Lifestyle/leisure bikes grew by a considerable fold; front suspension mountain bikes were also up and children’s bikes increased by twice than expected for the month. Accessories sales also grew, including helmets, water bottle cages, and bike baskets.
COVID-19 IMPACT ON BICYCLE MARKET
Covid-19 brought about a dramatic increase in bicycle sales in response to the pandemic. Heightened anxiety over public transportation and a surge in exercise has meant that more and more are choosing to use one of the most basic forms of mobility, leading to what can be called as a bicycle boom.
In the present global scenario with the outbreak of the COVID-19 pandemic, it is seen that people are getting more sensible about their health and environment. It can be observed that more individuals are making an effort towards improving their lifestyle choices, and this has created a steep trend of interest for the same.
Bike shops have remained on the list of essential retail services allowed to stay open throughout the pandemic, and as such the industry has seen a massive uptake in people jumping on the bike boom. Many businesses have had to adapt and take advantage of what has been an unprecedented time for everyone with only few shops open in local areas, bike shops have had to work harder than ever to keep customers coming through their doors
One of the ways by which bike shops have ensured their stores remain appealing to visit even after ease in lockdown measures in major countries is by retail merchandising. The importance of retail design in bike stores can’t be ignored, lighting, product placement, marketing, traffic flow and even the position of the cash counter in the store have been witnessed to result in the store having a great improvement in turnover.
The global bicycle market, already expanding before the pandemic, has received a shot in the arm by Covid-19. About 19% of American adults say they rode a bike for the first time in a year because of the pandemic. And a majority of those riders will continue riding after lockdown orders are lifted. And many of those reactivated riders have children, which means more cycling by more people.
With many youth sports programs cancelled because of the epidemic and with schools closed or restricted in some countries, cycling is one of the few safe outdoor activities kids of all ages can participate in.
In addition, many adults are shunning public transport because of the fear of infection and are using bicycles to commute or carry out daily tasks, because cycling keeps them fit and because of environmental concerns. The Canadian engineering company Eco-Counter, which designs and provides bicycle counters, measured a 21% increase in U.S. urban-area ridership from March through mid-June 2020 compared with the same time period in 2019.
It is very likely that this is not a one-off trend that will end when the pandemic has been defeated and life returns to normal. It was found that 87% of British residents plan to maintain or increase their spending at bicycle shops compared to pre-lockdown levels even after the pandemic is long gone.
With lockdowns imposed throughout the globe, people are increasingly searching for alternate ways to maintain their wellness, which is eventually resulting in the growing demand for cycling as an option for staying fit and also as a mode of transport
Social distancing norms and stay-at-home orders continue to impose restrictions on travel as well as outdoor exercising, which is directly damaging the mobility industry, including the bicycle market. Non-Chinese bicycle brands have a leverage in these trying times, as an opportunity to strengthen their global market positioning as Chinese brand alternatives presented itself in front of them
Google Trends Worldwide Data for the past 12 months have shown that the COVID-19 pandemic has affected the routine of people across the globe, with people searching for topics like immunity, fitness and related activities to live a healthier lifestyle.
It has also created a surge of interest in cycling and the Google search volume for bicycles has doubled worldwide with South Africa, Uganda, Ireland, Australia and United States having the highest proportion of searches amongst their population
BICYCLE MARKET SIZE & FORECAST
The global bicycle market is estimated at $XX Billion in 2020, growing at –% CAGR till 2025
In terms of bicycle market segments, hybrid bikes are projected to grow the fastest globally owing to its multifunction use deeming it as the most preferable option among customers. Growth in the road bicycle segment which today accounts for nearly 25% share of the global bicycle market is also projected to grow in the forecast period.
The E-Bike segment is estimated to grow in the upcoming years with an advancement in technology and the rising concerns over increasing fuel prices deeming it as a more affordable option for many households. This growth will be driven primarily by the U.S, Canada, Japan, China and Europe.
For far too long the cycling industry has been solely focused on the pinnacle athlete, but the current trends show that a broader, family and beginner focus can reap gains. This is a silver lining, and one of the important sports retail lessons to come out of the pandemic
Cycling Revolution highlights:
- Cycle training will be made available for every child and adult who wants it, accessible through schools, local authorities or directly from cycle-training schemes
- More cycle racks will be installed at transport hubs, town and city centres, and public buildings
- Setting higher standards for cycling infrastructure
- Funding will go towards new bike hangars and on-street storage for people who don’t have the space to keep their bike at home
- Boosting investment by creating a long-term cycling programme and budget to ensure a guaranteed pipeline of funding
- Making streets safer by consulting to strengthen the Highway Code to better protect pedestrians and cyclists
- Supporting local authorities by empowering them to crack down on traffic offences
- Improving air quality and reducing traffic by creating more low-traffic neighbourhoods, intensive funding of 12 new areas known as ‘Mini Hollands’ to become more cycle friendly, and creating at least one zero-emission city transport centre
- Piloting a new approach in selected places with poor health rates to encourage GPs to prescribe cycling, with patients able to access bikes through their local medical professionals
- Increasing access to e-bikes by setting up a new national e-bike programme, to help those who are older, have to travel long distances or are less fit to take up unassisted cycling.
BICYCLE MARKET COMPETITIVE LANDSCAPE
The Global bicycle market is highly fragmented and includes many international and regional players. To gain competitive advantage, the companies are investing in research and development (R&D) and differentiating their product using different design and functioning elements, and size and weight variations.
Moreover, leading manufacturers such as Accell Group, Trek Bicycle Corporation
Furthermore, companies are adopting competitive strategies by investing more to develop new-generation technologies for the production of bicycles, so as to develop a unique product portfolio. Additionally, companies are using digital and social media advertisements to make consumers aware of the new product launches in the market.
In Asia- Pacific, the market is dominated by key players like Merida Industry Co. Ltd, Giant Manufacturing Co. Ltd, Bridgestone Co. and Hero Cycles Limited. The major companies in this region are also focused on manufacturing and developing e-bicycles; a lot of R&D is conducted for this segment of the market. For instance, Giant Manufacturing Co. Ltd launched three new e-bikes that featured updated motor tech, control buttons and battery systems.
In North America, Accell Group N.V., Trek Bicycle Corporation, and Giant Manufacturing Co. Ltd are the key players. These companies are more focused on making consumer-centric products, specifically targeted towards women and kids.
In Europe, the key players are Trek Bicycle Corporation, Giant Manufacturing Co. Ltd and Wilier Triestina S.p.A. The market is very competitive with strategies such as product innovation, partnerships, expansions, mergers and acquisitions being undertaken to acquire a better position in the market.
- India-based start-up Alpha Vector announced partnership with European bicycle maker KTM to launch the latter’s premium bicycle range in the country. With this partnership, Alpha Vector launches and becomes the exclusive distributor of KTM bicycles in the Indian market.
- Priced between Rs 30,000-10 lakh, the premium segment will expand AlphaVector’s portfolio beyond the recently launched e-bicycle (Meraki) and existing mountain, all-terrain, hybrid fat-tire bikes in the mass-premium segment
- Hero Motors Company will invest Rs 400-500 crore in its European bicycle and electric bike businesses with an aim to grow revenues from abroad five-fold over the next few years. The group will utilise the resources to scale up operations of its existing businesses in the UK and Europe, and to acquire a new company in the continent for which talks are underway.
- Harley-Davidson has rejigged its portfolio in developing countries like India, having recently struck a deal with Hero MotoCorp
- Alchemy Bikes’ newest full-suspension mountain bike is the carbon Arktos, designed for three travel configurations and two-wheel sizes. In development for more than two years, the Arktos has 29er and mixed-wheel 29/27.5 platform options. The Arktos features modernized geometry with low stand over to improve manoeuvrability and utilizes dual water-bottle mounts.
- UK-based Brompton Bikes, says that the company’s raw metal supplier closed down, while a shipping container carrying their goods sat in Rotterdam for a week, leading to scaled back services and an equipment imbalance. According to them, they could foresee the lockdown coming months before it happened, because many of their suppliers are in Asia.
- Atlas Cycles, one of the country’s oldest cycle brands, had recently shut its last manufacturing unit in the country, citing lack of funds. The situation may soon change with Hero Cycles. Hero is aggressively looking at buying brands globally, and we are a zero net-debt company with cash reserves of over Rs 1,000 crore.
- Last October, Colombian cross-country racer Leonardo Páez rode his Giant XtC Advanced SL 29 to a second-straight world championship title. To celebrate that achievement, Giant is introducing a special limited-edition replica frameset that’s available for purchase.
- The XtC Advanced SL 29 World Champion edition frameset is a superlight, responsive hardtail that’s engineered with Advanced SL-grade composite, Giant’s most premium frame material. This XC race machine delivers the highest stiffness-to-weight ratio of any hardtail mountain bike in its class, translating to ultra-efficient pedalling power and precise handling on the trail.
- Hotlines has announced that Microshift has joined the distributor’s portfolio as it takes on exclusive distribution within the UK and Republic of Ireland. Experts in shifters, derailleurs and cassettes, Microshift offer affordable aftermarket alternatives to the big drivetrain brands. They’re also being spec’d as standard on more and more bikes by the likes of Specialized, Cannondale and Marin to name just a few.
- Giant Manufacturing Co. Ltd (Taiwan)
- Merida Industry Co., Ltd. (Taiwan)
- Bridgestone Co. (Japan)
- Shimano, Inc. (Japan)
- Hero Cycles Ltd. (India)
- Atlas Cycles Ltd. (India)
- Avon Cycles Ltd. (India)
- Hamilton Industries Pvt. Ltd. (India)
- Shanghai Forever Import & Export Co., Ltd. (China)
- Shanghai Phoenix Imp. & Exp. Co., Ltd. (China)
- Accell Group N. V. (The Netherlands)
- Trek Bicycle Corp. (USA)
- Cannondale Bicycle Corporation (USA)
- Pacific Cycle Group (USA)
- Schwinn Bicycles (USA)
- Santa Cruz Bicycles (USA)
- Specialized Bicycle Components, Inc. (USA)
- Dorel Industries Inc. (Canada)
- Wilier Triestina S.p.A (Italy)
- I.V. Edoardo Bianchi S.p.A (Italy)
- Lapierre SA(France)
- Tandem Group plc (UK)
- Raleigh Ltd. (UK)
- Winora Staiger GmbH (Germany)
- Amer Sports Corporation (Finland)
- Cycleurope AB (Sweden)