GLOBAL BICYCLE MARKET
- The Global bicycle market is highly fragmented and includes many international and regional players.
- Commuter cycles will be the most sold cycle type from 2021-2026 mainly as it addresses the main utility of users at the right price point
- Offline stores currently are the go to sales channel for customers mainly to understand how the cycle feels physically before purchase
- The European market will have the highest average price per cycle sold among all regions
- The market share for electric bicycles mainly pedal assisted bicycles will increase from 2021-2026
- Increasing IOT features and Bluetooth features will also be implemented in bicycles as people increasingly are purchasing bicycles for exercise purpose
- The largest global bicycle demographic are male adults (> 16 years)
- Post Covid, there was an increase in bicycle sales mainly for health purposes. Along with health purposes, travelling while maintaining social distance and to avoid public transport
- Bicycle sharing will also increase but with caution this time as multiple firms failed in this venture over the past 10 years; caution will include a decreased fleet size and anti-vandalism implementations
- Multiple countries have taken steps to improve cycling infrastructure including cycle paths, the ability to carry bicycles on public transport, and subsidies for purchasing cycles
- Component manufacturers can step into full-scale bicycle manufacturing provided they are able to develop a full-fledged supply chain
- Vivacity Labs has partnered with the City of Port Phillip with Bicycle Network to install its AI-powered traffic sensors in Port Phillip, Australia.
- Denmark, Belgium, Italy and France are focusing more on developing infrastructure for electric bicycles and bikes .
- The United States Congress has proposed a tax credit against the purchase of electric bicycles in the USA which will be up to 15%.
- In September 2021, Yamaha introduced a new electric bicycle named the new Yamaha PW-X3.
- Genesis announced the launch of its Columbia and Smithfield electric bicycles.
- Hero cycles acquired 48% equity in HNF NICOLAI which is a e-bikes manufacturer based in Germany.
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. Post-Covid, social distancing and health concerns drove growth in the market.
Since its inception, the bicycle has undergone continual adaptation and improvement. These innovations are supported by the advent of modern materials, automated operation, and an 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.
Graph: Various reasons for not choosing a bicycle
BICYCLE MARKET SEGMENTATION
The bicycle market is segmented by
- Asia Ex China
By Type of Bicycle
- Conventional Bicycle
By Sales Channel
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 gather a larger market share.
People across the globe have been opting to make use of bicycles as a form of exercise and to reduce greenhouse gas emissions which will ensure a healthy lifestyle, maintain weight and to grow stronger. This type of mindset has increased the popularity of the dockless bike sharing systems which include both bicycles and e-bicycles. The users have to activate the ride sharing application on their smartphones and access the service. The system also allows users to locate bicycles nearby and electronically unlock the bicycle. This system of using dockless bicycles as a form of transportation started from Europe which has now gained popularity in the USA and Asian countries such as China and India.
The company Vivacity Labs has partnered with the City of Port Phillip with Bicycle Network to install its AI-powered traffic sensors in Port Phillip, Australia. The sensors are set to measure the bike rider, motor vehicle and pedestrian movement and help the government to reduce congestion on roads and increase sustainable forms of transport.
There’s been 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.
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 along with the marketing of cycling tourism being organized in various countries from Asia, Africa, and the Middle East is fuelling the sales of 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 which increased imports from Asia
The pandemic has caused the market to grow at a faster pace where governments across the globe are promoting the use of bicycles as the safest form of transportation. Governments in countries such as the UK and Italy are also providing subsidies and incentives which along with the growing awareness for healthy lifestyle have enhanced the growth of this market.
Europe is estimated as the ideal region to commute with bicycles due to which the region is experiencing significant growth over the years. The increasing popularity in the region is also attributed to the bicycling events and tours that take place such as the Ronde Van Vlaanderen and the Tour de France. Countries such as Denmark, Belgium, Italy and France are focusing more on developing infrastructure for electric bicycles and bikes which promote the growth of the industry.
New Phoenix models such as the Lithium moped bicycles have become increasingly popular across Europe as the bicycle addresses the concerns of people owning a luxury bike to go out in public as well as remain healthy at the same time.
The Hero cycles owned subsidiary Insync Bikes has announced the development and manufacture of 50,000 units for the UK market by Christmas. The key model will range between different sizes for children and adults to be designed in Manchester.
Moreover, growing environmental concerns made bicycles an environment-friendly option. In Europe, the demand for e-bikes is growing with 50% of bicycle sales in 2020 being electric in the Netherlands.
Countries also subsidized bicycle purchases both for manufacturing and consumers. Italy allocated €210m toward a cash-back program through which Italian residents who purchased a vehicle without an engine were eligible for a €500 stipend; France also established a similar program. French government spent €60 million on emergency cycling measures comprising costs of individual bike repairs up to €50 per citizen and state subsidies to purchase 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 with most of the global manufacturing coming from this region.
The company Hebei Hongyang Tyre exported a total of 16.19 million bicycles in the first quarter of the year 2021, which increased the export volume to $1.06 billion which was up by 101.6% from year-on-year comparison.
Recently electric bicycles are gaining popularity across Asia especially in China among younger generations which use bicycles as a healthy activity. Electric bikes are equipped with smart batteries and linked to applications that make they easily accessible. The primary bike sharing companies such as Hellobike, Meituan bike and Qingju Bike have increased the demand for e-bikes in the Chinese market.
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.
Lack of the infrastructure necessary to support and encourage bicycle commutation is hindering 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 a reduction in GST on bicycles to 5% from the current rate of 12% 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.
China and Japan adopted e-bikes as sports equipment because of their environmental benefits and to help reduce traffic congestion in these countries.
NORTH AMERICA BICYCLE MARKET
The United States holds the highest revenue share in this region with trendy mountain bikes and e-bikes being most popular among the US millennials.
The United States Congress has proposed a tax credit against the purchase of electric bicycles in the USA which will be up to 15% that is half of what was presented to the House of Representatives in February 2021. The original document pitched a tax credit of 30% as incentive to buy more electric bikes and bicycles.
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 in 2020. 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 in 2020 and the market is growing in 2021. 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 a bicycle boom.
Due to the pandemic, gyms and other recreational sports centers were closed pertaining to the pandemic protocols across the globe that promoted the use of bicycles as a means of exercise and for people to go out. The pandemic which resulted in the economic loss for various industries attributed to the growth of this sector.
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 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 (2020) because of the pandemic. And a majority of those riders continued riding after lockdown orders were 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 and saw a positive response across Europe and USA
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.
Even as lockdowns were lifted across the board, cycling saw no decrease and in fact, in 2021 saw an increased response in sales which will continue. New riders have taken it up and riders who left it restarted it which has developed sales across all types of bicycles
BICYCLE MARKET SIZE & FORECAST
The global bicycle market is estimated at $35 Billion in 2020, growing at 12% CAGR till from 2021 to 2026
In terms of bicycle market segments, hybrid bikes are projected to grow the fastest globally owing to their multifunction use deeming it as the most preferable option among customers. Growth in the road bicycle segment which today accounts for nearly 15% share of the global bicycle market is also projected to grow in the forecast period.
Regions with tougher terrain such as Spain will see an increase in mountain cycles as people take a special affinity towards multi-terrain riding and adrenaline rushing mountain cycling,
The E-Bike segment is estimated to grow in the upcoming years with 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 with features such as cargo trolley attracting customers who carry luggage frequently
|Advantages of E-bike|
|Sweat free commute|
|Longer distance and tougher terrains are easier to handle|
|Cheaper than an electric scooter|
|Advantages of Bicycle|
|Lighter than e-bike|
|Cheaper than e-bike|
|Almost zero regulations compared to regulations on e-bikes|
BICYCLE MARKET COMPETITIVE LANDSCAPE
The Global bicycle market is highly fragmented and includes many international and regional players. To gain a 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, Dorel Industries Inc., and Giant Manufacturing Co. Ltd. in the market are focusing on leveraging opportunities posed by the emerging markets of Asia-Pacific, like Thailand and India, and also to expand their revenue base all over the global market.
The recent developments in the bicycle market are given below:
- In September 2021, Yamaha introduced a new electric bicycle named the new Yamaha PW-X3, which has a mid-motor drive system that achieves reduction in the size and weight of the cycle with electrically assisted pedals.
- In September 2021, Genesis announced the launch of its Columbia and Smithfield electric bicycles that are practical urban bikes with pedal assistance.
- In September 2021, New Motion Labs showcased the new Enduro Evolve Cargo series which includes the Cargo, Cargo+ and the super Cargo. The company uses a new proprietary sprocket tooth profile technology that incorporates a conventional roller chain to transfer power on both sides of the teeth which reduces frictional wear and improves efficiency.
- In September 2021, ZF announced the launch of a new super fast speed sensor which integrates the ABS into high specification electric bicycles and speed pedelecs.
- In September 2021, VAAST bikes announced the development of the company’s first electric bicycle which will be manufactured sustainably by sourcing materials locally and packaging the bike without plastic. The bicycle will have a pedal-assist and full suspension platform.
- In May 2021, Nexus Mobility announced the launch of a cargo version of its bicycle model Roadlark with a payload capacity of 50 kgs.
- Merida uses the innovative smart bikes system developed by MAHLE for some selected electric bike range X35 drive systems.
- Charge bikes announced the launch of a new electric bike incorporated with the latest technology developed by the company.
In the year 2019, Trek Bicycle launched the new Madone SLR 6 Disc Speed, the bicycle is integrated with the removable aero bars. It is designed specially to ride in hilly and mountainous areas with winding roads.
In the year 2019, SCOTT sports SA announced the acquisition of the company Bold Cycles which provides a sophisticated framework as well as technical custom-made bicycle products. The acquisition is set to serve the customers that demand bicycle customisation in accordance with respective needs.
The bicycle connectivity company Leopard Tech has announced partnership with the bicycle insurance company Bikmo. The partnership is set to offer accessory and bicycle manufacturers a range of insurance options and solutions according to the needs of the customer. The company has plans to upgrade the Leopard Lync which is a bicycle connectivity anti-theft and tracking solution to enhance the protection of the riders.
The Dutch electric bike manufacturer VanMoof announced acquisition of investment worth $128 million in the series C minority investment round which was led by an equity firm based in Asia. The investment has raised the total funding of the company to $182 million which will be used in the expansion of production activities and enhance the software and hardware infrastructure of the bicycles.
The major developers are focusing on expanding their business by acquiring small companies. For instance, Hero cycles acquired 48% equity in HNF NICOLAI which is a vehicle manufacturer based in Germany. The acquisition is set to help Hero to expand to global markets primarily through Europe. The company Van Der Wal was acquired by Beeren Groep NV which is an automotive supplier manufacturing company based in Belgium. Peloton Interactive revenue in the last quarter grew 54% as compared to the quarter of the year 2020, to revenue worth $937 million.
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.
- 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.
- Alchemy Bikes’ newest full-suspension mountain bike is the carbon Arktos, designed for three travel configurations and two-wheel sizes.The Arktos features modernized geometry with low stand over to improve manoeuvrability and utilizes dual water-bottle mounts.
BICYCLE MARKET COMPANY PROFILES
- 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)
THIS BICYCLE MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS
- Bicycle Market size and Forecast, by region, by application
- Average B-2-B price for Bicycle Market, by region, per user
- Technology trends and related opportunity for new Bicycle Market tech suppliers
- Bicycle Market share of leading vendors, by region,
- Coronavirus impact on Bicycle Market earnings