The global bicycle market was evaluated at US$51.262 billion for the year 2019 and is expected to grow at a CAGR of 6.98% and reach US$76.845 billion by the year 2025. The global cycle market is projected to show a healthy growth throughout the course of the next five years primarily on account of the increasing consumer preference towards a healthy living lifestyle. Furthermore, there has been an increasing adoption of bicycles in both developed and developing economies owing to the fact the majority of the people are opting for cycling as their daily routine activity and as a form of leisure. The market is also being driven on account of the growing prevalence of chronic diseases such as CVDs, obesity, and diabetes among others which is further augmenting the demand for bicycles among the people suffering from these diseases to stay healthy and fit. The recent outbreak of novel coronavirus is also expected to boost the sales of bicycles in many parts of the world as several restrictions have been imposed by the governments across the country such as social distancing and lockdowns among others. This further led to a closure of gyms, parks, and other public places, which in turn led to an upsurge in the demand for cycles by fitness maniacs. The constantly growing penetration of electric bicycles is further widening up the business opportunities for the market players to tap the growing market potential. Also, the growing penetration of bicycle-sharing services and an increase in the number of online platforms in various countries that offer dockless bicycle-sharing systems is further fuelling the market growth throughout the forecast period.
Rising prevalence of chronic diseases
One of the key factors supplementing the demand for bicycles is the globally growing prevalence of chronic diseases such as obesity, diabetes, and CVDs among others. This has led to an upsurge in the demand for bicycles in many parts of the world owing to the fact that the growing concerns among the people regarding a healthy lifestyle with easy exercise and physical activity. Furthermore, bicycling regularly at a medium pace further helps to mitigate the risk of several chronic diseases. There has been a rapidly growing prevalence of diabetes at the global level. According to the statistics by the International Diabetes Federation, by the year 2040 one out of ten adults will suffer from diabetes. Additionally, according to the statistics provided by the American Diabetes Association, in 2018 34.2 million Americans suffered from diabetes out of which 26.8 million were diagnosed. Cycling is directly associated with mitigating the risk of diabetes in adults as physical activities help in minor physical activity helps the people to maintain blood sugar levels as it activates around 70% of the muscles in the body. Also, according to the estimates by the World Health Organization, the contribution of chronic diseases to the global disease burden is expected to reach 60% by the year 2020 which was only 43% in 2002. Additionally, the prevalence of obesity has also grown remarkably in the past years. According to the U.S Department of Health and Human Services, the prevalence of obesity increased to 42.4% by the year 2017 from 30.55 in 1999. Thus, cycling helps in maintaining physical activity and boosts the metabolism of individuals as well. This, in turn, is also anticipated to positively impact the demand for bicycles in both developed and developing economies of the world.
Participation by market players
The global bicycle market is also being driven by the fact that players in the market are actively taking part in the market in the form of product launches, partnerships, and campaigns to promote the use of bicycles. Thus, all the factors mentioned above are collectively contributing to the positive growth of the market during the next five years. For instance, recently in August 2020, Fuji cycles a well-known brand of bicycles and equipment based out of the United States announced the launch of its latest BIG.TRAIL mountain bike with 140 mm fork travel, 29er tires of up to 2.5”, a long dropper post, and ample fixing points. Similarly, during the same month, the company also announced its REACTO comfort riding a bicycle. Furthermore, in June 2020, Hero Cycles, one of India’s leading bicycle manufacturing announced its partnership with Muthoot Microfin, one of the leading microfinance companies of India with an aim to provide bicycles to lower-income households and micro-entrepreneurs, especially women, in South India. Similarly, during the same month, the company launched a campaign, “Road Pe Dikhegi Tabhi To Chalegi” to urge the governments across the country to transform the infrastructure and promote cycling throughout the country as people are opting more for safe and reliable transport solutions after lockdown restrictions being lifted which further led to an upsurge in the demand for cycles throughout the country.
The global bicycle market has been segmented based on type, end-user, technology, distribution channel, and geography. By type, the market is segmented as the mountain, road, hybrid, and others. By the end-user, the classification of the market has been done into men, women, and kids. By technology, the segmentation is done on the basis of conventional and electric. By distribution channel, the market is segmented into online and offline. Geographically, the distribution of the market has been done into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Road bicycles to hold a significant share
On the basis of type, the road bicycles are anticipated to hold a significant share in the market owing to the high adoption of these cycles for daily commute in both developed and developing economies of the globe. There has been a constantly growing road traffic in various metropolitan cities of the world and the non-availability of parking spaces further acts as a catalyst for the growing demand for easy commutation which in turn is amplifying the demand for bicycles in many countries. Also, these are considered as basic bicycles which are highly suitable for short distances.
However, the mountain bike segment is expected to grow rapidly over the forecast period primarily due to the growing number of product launches in this segment along with the constantly emerging adventure trend among the millennial population in many parts of the world. For instance, Giant Bicycles, one of the most popular bicycle brands of the world announced the launch of its latest Talon range for off-road and mountain adventures. Furthermore, the growth in the number of adventure sports events is also supplementing the demand for mountain bikes throughout the course of the next five years.
Electric segment to show promising growth
By technology, the conventional segment is projected to hold a considerable amount of market share throughout the course of the next five years. Bicycles are considered as one of the most convenient means of short-distance transport, especially in developing economies. Also, the presence of a huge labor class population in the emerging economies such as China, India, Brazil, and Indonesia among others is further supporting the growth of conventional cycles throughout the course of the next five years.
However, the electric bicycle segment is anticipated to witness a rapid growth until the end of the forecast period primarily due to the fact that these cycles are often considered as one of the most suitable means for leisure bicycling. However, the penetration of electric bicycles is still expected to be in the nascent stage in many parts of the world. Also, major market players are investing heavily in the R&D for the development and launch of new and high-tech electric bicycles further shows the growth potential of this segment during the next five years.
Online sales to witness healthy growth
By the distribution channel, the online segment is poised to witness a noteworthy growth throughout the course of the next five years primarily due to the fact the growing penetration of smartphones and the internet in the emerging economies of the world. For instance, according to the statistics from the Organisation for Economic Co-operation and Development, the percentage of households with internet access increased to 71.4% by the year 2019 from 27.1% in the year 2010.
APAC to hold a significant share
Geographically, the Asia Pacific region is expected to hold a significant share in the market throughout the forecast period. The presence of a large low and middle-income population base in countries like India, China, Indonesia, and others is one of the major factors supplementing the dominance of this region in the global bicycle market. Furthermore, the presence of well-established domestic brands such as Atlas Cycles, Hero Cycles, and Giant Bicycles in the countries like India and China further bolsters the market growth in the APAC region during the next five years.
Prominent/major key market players in the global bicycle market include Giant Manufacturing Co. Ltd., Trek Bicycle Corporation, Hero Cycles Limited, Dorel Industries Inc., TI Cycles, and Fuji Bikesamong others. The players in the global bicycle market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global bicycle market.
Frequently Asked Questions (FAQs)
Q1. What is the size of global bicycle market?
A1. The bicycle market is evaluated at US$51.262 billion for the year 2019.
Q2. What will be the bicycle market size by 2025?
A2. The global bicycle market is expected to reach a total market size of US$76.845 billion by 2025.
Q3. What are the growth prospects for global bicycle market?
A3. Bicycle market is expected to grow at a CAGR of 6.98% during the forecast period.
Q4. What factors are anticipated to drive the bicycle market growth?
A4. One of the key factors supplementing the demand for bicycles is the globally growing prevalence of chronic diseases such as obesity, diabetes, and CVDs among others.
Q5. Which region holds the largest market share in the bicycle market?
A5. Geographically, the Asia Pacific region is expected to hold a significant share in the bicycle market throughout the forecast period.