A bicycle or a bike is a manually-powered or peddle-drive, motor-powered vehicle with two wheels that are attached to frames, one behind the other. The composites refer to the combination of two or more constituent materials that possess typically different chemical and physical properties. These constituents when combined produces a material that possesses characteristics different from that of individual components. There are different components associated with a bicycle including axle, bar ends, belt-drive, cable-guide, dynamo, brake, bearing, bell, etc. Since its first model, bicycle has evolved significantly with better designs, comfort, driving experience and overall appearance. Bicycles are used for various activities such as mountain bike, road bike, city bike, electric bike, children bike, and others such as freight bike, ice bike, and more.
The global bicycle and components market is estimated to account for US$ 54,735.3 Mn in 2019 and is expected to grow at a CAGR of 3.5% during the forecasted period (2019-2027)
Market Dynamics- Drivers
Bicycling offers various physical and mental benefits and with growing consumer acceptance of bicycles to enhance health activities, its demand has increased significantly in the recent past. Apart from health and wellness, bicycle has been used for transportation and recreational activities, which in turn, is expected to drive the global bicycle and components market growth over the forecast period. Moreover, cycling is often recommended as aerobic activity and helps in protecting against numerous diseases such as stress, hypertension, obesity, heart attack, some cancers, depression, diabetes, and arthritis. Cycling is also used for controlling, maintaining, and reducing weight. Furthermore, growing traffic congestion combined with increasing fuel prices is expected to drive the market growth in the near future.
Bike-sharing programs have become popular across the globe, as an initiative to increase cycling, minimize environmental pollution, and reduce traffic congestions. These bicycles are available on rent thus users need not purchase a new bike for the use. Moreover, users who have inculcated the habit of bicycling can become the potential buyers in future to commute shorter distance, which in turn, expected to accelerate the market growth over the forecast period. According to a study conducted by Institute for Transportation and Development Policy (ITDP), in 2014, bike-share programs have been initiated in over 600 cities worldwide, and more bicycle rental programs are starting each year.
Europe region dominated the global bicycle and components market in 2019, accounting for 29.6% share in terms of value, followed by North America, and Asia Pacific, respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
Consumers are shifting towards lightweight bikes, which has increased the demand for composite materials for manufacturing bicycle components. However, composite materials such as fiber-reinforced polymer or fiberglass are expensive, which in turn, is expected to restrict the market growth up to certain extent. Moreover, slow production rate and increasing concerns regarding recyclability of composite materials are some other factors restraining the global bicycle and components market growth in the near future.
Major market players can invest significantly in research and development activities, in order to leverage untapped market potential. However, this situation is not the same with small-scale manufacturers who are reluctant to invest in R&D. This is owing to inability to attain cost-benefit ratio, which bicycle market offers in the long-term. Furthermore, manufacturers are expected to invest significantly in supply chain management. Hence, these factors are expected to hamper the market growth in the near future.
According to data from World Bank, the global population is expected to increase by 2.5 billion by 2050, with 90% of this increase expected to be concentrated in Asia and Africa. Countries in Asia Pacific, especially India and China are the most significant consumer base with high potential opportunities, which in turn, is boosting the demand for bicycles. Moreover, increasing per capita and disposable income combined with changing demographics in India and China are expected to pose lucrative growth opportunities for manufacturers during the forecast period. According to Coherent Market Insights’ analysis, the Asia Pacific bicycle market is projected to witness a relatively higher CAGR over the forecast period, followed by the Latin America bicycles market. According to the same source, currently, China leads in terms of number of bike-sharing schemes, with around 170 bike-sharing ongoing programs in the country. Moreover, the Government of Singapore making investment to improve bicycle infrastructure and bike lanes in order to encourage people to adopt cycling culture and as a transportation mode.
Growing adoption of technologically advanced production techniques to manufacture low-cost fiber from precursor such as plant fibers, polymers or renewable natural fibers with properties such as light weighted bicycle components. Moreover, advent of novel carbonization technologies that can facilitate production of uniform fiber properties for manufacturing at relatively low cost are expected to pose significant growth opportunities for market players in the near future.
Source: Coherent Market Insights
In global bicycle and components market, by application segment city bikes sub-segment dominated the global bicycle and components market in 2019, accounting for 24.6% share in terms of value, followed by road bike, mountain bike, children bike, electric bike and other bike respectively.
Source: Coherent Market Insights
Increasing focus on lightweight bicycles is expected to be the major trend in the global bicycle and components market during the forecast period. This is owing to advent of composite materials and engineering plastics that help to reduce bodyweight of bicycles. Moreover, production of polymer-based components and lightweight plastics results in significantly lower emission as compared to manufacturing of metal frames and components of bicycles. Introduction of composites technology, manufacturers can meet legislative requirements set for the industry and gain competitive edge in the market.
Since bicycles do not require any form of fossil fuel or energy, they do not produce harmful greenhouse gases such as CO2. Moreover, governments of various countries are supporting fuel-efficient vehicles and implementing strict regulatory policies on the use of gasoline-powered vehicles, in order to reduce air pollution. This, in turn, is expected to increase the adoption of bicycles and boost their demand in the near future.
Value Chain Analysis
Key players involved the global bicycle and components market are
Bicycle manufacturers: Giant Manufacturing Co., Ltd., Currie Technologies, Dorel Industries Inc., Trek Bicycle Corporation, Atlas Cycles (Haryana) Limited, Marin Bikes, Accell Group N.V., Merida Industry Co. Ltd., and Avon Cycles Ltd.
Components Suppliers: SRAM LLC, SHIMANO INC., Mavic (Amer Sports), Campagnolo S.r.l., and SR Suntour.
Materials Suppliers: BASF SE, Mitsubishi Rayon Co., Ltd., Toho Tenax, Saudi Basic Industries Corporation (SABIC), and Toray Industries, Inc.
Frequently Asked Questions