Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A bicycle or bike is a human-powered or pedal-driven vehicle, with two wheels attached to a frame. Bicycles are used for various purposes including sports, daily commute, and adventure sports. There are different types of bicycles available in the market including mountain bikes, road bikes, sports bikes, and hybrid bikes. Although bicycles have been used since the 19th century, it has evolved massively over the years, with the production of lighter and faster bikes. Different accessories are now being added to bicycles such as luggage carriers, front-mounted baskets, child seats, training wheels, etc.
The global Bicycle Market was accounted for US$ 51,770.6 Mn in terms of value and 151,764 Thousand Units in terms of volume in 2019 and is expected to grow at CAGR of 3.7% for the period 2020-2027.
Market Dynamics- Drivers
- Increasing awareness among consumers regarding health benefits of bicycle is expected to drive growth of the global bicycle market during the forecast period
Modern lifestyle and hectic schedules have forced people to work without ample exercise. With increasing intake of junk food, health issues such as obesity are arising at a very early age. According to the World Health Organization (WHO), in 2014, 114 nations including Europe, Middle East, and the Americas were having over half of the adult population obese. On the contrary, a healthy and more nature-friendly lifestyle is becoming more and more popular with raising awareness about the hazards caused by obesity. Many studies have revealed that bicycling burns around 500 – 700 calories per hour. Various countries have started adopting bicycle riding as an effective way of burning fat and maintaining normal body mass. Even Doctors advise the general public around the world to use bicycles as a must-have tool for living a healthy life, whether they are obese or not. Thus, these factors are expected to drive growth of the market in the near future.
- Significant increase in oil prices and rising need to prevent natural resources are expected to propel the global bicycle market growth over the forecast period
The major disadvantage offered by bicycles is that it does not require external fuel or source of supply to drive. Since the natural resources are limited and draining rapidly, adopting bicycles is crucial to avoid depletion of resources. In order to save oil and fuel, customers more often tend to cycle to the distances which are close enough for them. Furthermore, consumers are also saving a significant amount of money by not expending on fuel, and also there is no need for a driving license for cycling. Hence, these factors are expected to propel the global bicycle market growth over the forecast period.
Asia Pacific held dominant position in the global Bicycle market in 2019, accounting for 63.2% share in terms of value, followed by Europe, North America, Middle East and Africa and Latin America respectively
Figure 1: Global Bicycle Market Share (%) in terms of Value, By Region, 2019
Bicycle Market - Impact of Coronavirus (Covid-19) Pandemic
Many countries around the globe such as India, Spain and Italy have imposed nationwide lockdown. For Instance, India have imposed lockdown from 25 March to 1 June till the further notice. In India all the social gathering events such as bicycle racing events are prohibited during the lockdown period.
Moreover, there is also shortage of manpower at the bicycle manufacturing facilities due to the lockdown. The demand of bicycle is also expected to decrease in the year 2020 due to the nationwide lockdown. In some areas of India, roaming on the streets without any prior permission is prohibited. Owing to all these factors, COVID-19 is expected to be a challenge for the market growth during the year 2020.
Market Dynamics- Restraint
- Unsuitability for longer distances is expected to restrain growth of the global bicycle market during the forecast period
Commutation by bicycles is ideal and suitable for shorter distances, as the human capacity to cycle is limited. The energy to be exerted for cycling for longer distances is comparatively higher, and thus it’s a very tiresome task. Moreover, the speed of bicycles is limited, whereas automobiles go faster and destination can be reached sooner. Thus, these factors are expected to restrain growth of the market during the forecast period.
- Lack of dedicated cycling tracks is expected to hinder the global bicycle market growth over the forecast period
The major challenging inhibiting growth of the market is the lack of an ample number of dedicated cycling tracks. Emerging economies are laying emphasis on creating a bicycle-friendly world and safe cycling tracks so that there are no accidents and injuries to the consumers and safety is assured. Moreover, in countries such as Brazil, India, and Indonesia, where population is higher, there are very few dedicated cycling tracks built by authorities. Hence, these factors are expected to hinder the global bicycle market growth over the forecast period.
Bicycle Market Report Coverage
||Market Size in 2019:
||US$ 51,770.6 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 69,574.6 Mn
|Geographies covered (27):
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By Product Type: Sports, Road, Mountain, and Hybrid(Sports+ Mountain)
- By Technology: Electric and Conventional
- By End User: Men, Women and Kids
- By Price: Premium, Mid-Range and Low Range:
Giant Bicycle Inc., Samchuly Bicycle Co., Ltd., Atlas Cycles Ltd., Tandem Group plc, Derby Cycle, Merida Industry Co. Ltd., Avon Cycles Ltd., Dorel Industries Inc., Trek Bicycle Corporation, Xiaomi, Accell Group, Zhonglu Co. Ltd., and Tube Investment of India Limited.
- Increasing awareness among consumers regarding health benefits of bicycle
- Lack of dedicated cycling tracks
|Restraints & Challenges:
- Unsuitability of long distances
- Constantly increasing demand for cleaner and faster mode of transportation can present major growth opportunities
The pollution caused due to the emission from fuel-driven vehicles has increased significantly in the recent past. On the contrary, it has presented a massive opportunity for green solution providers and manufacturers to capitalize on the market. The bicycle manufacturers can exploit these conditions as an opportunity to expand and increase their business. The eco-friendly mode of transport with bicycle as a medium has already gained popularity and is a prominent trend in European countries like Denmark, Netherlands, and the U.K.
- High growth of tourism industry can provide lucrative business opportunities
Tourism industry has witnessed massive growth in numerous economies. Cycle tourism provides major opportunities for manufacturers to gain a competitive edge in the market. There has been global increase in the construction of cycle tourism projects in various countries to generate a good source of revenue for the country. For instance, in Germany and France, the average annual turnover from the cycling tourism is approximately 11 billion Euros and the revenue is expected to increase in the near future due to increased infrastructural and extension activities going on in the cycling tracks and lanes.
Figure 2: Global Bicycle Market Value (US$ Mn), 2016 - 2027
The global Bicycle market was valued at US$ 51,770.6 Mn in 2019 and is forecast to reach a value of US$ 69,574.6 Mn by 2027 at a CAGR of 3.7% between 2020 and 2027.
- Advent of bicycles in corporate sector to endorse eco-friendly transportation
In developed regions such as Europe and North America, many corporate offices have started using bicycles and electric vehicles as a mode of transport inside their campuses and is mandatory that every employee should follow this, in order to enhance air quality and minimize pollution index inside the campuses. The U.S. Green Building Council (UGBC) is supporting corporate offices to be leader in energy and environment design or LEED.
- Improved material science has facilitated the manufacturing of ultra-lightweight bicycles
Advancements in material science have allowed manufacturers to fabricate ultra-lightweight bicycles. The new technology and advanced methodology used for the manufacturing of such bicycles has found increasing application in the manufacturing of sports and mountain bicycles. For instance, in June 2016, Canyon Bicycles GmbH launched Canyon Ultimate CF SLX, which has the lightest frame and is one of the strongest too in racing bicycle category.
Key players operating in the global bicycle market are Giant Bicycle Inc., Samchuly Bicycle Co., Ltd., Atlas Cycles Ltd., Tandem Group plc, Derby Cycle, Merida Industry Co. Ltd., Avon Cycles Ltd., Dorel Industries Inc., Trek Bicycle Corporation, Xiaomi, Accell Group, Zhonglu Co. Ltd., and Tube Investment of India Limited.
- Key companies in the market are involved in capacity and business expansion, in order to enhance the market presence. For instance, in April 2020, Avon Cycles Ltd. inaugurated two showrooms in Ludhiana, India.
- Major market players are focused on product launches, in order to expand product portfolio. For instance, in March 2018, Trek Bicycle Corporation launched a collection of road, hybrid, and mountain bicycles in the Indian market.