The “Global Bicycle and Components Market, by Application (Mountain Bike, Road Bike, City Bike, Electric Bike, Children Bike and Others), by Technology (Continuous Fiber Composites, Discontinuous Fiber Composites and Metals), by Component (Rims, Frames, Saddles and Other Components), and by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 72,571.34 million by 2027, witnessing a CAGR of 3.5 % during the forecast period (2019-2027).
Overview
According to the USLegal Inc., a bicycle is defined as a human-powered vehicle with two wheels and tandem in design, used for various activities such as fitness and transportation by the act of peddling one or more persons seated on one or more saddle seats on its frame. Composite materials are used in the manufacturing of bicycles that are two or more constituent materials that possess significantly different physical and chemical properties. Moreover, metal can be defined as a material (an alloy, element or compound that provides tensile strength to bicycle components. Different technologies are used for bike production such as continuous fiber composites, discontinuous fiber composites, and metals.
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 Driver
Increasing number of cycling events across the world is expected to drive growth of the global bicycle and components market over the forecast period
In the recent past, local, national, and international cycling events have witnessed significant rise. This is primarily due to growing acceptance of bicycles among populace and increasing use of bicycles for recreational activities. For instance, in November 2016, the U.K. Cycling Events, one of the largest cycling event organizers in the U.K., announced the launch of the 2017 Brewin Dolphin Velo Series. This series includes four road cycling events in Oxfordshire, the Peak District, the New Forest, and Scotland. Moreover, recent cycling events combined with increasing number of participants every year are expected to drive the global bicycle and components market growth during the forecast period.
Market Opportunity
Development of production facilities can pose lucrative growth opportunities for market players in the near future
Presence of intense competition in the market and low number of players in the bicycle market is encouraging established players to focus on enhancing production capacity and expanding distribution networks. This, in turn, can expand their global presence and increase the revenue share in the market. Furthermore, this has resulted in several big and small companies to enter into joint ventures, acquisitions, mergers, and strategic agreements, in order to gain competitive advantage in the market. For instance, in August 2014, Hero Cycles acquired a 60% share in Germany bicycle company, MIFA, in a deal valued at US$ 16.3 Mn. The company invested an additional US$ 4.3 Mn as capital expenses for restructuring the acquired company.
Market Restraint
Growing preference for motorcycles and cars to commute through longer distances quickly is expected to hinder the global bicycle and components market growth over the forecast period
Although people prefer bikes for commute, it is not possible for longer distances. Thus, consumers are preferring motorcycles and cars for such longer distances instead of bikes. This, in turn, is expected to restrain growth of the global bicycle and components market during the forecast period.