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).
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)
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.
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.
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.
Key manufacturers in the region are focused on production of lightweight bicycles, in order to comply with regulatory policies and standards. Industry regulations such as Corporate Average Fuel Economy (CAFÉ) standards require OEMs to reduce vehicle weight by incorporating composite materials such as carbon fiber-reinforced plastics. Moreover, growing demand for light-weighted materials, North America bicycle and components market is expected to witness rise in the use of composite technology in the near future. Robust bike infrastructure in North America and growing health and fitness awareness are other factors boosting the demand for bikes in the region. Furthermore, North America bicycle and components market is expected to be benefitted by the growing trend of Valet Bicycle Parking. It encourages safe cycling and helps in reducing traffic congestion.
According to the World Bank’s study, in 2015, 12 cities in Latin America region possess a network of more than 12,000 public bicycles. Effective rental bike system, cycling infrastructure, and incorporation of bicycles with public transport system are expected to boost the demand for bicycle and components in the near future. Moreover, Latin America witnessed an integration of public bicycle rental system, which makes use of the same automatic charge card as the city’s buses and parking meters. Growing adoption of healthier lifestyle combined with increasing need for reducing traffic congestion and air pollution in the region is expected to drive the Latin America bicycle and components market growth over the forecast period. Furthermore, various cities in the Latin America provide loans to purchase bicycles, offer bike repair courses, and provide innovative bike-share system to support the use of bicycle for commutation.
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.