A bicycle is simple to operate and is considered one of the safest modes for travelling. The bicycle industry has been continuously growing since the decades when it was a major means of personal transportation. Furthermore, major bicycle associations such as Go Out and Tour Somewhere, Easy Rider Bike Club, and Road Soldiers Cycling Club all share a common goal: to increase customer interest in cycling. The increase in the number of people opting for bicycling as a form of leisure is anticipated to propel market growth. Preference for bicycles as a convenient form of exercise to ensure a healthy life free from obesity and other disorders is expected to further boost the market expansion. The popularity of dockless bicycle-sharing systems has been rising lately. This system allows users to locate a bicycle nearby and unlock it electronically. Initiated originally in Europe, dockless bicycle-sharing systems are gaining popularity, particularly in Asian nations such as India and China.
According to the report, "Global Bicycle Market Research Report, 2027", published by Actual Market Research, the market stood at around USD 63 billion in 2021, which is anticipated to reach USD 88 billion by 2027. Further, the market is estimated to grow at a more than 5% CAGR for the 2022–2027 period. Asia-Pacific is the fastest-growing region in the global bicycle market, holding a share of over 50% in value terms in the year 2021. China, Japan, Australia, India, and South Korea are some of the top contributing countries in the region. These countries have hosted many cycling tournaments, which will increase the popularity and demand for sports bicycles. A few years ago, bicycles were indisputable icons of Amsterdam, Copenhagen, or Barcelona. The craze for cycling has been on a steady rise in the South Asian nation, but that has been largely limited to the metropolitan cities. Rural areas accounted for nearly half of the cycle sales, even as people there were migrating to scooters, a faster mode of transport. India acquired 1/4th of the Asia-Pacific market in the year 2021. This contradiction is the result of having low in-hand disposable income. However, India has a huge market for bicycles, but the average selling price of a bicycle in the Indian market was very low in the year 2021.
People have started to realize the importance of staying fit and having a healthy life. They have also started to realize that regular biking can keep disorders at bay, such as obesity. The market is likely to grow as more and more people resort to bicycling as a regular form of exercise. Events such as the Tour de France and Ronde van Vlaanderen further add to the popularity of these vehicles. Meanwhile, a rise in the number of bicycle events being organized in various countries in Asia, Africa, and the Middle East is fueling the sales of mountain and road bicycles. Furthermore, recent advancements in mobile app development and the Global Positioning System (GPS) have resulted in app-based dockless bicycle-sharing systems. Moreover, the growing adoption of such dockless bicycle-sharing systems is anticipated to fuel the demand for bicycles significantly. To capitalize on market opportunities, Chinese bicycle-sharing companies are aggressively investing and expanding their operations in European countries. This is expected to boost the market's growth in the forthcoming years. For example in the USA, people use bikes for slimming and better feeling because cycling burns 600 calories an hour, but in China or other countries people use bikes mostly for transportation needs. For these reasons in some countries bikes are especially popular.
The growing traffic congestion and shortage of parking space, particularly in metropolitan areas, are prompting people to consider bicycle commutes for short distances to save time. At the same time, various governments are aggressively rolling out the infrastructure necessary to support bicycle commuters, thereby encouraging people to opt for bicycles. However, the looming lack of the infrastructure necessary to support and encourage bicycle commuters, particularly in developing economies such as India, is anticipated to hinder the growth of the market. Similarly, lightweight bicycles made using composite materials make them expensive, which does not bode well for the market's expansion. On the other hand, pollution created by emissions from gasoline-powered automobiles has reached new heights. In the meantime, green solution suppliers and manufacturers have seen bicycles as an opportunity. Bicycle manufacturing companies are taking advantage of these circumstances to expand and grow their businesses. Environmentally friendly means of transportation using bicycles as a mode of transportation have already gained traction and are a popular trend in European countries such as Denmark, the Netherlands, and the U.K. Governments in Europe and the United States have promoted the use of bicycles in cities where schools, workplaces, retail centers, and other amenities are located close to residential areas.
With the advancement of technology, the trend of bicycle use has been reduced in the United States for the past couple of decades, but its popularity is growing again on account of the health consciousness and environmental concerns to reduce CO2 emissions. Rising urbanization, congestion, and sustainability are majorly driving the rising demand for bicycles all over the United States. The United States has a huge bicycle market with around 134 million cyclists in 2017, but bicycles supplied are largely through imports, majorly from China and Taiwan. It inhibits top bicycle manufacturers such as Trek Bicycle Corporation, Specialized Bicycle Components, Inc., and GT Bicycles, who have a large global presence.
The increasing influence of celebrity endorsements also adds to the rise in demand for bicycles. According to the Central Bureau of Statistics, in the Netherlands, the total number of shops selling bicycles has increased from 3028 in 2015 to 3079 in 2020, reflecting a growth in the bicycle market. Cycling events play an important role in raising awareness about cycling and its benefits, in turn supporting the bicycle market. These events are focused on different segments of the population, including children, adults, families, employees of an organization, and many more. For instance, European Mobility Week is an initiative taken by the European Coordination, National Coordinators, and the European Commission to improve public health and the overall quality of life through the promotion of clean mobility. Bicycle trips are most frequent in the Netherlands, Denmark, and Sweden. The Netherlands holds the record as the nation with the most bicycles per capita. The Danish capital, Copenhagen, is the most bicycle-friendly city and is known as the "City of Cyclists," where 52% of the population uses a bike for the daily commute. The demand for bicycles in Belgium has enabled local and global manufacturers to launch innovative bicycles in the country.
From Bogota to Ushuaia or from Ushuaia to Quito, both are iconic bicycle touring routes, and every year there are many cyclists undertaking adventures. Although Latin America is twice the size of Europe, it is anything but flat; there are many unpaved roads; and the weather has a big influence. Bicycles are making an impact in the cities of the region. In Latin America, there are already 12 cities that have a network of more than 12,000 public bicycles. However, the scenario varies considerably. While cities such as Bogota and Rio de Janeiro are breaking records in terms of kilometers of bike lanes, most central countries have no institutionalized networks. The intense heat in the Middle East and Africa is well known for its potential to cause physical harm to human beings and affect physical activity levels. This has its own influence on the bicycle market of the region. Bicycle touring enthusiasts interested in going on biking tours of the Middle East are now discovering that this sport is not just confined to North America, Europe, and Asian countries like China and Japan. While it is true that Western countries have the most developed systems of bike touring maps and travel information, Middle Eastern countries also have cycling information that can enable either individuals or groups to have a unique and interesting travel experience.
Companies are keenly focusing on introducing sustainable and high-performing paddle cycles to provide an environment-friendly commutation option to the users. For instance, in January 2019, the largest European bamboo bike brand, My Boo, launched a waterproof, UV-resistant, and sustainable bamboo material-based bike/cycle in Germany, Austria, and Switzerland. Additionally, the growing leisure and hiking trend among the population is expected to drive the demand for such kinds of products.
The outbreak of COVID-19 is certainly expected to favor the market's growth in the coming years as several governments around the globe are significantly promoting bicycles as one of the safest modes of transportation, which helps people to maintain social distance. Besides, governments across key countries, such as the U.K. and Italy, are providing subsidies for the purchase of new bicycles during the pandemic. Therefore, the government's support in the form of initiatives and subsidies, coupled with growing awareness regarding the benefits offered by bicycles, bodes well for the market's growth over the next few years. More people are choosing to ride their bikes to work to stay active after long lockdowns or to escape packed trains and buses. The environmental benefits of riding are leading to more bicycle lanes in cities across Europe, including Paris, Berlin, Lisbon, and Barcelona.