Bicycle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The global bicycle market was projected to register a CAGR of 4.29 % during the forecast period (2021 - 2026).
The sales of bicycles witnessed a slump initially owing to the closure of offline stores across countries due to the COVID-19 pandemic restrictions. However, the demand for bicycles started picking up recently with a significant growth in the number of consumers trying to avoid public transportation due to fear of contracting the virus. Moreover, with the growing health-consciousness among consumers, bicycles are now seen as an increasingly dependable and healthy mobility option. For example, the Dutch e-bike brand VanMoof has seen a significant increase in sales simultaneous to the COVID-19 outbreak in Europe and, latterly, the United States.
Furthermore, as per the United Kingdom Bicycle Association, between April and June 2020, bicycle sales increased by 63% year-on-year. Sales were strongest for bikes under GBP 1,000, although GBP 1,000+ e-bikes also did well (from a low base) with a sales increase of 150%.
Over the medium term, an increasing number of cycling events and favorable government and employer initiatives are expected to drive the market studied. Furthermore, various governing bodies in the European, Asia-Pacific, and African countries, particularly in South Africa, promote road racing, touring and leisure cycling, track racing, off-road racing events, and mountain cycling events.
Apart from the European region, in countries, like China and Japan, e-bikes have grown in prominence. Some of the major reasons considered for adopting and driving e-bikes around the world are their health benefits, avoidance of traffic congestion, environmental benefits, and the increase in demand for e-bikes as sports equipment. Furthermore, with consistent technological advancements, the key manufacturers, such as Accell Group and Giant Manufacturing Co., are focusing on enhancing the overall user interface by designing and developing bicycles that can integrate with the rider's smartphone and provide real-time information of the speed and battery status, thereby bolstering the market growth over the forecast period.
An increasing application base of bicycles in trekking and recreational activities, coupled with a rising number of cycling events, is expected to propel the demand for bicycles in both general and sports bicycles. The increasing influence of celebrity endorsement and increasing media coverage for such events are expected to further fuel market growth. Furthermore, various governing bodies in European countries, such as Cycling Ireland, promote road racing, touring and leisure cycling, track racing, and off-road racing events. For instance, according to the Irish Sports Council, investments made by Sport Ireland toward Cycling Ireland increased from EUR 292.5 thousand in 2015 to EUR 440 thousand in 2019, which encouraged the involvement of consumers in various cycling activities in Ireland.
In another instance, Seville's Bicycle Festival of Southern Europe aims to raise awareness about cycling, which had its 21st edition in 2018, with more than 4,000 participants. The ultimate objective of the event was to raise awareness about cycling and increase the uptake of cycling within the city. Such awareness campaigns also boost the growth of the market studied.Moreover, international sports events, such as cycling championships, also encourage the involvement of consumers in cycling, in turn, driving the market growth.
Asia-Pacific is the largest and also the fastest-growing region in the global bicycle market. China, Japan, Australia, India, and South Korea are some of the top contributing countries in the region. Moreover, these countries have started hosting numerous cycling tournaments, which, in turn, may increase the popularity and demand for sports bicycles. For instance, the Asian Cycling Championships is an annual continental cycling championship for road bicycle racing and track cycling since 1963, exclusively for Asian cyclists selected by the national governing body. In addition, there's a rise in women's participation rate and government initiatives that are likely to boost the demand for bicycles in the region. Owing to such increased demand, bicycle companies in the market are launching innovative bicycles and accessories, which will lead to significant market growth during the forecast period.
The bicycle market is a fragmented and highly competitive market comprising of many international and regional players. Major players in the market include Giant Manufacturing Co. Ltd., Accell Group, Trek Bicycle Corporation, Dorel Industries Inc., and Pon Holdings BV. These key players are venturing into manufacturing of innovative bicycles, embarking on partnerships with other players, mergers & acquisitions and shaping up their online and offline-marketing strategies, to expand their presence in the global arena.
The companies are also leveraging on the enhanced online distribution channel. Moreover, companies are diversifying their bicycle portfolios by launching bicycles, which are being targeted specifically toward women riders and kids, thus, making them more consumer-centric.