The COVID-19 pandemic has caused supply and manufacturing disruptions in the automotive sector creating uncertainties in every aspect. The change in customer behavior in terms of mobility preferences during this crisis is changing the automotive landscape.
This pandemic situation has shut down many production lines owing to the trade restrictions and closed borders, creating a shortage in required parts and limiting the distribution of supplies. Different enforced measures including the closing of workspaces and dismissal of short-time workers have created a depression in the growth rate of the automotive industry.
The growing fear of recession is estimated to decrease overall sales and revenue. A limited supply of parts coupled with a reduced workforce has forced the leading OEMs to shut down their production. A significant drop in demand has restricted the cash inflow which is highly important in payment of salaries to the workforce. With growing uncertainties around the COVID-19 pandemic, the industry leaders are taking measures to adapt to the situation.
Rising traffic congestion is an unavoidable condition, particularly in large and growing metropolitan areas across the globe. Thus, increasing urbanization in emerging as well as developed economies, coupled with expansion of general fabrication activities and low manufacturing cost, has led to a surge in the demand for bicycles as a means of conveyance.
Continuously increasing demand for faster and cleaner modes of transportation and rising awareness of bicycle sharing systems are creating significant opportunities for the growth of the bicycle market across the globe. A study by PMR on the bicycle market concludes that, the market is anticipated to reach a valuation of around US$ 109 Bn by the end of 2030, expanding at a CAGR of nearly 6% over the forecast years (2020–2030).
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Key Takeaways of Bicycle Market Study
- China is one among the prominent markets for bicycles; sales are expected to increase in the region significantly over the forecast period, due to the adoption of bicycles in daily life and the growth in rental services of bicycles.
- New technology and advanced methodology have found increasing application in the manufacturing of hybrid and mountain bicycles.
- Increase in the number of cycle racing events in various countries such as China, India, etc., and other rapidly developing economies are leading to market growth.
- Cycle tourism is acting as a catalyst in the promotion of the bicycle market space. There has been a global upsurge in the creation of cycle tourism projects in various countries in order to obtain a good source of revenue for the country.
- East Asia is the largest producer of e-Bikes as well as the largest consumer of eco-friendly mode of transportation, owing to a decent network of roads, connected appropriately in almost all the countries of the region.
- There is increased use of bicycles for recreational activities, with major focus on bicycle touring, trekking, and mountain biking, among others. Innovations in materials used to build bicycles have led to lighter and robust bicycles, ensuring longer travel ranges and durability.
“Growing use and strong demand for electric bicycles is estimated to boost the growth of the global bicycle market in the coming years. Government investments on bicycle promotion projects and schemes are estimated to benefit market growth,” says a PMR analyst.
The COVID-19 Impact
The flourishing bicycle market is witnessing a strong growth stall due to solid disruptions in the manufacturing and supply of bicycle and bicycle accessories amid the global COVID-19 outbreak. Social distancing norms and stay-at-home orders continue to impose restrictions on travel as well as outdoor exercising, which is directly hampering the value pool of the mobility industry, including the bicycle market. Electric bicycle sales are prominently limited owing to several supply chain challenges and manufacturing delays. Non-Chinese bicycle brands must now leverage these trying times as an opportunity to strengthen their global market positioning as Chinese brand alternatives. Agile bicycle manufacturing and digital supply chains will be the top trends adopted by leading bicycle companies in the post-COVID-19 era, as suggested by PMR’s analysis.
Bicycle Market: Competitive Landscape
The bicycle market is moderately consolidated. Tier one players hold around 15% share, whereas, tier two players hold the lion’s share in the global bicycle market. In developed regions such as North America and Europe, organized or tier-1 and tier-2 players hold prominent shares. Upgradation of operational bases and expansion of product portfolios in order to gain a competition advantage over tier-3 players has been the main strategy of key players in the global bicycle market.
- Giant Bicycles Inc.
- Atlas Cycles Ltd
- Derby Cycle Holding GmbH
- Trek Bicycle Corporation
- Avon Cycles Ltd.
- Zhonglu Co., Ltd
- Accell Group N.V.
- Tube Investments of India Limited
- Dorel Industries Inc.
- Merida Industry Co., Ltd
- Tandem Group plc
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Conclusion
Road, mountain, and electric bicycles are mostly preferred by various end users. With an increase in trekking and cycling activities, the kids bicycle segment is anticipated to expand at a high rate in the coming years. Bicycle use eliminates dependency on fueled vehicles, and this factor is expected to directly impact the growth of the global bicycle market. China, being the largest manufacturer of bicycles, and South Asia & Pacific, are expected to emerge as relatively attractive markets in terms of value and growth by the end of the forecast period of 2020 to 2030.
About the Report
The research report analyzes the total sales of bicycles on the basis of volume (000’ units) and value (US$ Mn), with the market being bifurcated according to product, technology, price, end user, and region. The market is projected on the basis of factors such as GDP growth, government subsidies, and schemes, as well as growing urbanization. The scope of the research report includes new sales of bicycles, owing to the need of greener vehicles, increasing public bicycle rental programs, and rising health consciousness among consumers.
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We leave no stone unturned to give clients an exhaustive coverage of the industry.Persistence Market Research’s proactive approach identifies early innovation opportunities for clients in the global automotive sector. Our insights on next-generation automotive technologies such as connected cars, automotive emissions control, vehicle-to-vehicle (V2V), autonomous cars, electric and hybrid vehicles, and augmented reality dashboards ensure clients stay at the forefront of innovation.
Our reports strive to offer superior quality reports based on authentic and accurate findings.
Customer Satisfaction
We aim to ensure that our client’s research needs are met with customized, top-of-the-line solutions.
Unmatched Expertise
Our analysts and consultants are among the best in their field and promise to deliver excellent market intelligence.
360-degree Analysis
We leave no stone unturned to give clients an exhaustive coverage of the industry.Persistence Market Research’s proactive approach identifies early innovation opportunities for clients in the global automotive sector. Our insights on next-generation automotive technologies such as connected cars, automotive emissions control, vehicle-to-vehicle (V2V), autonomous cars, electric and hybrid vehicles, and augmented reality dashboards ensure clients stay at the forefront of innovation.
Our competencies go beyond regular market research to deliver tailored solutions in an industry marked with increasing environment regulations, evolving consumer preferences, and a shifting landscape of emerging markets.
Report Highlights:
- Shifting Industry dynamics
- In-depth market segmentation
- Historical, current and projected industry size Recent industry trends
- Key Competition landscape
- Strategies of key players and product offerings
- Potential and niche segments/regions exhibiting promising growth
- A neutral perspective towards market performance
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