BICYCLE AND COMPONENTS MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Drivers

1. Increasing use of bicycle as part of fitness activities and fun are expected to drive growth of the global bicycle and components market during the forecast period

Bicycling offers various physical and mental benefits and with growing consumer acceptance of bicycles to enhance health activities, its demand has increased significantly in the recent past. Apart from health and wellness, bicycle has been used for transportation and recreational activities, which in turn, is expected to drive the global bicycle and components market growth over the forecast period. Moreover, cycling is often recommended as aerobic activity and helps in protecting against numerous diseases such as stress, hypertension, obesity, heart attack, some cancers, depression, diabetes, and arthritis. Cycling is also used for controlling, maintaining, and reducing weight. Furthermore, growing traffic congestion combined with increasing fuel prices is expected to drive the market growth in the near future.

2. Growing public bicycle renting programs worldwide is expected to propel the global bicycle and components market growth over the forecast period

Bike-sharing programs have become popular across the globe, as an initiative to increase cycling, minimize environmental pollution, and reduce traffic congestions. These bicycles are available on rent thus users need not purchase a new bike for the use. Moreover, users who have inculcated the habit of bicycling can become the potential buyers in future to commute shorter distance, which in turn, expected to accelerate the market growth over the forecast period. According to a study conducted by Institute for Transportation and Development Policy (ITDP), in 2014, bike-share programs have been initiated in over 600 cities worldwide, and more bicycle rental programs are starting each year.

Market Dynamics- Restraints

1. High cost associated with composite materials is expected to restrain growth of the global bicycle and components market during the forecast period

Consumers are shifting towards lightweight bikes, which has increased the demand for composite materials for manufacturing bicycle components. However, composite materials such as fiber-reinforced polymer or fiberglass are expensive, which in turn, is expected to restrict the market growth up to certain extent. Moreover, slow production rate and increasing concerns regarding recyclability of composite materials are some other factors restraining the global bicycle and components market growth in the near future.

2. Uneven cost-benefits ratio is expected to hinder the global bicycle and components market growth over the forecast period

Major market players can invest significantly in research and development activities, in order to leverage untapped market potential. However, this situation is not the same with small-scale manufacturers who are reluctant to invest in R&D. This is owing to inability to attain cost-benefit ratio, which bicycle market offers in the long-term. Furthermore, manufacturers are expected to invest significantly in supply chain management. Hence, these factors are expected to hamper the market growth in the near future.

Market Opportunity

1. High growth potential for bicycle manufacturers in emerging economies

According to data from World Bank, the global population is expected to increase by 2.5 billion by 2050, with 90% of this increase expected to be concentrated in Asia and Africa. Countries in Asia Pacific, especially India and China are the most significant consumer base with high potential opportunities, which in turn, is boosting the demand for bicycles. Moreover, increasing per capita and disposable income combined with changing demographics in India and China are expected to pose lucrative growth opportunities for manufacturers during the forecast period. According to Coherent Market Insights’ analysis, the Asia Pacific bicycle market is projected to witness a relatively higher CAGR over the forecast period, followed by the Latin America bicycles market. According to the same source, currently, China leads in terms of number of bike-sharing schemes, with around 170 bike-sharing ongoing programs in the country. Moreover, the Government of Singapore making investment to improve bicycle infrastructure and bike lanes in order to encourage people to adopt cycling culture and as a transportation mode.

2. Advancements in technology for the production of composite materials are providing market opportunity

Growing adoption of technologically advanced production techniques to manufacture low-cost fiber from precursor such as plant fibers, polymers or renewable natural fibers with properties such as light weighted bicycle components. Moreover, advent of novel carbonization technologies that can facilitate production of uniform fiber properties for manufacturing at relatively low cost are expected to pose significant growth opportunities for market players in the near future.