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The global bicycle market size was valued at USD 78.33 billion in 2021. The market is projected to grow from USD 82.50 billion in 2022 to USD 127.83 billion by 2029, exhibiting a CAGR of 6.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with bicycles experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 48.6% in 2020 as compared to 2019.
As the global number of the health-conscious populace is increasing, so is the demand for bikes. Bikes are highly utilized by the populace for activities such as commuting, exercise, sport, hiking, and others. Therefore, manufacturers offer various types or categories specially designed for these applications to cover the larger customer base. Some of the categories offered by manufacturers include mountain bikes, road bikes, hybrid bikes, cruiser bikes, and others.
Rising traffic congestion or urbanization and growing environmental concerns among the populace are driving the global market growth. For instance, according to the United Nations Conference on Trade and Development (UNCTAD) Handbook of Statistics, the global urban population percentage grew from 51.6% in 2010 to 56.2% in 2020. The share of the urban population has increased rapidly in the previous decade. It is generally higher in developed economies (around 79.2% in 2020) than in developing economies (approximately 51.6% in 2020).
Additionally, government initiatives to limit conventional vehicle sales and promote the use of green transport are also expected to fuel the adoption of cycles for personal transport. For instance, in June 2021, the government in the U.K. announced its plan to spend nearly USD 472 million to boost cycling and walking in England by building a new cycling lane. Moreover, other countries, including Finland, Ireland, France, and others are also taking initiatives to develop cycling infrastructure and promote cycling in the region.
Consumer Focus Toward Fitness Amid COVID-19 Pandemic to Boost the Market Growth
The spread of the pandemic has made a negative impact on various markets. This market also witnessed an initial slowdown due to closed manufacturing facilities and a disrupted supply chain. However, after an initial slowdown, the bicycle industry witnessed a boom during the second half of 2020, owing to a sudden surge in demand for cycles.
Constraints on leisure options, public transport, and extensive social distancing guidelines influenced the populace to utilize cycling for commuting, transport, and leisure activities. Additionally, rising health concerns among the populace amid the COVID-19 also influenced the populace to opt for cycling for fitness and recreational activities. Therefore, this growing demand for cycles accelerated the market growth during the pandemic.
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Rising Trend for Adoption of E-Bikes to Drive Market Growth
The ongoing trend for the adoption of electric bicycles is likely to emerge intact and expected to thrive in the long term. With increasing awareness regarding environmental concerns coupled with the tightening emission norms and regulations, the consumers prefer e-bikes as one of the most efficient green transport alternatives. Additionally, the government offered tax benefits and subsidies on the purchase of e-bikes is also anticipated to fuel the demand in years to come.
For instance, in November 2021, tax credits in the U.S. jumped to nearly USD 900 for the purchase of new e-bikes priced under USD 4000. Similarly, other developed and developing economies have also introduced tax benefits on the purchase of e-bikes, which is likely to drive the adoption worldwide.
Moreover, the growing trend for the adoption of micro-mobility for personal transportation due to rising urban traffic congestion, unavailability of parking spaces, and rising fuel prices are anticipated to accelerate the market growth during the forecast period. Lowering lithium-ion battery prices is also one of the major factors behind the trend of the adoption of e-bikes.
Inclining Government Focus on Cycling Infrastructure Development to Augment Growth
Government focus on investing in cycling infrastructural development is expected to propel the adoption of cycles among the populace. Nearly all the developed economies are significantly investing in building new cycling tracks and executing various pedestrian and cycling infrastructure projects. For instance, in 2021, local authorities in Ireland announced the funding of USD 240.7 million on developing facilities for bikers and walkers; the funding was nearly three times more than funding assigned for urban transport.
Growing Popularity of Cycling-Related Sports to Accelerate Market Growth
The growing popularity of cycling-related sports, such as BMX racing, and adventure sports such as mountain biking, and others are significantly influencing global bike sales. Additionally, the increasing number of cycling sports clubs and their attractive promotion strategies are also influencing the various age groups to adopt cycling as a recreational activity, which is further expected to accelerate the market growth in upcoming years.
Furthermore, technological developments, such as connected bikes, the use of advanced materials for lightweight & efficiency, and the development of electrically powered bikes, are some of the in-demand trends which are likely to accelerate the market growth over the forecast period.
Governments worldwide are enforcing stringent emission norms to reduce carbon emissions and fight climate change. Additionally, they are also introducing various scrapping policies for conventional or fossil fuel-powered vehicles. Therefore, increasing insecurity regarding the adoption and future use of conventional or fossil fuel-powered vehicles and consumers’ preference shifting toward electric vehicles are expected to drive the market growth in the years to come.
Lowering Cost of Li-Ion Batteries to Drive Market Growth
Rising fossil fuel price is influencing the populace to adopt e-mobility as an alternate solution to fossil fuel-powered transportation. In addition, due to recent technological development in li-ion batteries, the cost of li-ion batteries has dropped significantly in recent years. Therefore, the increasing adoption of e-bikes as an alternative to fossil fuel-powered two-wheelers for personal transport is anticipated to drive market growth during the forecast period.
Availability of Alternative Transport Solutions to Hamper Market Growth
The availability of alternative transport solutions such as motorcycles, scooters, and other micro-mobility solutions with a long travel range compared to e-bikes is likely to hamper the market growth during the forecast period. Furthermore, delay in deliveries due to the pandemic-induced semiconductor chip shortage is also one of the restraining factors for the market.
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Growing Popularity of Cycling-Related Adventure Sport to Drive Segment Growth
Based on type, the market is segmented into road, mountain, hybrid, and others.
The hybrid segment held the largest market share in 2021 and is expected to continue its dominance during the forecast period. A hybrid bike is basically a mix of a mountain bike and a road bike. Therefore, they are highly suitable for urban road transport as well as traveling on various terrains. Hence, the growing adoption of hybrid bicycles due to their versatility is likely to fuel the segment growth during the forecast period.
The road bicycles segment is expected to witness the fastest CAGR of 6.9% during the forecast period. They are lightweight and designed for swift riding on roads. Therefore, they are most prominently used by commuters to the workplace or for daily commute. Hence, increasing preference for road bikes for commuting in developing nations is likely to boost the segment growth in years to come, as these are significantly economical, which makes them the leading choice of the populace in developing economies.
The mountain bike segment is likely to grow at a CAGR of 6.6% over the forecast period. The growing popularity of adventure sports, hiking activities, recreational activities, and others in developed and emerging economies is expected to propel the segment growth in years to come.
Rising Urban Road Congestion to Drive Segment Growth
Based on design, the market is segmented into folding and regular bikes.
The regular segment held the largest market share in 2021. Regular bikes are the most commonly used bike design worldwide. Growing preference for regular bikes as an efficient and green mobility solution to fossil fuel-powered vehicles for short-distance commutes is driving the segment growth. In addition, low-cost regular cycles and their ease of availability are also anticipated to accelerate the segment growth during the forecast period.
The folding segment is projected to witness the fastest growth rate from 2022 to 2029. The growth is primarily driven by the inclining preference of the urban populace toward the adoption of folding bikes to tackle the urban road congestion and unavailability of parking spaces. Moreover, these can be fold into a small size for easier transport, carried into buildings, on public transit, and stored in tiny living quarters or aboard a car, boat, or plane when folded. Hence, their demand is rapidly increasing throughout Europe and Asia, where the majority of people live in flats with limited storage space. This is evident from the sales pattern of the designs of this bikes. Bike Friday manufactures folding designs in Oregon but exports around half of its cycles to Asia. Dahon reports significant sales to owners of RVs, yachts, and even private planes.
Growing Adoption of Bikes as a Short Range Commute among Men to Propel Segment Growth
Based on end-user, the market is segmented into men, women, and kids.
The men segment held the leading market share in 2021 and is anticipated to retain its position throughout the forecast period with the fastest growth rate. Increasing adoption of bikes among men for fitness, exercise, commute, adventure sport, and recreational activities is anticipated to fuel the segment growth. Therefore, hybrid, e-bikes, and mountain bikes are popular choices of among men.
The women segment is expected to witness a considerable growth rate in the coming years. Women use bikes mostly for fitness and commute purposes. Therefore, an increasing number of women riders across emerging economies is likely to fuel the segment growth. The kids' segment is also anticipated to witness considerable CAGR, owing to the growing popularity of kids' special cycles with attractive advertising.
Growing Adoption of Conventional Bikes for Sport to Propel Segment Growth
Based on technology, the market is segmented into electric and conventional.
The conventional segment held the largest market share in 2021 and is likely to continue its dominance throughout the forecast period. Conventional bikes are the most commonly used worldwide. Low cost and suitability for exercise, sport, and fitness-related applications make them a highly preferred segment.
However, the electric bike segment is anticipated to register the fastest CAGR during the forecast period. The declining battery prices and government initiatives to promote green mobility and the increasing number of tax benefits and subsidies on the purchase of e-bikes worldwide are driving the segment growth. For instance, the cost of lithium-ion batteries witnessed an 85% drop in the past decade. Furthermore, increasing penetration in emerging economies worldwide is anticipated to boost the segment growth in years to come.
Asia Pacific Bicycle Market Size, 2021 (USD Billion)
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Asia Pacific dominated the global bicycle market share with a market size of USD 28.86 billion in 2021 and is expected to retain its position throughout the forecast period. Cycling is one of the major modes of transport in emerging Asian countries. China held the leading market share in Asia Pacific. High demand for e-bikes in China is driving the market growth in the region. Additionally, the increasing popularity of bike-sharing services in China as an alternative to public transport is also anticipated to influence the market growth in years to come. Moreover, the inclining populace’s preference for cycling in urban cities of India, including Mumbai, Delhi, and others for fitness and the efficient commute is likely to fuel the market growth in the region.
Europe is expected to witness the fastest growth rate during the forecast period. The COVID-19 induced cycling boom in the European countries is driving the market growth in the region. Governments across European economies are promoting cycling as an efficient mobility solution that simultaneously addresses environmental, congestion, and public health issues. In addition, the governments across Europe have been providing subsidies and tax benefits for new e-bike purchases, which is also anticipated to drive market growth. European governments have also increased their spending on developing cycling infrastructure. All these factors are expected to fuel the European market growth in years to come.
North America is also expected to witness significant market growth during the forecast period. Rising e-bikes sales in the U.S. is the key driver of the market growth in the region. Tax benefits offered by the U.S. government, coupled with the increasing traffic congestion in urban regions across North America, are driving the trend for the adoption of micro-mobility solutions such as regular bikes and e-bikes. Additionally, high disposable income and environmental concerns among the populace coupled with the rising demand for cycling for fitness are likely to drive market growth in the near future.
South America and the Middle East & Africa regions are also anticipated to register considerable growth rates during the forecast period. Increasing imports in these regions are driving the market growth. Additionally, increasing awareness regarding the health benefits of cycling further drives the adoption in the region. For instance, in April 2020, Dubai Sports Council launched an initiative for the community, a virtual cycling challenge through Dubai Cycling application as a part of their “Be Fit, be Safe” campaign. The campaign assisted in increasing awareness regarding the fitness benefits of cycling.
Focus on Development of E-Bike Technology to Drive the Competition
The market is highly fragmented and led by several global players operating in this industry. The companies are focused on expanding their product range to cover a larger urban customer base. Additionally, these leading players are targeting Europe for the expansion of their business due to soaring demand in the regions since the pandemic. Moreover, companies are also focused on technological development to offer additional features through, such as long-range e-bikes, lightweight and foldable designs, and others that are driving the competition in the market.
With Increasing Bike Sales, Accel Group is One of the Leading Players in the Market
Accell Group is a Netherlands-based manufacturer of bikes, its parts, and accessories. The company is a European market leader in e-bikes and the second-largest in bike parts and accessories. Accell also operates through its various well-known brands. The company’s brand portfolio includes Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe, and Carqon. Accell Group has a workforce of approximately 3,100 employees across 15 countries. Moreover, the company’s bikes and related products are sold to customers and dealers in more than 80 countries. In 2021, the company sold around 856 thousand bikes.
An Infographic Representation of Bicycle Market
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The research report provides a detailed bicycle market analysis and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers insights into the bicycle market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.
Value (USD Billion) & Volume (Thousands of Units)
Fortune Business Insights says that the market was valued at USD 78.33 billion in 2021 and is projected to reach USD 127.83 billion in 2029.
The market is expected to register a growth rate of (CAGR) 6.5% during the forecast period 2022-2029.
Government incentives and tax benefits for the purchase of new e-bikes are expected to drive market growth.
Asia Pacific led the global market in 2021.
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