Market Trends of Bike Sharing Industry
E-bike Segment to Grow Fastest Over the Forecast Period
An increasing focus on greener transportation, leisure activities, and decreasing traffic congestion is one of the primary reasons driving the expansion of the bike-sharing market. Mobility plays a significant role in the current world. However, due to continually growing environmental and health concerns and increasing emission levels, regional governments and international organizations are enacting stringent emission norms to reduce carbon emission levels.
The depletion of fossil fuel levels at an alarming rate is creating sustainability concerns for future generations, posing a huge challenge for governments and societies worldwide. Thus, e-bikes are proving to be an ideal solution for the challenge. E-bikes, especially pedelecs, are gradually becoming the ideal mode of transportation. E-bikes, such as pedelecs, are eco-friendly and reliable.
- For instance, in November 2022, Skootel, one of the leading companies in the micro-mobility industry in Puerto Rico and the Caribbean, launched the first shared electric bike systems on the island, expanding its alternative transportation offerings beyond its familiar electric scooters.
Governments across the world are promoting e-bikes and also taking various initiatives. E-bike demand is primarily driven by countries such as China, Brazil, the United States, Germany, Italy, and India.
- In December 2023, the US International Development Finance Corporation (DFC) and IDB Invest announced that they were co-investing a combined USD 23 million in equity in the micro-mobility platform Tembici to support the expansion of bicycle-sharing services in Latin America.
- In September 2023, Braunschweig, Amsterdam, and Munich saw an intensified partnership between Volkswagen Financial Services ("VW FS") and Pon Holdings ("Pon") in company bike leasing. As part of this collaboration, VW FS will purchase a 49% stake in Bike Mobility Services (BMS), the Pon bike leasing subsidiary.
The aforementioned factors are anticipated to boost the bike-sharing market over the forecast period.
Asia-Pacific Expected to Dominate the Market
Asia-Pacific is expected to be the regional market leader, and it is anticipated to remain dominant over the coming years. China is expected to experience a higher growth rate than other Asia-Pacific countries due to the huge sales of bicycles. China has contributed more than 50% of the Asia-Pacific bicycle market over the past two years due to its high consumption of electric bikes to tackle heavy traffic conditions, as well as growing vehicle pollution in the country. For instance, the largest share of bicycle sales worldwide was in Asia, with China leading with around 43 million units sold in 2022. The region with the second highest bicycle sales in 2022 was Europe, with around 24 million bicycles.
In India, due to an increase in pollution and health concerns, people are opting to use bike-sharing transportation instead of cars and bikes. In addition, cycling sports are gaining popularity among all generations in India. The government and the Cycling Federation of India are launching new cycle races and championships to promote the use of bicycles over the coming years. For instance, in April 2023, MYBYK, a bicycle-sharing service, launched 100 bicycles at 10 locations across South Mumbai, India, to promote last-mile connectivity. The rental service, in partnership with the Brihanmumbai Municipal Corporation, is aimed at residents, officegoers, and tourists visiting areas including Marine Drive and the Gateway of India. The service is being run through MYBYK's app, and tariffs range from INR 59 (USD 0.86) per day to INR 749 (USD 9.07) per month. MYBYK also plans to introduce electric bicycles in the area.
Based on the above-mentioned developments in the bike-sharing market, the market is anticipated to grow at a substantial rate over the coming years in the region.
