Emergence of Subscription-based Ownership Has Driven the Need for Bicycle Subscription Platforms, States Fact.MR
Published : 12 Oct 2021 Industry: Technology
As per industry analysis by Fact.MR, a market research and competitive intelligence provider, the global market for bicycles stood at US$ 58 Bn in 2020, wherein, around 140 Mn bicycles are produced annually across the globe. The market is set to reach a valuation of little over US$ 127 Bn by 2030, with a projected growth of above 8% CAGR.
The European market holds the highest share of around 1/3 of the total bicycle market, and COVID-19 has also had a positive impact in Europe. As more and more people are shifting to bicycles post the pandemic effect, the bicycle subscription market will gain momentum over the coming half-decade.
Key Takeaways from Market Study
- Chinese bicycles are priced lower than Indian-made ones by nearly 15%, as raw materials contribute nearly 70-80% to the cost of manufacturing, and that is where China takes the lead due to abundant availability.
- In 2018, the worldwide e-bike market was valued US$ 20 Bn, and it is expected to reach US$ 40 Bn by 2025.
- Between January and November 2020, Vietnam exported around 150,000 e-bikes to Europe, while Turkey shipped nearly 50,000 units to the EU.
- From 4.3 Mn in 2019 to 5.2 Mn in 2020, total market volume of e-bikes and bicycles climbed 17% in Germany.
- In 2019, the average cost of a bicycle in the United States was US$ 23.9 per unit.
- The online food delivery industry has made the most out of the pandemic and is expected to reach a market valuation of US$ 190 Bn by 2025, showcasing 11% CAGR from 2020-2025, which is the prime user of bicycle subscriptions.
“E-bikes have become the talk of the town, and bicycle subscription vendors are likely to leverage this trend to gain higher profits,” says a Fact.MR analyst.
As the volume of bicycles is rising, bicycle subscription providers are leveraging the trend of healthy and fit lifestyle that has been adopted by people. Advertisement and marketing campaigns are drafted in such an approach to reach individual- as well as enterprise-level customers.
As the market is in its introduction phase, a large number of commercial giants have invested in bicycle subscription platforms, making it the most attractive industry in terms of revenue generation, Furthermore, prominent players have used plan customization as a crucial tactic because it helps end users feel unique in their bicycle subscriptions and are likely to stay more on the platform.
More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the global bicycle subscription market, presenting historical market data (2016-2020) and forecast statistics for the period of 2021-2031.
The study reveals essential insights on the basis of fleet location (personal parking and dedicated parking), bicycle type (roadsters, premium, kids, and e-bikes), subscription type (weekly, monthly, yearly, and one-way passes), and end user (individuals, enterprises (universities, hospitals, manufacturing, logistics, last mile delivery, hotels & resorts, corporate offices, and others)), across six major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and the Middle East & Africa).
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Consultant – Technology