NEW YORK, Nov. 3, 2016 /PRNewswire/ --
Reportlinker Review in a nutshell
- Electric bike market grows nearly 15% annually
- Two startups offer ride-sharing for bicycles
- Service to launch in Singapore next year
How is the market ?
The market for bicycles reached $41.9 billion two years ago, growing at an annual compound growth rate of 2.1%, and reaching 135 million units sold.
This growth was fueled by an increasing interest in environmentalism and a healthy lifestyle.
In China, the world's top producer of bicycles, the pedal bicycle market was valued at $69 million and the electric bicycle market was valued at $31.8 million. Electric bicycles are fasted growing market, increasing 14.9% annually.
There are 870 bicycle manufacturers in China with $4.3 billion in revenue.
Meanwhile, two Chinese startups have entered the bike-sharing market.
MoBike and ofo were both founded in 2015 and have gained the support of investors. MoBike has raised $100 million while ofo has raised $130 million.
Both companies claim to have thousands of customers, but neither has released earnings.
The ride-sharing programs work by allowing users to pay the rental fee using a smartphone app. When a user is finished, a bicycle can be left anywhere. The app uses GPS to help locate the nearest bike.
They rent for15 cents per 30 minutes. MoBike also has a $44 refundable deposit.
MoBike uses bicycles it manufacturers. The bikes' construction makes them maintenance free for four years, the company says, although no independent company has tested this claim.
Challenges to the bike-sharing market include distributing bicycles where they are most needed and dealing with vandals and those who use their own bike lock instead of the companies'.
MoBike operates in four cities while ofo operates in 20 cities with 70,000 bicycles available to rent.
MoBike plans to entered the Singaporean market next year. The rental fee is unknown.
"The idea is to complement Singapore's very efficient public transportation system. People can cycle from home to the closest bus (stop) or MRT station, or from the MRT station to the office," Florian Bohnert, MoBike's Singapore general manager, told The Straits Times.
It is in talks with universities to have students beta test the service.
MoBike faces challenges entering Singapore. The nation does not have bike lanes, forcing bicyclists to compete with motorized vehicles.
In the past five months, 700 scooter drivers and bicyclists have been cited for reckless driving.
New bicycle laws are expected to go into effect by the end of the year.
There are 7 million commutes made in Singapore daily, according to Bohnert. Only 1.5% are bicyclists.
ReportLinker Review – Global and Chinese Bicycle Markets (source: TechNavio)
- Over the period 2014-2019, the Chinese e-bike market is forecasted to grow at a CAGR of 3.9%.
- Over the period 2014-2019, the Chinese electric two-wheelers market is forecasted to grow at a CAGR of 8.3%.
- During the period 2016-2020, the sports-bicycle market is forecasted to grow at a CAGR of 6.2% globally.
- During the period 2016-2020, the children's bicycle market is forecasted to grow at a CAGR of 2.3% globally.
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