Bicycle Component Market is forecast to reach $9.4 billion by 2025, growing at a CAGR 6.1% from 2020 to 2025. The global demand for bicycle components is directly correlated with the rapid industrialization and introduction of new, extremely light but very strong materials. That has transformed the bicycle component manufacturing industry. New technology and advanced methodology used to manufacture such bicycle components have been increasingly applied in the manufacturing sector of sports and mountain bicycles. In addition, there has been an increase in the number of participants involved in cycle sports, and their participation is expected to continue in the coming years. Increasing the number of international cycle racing events in emerging countries such as China, India, etc. is expected to drive growth over the forecast period in the global bicycle component market.
- The global demand for bicycle components is directly correlated with rapid industrialization and new, extremely light but very strong materials being introduced. That transformed the manufacturing of bicycle components.
- The growing need to change gears in the automotive industry has led to a surge in demand for derailleurs.
- Strong development in emerging-country economies, including rising employment rates, is also driving consumer spending capacity, which in turn acts as another factor driving growth in the bicycle components market.
- Asia-Pacific is the fastest-growing market region for bicycles on the planet. China, Japan, Australia, India and South Korea are the major contributing countries in the region. Furthermore, these countries have started to host numerous cycling tournaments, which in turn will increase the popularity and demand for sportbikes.
By Component – Segment Analysis
During the forecast period Derailleurs, segment is expected to grow at a CAGR of 7.9%. Derailleur gears are a variable-ratio transmission system that is commonly used on bicycles, consisting of a chain, multiple sprockets of various sizes and a mechanism for moving the chain from one sprocket to another. The growing need to change gears in the automotive industry has led to a surge in demand for derailleurs. The derailleurs segment is expected to represent the highest growth in revenues on the basis of component type. This is expected to boost market growth eventually.
By Application – Segment Analysis
The Hybrid Bike Segment is projected to grow during the forecast period at the highest CAGR. Bicycling offers a variety of physical and mental benefits and with increasing consumer acceptance of bicycles to enhance health activities, demand has increased significantly in the recent past. In addition to health and wellness, Hybrid Bike has been used for transportation and recreational activities, which in turn is expected to drive global market growth in bicycle components over the forecast period. In addition, cycling is frequently recommended as aerobic activity and helps protect against numerous diseases such as stress, hypertension, obesity, heart attack, some cancers, depression, diabetes and arthritis. Cycling is also used for weight control, maintenance and reduction. In addition, increased traffic congestion combined with higher fuel prices is expected to drive the market growth of hybrid bike in near future. Trek Bikes, a U.S.-based bike manufacturer, introduced 34 bicycle models in Indian Market in premium and super-premium segments across the categories of hybrid and mountain. Strong growth in economies, including rising employment rates, also drives consumer spending capacity, which in turn acts as another driving factor for growth in the market for bicycle components.
By Geography – Segment Analysis
APAC is expected to dominate the global Bicycle Component market with a share of more than 35.5%. Asia-Pacific is the fastest-growing bicycle market region on the planet. The region’s top contributing countries are China, Japan, Australia, India and South Korea. These countries have begun hosting numerous cycling tournaments which, in turn, will increase the popularity and demand for sports bicycles. In India, the automotive industry has a strong grip but has started to face problems, mainly in New Delhi, on the back of the region’s rising air pollution, which has reached an uncontainable limit. Bicycles are used as an effective substitute for lowering pollution levels around the globe and have encouraged numerous government authorities. All these factors are directly driving the bicycle components market growth. Similarly, China has more electric & conventional bicycles than road-driving cars. Sales in the Bicycle Components Aftermarket in the Asian region are directly impacted by middle and low-income consumers.
Drivers – Bicycle Component Market
Increasing use of bicycle as part of fitness activities and fun
Bicycling offers various physical and mental benefits and with increasing consumer acceptance of bicycles to enhance health activities, demand has increased significantly in the recent past. In addition to health and wellness, bicycles have been used for transport and recreational activities, which are expected to drive global growth in bicycles and components over the forecast period. Cycling is often recommended as aerobic activity and helps protect against numerous diseases such as stress, high blood pressure, obesity, heart attack, some cancers, depression, diabetes and arthritis. Cycling is also used to control, maintain, and reduce weight. In addition, increased traffic congestion combined with higher fuel prices is expected to drive market growth.
Growing Preference for Green Transportation
Air pollution has contributed to the death of approximately 3.7 million people, according to a WHO report. Passenger vehicles and trucks are the main causes of air pollution as they produce significant amounts of carbon monoxide, nitrogen oxides and other pollutants. Fuel-driven vehicles are responsible for more than half of nitrogen oxides and carbon monoxides and a quarter of hydrocarbons in the air. The aftermarket bicycle components are driven by the collective use of both electric and conventional bicycles. APAC will be the largest end-user of e-bikes and the biggest consumer of environmentally friendly modes of transport. China has more electric & conventional bicycles than road-driving cars. Sales in the Bicycle Components Aftermarket in the Asian region are directly impacted by middle and low-income consumers. India, with a strong foothold in the automotive industry, has begun to face serious concerns, prominently in metropolitan cities. As a result, bicycles are rapidly emerging as an effective means of curbing pollution levels, receiving strong support from governments and other authorities. Bike sharing schemes can be implemented with any level of cycling in a city. However, they are often introduced in cities with low cycling levels to encourage cycling and to raise the cycling profile within the city. Chinese dockless bike-sharing models have also penetrated the European market since the summer of 2017. Its aim is to penetrate the global bike market and obsolete bike ownership. This is also expected to boost the market growth.
Challenges – Bicycle Component Market
Unsuitability for Travelling Long Distances to Hinder Demand for Bicycle Components
Transportation with bicycles is ideal and suitable for shorter distances as the human capacity to travel by cycle is limited. The energy to be used over longer distances for cycling is comparatively higher and therefore it becomes a difficult task. This is small to the average distance traveled per day compared to gasoline-powered vehicles. Furthermore, the speed of bicycles is limited, while automobiles go faster and the destination can be reached sooner. This is a key restraint for the bicycle components market. Increasing disposable income among consumers of the lower and middle class has empowered them to buy four wheelers and mopeds.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in Bicycle Component Market. Bicycle Component Market is expected to be dominated by major companies such as Giant Manufacturing Co., Ltd., Currie Technologies, Dorel Industries Inc., Trek Bicycle Corporation, Atlas Cycles Limited, Marin Bikes, Accell Group N.V., Merida Industry Co. Ltd., and Avon Cycles Ltd. SRAM LLC, SHIMANO INC., Mavic (Amer Sports), Campagnolo S.r.l., Derby Cycle Corporation, SR Suntour.
- In April 2019, Shimano, Inc. introduced the new lightweight “Discover Carbon Handlebar” equipping gravel riders with high-end options in the PRO Discover line.
- In January 2019, Dorel Industries, Inc. acquired Hot Wheels and Circle Bikes, a U.K.-based company.