An update on Persistance Market Research’s bicycle industry worth analysis has outlined that it is now believed the global market is on course to reach a worth of $70.14 billion by 2026.
Though not without its problems, the bicycle market has made rapid progress in some segments, most notably electric bikes. Making up 41% of the Accell Group’s turnover and representing one in three sales in the Netherlands, the segment is increasingly a feature in big name manufacturer’s portfolios.
Indeed, the electric bike segment is touted to contribute a major revenue share to the global market already. Compared to other counterparts, this segment is expected to witness a higher CAGR of 3.4% over 2016-2026, attributed chiefly to their superior battery life and high-fidelity battery technology.
The 10-year assessment outlines how the overall market’s size is expected to grow at a CAGR of 3.5% reaching the other side of $70 billion by 2026. Though keeping some data back for paying customers, the sample handed to bike media shows Europe’s worth to account for $13 billion and the largest chunk of the pie at the end of 2016.
Disruption in how the world views personal transport looks likely to shake up the demand in the near future, illustrates the report. “The advent of cutting-edge bicycle components and technology is also an important factor spurring the demand, in addition to providing consumers with a myriad options, such as road bicycles, city bicycles, mountain bicycles, etc.,” the reports states further.
Both the Asia Pacific and Latin America are flagged as two regions making gradual progress on modal share and therefore as an opportunity for the industry. With the latter driving forward environmental initiatives, cycling and walking are being encouraged. Buenos Aires, for example, has in the past for years laid 140km of cycling infrastructure, as well as launching the EcoBici share scheme. The progressing market will register a CAGR of 3.6% in the region of Latin America
Metal components look set to retain dominance leading to 2026. However, owing to rapidly growing demand for lightweight bicycles, the carbon fibre components segment will gain higher traction, resulting in the highest CAGR of 4.3% during the assessed period.
Within the component market, frames will continue to lead saddles and rims, expanding at a relatively higher CAGR of 4.4% throughout the forecast period. Rims will represent the second largest component segment, according to the researchers.
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