Last Friday the bell on the floor of the Frankfurt stock exchange rang out again for the first time this year. It was struck by Andres Martin-Birner, CEO of Bike24. The boss of the online bicycle retailer was taking advantage of the current boom in two-wheelers for a listing worth millions of euros. Bicycles are not just bang on trend with our German neighbours, though: since the coronavirus crisis began, the sector has been experiencing a tangible upswing across the world. The global bike market reached around USDbn 97 last year, a hefty jump of 48.6%. In Switzerland, too, cycling is gaining ground: Velosuisse and the Swiss Bike and e-bike expert centre (Schweizerische Fachstelle für Velo und E-Bike, SFVE) expect the number of bicycles and e-bikes introduced into Switzerland in 2020 to have totalled more than half a million, an increase of 38% on the previous year.
The boom in boneshakers is founded on a number of factors. Firstly, more and more people are recognising that movement is an essential contributor to staying healthy. Secondly, the increasing traffic jams and shortage of parking spots in major cities especially are persuading many to save time by cycling to work. The trend is also receiving growing support from government: the city council in Zurich, for instance, has decided to double the number of bike journeys in the metropolis by 2025 with the aid of a new network of fast, direct routes. Furthermore, the coronavirus pandemic is likewise set to favour the growth of the market in the next few years, since bikes offer safety when it comes to social distancing.
The constant refinement of two-wheelers is also enabling manufacturers to cater to more and more target groups. Although the classic family bike is far from obsolete, the industry is constantly thinking up new forms. These include gravel bikes, for instance, a hybrid of racing and off-road bike, and the elegantly curved city and beach cruisers for the hipster generation. Cargo tricycles, mountain bikes and a plethora of different racing versions are also available. In the 21st century, however, the majority of models no longer require peak physical condition; many now come with an electric motor. That electrification is in demand is demonstrated by current sales figures. In 2020, for instance, the e-bike market grew by 23% compared with the previous year. According to forecasts by three European cycling associations, the number of electric bike riders in the EU will continue to rise markedly. Current predictions suggest that this figure will climb from 3.7 million to 17 million between 2019 and 2030. "Cycling is currently one of the most dynamic industries in Europe," says Kevin Mayne, CEO of Cycling Industries Europe. Worldwide, too, all the signs point to growth: expert analyses predict that the global e-bike market will appreciate at an average annual growth rate of 9.95% between 2021 and 2028 and hit a volume of USDbn 48.46 by the end of the forecast period.
According to a study by Fortune Business Insight, the global bicycle market is expected to reach USDbn 147.2 in size by 2027. This corresponds to an average annual growth rate of 6.1%. The analysts indicate that the introduction of the electric bike especially is revolutionising the industry and will act as a catalyst for this market growth. The online booking platforms that are increasingly popping up, such as Yulu, Uber Bike and Ola Bike, will also play their part. The forecasts suggest that large production facilities in countries such as India, Japan and China will reinforce the growth of the market and ensure that the Asian Pacific sphere probably goes on to account for the greatest share of the global bicycle market.
Source: Fortune Business Insight
View more information on investment solutions on the topic “Biking: The world goes biking mad”
