Bike Sharing Market by Type of Bike (Conventional Bike and E-bike), Model (Docked and Dockless), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

Global Bike Sharing Market Analysis

The bike sharing market size is estimated to be $2,969.0 million in the 2021-2028 timeframe, growing from $1,636.4million in 2020, at a healthy CAGR of 7.9%.

Market Synopsis

The growing emphasis on energy efficient and environment friendly micro mobility travelling is expected to be the major driving factor for growth of the bike sharing market share.

However, the high initial investment required in the bike sharing industry is predicted to restrict the market growth.

According to the regional analysis of the market, the Asia-Pacific bike sharing market share is anticipated to grow at a CAGR of 8.3%, by generating a revenue of $1,321.6 million during the bike sharing market forecast period.

Bike Sharing Overview

Bike share is designed to provide a cost‐effective, environmental‐friendly, and convenient travel option for many short trips. A bike share system consists of a fleet of user‐friendly and durable bikes placed at conveniently located stations throughout an urban area. Bike sharing is a relatively inexpensive and easily implementable infrastructure extension to a city public transportation system.                            

COVID-19 Impact on Bike Sharing Market

The Covid-19 impact on bike sharing market has been negative. The global reduction in mobility in almost all the countries due to imposed lockdowns has hampered the growth of the bike sharing market during the Covid-19 pandemic period. During the pandemic, the disturbance in international supply chains for transportation of essential components that are utilized in electric bikes sharing such as lithium-ion batteries has also impacted the global bike sharing market size.

Growing Demand for the Utilization of Environment Friendly Micro Mobility Vehicles is Anticipated to be a Major Driving Factor for the Growth of this Market

The increasing emphasis on the utilization of fuel-efficient vehicles is aiding the growth of this market. The conventional fuels on which the vehicles operate such as gasoline and diesel emit harmful gases such as NO2, sulphur dioxide, carbon monoxide, and others and pollute the environment. These gases are harmful for not only the environment as they deplete the ozone layer, but also adversely affect the human health. These factors are expected to aid in the utilization of bike sharing systems in the two wheelers category and aid the growth of the market in the forecast period. As per the Bloomberg, "Electric Vehicle Outlook" 2021, an annual long-term publication looking at how electrification, shared mobility, and autonomous driving will impact road transport, there are over 260 million electric two wheelers in the world,, this shows the increasing acceptability of electric vehicles globally. These factors are anticipated to aid the growth of bike sharing market share in the forecast period.

To know more about global bike sharing market research and drivers, get in touch with our analysts here.

The High Regulatory Restrictions and Lack of Required Public Infrastructure of Bike sharing Technology to Restrain the Market Growth.

The lack of public charging infrastructure required in the effective operations of electric bike sharing systems for the convenience of charging the vehicle anywhere and anytime is expected to hamper the growth of bike sharing market demand in the forecast period. Unlike developed countries, the undeveloped countries such as African nation and emerging countries such as India, Indonesia, and others lack the necessary charging infrastructure. These factors are expected to hamper the demand of global bike sharing market.

The Government Support Initiatives Globally is Expected to Create Opportunities for Bike Sharing Market

Government support programs and financial incentives have been provided to promote electric vehicles which is expected to open new scope of opportunities for this market in the forecast period. In addition, fossil fuel depletion is a crucial problem that might be solved by creating a self-sufficient electric vehicle sector. In many countries where electric two wheelers are popular, new incentive systems for electric bikes are being developed. For example, in February 2021, the Government of India announced plans to support the electric vehicles through Faster Adoption and Manufacturing of Electric Vehicles scheme (FAME). The government is subsidizing buyers through the Electric Vehicle Accelerated Introductory Manufacturing (FAME) program, which invests a total of Rs 100 billion in the market. The increasing trend in electric bikes in India is an example of government and corporate efforts. These are the positive bike sharing market trends that are expected to act as facilitators during the bike sharing market forecast period.

To know more about global bike sharing market trends, get in touch with our analysts here.

Source: Research Dive Analysis

The conventional bike sub-segment is predicted to have a dominating share in the global market and register a revenue of $1,801.1 million in 2028, growing from $1,007.5million in 2020 during the forecast period.
The traditional bikes have a simple structure and are affordable. In addition to this, they have a very low maintenance and are very effective mode of transportation for short distances. Riding bicycles is one of the most environmentally friendly methods of transport. Noise pollution has become a problem in many urban areas, as people are becoming increasingly exposed to high levels of noise pollution because of high levels of transport. These factors are expected to boost the growth of the conventional bike sub-segment.

The e-bike sub-segment is anticipated to have the fastest market growth and generate a revenue of $1,168.1million by 2028, growing from $628.9 million in 2020, at a healthy CAGR of 8.2% in the forecast period. The increasing traffic congestion that leads to long journeys paves the way for commuters to find convenient, time-efficient, and affordable transportation to reach their destinations. Light vehicles such as electric bikes provide a very comfortable solution to the specific requirements of urban mobility. These factors are expected to aid the growth of electric bike share sub-segment. These factors are expected to boost the growth of the e-bike sub-segment. 

Source: Research Dive Analysis

The docked sub-segment is estimated to have a dominating market share in the global market and register a revenue of $1,629.0 in year 2028, with a healthy CAGR of 7.7% during the forecast period. 
The dock-based sharing model requires swipe card for member access and casual users require interaction with transaction kiosk and that makes it easy to use. In terms of visibility, they are highly visible stations within the city.. In recent developments, for instance, in October 2021, micro mobility company based in Amsterdam, Dott, launched bike-sharing service in Paris. These new developments in the subsegment are expected to positively impact and aid the growth of this subsegment.. These factors are to aid the growth of this sub-segment.

The dockless sub-segment is estimated to have the fastest growth in the global market and register a revenue of $1,340.2 in year 2028, with a healthy CAGR of 8.2% during the forecast period.
The growth of dockless bicycle sharing systems addresses the challenges faced by traditional fixed bicycle sharing systems in terms of convenience, accessibility, limited space, and the need for public grants. Key features of this new bike-sharing system rely heavily on smartphone applications, GPS built into all bikes, and the internet to locate and unlock bikes, and fixed bikes. There is no parking space or dock. The location of the shared bike depends on where the previous user dropped the bike. Therefore, dockless shared bike users often need to walk to access the bike and start a bike sharing ride. These factors are expected to aid the growth of this sub-segment

Source: Research Dive Analysis

The Market for Bike Sharing in Asia-Pacific to be the Most Dominating as well as Fastest Growing

The Asia-Pacific bike sharing market generated $710.5 million in 2020 and is projected to register a revenue of $1,321.6 million by 2028. The rapid urbanization and increasing demand for ecofriendly mobility solutions in the developing markets such as India and China are aiding the growth of this bike sharing market in Asia-pacific region. The surge in urban population with increasing per capita income are acting as catalysts in the development of the bike sharing market. These factors are expected to aid the growth of bike sharing market in the Asia- Pacific region in the forecast period.

Competitive Scenario in the Global Bike Sharing Market

Agreement and acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading bike sharing market players are Uber Technologies Inc, Lyft Inc., DiDi Bike, Hellobike, Bond Mobility Technologies, Mobike, Nextbike GmbH, SG Bike Pte Ltd, Spin, and Lime          

Porter’s Five Forces Analysis for the Global Bike Sharing Market:

• Bargaining Power of Suppliers: The suppliers in the bike sharing market are moderate in number. Several companies are working on new methodologies such as fast charging of bikes to gain the major market share. Thus, there is moderate threat from the suppliers. 
  Thus, the bargaining power of suppliers is moderate.
• Bargaining Power of Buyers: Buyers have high bargaining power; they demand services at a cost-effective manner. This increases the pressure on the bike sharing providers to offer the best service in a cost-effective way. Thus, buyers can have alternatives and choose the convenient service that best fits their preference. 
  Thus, the bargaining power of buyers is high.
• Threat of New Entrants: Companies entering the bike sharing market face high competition since all new players strive to adopt technological innovations such as fast charging technology for attracting clients.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There are alternative product for bike sharing like carpooling.
  Thus, the threat of substitutes is moderate. 
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Lyft Inc., DiDi Bike, Ofo bike, Mobi bike, and others. Companies in the bike sharing market do acquisitions to gain major market share. 
  Therefore, competitive rivalry in the market is high.