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The trends of the bicycle industry in 2023

The trends of the bicycle industry in 2023

February 07, 2023

As society pays more and more attention to issues such as energy shortages and environmental protection, the European Union has launched the "European Green New Policy", the Biden administration has implemented a Green New Deal, Japan and South Korea have committed to net zero emissions by 2050, and China has proposed a "carbon peak" by 2030 Policies such as the "double carbon" goal of "carbon neutrality" in 2060 will promote the development of the global green economy. Bicycles have been vigorously promoted as a green means of transportation and constitute an important part of the global public transportation system. Some overseas countries such as the United States and France have successively introduced incentive measures such as bicycle purchase subsidies, which have played a certain role in promoting the development of the global bicycle industry. In addition, the global spread of the new crown epidemic has also changed the way people travel to a certain extent. People choose to avoid public transportation and use bicycles for short-distance travel. Affected by various driving factors, the global bicycle market is currently in a stage of rapid development and expansion. According to the report of Grand View Research, the global bicycle market sales will be USD 54.787 billion in 2021 and is expected to reach USD 60.952 billion in 2022, with a CAGR of 7.0% from 2021 to 2028.

2021-2028 Global Bicycle Market Sale

Due to the differences in the economic development of different countries or regions, the industrial division of the bicycle industry in each country or region is also different. European and American bicycles have matured in terms of brand recognition and sales channels. Countries and regions with relative cost advantages, such as China and Southeast Asia, have basically contracted the world's major bicycle production capacity. According to World’s Top Exports, China’s bicycle exports will account for 51.4% of the world’s total in 2021.

The Proportion of bicycle exports by major countries/regions in the world in 2021

Overview of China Bicycle Market

The bicycle manufacturing industry is a labor-intensive industry. For the sake of cost control, the manufacturing center of the bicycle industry has been transferred to countries and regions with cost advantages such as China and Southeast Asia. After years of development, my country's bicycle industry has formed a complete production system with complete vehicles and parts, and has four major bicycle cluster industry belts centered on Tianjin Bohai Bay, Jiangsu, Zhejiang and Shanghai, the Pearl River Delta, and Taiwan. It has an industrial chain from the processing of bicycle raw materials to the production of various bicycle parts, and then to the large-scale and specialized production of complete bicycles. According to the China Bicycle Association, China's bicycle production in 2021 will be 76.397 million units, a year-on-year increase of 1.5%.

During the epidemic, the global market has a strong demand for safer personal short-distance travel vehicles. Manufacturers in Southeast Asia have limited production capacity due to epidemic control. China's new crown epidemic was the first to be effectively controlled, and the bicycle industry recovered rapidly. According to data from the China Bicycle Association, China will export 69.232 million bicycles in 2021, a year-on-year increase of 14.82%, with a trade surplus of US$5.063 billion.

As China's bicycle industry continues to consolidate domestic and traditional markets in Europe and the United States, deepening the "Belt and Road" market, and the industry makes full use of the new opportunities brought by the Regional Comprehensive Economic Partnership Agreement (RCEP), accelerate the overseas layout of the industrial chain and build a new development pattern for the industry In the future, my country's bicycle industry will maintain a steady development trend.

China's bicycle export volume from 2015 to 2021Bicycle Production in China from 2015 to 2021

Basic information on electric bicycles

Japan is the first country to develop, produce and sell electric bicycles. The original idea of Japanese companies designing electric bicycles was to reduce the travel burden of citizens, provide auxiliary power through the motor drive system, and strictly stipulate the proportion of auxiliary power. On the premise of not changing the characteristics of "riding", e bicycles make riding easier, and at the same time expand the riding radius to 50-100km. one.

An electric power-assisted bicycle is a personal vehicle that not only has the lightness and convenience of a bicycle, but also can make up for the burden of the bicycle when going uphill, against the wind, and carrying objects. On the basis of traditional bicycles, electric bicycles are equipped with a power system with sensors as the core, equipped with motors and batteries. At present, the main consumption areas are concentrated in Europe, the United States and Japan, and there are obvious differences with traditional electric vehicles in terms of core components, working principles, product positioning and selling prices.

Global Electric Bicycle Market Overview

According to a report by QYResearch, the global electric bicycle market sales in 2021 will be 17.578 billion US dollars, and it is expected to reach 46.145 billion US dollars in 2027, with a compound growth rate of 17.45% from 2021 to 2027. Affected by concepts such as fitness and green travel, as well as the government's subsidy policies for green vehicles, the global electric bicycle market is in a state of rapid development

At present, major electric bicycle manufacturers in the world include Accell Group, Pon, Yamaha, Giant, Riese & Müller, Panasonic, Gazelle, Trek, Merida, Rad Power Bikes, Specialized, Mustache, Cycleurope, Stromer, VanMoof, Yadea, Tailing, etc. Major manufacturers accounted for more than 54%. Countries with high penetration rates of electric assisted bicycles are Japan, the Netherlands, Belgium and Austria.

Global Electric Bicycle Market Sales and Growth Rate 2016-2027

Industry Competitive Landscape

The bicycle industry mainly includes brand owners and OEM/ODM manufacturers. Well-known brands include Accell Group, Dorel Sports, Giant, Merida, BMC, LOOK, Trek, etc. Due to the full market competition, the market share of a single brand is not high. Bicycle OEM/ODM manufacturers are mainly concentrated in Asia. Among them, Chinese OEM/ODM manufacturers have occupied an important market position by virtue of their strong technology and industrial foundation.

Bicycle industry barriers

1,technical barriers

Products in the bicycle industry need to combine mechanical dynamics, fluid mechanics, material science, electrical and other multidisciplinary fields to carry out systematic research and development from parts to complete vehicles. There are relatively high technical requirements for the development and design of models and other aspects, especially for mid-to-high-end bicycles. As consumers in the terminal market continue to increase their requirements for product performance, quality, safety, and ease of operation, bicycle manufacturers need to have strong technical research and development capabilities and advanced production processes to develop products that meet market demand. .

2,scale barrier

The competition in the bicycle industry is fierce, and the scale effect of production in the industry is relatively obvious. Enterprises in the bicycle industry can only achieve economies of scale if they reach a certain scale of production. When the production reaches a certain scale, the increase in the output of the enterprise will help to reduce the average cost of the product, thereby promoting the improvement of profitability. At present, the bicycle industry is facing uncertainties in international trade and risks of raw material price fluctuations. Only enterprises with strong cost control capabilities and scale advantages can continue to develop in the fierce market competition.

3,customer barrier

In order to ensure the quality of their own products, bicycle brand owners will be very strict on supplier audits. After the bicycle supplier has passed the brand owner's audit and entered the list of qualified suppliers, it needs to maintain stable quality management and good after-sales service in order to establish a long-term and stable cooperative relationship with the brand owner. Once a first-mover enterprise establishes a stable cooperative relationship with a brand owner, the brand owner will give priority to the first-mover supplier in order to avoid uncertainty in their supplier selection, and it will be difficult for potential competitors such as bicycle manufacturers to enter the industry later. Competing for market share in a short period of time.

Market supply and demand

In terms of bicycle production and supply, China is a big country in bicycle production and export. With the continuous development of economic level in recent years, bicycle production has begun to turn to the pursuit of quality, craftsmanship and technology. At the same time, with the development of science and technology, intelligent production has greatly improved the efficiency of bicycle production, and China's demographic dividend is changing to an engineer dividend.

In terms of market demand, with the development of social economy, the increase of per capita disposable income, the awareness of environmental protection and the popularization of national fitness awareness, bicycles, as a green transportation tool with sports attributes, are becoming more and more popular among consumers. Bicycle manufacturers continue to introduce more and more subdivided bicycles, electric bicycles and scooters to meet the personalized and diversified product needs of consumers.

Trends and reasons for changes in industry profit levels

At present, the growth trend of the overall profit rate of the bicycle industry is slowing down, and the industry's profits are concentrated in enterprises with excellent product quality and technical level. Some countries have introduced anti-dumping trade policies against China and increased import tariffs on bicycles, resulting in an increase in the cost of bicycle products. At the same time, traditional product manufacturers with relatively low production thresholds and low product added value may resort to price wars to reduce profit margins in order to maintain their market position as the number of market participants increases.

Industry technical characteristics and development trends

Focus on performance and appearance, promote green production

With the continuous improvement of people's consumption level and aesthetic awareness, consumers have put forward higher requirements for bicycle companies in terms of product safety, comfort, stability, and fashion. Therefore, the industrial design of the complete vehicle requires systematic and comprehensive consideration of the innovation of the appearance design, the configuration of power parameters, and the matching of ergonomics. At the same time, under the background of stricter environmental protection supervision and enhanced environmental protection awareness of consumers, bicycle companies are paying more and more attention to the environmental protection performance of their products, and reduce environmental pollution by eliminating outdated production processes and equipment. Through the promotion and use of environmentally friendly production processes such as water-based paint and baking varnish, we will promote zero discharge of wastewater pollution in the bicycle production process and create a green production system.

Extensive application of new materials

With the continuous improvement of the consumption ability and consumption level of domestic and foreign consumers, consumers have higher and higher performance requirements for cycling products, and new materials have been more widely used. The application of new materials such as magnesium alloy, titanium alloy and carbon fiber in bicycle manufacturing continues to expand, the trend of lightweight upgrading continues to strengthen, and product performance continues to improve.

Extensive application of new technologies

With the development of social science and technology, cycling products have begun to widely use new technologies. Electric bicycles integrating leisure sports and daily travel have become an independent category, which puts forward higher requirements for the technology of three electrics (battery, electric drive, controller). With the development of the new energy industry, the comprehensive performance of electrical components such as batteries and motors has been greatly improved. Among them, battery materials have developed into a pattern of various lithium battery materials, supplemented by lead-acid batteries and nickel-metal hydride battery materials; in the field of motors Internally, high-speed permanent magnet brushless motors gradually replace brushed and toothed motors and become the mainstream of the industry, further ensuring the practicability of electric-assisted bicycles.

Intelligent production

Leading and backbone enterprises in the bicycle industry have successively carried out the construction of digital workshops, laying a solid foundation for intelligent transformation. Some enterprises have applied information software such as production planning and scheduling systems, production process execution management software, and warehouse management systems. 3D laser cutting machines increase the precision of the production process. In the future, intelligent production in the bicycle industry will be a new trend of development.

Cyclical, regional and seasonal characteristics of the industry

Cyclicality of the industry

The bicycle industry has no obvious cyclical characteristics. The demand for bicycles is affected by multiple factors such as the level of economic development, residents' income levels, living standards, and industry policies, and the overall demand is relatively stable.

Regionality of the industry

The bicycle industry has no obvious regional characteristics in terms of market demand. It has a huge user base in many countries and regions around the world. Among them, the demand for bicycles in the United States and Europe is expected to gradually develop towards mid-to-high-end models, and the demand for bicycles in other regions is expected to still be dominated by transportation. On the supply side, bicycle manufacturing is still concentrated in countries and regions with cost advantages. my country's bicycle industry has a relatively high degree of industrial agglomeration. At present, four major bicycle cluster industrial belts have been formed in Tianjin Bohai Bay, Yangtze River Delta, Pearl River Delta and Taiwan.

industry seasonality

The bicycle industry has no obvious seasonal cycle characteristics. The demand for bicycles is affected by multiple factors such as the level of economic development, residents' income levels, living standards, and industry policies, and the overall demand is relatively stable.

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