The global bicycle components aftermarket, which exceeded $11 billion in 2018, will grow a further 38% in the next five years.
That’s according to the Bicycle Components Aftermarket report recently released by Future Market Insights (FMI).
The reports says the global bicycle components aftermarket is “characterised by relative concentration of production in a few countries and relative dispersion of global demand”. However, in recent years, the demand for bicycle components aftermarket has been “seeing an upsurge amid worsening automobile traffic, high gasoline prices, and aggravating pollution concerns”.
According to FMI, growing fitness consciousness among people, rising energy & oil prices, and increasing vehicle parc are cited as key factors favouring the growth of bicycle components aftermarket. Rapidly developing cycling/e-bike infrastructure and implementation of bike sharing programmes in metropolitan and mid-sized cities will create a favourable environment for the development of the bicycle components aftermarket.
The report also predicts that road groupsets will remain the most sought-after bicycle components in the aftermarket, holding a prominent revenue share in the global bicycle components aftermarket throughout the next few years. The report has attributed primacy of road groupsets to their consistently growing demand coupled with a relatively higher price point. Among the preferred sales channels within bicycle components aftermarket, full-time sporting goods stores and speciality bicycle retailers will remain popular among consumers.
China, accounting for nearly 18% of the global bicycle components aftermarket, is likely to be driven by the increasing product sophistication within a competitive cost range. Several bicycle components manufacturers are seeking both, lower price point and higher margin. Development of lightweight bicycle components has been cited as an influential trend in the bicycle components aftermarket, as indicated by the report. The US will continue to represent the next key region for bicycle components aftermarket growth.
During the last few years, European countries have encouraged Chinese and Taiwanese vendors of bicycle components to establish their manufacturing bases in Europe. According to the analysis, this would increase local employment opportunities and allow firms to cater better to the local customers – reducing the overall import costs and exchange loss.
Shimano, SRAM, Dorel, Giant, Avon, Cannondale, Cycleurope, Accell Group, Merida, Atlas, Campagnolo, Hero and Specialized, among others, are some of the key players in the global bicycle components aftermarket.
Manufacturers are focusing on enhancing their geographic reach, product offerings and manufacturing capabilities. Importantly, manufacturers are keen on adopting different strategies, such as the multi-brand promotional strategy, to promote the sales of bicycle components.
Furthermore, price reduction, cost-competitiveness, and material advancements in bicycle components will remain other important factors pushing the growth of the bicycle components aftermarket. The global demand for bicycle components is also expected to be influenced by federal policies, industrial developments, government policies, and sprawling urbanisation in various regions.