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Bike-sharing - India

India

India is expected to witness a surge in the Bike-sharing market with a projected revenue of €1.25bn in 2024.
The revenue is expected to have a compound annual growth rate (CAGR 2024-2029) of 10.07%, resulting in a projected market volume of €2.02bn by 2029.
Moreover, the number of users in the Bike-sharing market is expected to reach 287.30m users by 2029.
The user penetration rate is projected to increase from 14.0% in 2024 to 19.1% by 2029.
The average revenue per user (ARPU) is expected to be €6.18.
Additionally, by 2029, 93% of the total revenue in the Bike-sharing market will be generated through online sales.
It is noteworthy that China is expected to generate the most revenue in the global comparison with a projected revenue of €5,114m in 2024.
India's bike-sharing market is booming, with major players like Ola and Uber investing heavily in the industry.

Key regions: South America, Malaysia, India, Indonesia, Saudi Arabia

Definition:

The Bike-sharing market includes short-term bike-sharing services. In bike-sharing services, bicycles are generally owned by a bike-sharing provider and are independently reserved by customers around the clock. Customers are required to open an account with the bike-sharing provider and can then reserve bicycles. This is usually done with a smartphone app, but there are also service providers that allow reservations to be made via the provider's website, by telephone, or at a terminal.

The two most frequently used bike-sharing varieties are the following: station-based (e.g., Stadtrad and Citi Bike New York) and free-floating (such as nextbike and ofo). With station-based bike-sharing, a bicycle is retrieved from a bike-sharing station and returned to either the same station or dropped off at another station. With free-floating bike-sharing, it is possible to find bicycles everywhere within the service provider's business zone and leave the bicycle anywhere in accordance with traffic regulations. Peer-to-peer bike-sharing is not included in the market definition of this market. Moped-sharing services are not available in all countries; thus, only a limited number of countries and regions can be selected.

Additional Information:

The main performance indicators of the Bike-sharing market are revenues, average revenue per user (ARPU), user numbers and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the mentioned market. User numbers show only those individuals who have made a reservation, independent of the number of travelers on the booking. Each user is only counted once per year.

The booking volume includes all booked rides made by users from the selected region, regardless of where the ride took place.

For further information on the data displayed, refer to the info button right next to each box.

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Analyst Opinion

The Bike-sharing market in India has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In India, there is a growing demand for convenient and affordable transportation options, especially in urban areas with heavy traffic congestion. Bike-sharing provides a solution by offering a flexible and eco-friendly mode of transportation. Customers appreciate the convenience of being able to rent a bike on-demand and ride it to their desired destination, without the hassle of traffic or parking. Additionally, the cost-effectiveness of bike-sharing appeals to price-conscious consumers who are looking for affordable transportation options.

Trends in the market: One of the key trends in the Bike-sharing market in India is the adoption of dockless bike-sharing systems. Unlike traditional docked systems, where bikes must be picked up and returned to designated docking stations, dockless systems allow users to locate and unlock bikes using a mobile app, and park them anywhere within a specified area. This flexibility has contributed to the popularity of bike-sharing among users, as it eliminates the need for fixed docking stations and provides greater convenience. Another trend in the market is the integration of bike-sharing with other modes of transportation. Many bike-sharing companies in India have partnered with ride-hailing services and public transportation providers to offer seamless multimodal transportation options. This integration allows users to combine bike-sharing with other modes of transportation, such as buses or trains, to complete their journey more efficiently. This trend aligns with the growing demand for integrated and sustainable transportation solutions in urban areas.

Local special circumstances: India is experiencing rapid urbanization, with a significant increase in the number of people living in cities. This urban population growth has led to increased traffic congestion and pollution, creating a need for alternative transportation options. Bike-sharing is seen as a viable solution to address these challenges, as it promotes sustainable mobility and reduces reliance on private vehicles. Additionally, the Indian government has been actively promoting initiatives to encourage cycling as a mode of transportation, further driving the growth of the Bike-sharing market.

Underlying macroeconomic factors: The Bike-sharing market in India is also influenced by underlying macroeconomic factors. The country's strong economic growth has resulted in a rising middle class with increased disposable income. This has led to a greater demand for convenient and affordable transportation options, including bike-sharing. Furthermore, advancements in technology and the widespread use of smartphones have made it easier for bike-sharing companies to reach and engage with customers, driving the growth of the market. In conclusion, the Bike-sharing market in India is growing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. With the increasing need for convenient and sustainable transportation solutions in urban areas, bike-sharing provides a promising solution for commuters in India.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of bike-sharing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.