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Bike-sharing - Africa

Africa

Africa is projected to witness a surge in revenue in the Bike-sharing market, with an estimated amount of US$73.60m expected in 2024.
This revenue is expected to grow annually at a rate of 11.44% between 2024 and 2029, resulting in a projected market volume of US$126.50m by 2029.
The number of users in the Bike-sharing market is anticipated to reach 18.81m users by 2029, with a user penetration of 1.0% in 2024 and 1.3% by 2029.
The average revenue per user (ARPU) is projected to be US$5.52.
By 2029, 88% of the total revenue in this market will be generated through online sales.
When compared globally, China is expected to generate the most revenue in the Bike-sharing market, with an estimated revenue of US$5,515m in 2024.
Bike-sharing is becoming increasingly popular in South Africa, with a growing number of cities offering bike rental services to locals and tourists alike.

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 Africa is experiencing significant growth and development.

Customer preferences: Customers in Africa are increasingly turning to bike-sharing as a convenient and cost-effective mode of transportation. The demand for bike-sharing services is driven by several factors. Firstly, the increasing urbanization in many African cities has led to a rise in traffic congestion and pollution. Bike-sharing offers a solution to these problems by providing a sustainable and efficient mode of transportation. Additionally, the affordability of bike-sharing services appeals to a wide range of customers, including students and low-income individuals.

Trends in the market: One of the key trends in the African Bike-sharing market is the adoption of dockless bike-sharing systems. Unlike traditional docked systems, dockless bike-sharing allows users to pick up and drop off bikes anywhere within a designated service area. This flexibility has been well-received by customers, as it eliminates the need to search for docking stations and provides greater convenience. Furthermore, the integration of smartphone apps and GPS technology has made it easier for users to locate and unlock bikes, further enhancing the user experience.

Local special circumstances: Africa's unique geography and climate also contribute to the growth of the Bike-sharing market. Many African cities have a warm climate throughout the year, making cycling a comfortable and enjoyable mode of transportation. Additionally, the compact nature of some African cities makes them well-suited for bike-sharing, as shorter distances between destinations make cycling a viable option. Moreover, the presence of bike lanes and infrastructure improvements in some cities has further encouraged the use of bikes for commuting and short trips.

Underlying macroeconomic factors: The Bike-sharing market in Africa is also influenced by macroeconomic factors. Economic growth and rising disposable incomes in some African countries have led to an increase in consumer spending on transportation. As a result, more people are willing to try bike-sharing services as an alternative to traditional modes of transportation. Furthermore, government initiatives and policies promoting sustainable transportation and reducing carbon emissions have created a favorable environment for the growth of the Bike-sharing market. In conclusion, the Bike-sharing market in Africa is experiencing significant growth and development. Customer preferences for convenience, affordability, and sustainability are driving the demand for bike-sharing services. The adoption of dockless systems and the integration of technology have further enhanced the user experience. Africa's unique geography and climate, as well as government initiatives, contribute to the growth of the market. With the continued urbanization and economic development in the region, the Bike-sharing market in Africa is expected to expand further in the coming years.

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.