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Bike-sharing - Canada

Canada

Canada's Bike-sharing market is anticipated to witness a substantial growth in revenue from US$49.93m in 2024 to US$58.77m by 2029, displaying a CAGR of 3.31% during the forecast period.
The number of users in this market is expected to rise to 1.40m users by 2029, and user penetration is projected to be 3.2% in 2024, which is anticipated to increase to 3.4% by 2029.
The average revenue per user (ARPU) is likely to be US$39.78.
Furthermore, it is predicted that 97% of the overall revenue in the Bike-sharing market will be generated through online sales by 2029.
In comparison to other countries, China is expected to generate the highest revenue of US$5,515m in 2024.
Canada's bike-sharing market is shifting towards electric bikes, with companies like Jump and Lime adding e-bikes to their fleets in major cities.

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 Canada has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Canada, there has been a growing shift towards more sustainable and environmentally friendly modes of transportation. Customers are increasingly opting for bike-sharing services as a convenient and cost-effective way to travel short distances within cities. The ease of access and flexibility offered by bike-sharing platforms have also contributed to their popularity among urban dwellers who value convenience and mobility.

Trends in the market: One of the key trends in the Canadian Bike-sharing market is the adoption of dockless bike-sharing systems. Unlike traditional docked systems, these platforms allow users to pick up and drop off bikes anywhere within designated service areas, using smartphone apps to locate and unlock bikes. This trend has gained traction in cities across Canada, as it offers greater convenience and accessibility compared to docked systems. Additionally, the integration of e-bikes into bike-sharing fleets has further expanded the market, as it appeals to a wider range of users and provides an alternative to traditional pedal-powered bikes.

Local special circumstances: Canada's urban centers are characterized by dense populations, traffic congestion, and limited parking spaces. These factors have created a favorable environment for bike-sharing services to thrive. In cities like Toronto, Vancouver, and Montreal, where public transportation infrastructure is well-developed, bike-sharing complements existing transit systems by providing first and last-mile connectivity. Furthermore, the increasing number of bike lanes and cycling-friendly infrastructure in Canadian cities has contributed to the growth of the Bike-sharing market.

Underlying macroeconomic factors: The Canadian government has been actively promoting sustainable transportation and investing in infrastructure projects that support cycling. Initiatives such as the National Cycling Strategy and the federal Gas Tax Fund have provided funding for the development of cycling infrastructure, including bike lanes, racks, and parking facilities. These investments have not only improved the safety and accessibility of cycling but have also created a supportive environment for bike-sharing services to flourish. In conclusion, the Bike-sharing market in Canada is experiencing significant growth due to changing customer preferences towards sustainable transportation, the adoption of dockless and e-bike systems, favorable local circumstances such as population density and cycling infrastructure, and government initiatives that promote cycling. As these trends continue to evolve, the Bike-sharing market in Canada is expected to expand further, providing an alternative and eco-friendly mode of transportation for urban residents.

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.