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Bike-sharing - Israel

Israel

According to projections, the Bike-sharing market in Israel is expected to generate a revenue of US$2.06m by 2024.
This is expected to grow annually at a rate of 8.66%, resulting in a market volume of US$3.12m by 2029.
The number of users in this market is anticipated to reach 221.50k users by 2029.
The projected user penetration rates are 1.7% and 2.2% in 2024 and 2029, respectively.
The average revenue per user (ARPU) is estimated to be US$13.20.
It is anticipated that 96% of the total revenue in the Bike-sharing market will be generated through online sales by 2029.
China is expected to generate the highest revenue in this market globally, with a projected revenue of US$5,515m by 2024.
Israel's bike-sharing market is booming, with Tel Aviv's "Tel-O-Fun" program seeing a surge in ridership and expansion to other 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.

Market

Region

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Analyst Opinion

The Bike-sharing market in Israel has been experiencing significant growth in recent years. Customer preferences have shifted towards more sustainable and convenient transportation options, leading to an increased demand for bike-sharing services. Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of the market.

Customer preferences: In Israel, there has been a growing awareness and concern for environmental sustainability. As a result, many individuals are opting for greener modes of transportation, such as biking. Bike-sharing services provide a convenient and affordable solution for those who want to reduce their carbon footprint while enjoying the benefits of cycling. Furthermore, the younger generation, in particular, is more inclined towards alternative transportation methods, making bike-sharing a popular choice among millennials.

Trends in the market: The Bike-sharing market in Israel has witnessed a surge in the number of providers and users. This can be attributed to several factors. Firstly, the government has implemented policies and initiatives that promote cycling as a means of transportation. This has led to the establishment of bike-friendly infrastructure, such as dedicated lanes and parking spaces, making it easier for people to use bike-sharing services. Secondly, the rise of smartphone technology has made it more convenient for users to access and utilize bike-sharing platforms. Mobile apps allow users to locate and unlock bikes with ease, enhancing the overall user experience. Lastly, the increasing popularity of e-bikes has contributed to the growth of the market. E-bikes provide an alternative for those who may not have the physical stamina for traditional biking, thereby expanding the potential customer base.

Local special circumstances: Israel's compact size and dense urban areas make it an ideal environment for bike-sharing services. With shorter distances between destinations, bikes are a practical and efficient mode of transportation. Additionally, the country's warm climate and scenic landscapes make cycling an enjoyable experience for both locals and tourists. The popularity of bike-sharing services is further amplified by the presence of popular tourist destinations and attractions, where visitors can easily rent bikes to explore the surroundings.

Underlying macroeconomic factors: Israel's strong economy and high-tech industry have contributed to the growth of the Bike-sharing market. With a thriving startup ecosystem, there has been an influx of innovative bike-sharing companies that leverage technology to provide seamless and user-friendly solutions. Furthermore, the government's support for the sharing economy and sustainable transportation has created a favorable environment for bike-sharing services to thrive. The rise of bike-sharing in Israel can also be seen as a reflection of the global trend towards sustainable and eco-friendly transportation options. In conclusion, the Bike-sharing market in Israel is experiencing significant growth due to shifting customer preferences towards sustainable transportation, the implementation of bike-friendly infrastructure, the rise of smartphone technology, and the country's compact size and favorable climate. These factors, combined with Israel's strong economy and government support, have created a conducive environment for the development of the Bike-sharing market.

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.