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Bike-sharing - LATAM

LATAM

Revenue in the Bike-sharing market is projected to reach US$476.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.43%, resulting in a projected market volume of US$591.30m by 2029.
In the Bike-sharing market, the number of users is expected to amount to 37.84m users by 2029.
User penetration is projected to be 5.2% in 2024 and 5.8% by 2029.
The average revenue per user (ARPU) is expected to amount to US$14.27.
In the Bike-sharing market, 94% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated in China (US$5,515m in 2024).

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 LATAM is witnessing significant growth and development, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the Bike-sharing market in LATAM are shifting towards more sustainable and eco-friendly transportation options. With increasing concerns about climate change and the need to reduce carbon emissions, consumers are actively seeking alternatives to traditional modes of transportation. Bike-sharing provides a convenient and cost-effective solution, allowing users to easily access bicycles for short trips or daily commutes. Additionally, the health benefits associated with cycling are also attracting customers who are looking to incorporate physical activity into their daily routines. Trends in the market indicate that bike-sharing services are expanding rapidly across various countries in LATAM. The demand for bike-sharing is particularly high in urban areas with heavy traffic congestion and limited parking spaces. These services offer a flexible and efficient mode of transportation, allowing users to avoid traffic jams and reach their destinations quickly. Furthermore, the integration of technology, such as mobile applications and smart locks, has made it easier for customers to locate and unlock bikes, further enhancing the convenience and accessibility of bike-sharing services. Local special circumstances also contribute to the growth of the Bike-sharing market in LATAM. Many cities in the region face challenges related to inadequate public transportation infrastructure and limited access to affordable transportation options. Bike-sharing services fill this gap by providing a convenient and affordable mode of transportation for both short and long distances. Moreover, the relatively low cost of setting up and operating bike-sharing systems compared to other transportation modes makes it an attractive option for local governments and private companies. Underlying macroeconomic factors also play a role in the development of the Bike-sharing market in LATAM. Economic growth and rising disposable incomes in the region have increased the affordability of bike-sharing services, making them more accessible to a larger segment of the population. Additionally, government initiatives and incentives to promote sustainable transportation further contribute to the growth of the market. These factors create a favorable environment for bike-sharing companies to expand their operations and attract more customers. In conclusion, the Bike-sharing market in LATAM is experiencing significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for sustainable and convenient transportation options, coupled with the expansion of bike-sharing services and the support of local governments, is driving the development of the market in the region. As the market continues to evolve, it is expected to play a crucial role in addressing transportation challenges and promoting sustainable urban mobility in LATAM.

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.