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Bike-sharing - Luxembourg

Luxembourg

Luxembourg is expected to witness a significant growth in the Bike-sharing market.
By 2024, revenue in this market is projected to reach US$0.35m.
Further, an annual growth rate (CAGR 2024-2029) of 3.22% is expected, resulting in a projected market volume of US$0.41m by 2029.
In terms of user base, the number of users in Luxembourg is expected to amount to 17.18k users by 2029, with a projected user penetration of 2.2% in 2024 and 2.5% by 2029.
The average revenue per user (ARPU) is expected to amount to US$24.19.
Additionally, it is projected that 95% of the total revenue in this market will be generated through online sales by 2029.
It is noteworthy that in a global comparison, China is expected to generate the most revenue in the Bike-sharing market, with a projected revenue of US$5,515m in 2024.
Luxembourg's bike-sharing market is thriving, with a growing number of users and an expanding network of stations throughout the city.

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 Luxembourg has been experiencing significant growth in recent years.

Customer preferences: Customers in Luxembourg have shown a growing preference for bike-sharing services due to several reasons. Firstly, the increasing awareness about the environmental impact of transportation has led to a shift towards more sustainable modes of travel. Bike-sharing offers a convenient and eco-friendly alternative to traditional transportation methods. Additionally, the compact size of Luxembourg City makes it well-suited for bike-sharing, as it allows for easy navigation and shorter travel distances. Furthermore, the health benefits associated with cycling have also contributed to the popularity of bike-sharing services among customers in Luxembourg.

Trends in the market: One of the key trends in the Bike-sharing market in Luxembourg is the adoption of technology. Bike-sharing companies have been leveraging advanced technologies such as mobile applications and GPS tracking systems to enhance the user experience. These technologies enable customers to easily locate and unlock bikes, track their rides, and make payments seamlessly. Furthermore, the integration of bike-sharing services with other modes of transportation, such as public transit, has also gained traction in Luxembourg. This allows customers to conveniently combine different modes of transport for their daily commute.

Local special circumstances: Luxembourg's unique geographical and demographic characteristics have played a role in the development of the Bike-sharing market. The compact size of the country and the well-developed cycling infrastructure make it conducive for bike-sharing services. Luxembourg City, in particular, has a well-connected network of cycling paths and dedicated bike lanes, which encourages the use of bikes for commuting. Additionally, the city's high population density and the presence of many universities and offices make it an ideal market for bike-sharing companies.

Underlying macroeconomic factors: The development of the Bike-sharing market in Luxembourg can also be attributed to several underlying macroeconomic factors. The country's strong economy and high disposable income levels have created a favorable environment for the growth of bike-sharing services. Moreover, the government's focus on promoting sustainable transportation and reducing traffic congestion has led to increased support for bike-sharing initiatives. This is evident in the various subsidies and incentives provided to bike-sharing companies by the government. Overall, the combination of customer preferences, market trends, local special circumstances, and macroeconomic factors has contributed to the rapid growth of the Bike-sharing market in Luxembourg.

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.