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Bike-sharing - Nigeria

Nigeria

The Bike-sharing market in Nigeria is expected to witness significant growth in the upcoming years.
By 2024, the projected revenue is estimated to reach US$23.91m, with an annual growth rate (CAGR 2024-2029) of 12.94%.
This growth trend is expected to continue, leading to a projected market volume of US$43.93m by 2029.
Moreover, the number of users in this market is anticipated to amount to 7.44m users by 2029.
In 2024, user penetration in the Bike-sharing market industry is expected to be 2.4%, which is projected to increase to 2.9% by 2029.
Additionally, the average revenue per user (ARPU) is expected to be US$4.38.
This implies that the revenue generated per user is likely to remain stable over the forecast period.
It is worth noting that by 2029, 80% of the total revenue in the Bike-sharing market is expected to be generated through online sales.
Finally, in terms of global comparison, China is projected to generate the most revenue in this market, with an estimated revenue of US$5,515m in 2024.
Bike-sharing in Nigeria is gaining momentum as urbanization and traffic congestion drive demand for sustainable transportation solutions.

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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Currency

Analyst Opinion

Bike-sharing has been gaining popularity in Nigeria in recent years, with more and more people opting for this convenient and eco-friendly mode of transportation.

Customer preferences: Customers in Nigeria are increasingly choosing bike-sharing services due to several reasons. Firstly, the high traffic congestion in major cities like Lagos and Abuja has made commuting by car or public transport a time-consuming and frustrating experience. Bike-sharing offers a quicker and more efficient way to navigate through the traffic and reach their destinations on time. Secondly, the rising awareness about environmental issues has led to a growing demand for sustainable transportation options. Bike-sharing provides a greener alternative to traditional modes of transport, thereby reducing carbon emissions and contributing to a cleaner environment. Lastly, the affordability of bike-sharing services is another factor that attracts customers. With the increasing cost of fuel and public transportation fares, bike-sharing offers a cost-effective solution for daily commuting.

Trends in the market: The Bike-sharing market in Nigeria is witnessing several trends that are shaping its development. One prominent trend is the expansion of bike-sharing services to more cities across the country. Initially, bike-sharing was limited to a few major cities, but now companies are expanding their operations to smaller towns and rural areas. This expansion is driven by the increasing demand for bike-sharing services and the need to provide transportation options to underserved areas. Another trend is the integration of technology into bike-sharing services. Many bike-sharing companies in Nigeria are using mobile apps and GPS tracking systems to make it easier for customers to locate and unlock bikes. This technological integration has improved the user experience and made bike-sharing more accessible to a wider audience.

Local special circumstances: Nigeria's unique urban landscape and infrastructure challenges have also influenced the development of the Bike-sharing market. The lack of proper public transportation infrastructure in many cities has created a gap in the market, which bike-sharing companies are filling. Additionally, the country's large youth population, who are more inclined towards adopting new technologies and sustainable practices, has contributed to the growing popularity of bike-sharing.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Bike-sharing market in Nigeria. The country's rapid urbanization and population growth have led to increased demand for transportation solutions. Furthermore, the government's focus on sustainable development and reducing traffic congestion has created a favorable environment for bike-sharing companies to thrive. Additionally, the rise of the sharing economy globally has influenced consumer behavior and made bike-sharing a more accepted and popular mode of transportation. In conclusion, the Bike-sharing market in Nigeria is experiencing significant growth due to customer preferences for convenience, sustainability, and affordability. The expansion of bike-sharing services to more cities, the integration of technology, and the unique local circumstances have all contributed to the market's development. Furthermore, underlying macroeconomic factors such as urbanization and government initiatives have played a crucial role in driving the growth of the Bike-sharing market in Nigeria.

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.