Bike Industry

The bike industry’s importance in the world market is increasing. In 2007, 124 million bicycles were manufactured compared to 50 million cars (Source: Earth Policy Institute). Even per capita with an increasing world population, the number of manufactured bikes is continuously rising (Source: UN Population Division). For more specifics on the U.S. bike industry, please visit this report from the National Bicycle Dealers Association.

Meanwhile, it is getting harder for many bicycle manufactures to continue their production in their own country. Janet Larsen mentions, in an essay for the Earth Policy Institute, that more than half of all bikes per year, are manufactured in Asia with China as the leading player (learn more). Most of these bikes are built for sports and recreation riding.

Nevertheless, diverse cultures, varying levels of commitment from governments to increase transportation bicycling, and the needs of specific populations, ensure a demand for different types of bicycles.

In developed countries, bikes are often used only for sports and recreation because streets are not designed for bicycling. With current trends focused on sports and recreation, manufacturers compete with each other over high-end sports bicycles while forgetting about basic, high quality bicycles. So, potential new riders are often turned away from bicycling because they cannot afford to invest so much in something so new to them. Those who choose to buy a bike on a tight budget have to settle for poorly built and assembled bikes from mass merchants that are dangerous and often impossible to ride. Otherwise they have to pay the higher price for a bike shop bike with accessories (i.e., front shock, 24 gears, expensive geometry, etc.) they do not need.

This also hinders the increase of cycling in developing countries where the bicycle is often the only affordable and efficient way to travel. But even in these countries, the quality of bicycles is often so bad that they do not hold up to everyday transportation use and replacement parts are seldom available.

But this problem also presents the opportunity for increasing the bicycle market in all areas of the world. More and more urban regions of developed countries are seeing the bike as a sustainable alternative to motorized transportation and enjoying new commitments from government agencies and the public.

Also in distressed areas where people cannot afford a car, cycling could play a bigger role. Some organizations like One Street are developing programs that provide good quality, affordable transportation bicycles as well bike shops that can service these bikes. Find out more about One Street’s Social Bike Business program here. 

Source: www.OneStreet.org