USA Bicycle Market Outlook to 2028

USA Bicycle Market Overview

• The USA Bicycle Market, reached at 20.4 Mn units in 2023, is driven by increasing health consciousness, environmental awareness, and urbanization leading to higher bicycle usage for commuting and leisure activities. The rising popularity of e-bikes has also significantly contributed to market growth.
• Key players in the USA bicycle market include Trek Bicycle Corporation, Specialized Bicycle Components, Giant Manufacturing Co., Ltd., Cannondale Bicycle Corporation, and Merida Industry Co., Ltd. These companies dominate the market through continuous innovation, strong brand presence, and extensive distribution networks.
• In 2023, Trek Bicycle Corporation announced its partnership with Lyft to launch a new fleet of electric bicycles in major cities across the USA. This initiative aims to expand urban mobility options and promote sustainable transportation. According to a press release by Trek, this collaboration is expected to increase the availability of e-bikes by 30% in targeted urban areas.

USA Bicycle Current Market Analysis

• California remains the dominant region in the USA bicycle market in 2023. The state's favorable climate, extensive cycling infrastructure, and strong cycling culture contribute to its leading position. Cities like San Francisco and Los Angeles have seen significant investments in bike lanes and bike-sharing programs.
• One of the major challenges faced by the bicycle market is the high cost of e-bikes, which can be a barrier to widespread adoption. In 2023, the average price of an e-bike was around USD 2,500, making it less accessible to a broader audience.
• In 2023, the US Department of Transportation announced a USD 1 Bn funding program for enhancing cycling infrastructure across major cities. This initiative includes the development of dedicated cycling lanes, bike-sharing stations, and safety enhancements to encourage bicycle commuting.

USA Bicycle Market Segmentation

The USA Bicycle Market can be segmented based on several factors:

By Product Type: USA bicycle market segmentation by product type is divided into road bicycles, mountain bicycle, hybrid bicycles and e-bicycles. In 2023, road bicycles held a dominant market share due to their popularity among urban commuters and fitness enthusiasts. The extensive network of cycling events and races across the country has also fueled the demand for road bicycles.

By End User: In the USA bicycle market segmentation by end user is divided into adults and children. In 2023, the adult segment accounted for a larger market share, driven by the growing trend of cycling for fitness and commuting among adults along with increasing adoption of bicycles as a mode of transport and for fitness activities among the adult population.

By Region: USA Bicycle market segmentation by region is divided into north, south, east and west. In 2023, west region's dominance is attributed to states like California, which have invested heavily in cycling infrastructure and promote cycling as a sustainable mode of transportation.

USA Bicycle Market Competitive Landscape

• Specialized New E-bike Range: Specialized Bicycle Components launched a new range of e-bikes in 2024, featuring advanced battery technology and enhanced connectivity options. The new models are designed to cater to urban commuters and recreational cyclists, with an expected sale of 100,000 units within the first year of launch. This development is set to strengthen Specialized position in the e-bike segment.
• Giant Manufacturing's Partnership with Lyft: In 2024, Giant Manufacturing Co., Ltd. announced a strategic partnership with Lyft to supply e-bikes for Lyft's bike-sharing program. This partnership aims to expand the availability of e-bikes in major cities across the USA, with an initial deployment of 50,000 e-bikes. The collaboration is expected to enhance urban mobility and promote sustainable transportation.

• Trek Bicycle Corporation's Expansion: In 2024, Trek Bicycle Corporation expanded its manufacturing facility in Wisconsin. This expansion aims to meet the growing demand for bicycles in the USA and reduce dependency on overseas suppliers. The new facility is expected to produce an additional 500,000 bicycles annually, enhancing Trek's market presence.

USA Bicycle Industry Analysis

USA Bicycle Market Growth Drivers:

• Rising Health and Fitness Awareness: The rising health and fitness awareness among Americans is driving the demand for bicycles. This trend is supported by a growing number of cycling events and campaigns promoting physical activity, with over 500 cycling events scheduled across the country in 2024.
• Popularity of E-bike: The surge in e-bike popularity is a major growth driver. By end of 2024, e-bike sales are projected to reach 1.8 Mn units, driven by technological advancements and increasing urban mobility needs. With major cities like New York and Los Angeles witnessing a substantial increase in e-bike usage for daily commutes.
• Corporate Wellness Programs: Corporate wellness programs are increasingly incorporating cycling as a key component. In 2024, companies across the USA offer incentives for employees who commute by bicycle. These programs aim to promote healthier lifestyles and reduce healthcare costs, with companies like Google and Microsoft providing substantial financial incentives for bicycle commuters.

USA Bicycle Market Challenges:

• High Cost of E-bikes: The high cost of e-bikes remains a significant challenge for the market. In 2024, the average price of an e-bike is around USD 2,500, making it less accessible for a large segment of the population. Despite government subsidies and incentives, the affordability of e-bikes continues to be a barrier to wider adoption.
• Safety Concerns: Safety concerns related to cycling, particularly in urban areas, pose a challenge to market growth, highlighting the need for improved cycling infrastructure and safety measures. These statistics underscore the importance of government and community efforts to enhance cyclist safety.
• Supply Chain Disruptions: Ongoing supply chain disruptions are affecting the bicycle market. In 2024, the industry faces delays in the shipment of components and raw materials, resulting in longer production times and increased costs. These disruptions, caused by global logistical challenges and geopolitical tensions, are impacting the availability of bicycles in the market.

USA Bicycle Market Government Initiatives:

• Tax Incentives for E-bike Purchases: To encourage the adoption of e-bikes, the federal government introduced a tax incentive program in 2024. This program offers a tax credit of up to USD 500 for the purchase of new e-bikes, aiming to make them more affordable for consumers. It is projected that over 200,000 e-bike purchases will benefit from this tax incentive in 2024.

• Safe Routes to School Program: The Safe Routes to School program, reintroduced in 2024, focuses on promoting cycling among students. This initiative allocated to improve cycling infrastructure around schools, ensuring safer routes for children who bike to school. The program aims to reduce traffic congestion and promote healthy habits among young students.

• Cycling Promotion Campaigns: In 2024, various state governments launched cycling promotion campaigns to encourage more people to take up cycling. These campaigns, backed by a combined budget, include public awareness programs, community cycling events, and incentives for bicycle commuters. States like California and New York are at the forefront of these initiatives, aiming to increase cycling participation by 10% within a year.

USA Bicycle Future Market Outlook

The USA bicycle market is expected to show significant growth driven by continued urbanization, advancements in bicycle technology, and increasing investments in cycling infrastructure. The rising trend of bike-sharing programs and government initiatives to promote cycling as a sustainable mode of transportation will further bolster market growth.

Future Market Trends

• • Growth in E-bike Market: The e-bike market is expected to grow significantly. Advancements in battery technology, government incentives, and the increasing popularity of e-bikes for commuting and recreation will drive this growth. E-bikes are anticipated to become a mainstream mode of transportation, contributing to the overall growth of the bicycle market.
  • Expansion of Bike-sharing Programs: Bike-sharing programs are anticipated to expand rapidly, with major cities planning to increase the number of bike-sharing stations by 25% annually. By 2028, it is estimated that there will be over 50,000 bike-sharing stations across the USA, offering convenient and affordable cycling options for urban commuters. This trend is driven by the growing need for sustainable and efficient urban transportation.