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Bike-sharing - Bangladesh

Bangladesh

Bangladesh is expected to contribute to the growing revenue in the Bike-sharing market, with a projected revenue of US$123.50m by 2024.
The annual growth rate (CAGR 2024-2028) is expected to be 14.49%, resulting in a projected market volume of US$212.20m by 2028.
Moreover, the number of users in Bangladesh is projected to reach 22.28m users by 2028, with a user penetration of 10.1% in 2024 and 12.3% by 2028.
The average revenue per user (ARPU) is expected to be US$6.98.
Online sales are expected to contribute significantly to the revenue, with 86% of total revenue generated through online sales by 2028.
It is noteworthy that China is expected to generate the most revenue in the Bike-sharing market, with US$5,870m in 2024, compared to other countries globally.
Despite facing challenges such as infrastructure and safety concerns, bike-sharing has gained popularity in Bangladesh as a sustainable and affordable mode of transportation.

Key regions: Thailand, China, Germany, Saudi Arabia, United States

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

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Analyst Opinion

The Bike-sharing market in Bangladesh has seen significant growth and development in recent years.

Customer preferences: Customers in Bangladesh are increasingly opting for bike-sharing services due to several reasons. Firstly, the country has a high population density and heavy traffic congestion, especially in urban areas. Bike-sharing provides a convenient and cost-effective alternative to traditional modes of transportation, allowing people to navigate through crowded streets more efficiently. Secondly, there is a growing awareness and concern about environmental issues, and bike-sharing offers a sustainable transportation option that reduces carbon emissions. Additionally, the affordability and accessibility of bike-sharing services make them attractive to a wide range of customers, including students, office workers, and tourists.

Trends in the market: One of the key trends in the Bike-sharing market in Bangladesh is the expansion of bike-sharing services to more cities and towns across the country. Initially, bike-sharing services were concentrated in major cities like Dhaka and Chittagong. However, companies have recognized the potential in smaller towns and are expanding their operations to cater to the increasing demand. This trend is driven by the need for improved transportation options in these areas and the growing popularity of bike-sharing as a mode of transport. Another trend in the market is the integration of technology in bike-sharing services. Companies are leveraging mobile apps and GPS tracking systems to enhance the user experience. Customers can easily locate and unlock bikes using their smartphones, making the process more convenient and efficient. This technological integration also allows companies to collect data on customer preferences and usage patterns, enabling them to optimize their services and expand their customer base.

Local special circumstances: Bangladesh has a predominantly young population, with a significant portion of the population being students and young professionals. This demographic factor contributes to the increasing demand for bike-sharing services. Young people are more likely to embrace new transportation trends and prioritize convenience and affordability. Additionally, the cultural acceptance of cycling as a mode of transport in Bangladesh also plays a role in the popularity of bike-sharing services. Cycling is seen as a common and acceptable means of transportation, making it easier for bike-sharing companies to penetrate the market.

Underlying macroeconomic factors: The economic growth and urbanization in Bangladesh have also contributed to the development of the Bike-sharing market. As the country experiences rapid urbanization, the demand for transportation solutions increases. Bike-sharing services provide a flexible and cost-effective option for urban dwellers, especially in areas with limited public transportation infrastructure. Additionally, the government's focus on sustainable development and reducing traffic congestion has created a favorable environment for the growth of bike-sharing services. In conclusion, the Bike-sharing market in Bangladesh is developing due to customer preferences for convenience, sustainability, and affordability. The expansion of bike-sharing services to smaller towns, the integration of technology, the young population's acceptance of cycling, and the macroeconomic factors of economic growth and urbanization all contribute to the growth and development of the market.

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.