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Bike-sharing - South Korea

South Korea

South Korea's Bike-sharing market is expected to experience a boost in revenue, with projections indicating a rise to US$30.79m in 2024.
Analysts forecast an annual growth rate of 4.81% for the period 2024-2028, leading to a projected market volume of US$37.16m by 2028.
The number of users in the Bike-sharing market is expected to reach 1.73m users by 2028.
User penetration is projected to increase from 3.0% in 2024 to 3.4% by 2028.
The average revenue per user (ARPU) is expected to be US$19.58.
By 2028, online sales are expected to generate 97% of the total revenue in the Bike-sharing market.
In terms of global comparison, China is projected to generate most of the revenue, with a forecast of US$5,870m in 2024.
South Korea continues to lead the way in innovative bike-sharing programs, with a focus on technology and eco-friendly initiatives.

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.

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Analyst Opinion

The Bike-sharing market in South Korea has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and unique local special circumstances. Customer preferences in South Korea have played a crucial role in the development of the Bike-sharing market. With a growing emphasis on sustainability and eco-friendly transportation options, more people are opting for bike-sharing as an alternative to traditional modes of transportation. Additionally, the convenience and flexibility offered by bike-sharing services have also contributed to their popularity among customers, especially in urban areas where traffic congestion and limited parking spaces are common issues. Trends in the market further support the growth of bike-sharing in South Korea. The rise of smartphone usage and the availability of mobile applications have made it easier for customers to locate and rent bikes. This technological advancement has not only increased the accessibility of bike-sharing services but has also improved the overall user experience. Moreover, the integration of bike-sharing with other forms of public transportation, such as buses and subways, has made it more convenient for commuters to incorporate biking into their daily travel routines. Local special circumstances in South Korea have also contributed to the development of the Bike-sharing market. The government's initiatives to promote cycling as a means of reducing air pollution and improving public health have created a favorable environment for bike-sharing companies to thrive. Furthermore, the compact nature of South Korean cities and the presence of well-maintained bike lanes have made biking a viable and safe transportation option for both locals and tourists. Underlying macroeconomic factors have also influenced the growth of the Bike-sharing market in South Korea. The country's strong economic growth and rising disposable incomes have increased the demand for convenient and affordable transportation options. Additionally, the government's investments in infrastructure development, including the expansion of bike lanes and the implementation of bike-sharing programs, have further stimulated the market. Overall, the Bike-sharing market in South Korea is experiencing significant growth due to customer preferences for eco-friendly transportation, emerging trends in technology and integration, unique local special circumstances, and favorable macroeconomic factors. As these factors continue to evolve and develop, the market is expected to expand further in the coming years.

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.