India Bike Sharing Market Poised to Reach USD 45.60 Million by 2030 with 5% CAGR Growth

India Bike Sharing Market Overview:

The India Bike Sharing Market, valued at USD 32.41 million in 2023, is projected to grow at a CAGR of 5% from 2024 to 2030, reaching an estimated USD 45.60 million by the end of the forecast period. The resurgence of cycling as a sustainable and affordable mode of transportation, especially during the COVID-19 pandemic, has sparked increased interest in bike-sharing programs across urban centers in India. As cities face increasing traffic congestion and pollution, bike sharing offers a flexible, eco-friendly alternative for short-distance travel.

While cycling gained momentum globally during lockdowns, including in India, where the cycle industry witnessed growth rates of 15-20%, maintaining this growth requires significant planning and infrastructure development. Indian cities are now emphasizing non-motorized transportation, such as walking and cycling, to ease urban congestion and reduce emissions. Public Bicycle Sharing (PBS) schemes are crucial to this vision, offering affordable, accessible transportation for short distances and as first and last-mile connectivity solutions.

India Bike Sharing Market Dynamics:

A significant portion of travel in India—around 35%—consists of short trips (less than 5 km), representing a vast potential market for bike-sharing services. PBS systems offer flexibility, allowing users to rent bikes for short periods without the burden of owning or maintaining them. These programs have been implemented across various Indian cities, including Mysuru, Bhopal, and Kochi, with varied success.

For complete access to this research, refer to the link below:https://www.stellarmr.com/report/req_sample/India-Bike-Sharing-Market/221

Bike-sharing services cater primarily to short distances, usually around 2 kilometers. They are strategically placed near transport hubs to facilitate easier connectivity for users traveling by bus or metro. PBS programs operate on different pricing models, offering one-time rentals, long-term subscriptions, and innovative pricing to ensure affordability. Mysuru’s Trin Trin bike-sharing system, for instance, offered 1,000 rides per day before the pandemic and still registers 300-500 rides per day post-COVID. Other notable initiatives include programs in cities like Bhopal, where infrastructure and local government support have been instrumental.

However, challenges remain. Indian cities face difficulties such as insufficient funding for cycling infrastructure, inconsistent government policies, and limited cycling culture. Despite the potential, many PBS programs struggle to achieve profitability, as seen in pilot projects in cities like Pune and Coimbatore.

Key Challenges:

The primary obstacles for bike-sharing in India include the high capital expenditure required to install and maintain PBS systems and the market’s price sensitivity. Operating costs, including station maintenance and bike supply, often outstrip revenue generated from low rental fees. For example, a detailed project report from Pune in 2017 projected initial capital costs between USD 6.5-10 million, with significant operating losses in the first seven years.

Additionally, many bike-sharing programs initially attract leisure riders and tourists, but long-term sustainability hinges on regular commuters adopting the service. With consumers in Indian cities being highly price-sensitive, farebox revenue alone is insufficient to cover operating costs. Supplemental revenue streams, such as station advertising, often face institutional challenges, including competition from existing street advertising rights.

Viability Gap:

The cost of capital for a system with 500 bikes was estimated at INR 30.9 million (USD 3.09 million) in 2020, with recurring daily costs around INR 50 per cycle. Many PBS systems in India offer the first 30 minutes of a ride free to registered users to attract ridership. For example, in Mysuru, ridership dropped when charges were introduced for the initial 30 minutes, prompting a reversal of the decision. As a result, fare revenue typically covers only a portion of operating expenses, with the remaining gap requiring subsidies or other revenue sources to remain viable.

Market Structure and Strategy:

Successful PBS systems require strategic partnerships between vendors, city stakeholders, and private investors. While private sector investment has driven growth in several cities, government involvement remains critical for infrastructure development, policy-making, and co-funding of programs. The Ministry of Housing and Urban Affairs suggests that increased government funding for pilot projects could help determine the best financial models for long-term PBS success in India.

In 2020, focus group discussions held by WRI India and the Karnataka City Land Transport Authority emphasized the need for government intervention in PBS programs. This followed the Department of Urban Land Transport’s efforts in 2018 to create a PBS deployment model.

Key Players in India Bike Sharing Market:

1. Yulu (Bengaluru) – INR 10 (30 mins)
2. TrinTrin (Mysuru) – INR 0-5 (30 mins)
3. Smart Bike (Delhi) – INR 10 (30 mins)
4. MYBYK (Mumbai) – INR 2 (30 mins)
5. COO Ride (Thane) – INR 15 (30 mins)
6. Chartered Bike (Bhopal, Ranchi, Surat) – INR 0-5 (30 mins)

Market Segmentation:

1. By Bike Type:
   • E-bikes
   • Conventional bikes
2. By Model:
   • Free-floating
   • P2P
   • Station-based
3. By Sharing System:
   • Dockless
   • Docked
   • Hybrid

For complete access to this research, refer to the link below:https://www.stellarmr.com/report/req_sample/India-Bike-Sharing-Market/221

Conclusion:

The India Bike Sharing Market holds immense potential, especially for short-distance travel in urban areas. However, the success of PBS systems depends on overcoming financial and operational challenges, with a focus on developing supportive infrastructure, pricing models, and government policies that encourage widespread adoption. The market’s growth, while steady, will likely depend on a combination of private investment and public sector support.