1. Market size and growth potential
- Global bicycle market trends: According to data from market research organization Mordor Intelligence, the global bicycle market continues to grow and is expected to grow from US$56.16 billion in 2024 to US$69 billion in 2029, with a compound annual growth rate of 4.20%. This trend provides a good external environment for the Vietnamese bicycle market.
- Current status of Vietnam’s bicycle market: According to data from German market research company Statista, the total revenue of Vietnam’s bicycle market will reach approximately US$295.8 million in 2023, and the compound annual growth rate (CAGR) from 2023 to 2027 is expected to be 5.88%, higher than the global average level. This shows that Vietnam’s bicycle market has significant growth potential and attractiveness.
2. Market demand and consumption habits
- Transportation and exercise needs: In Vietnam, bicycles are not only a means of transportation, but also a tool for physical exercise. The trend of using bicycles for transportation and exercise has developed strongly in Vietnam in recent years, further driving the growth of the bicycle market.
- The rise of electric two-wheelers: Vietnam’s electric two-wheeler market is also booming. With the acceleration of urbanization and the increasingly serious traffic congestion problem, electric bicycles have been widely favored because of their convenience, environmental protection, and economy. Especially urban white-collar workers and students are becoming the main consumer groups of electric two-wheelers.
3. Policy and regulatory support
- The government promotes green travel: The Vietnamese government actively promotes the implementation of green travel and low-carbon environmental protection concepts, and has formulated a series of preferential policies to encourage people to use green transportation such as bicycles and electric bicycles.
- Promotion of the “Motorcycle Ban”: Starting from October 2022, the Ho Chi Minh government has issued a decree to completely change the city’s logistics service industry from motorcycles to electric vehicles. This policy further promotes the development of the electric bicycle market and brings new opportunities to the bicycle market.
4. Market Competition and Opportunities
- Fierce market competition: Competition in the Vietnamese bicycle market is fierce, but it is mainly concentrated among foreign brands. Vietnam’s domestic bicycle brands have a low market share, which provides opportunities for domestic bicycle brands to enter the Vietnamese market.
- Demand for high quality and variety: Vietnamese consumers have increasing demands for quality and variety in bicycles. Domestic bicycle brands can meet the needs of Vietnamese consumers by improving product quality, innovative design and technology research and development, so as to stand out in the market.
5. Investment and cooperation opportunities
- Complete industrial chain: Vietnam’s bicycle industry chain is relatively complete, including parts production, assembly and sales. This provides investors with a full range of investment opportunities from upstream to downstream.
- Franchise cooperation: For entrepreneurs who want to enter the Vietnamese bicycle market, joining a well-known brand is a good choice. Through franchise cooperation, you can quickly open the market and reduce entrepreneurial risks by leveraging the brand’s influence, technical strength and market channel advantages.