Traffic congestion often makes cycling to work more time-efficient than other modes of transport
Melbourne, Australia (PRWEB) March 20, 2014
Over the past five years, cycling has undergone a boom in popularity across various demographics. Commuters have gradually moved towards cycling, away from driving or taking public transport to work. Growth in popularity is not exclusive to the weekday commute, with consumers also increasingly taking up cycling for weekend recreation. According to IBISWorld industry analyst David Whytcross, “these factors have contributed to a significant boost to industry revenue, following a substantial downturn at the onset of the global financial crisis.” Overall, the Bicycle Retailing and Repair industry in Australia is estimated to be worth $924.9 million in 2013-14 following compound annual growth of 3.7% over the past five years. Continued strong growth of 4.2% is forecast for the current year.
The global financial crisis severely affected industry revenue in 2008-09 and 2009-10. “Consumer sentiment was negative due to widespread economic uncertainty and a lack of confidence in household finances,” says Whytcross. Although bicycles are cheap to operate, most potential cyclists already owned a bicycle and thus limited their discretionary spending throughout the downturn. The delay of purchases resulted in strong industry growth as the economy recovered. Growth was primarily supported by the perception of cycling as a cheap and easy substitute to driving or using public transport. Soaring petrol prices substantially increased motor vehicle operating costs, while traffic congestion often makes cycling to work more time-efficient than other modes of transport. Particularly strong growth was evident in flat cities with significant cycling infrastructure, such as Melbourne and Canberra.
These trends are expected to continue as councils and state governments support the development of cycling infrastructure. With greater networks of dedicated bicycle lanes and paths, cycling will become safer and appeal to a greater percentage of the population, particularly when compared with increasingly congested roads and public transport networks. Furthermore, cycling is projected to continue to attract older recreational riders with more cash to splash on high-value equipment. Competitive pressures will come from online shopping and increased investment in bike share programs, which could attract budget-conscious consumers and slow industry growth. The Bicycle Retailing and Repair industry exhibits a low level of market share concentration, with no major players.
For more information, visit IBISWorld’s Bicycle Retailing and Repair report in Australia industry page.
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IBISWorld Industry Report Key Topics
Businesses in this industry are primarily engaged in retailing bicycles, selling bicycle parts and offering repair services. The industry does not include department stores, general sporting goods retailers and online-only operators that sell bicycles.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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