The bicycle market - Italy

1.2 The Global Market

The global bicycle market was valued at $**.** billion in **** and is expected to expand at a compound annual growth rate (***) of *.*% from **** to ****. The market has been growing for a long time, in fact it was valued at $**.** billion in **** and grew at a CAGR of *.**% between **** and ****.

Evolution of the bicycle market World, **** - ****, in billions Source: ****

The increase in the number of people choosing cycling as a form of recreation is expected to boost the growth of the market. The preference for cycling as a convenient form of exercise to ensure a healthy life free of obesity and other ailments is expected to further boost market expansion. The popularity of dockless bike-sharing systems has been increasing in recent times. This system allows users to locate a bicycle nearby and unlock it electronically. Originally born in Europe, dockless bike-sharing systems are gaining in popularity, especially in Asian countries such as India and China.

In the graph below, the main countries exporting bicycles can be seen. Italy is the sixth largest exporter in the world although the gap with China still remains quite high.

Main Bicycle Exporting Countries World, ****, in millions of USD Source: ****

1.3 The Italian market

The Italian bicycle market, according to Confindustria ANCMA (***) estimates made as of March ****, has seen record numbers in ****:

Sales by type of bicycles Italy, **** - **** Source: ****

As can be seen from the graph, both traditional bikes (***) with *,***,*** pieces purchased and ebikes are on the rise, with numbers growing significantly, with ***,*** pieces, equivalent to +**% over the previous year. The total number of bikes sold in **** thus amounts to *,***,***, or +**% over ****. Numbers that were certainly influenced by the need for social distancing but also by the government's introduction of the mobility bonus. In ****, in Europe, Italy ranked **th in the number of bikes sold per tot population, or *.* bikes per *** inhabitants. Among the top places, as can be easily imagined given the strong focus on non-use of fossil fuel vehicles, were Sweden, Denmark, and Lithuania (***). As for the number of bicycles circulating in Italy in ****, Italy is estimated to have *** bicycles per *,*** inhabitants, a ratio at *.**... Numbers that have a lot of room for improvement considering that in Germany and the Netherlands the ratio is almost * to *[***].

1.4 Covid Impact and Mobility Bonus

The pandemic has had huge effects on citizens' mobility preferences, and the post-lockdown in Italy has also been characterized by an increase in bicycle travel, thanks to new bicycle paths built by municipalities and the bike bonus incentive.

In September ****, bicycle travel in Italy increased by **.* percent compared to the same month in ****. Since the outbreak of the pandemic, *** kilometers of new bike lanes have been built in our country. Legambiente's dossier, which looks at Italian cities, notes a total of more than *** kilometers of pop-up bike lanes: Milan is the Italian city with the most kilometers built, as many as **, followed by Genoa with **. Google Maps recorded a **% increase in requests for bike directions worldwide between February and June. The Eco-Counter system, using its worldwide network of bollards that can identify when bicycles pass by, noted in September **** an increase of **.* percent in Italy compared to September ****, **.* percent in Portugal, **.* percent in France, and ** percent in the United Kingdom and Germany. [***].

Mobility bonus

The **** mobility bonus also called the "Bike Bonus" is an incentive for sustainable mobility provided by the Relaunch Decree Art ***. (***) of May **. in a nutshell, the bonus allowed for a refund of ** percent of the price paid ...

1.5 Foreign Trade

The UN Comtrade website shows customs data, based on HS nomenclature. Bicycle trade is recorded under the following code: - ******: Bicycles and other cycles, including delivery tricycles, without motor

The chart below shows Italy's trade balance for bicycles. As can be seen, and as seen above, Italy is one of the leading bicycle exporting countries. The value of imports has been steadily increasing for years with a **% increase in value over the last ** years (***). A total of *,*** million bicycles were exported.

Exports and Imports of Bicycles Italy, **** - ****, in millions of US$ ONE COMTRADE

The main export destination countries include France, to which Italy exports about ** percent of its bicycles worth about US$***.* million, followed by Germany(***)

Main Countries of Bicycle Export Destination Italy, ****, in percent Source : UN COMTRADE As for imports, although as seen Italy has a fairly developed domestic market, the largest trading partner is the Netherlands, which counts for **.* percent of total imports, worth US$ **.* million followed by Germany (***).

2.1 The sale of bicycles in Italy

Bicycle use in Italy is not spread evenly throughout the country. Wanting to generalize the trend in demand, we can see that the market has been growing in recent years, thanks in part to the impact of the pandemic. in Italy in ****, *.* mln bicycles were sold (***), and almost * million Italians use it as a means of daily transportation.

Number of Bicycles Sold in Italy Italy, **** - **** Source: ****

Percentage Breakdown Bicycle and E-Bike Sales Italy, **** - ****, in percent Source: ****

2.2 Geographic Distribution of Bicycle Paths in Italy

The demand for bicycles in Italy is strongly influenced by the number of bicycle lanes. There is great inequality in the number of bicycle lanes in Italy, with southern regions having far fewer kilometers of lanes when compared with those in northern Italy.

In ****,there were an average of **.* kilometers of bike lanes per *** square kilometers of area in Italian provincial capitals. A value that has increased considerably over the years. In fact, in ****, the mileage did not reach ** kilometers per *** square kilometers, and by ****, major investments are planned to increase the number of paths even more and to match the figures of other European nations.

In Milan, for example, major investments have been made in recent years to increase the number of bike lanes. This evidenced by one figure : on November **, ****, ** percent of the vehicles passing along Corso Buenos Aires were cars, followed by a ** percent between motorcycles and scooters, and only * percent were bicycles. Two years later, on November **, ****, however, the number of cars plummeted (***) while the percentage of bicycles jumped to ** percent. [***].

The inequality in the number of bike lanes is represented by the data shown here. the image shows the number of bike lanes present per *** km ...

2.3 Cycle tourism as a demand driver

cycling tourism, or cyclotourism, is a recreational activity that consists of a way of visiting an area or region by bicycle in order to discover its main tourist attractions. It is not considered a competitive practice since it is known to be carried out for pleasure and not for competition. The duration of the trip can vary from days, weeks, or even months, despite the fact that the average distance traveled daily by a bicycle tourist is between ** and *** km.

The growth of this market in Italy, in line with what has been happening globally, can be explained mainly in view of the increased attention by the population to sustainability issues and thus, the desire to carry out eco-friendly activities. In addition, Italy is a popular destination for cycling enthusiasts thanks not only to its Mediterranean climate but also to its varied landscapes. In fact, every year it attracts a large number of foreign cycle tourists mainly from Germany, France and Austria. As for the Italian clientele, more than half of the cycle tourists are from northern Italy being this activity more developed in the northern part of the country.

In fact, with a cycling network of as many as ** thousand ...

2.4 The numbers of urban travel by bicycle

Looking at the percentage of total city travel by bicycle, the most ethical cities in this regard in Italy are Bolzano, Pesaro, Ferrara and Treviso, with more than a quarter of the population using bicycles as a means of travel. There are ***,*** regular cyclists in Italy, with high percentages in the autonomous provinces of Bolzano, Emilia Romagna and Veneto.

According to Ancma's Focus*R report, **** in Italy saw an increase in the average availability of bicycles and sidewalks in **- and **-mph zones (***).

The same **** Ancma report noted that bike lanes in Italy are growing, but not as a percentage of cycling or modal transfers by bicycle. The European Cooperative Union estimates that Italy has a network of **,*** km of bicycle, pedestrian and bicycle paths (***) show that the average availability of bike, pedestrian and bicycle lanes and ** areas in Italian cities has increased by * percent, and ** percent overall to ****, the first year of the Focus*Ruote research.

According to ANCMA, the number of cities allowing bicycles on public transport lanes increased from ** percent to ** percent. In addition, more than half of the cities surveyed (***)[***].

3.1 Market Structure and Dynamics

the bicycle market is very fragmented; As for bicycle production, ATECO code"**.** Manufacture of bicycles and vehicles for invalids,"the Italian market consists of about *** domestic companies, mainly small and medium-sized enterprises, which are internationally recognized as excellent. However, there are still many foreign brands, making the Italian market highly segmented. The major players (***) account for only *.* percent of the total market.

Assessment of Active Companies in the Sector Italy, ****-****, in Units. Source: ****

As mentioned in advance, manufacturing companies are mainly SMEs, now let's look specifically at the division by company form in ****.

Proportion of Different Legal Entities Italy, ****, in %. Source: ****

Then comparing the total production of bicycles and that of e-bikes, it can be seen that the latter sector has always been on the rise, even in years like **** and **** that had minus signs both in terms of production and sales. The starting numbers are extremely different: in ****, just **,*** e-bikes were produced in Italy and **,*** were sold, but it is clear that interest around this type of bike has increased.As of ****, the number of e-bikes produced was in fact ***,***

Production of Bicycles in Italy Italy, **** - ****, in units Source: ****

3.2 The Bicycle Supply Chain

The bicycle ecosystem consists of about **** enterprises in total, this also includes industrial machinery manufacturers and distributors. Specifically we can see that there are :

*** Industrial Machine Manufacturers who are involved, usually not exclusively, in the manufacture of industrial machinery (***) for bicycle production. *** Bicycle and component manufacturers: of which, as mentioned above, *** bicycle manufacturers and *% component-only manufacturers. *.*** Distributors engaged, even non-exclusively, in the sale or rental of bicycles: including **% wholesale distributors and **% retailers or renters.

Bicycle Ecosystem Italy, ****, in percent Source: ****

The supply chain is mainly concentrated in * regions :

**% in Lombardy **% in Veneto **% in Piedmont **% in Emilia Romagna

3.3 Distribution Channels

A total of **** companies are active in bicycle distribution between wholesalers and retailers/renters. The latter group is much more numerous than the former with revenues, due to sales volume reasons, much lower than wholesale distributors. In the following table it is possible to have a comparison between these two distribution channels :

Source: ****

Increasing importance then are finding online sites such as Bikester.it. or Evolutionbike, which offers the possibility of buying bicycles, frames, cycling clothing, accessories, tools and products for the maintenance of one's bike, components and even used bikes. Or PMondobicistore.com, which boasts a rather large catalog of various types of bikes (***), as well as accessories and clothing for cycling enthusiasts and professionals.

3.4 Bike Sharing Services

The term bike share refers to a temporary mobility service, i.e., a rental: the bicycle, normally through an app, is first reserved, unlocked, and is then ready for use. When one's ride is finished, it can be parked at a designated bike station or it can be parked freely, as long as it is in an area covered by the system.

In Italy, the number of people using this mobility system is growing steadily: from * million in **** to *.* million in **** and is expected to grow in the coming years to *.* million.[***]

Italy, with more than *** municipalities and other local authorities where bikesharing is active and **,*** shared bikes, is the European country where the spread, in terms of the number of active services, is the highest.

In France, where bikesharing has been a great success with the public, active services do not exceed ** cities

The North has ** percent of services and ** percent of shared bikes, compared with ** percent in the Center and ** percent in the South.

The main companies providing Bikesharing systems in Italy are: Bicincittà, operating in *** municipalities with a total of *,*** bicycles and *,*** stations, Clear Channel present in Milan and Verona with about *,*** bicycles and *** stations, Centro in bici, ...

3.5 Supply trends

There are several megatrends that we can find in the market, among which, according to Banca Ifis, the biggest will be : Supply chain transformation - The covid crisis and subsequent closures have resulted in waiting times of even ~*** days for component supplies in Europe in ****. While anticipating an increase in imports in the immediate future, European component manufacturers (***) have set a goal of less dependence on non-European supply and tripling the value produced to €* bn in ****.   EBike phenomenon grows. -sales growth in Europe is being driven by eBike, which is estimated to account for more than half of the market by ****. In the past * years in Italy, eBike sales have quintupled from just over **,*** annually to ***,*** in ****, representing **% of the total sold. Eighty percent of distributors also expect eBike sales to increase in the ****-**** biennium, and ** percent of manufacturers are confident that the eBike will be a lasting revolution in the world of mobility.   Continuous product innovation - In ****, ** percent of Italian manufacturers have increased or left unchanged the share allocated to investments. Digital, Sustainability and Research at the top of investment plans. In ****-****, **% of manufacturers intend to expand their target markets and **% will also aim to renew their ...

4.1 Types of Bicycle

As practices have evolved and bicycles have been promoted as a way of life, the latter has seen its forms multiply to meet the desires of users. Today, there is a multitude of different bicycles, for which a multitude of specific equipment is also available, making each bike unique. Performance, comfort, and safety in all terrains are emphasized, and manufacturers are redoubling their ingenuity to design the mi best vehicles.

City bikes

Comfort and safety are the key words. The city bike has a large number of options (***), and * gears for great versatility in the urban landscape. Its wheels are wider than those of road bikes but less than mountain bikes, making it stable and maneuverable. Finally, the frame ensures an upright seating position, and thus provides a clear view of city traffic

-The Dutch bicycle With its sturdy frame and comfortable seat thanks to a high, padded seat, the cyclist has the best visibility. It has * to * gears but no derailleur and is equipped with drum brakes, as well as a wide range of accessories to improve the comfort of urban riding (***). It is priced between *** and **** €.

-Mountain bike This bike aims for versatility and adaptability to both the urban ...

4.2 A continuous innovation of products in the market

In such a fragmented industry, several players are trying to differentiate themselves through innovative offerings. Two British startups, Rubee and Revos have thus developed their own small, removable kits that allow users to convert their "classic" bicycles to electric bikes. it is also possible to remove the kit and easily recharge it later. With prices of *** and *** euros depending on the model, the conversion is not very expensive, while the average price difference between a VAE and a TT is more than *,*** euros Another recent innovation involves the connected bicycle. The Visiobike electric bicycle can connect via Bluetooth to the user's smartphone, which is then used as a computer. The application is especially necessary at startup, because if the user does not type in the password on the smartphone, the bicycle will not start One of the topics that may attract customers is the ability to fold the bicycle, thus saving space. Peugeot's first folding bicycle, the eF** weighs less than ** kg. This also proposes communicating with a smartphone via the Mypeugeot APP app . In the electric sector, batteries can exhibit a " memory effect " This phenomenon affects the performance and durability of batteries when they are recharged before they are fully ...

5.1 Regulation

Bicycle standards are different by type of bicycle. We can distinguish different standards according to the classification of UNI EN, which is the Italian national unification body, a private nonprofit association that carries out technical standardization activities.

UNI EN ***** "City and trekking bicycles - Safety requirements and test methods." UNI EN ***** "Children's bicycles - safety requirements and test methods" UNIEN ***** "Mountain bicycles - Safety requirements and test methods" UNIEN ***** "Racing bicycles - safety requirements and test methods" UNI EN ***** "Electrically powered bicycles - safety requirements and test methods"

Article ** of the Highway Code describes the mandatory characteristics of a bicycle that can circulate on the road. It must be equipped with tires or possibly solid tires; however, in any case, the tread must be in good condition. All bicycles must be equipped with a braking system, a requirement that effectively outlaws so-called fixed-gear bikes.also mandatory are front(***) and on the wheels, also contribute to the same purpose. Another obligation that is very often taken lightly is that of the bell, which is indispensable on any type of bicycle, including racing bikes.

Anti-dumping law on bicycle imports

In ****, EU regulation imposed an anti-dumping duty on bicycles imported from China and in ...

6.1 Segmentation

• ITALWIN
• F.I.V. FABBRICA ITALIANA VELOCIPEDI EDOARDO BIANCHI SOCIETA' PER AZIONI
• AMG SRL
• SPORTLER
• RELEVEN SRL
• Decathlon Italie
• Accell Group
• PON HOLDINGS
• ATALA