According to a report by Global Industry Analysts, the world bicycles market is projected to reach in excess of $61 billion by 2010, growing at a CAGR of 5.28% over the 2001-2010 period. Asia-Pacific, with a share estimated at 47.36% in 2007, is the largest bicycle market worldwide. The region is also slated to record the fastest growth with a CAGR of over 6.33% during the 2001-2010 period.


In the U.S., nearly 95% use bikes for health and leisure purposes and the rest use it for transportation purposes.


The report notes that bicycles manufactured in recent years are very advanced compared to the bikes of yesteryear. These high-technology and high-performance bicycles need more maintenance. Big companies like Shimano Bicycle Company are striving to make state-of-the-art components. Mountain bikes and all-terrain bicycles are receiving significant attention, as these make up two thirds of the total bicycle sales.


Overall growth is also expected to arise from the increasing popularity of electric bicycles. China is the largest market for electric bicycles in the world and is expected to be the leader in the foreseeable future. China is also the largest producer of electric bicycles in the world. The country accounts for a lion's share of electric bicycles sold in major markets including Europe and the US.


While exports to the US are in the form of complete units, exports to Europe are in the form of components that are assembled and sold under local brand names. Other potential markets include densely populated areas such as India and Africa.
 
The report notes that the world's major manufacturing centers are shifting to Southeast Asia. Many North American brands and European brands are now being assembled in the Far East.