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South America Bike Sharing Market Research Report 2023

South America Bike Sharing Market Industry Analysis and Forecast (2023-2030) by Type (Traditional Bike, E-bike), Sharing Type (Docked, Dockless, Hybrid), Model (Free-floating, P2P, Station based)

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Report ID: 209

Categories: Automotive

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South America Bike Sharing Market Synopsis:

South America Bike Sharing Market Size Was Valued at USD 234.00 Million in 2022 and is Projected to Reach USD 308.13 Million by 2030, Growing at a CAGR of 3.50% From 2023-2030.

Bike sharing refers to a system in which bicycles are made available for shared use to individuals on a short-term basis. These systems typically operate through rental stations where users can pick up bikes for a short period, often paying by the hour or through a subscription service. Bike sharing has gained popularity worldwide due to its convenience, affordability, and environmentally friendly nature, promoting sustainable urban transportation.

  • In South America, the bike-sharing market has experienced significant growth in recent years, driven by the region's focus on sustainable mobility solutions and the need for efficient urban transportation. Countries like Brazil, Colombia, and Argentina have seen the emergence of bike-sharing programs in major cities like São Paulo, Bogotá, and Buenos Aires. These programs are addressing traffic congestion, promoting healthy living, and reducing carbon emissions.
  • The applications of bike sharing in South America span various sectors, including commuting, tourism, and leisure. Commuters use bike-sharing services for short-distance travel, connecting them to public transportation hubs or navigating congested city areas quickly. Additionally, tourists utilize these systems to explore cities, enjoying a cost-effective and eco-friendly way to sightsee. Moreover, locals often use bike-sharing for leisure activities, promoting fitness and well-being.
  • The market scope for bike sharing in South America continues to expand, with governments, private companies, and non-profit organizations investing in infrastructure, technology, and awareness campaigns. The benefits include reduced traffic congestion, improved air quality, enhanced public health through increased physical activity, and cost savings for users compared to traditional transportation methods.

South America Bike Sharing Market Trend Analysis:

Bike-Sharing as a Key Diver of South America

  • The rapid increase in traffic congestion throughout South American cities is a significant driver behind the expansion of the region's bike-sharing market. As urban populations grow and car ownership rises, the resulting gridlock has extensive socio-economic consequences. Cities like São Paulo and Bogotá witness daily commutes averaging around two hours by car, leading to frustration and inefficiency.
  • This persistent congestion isn't merely an inconvenience but rather a substantial burden on economies. In Colombia alone, the yearly cost of traffic congestion reaches an astonishing $6.4 billion, highlighting the pressing need for effective solutions. Amidst this traffic chaos, bike-sharing programs emerge as a promising solution. These initiatives offer an attractive alternative to conventional transportation methods. By providing a fast, adaptable, and environmentally friendly means of commuting, bike-sharing helps alleviate the strain of crowded streets while reducing the environmental impact caused by excessive vehicle emissions.
  • The growing bike-sharing market owes a great deal of its momentum to the urgent need for congestion relief. With worsening traffic jams, people are actively seeking feasible alternatives to navigate city roads efficiently. Bike-sharing emerges as an accessible and practical solution, catering to commuters seeking relief from endless traffic. The economic advantages of reduced congestion play a crucial role in driving the popularity of bike-sharing. As traffic congestion hampers productivity, leading to lost work hours and increased fuel consumption, the cost-effectiveness and efficiency of bike-sharing become increasingly attractive to both individuals and businesses looking for sustainable commuting options.
  • As per the Tomtom application, the capital city of Colombia retained its position as the most congested city in the region in 2021, with a congestion level of 55%, signifying that travel times were, on average, 55% longer than under normal traffic conditions. Following closely were Lima, Recife, and Santiago. Nonetheless, congestion levels in 2021 stayed lower than those experienced before the pandemic. The impact of the post-lockdown period on congestion levels in 2022 remains uncertain and awaits observation.
  • The increase in bike-sharing initiatives across South America is closely tied to the critical need to tackle escalating traffic congestion. As urban areas grapple with the consequences of congested streets, bike-sharing emerges as an essential component of a comprehensive solution, offering a promising path towards smoother, greener, and more efficient urban mobility.

Empowering Low-Income Communities acts as a Major Opportunity

  • Focusing on low-income communities stands as a substantial prospect within South America's growing bike sharing market. Amidst mounting traffic congestion in urban areas, these communities often suffer the most from ineffective transportation systems. Nonetheless, bike-sharing initiatives offer a distinct avenue to tackle mobility hurdles encountered by those with limited access to traditional transport modes.
  • In numerous South American cities, low-income neighborhoods disproportionately face issues like traffic congestion, inadequate public transit, and a lack of affordable commuting choices. Introducing bike-sharing programs could act as a catalyst for change by offering an accessible and cost-efficient transportation alternative. Placing bike-sharing stations strategically in these underserved areas holds the promise of improving residents' mobility, making it easier to reach employment, education, and vital services.
  • Furthermore, the cost-effectiveness and adaptability of bike-sharing systems make them especially appealing to individuals within low-income communities. Compared to the expenses linked with car ownership or standard public transportation, bike-sharing emerges as a more economical option. This affordability extends beyond commuting expenses, positively impacting household budgets for those facing transportation cost challenges.
  • As South America's urban landscape evolves and contends with traffic challenges, harnessing bike-sharing to meet the needs of low-income communities emerges not just as an opportunity but as a socially conscious and inclusive approach to addressing transportation issues.

Bike Sharing Market Segment Analysis:

South America Bike Sharing Market Segmented based on type, sharing type, and model.

By Model Type, Station Based segment is expected to dominate the market during the forecast period.

  • Station-based systems were indeed prevalent in many cities across the continent, offering users the convenience of picking up and dropping off bikes at designated stations.
  • The success of station-based systems often depends on factors such as urban infrastructure, government support, population density, and the local biking culture. These systems tend to offer a structured approach and convenience in terms of organized parking and availability, making them appealing to users.
  • The market might also include P2P or free-floating bike-sharing models, where users can locate and unlock bikes through smartphone apps, offering more flexibility in terms of pick-up and drop-off locations.

By Type, Traditional Bikes segment held the largest share of 63% in 2022.

  • The dominance of traditional bikes in the South American bike-sharing market can be attributed to several key factors. Their lower cost plays a significant role in their prevalence. Traditional bikes are generally more affordable to purchase, maintain, and operate for bike-sharing companies compared to their electric counterparts. This affordability makes them a more accessible and profitable option for these businesses, allowing wider adoption among the population.
  • Another contributing factor is the familiarity people in South America have with traditional bikes. With a long history of using conventional bicycles for transportation, people find them more comfortable and convenient compared to newer alternatives like e-bikes. This familiarity encourages greater acceptance and usage among the populace.
  • Existing infrastructure in many South American cities, such as dedicated bike lanes and parking spaces, primarily supports traditional bikes. While e-bike infrastructure is less developed, the infrastructure already in place favors the use of traditional bikes, further cementing their dominance in the market.

South America Bike Sharing Market Regional Insights:

Brazil Is the Dominant Country In The South American Bike-Sharing Market

  • Brazil holds roughly 52% of the market share, with around 42 bike sharing systems operational across 18 cities. Brazil's substantial number of operational systems across multiple cities significantly outnumbers those in other South American countries, indicating a widespread and established infrastructure for bike-sharing.
  • The presence of Tembici, the largest station-based bike-sharing scheme in Latin America, primarily operating in Brazil, contributes significantly to the country's dominance. This presence results in a larger user base and market share for Brazil compared to other countries in the region.
  • Brazil's ability to attract more investment and funding for bike-sharing initiatives plays a pivotal role. This financial support enables the expansion and development of more sophisticated and efficient bike-sharing systems across the country, contributing to its competitive edge.

South America Bike Sharing Market Top Key Players:

  • Ecobici
  • Bici Q
  • Movete
  • BKT
  • Moventia
  • Tembici
  • Bike Santiago
  • Encicla
  • Bim Bim Bikes
  • Grow Mobility
  • Loop
  • Bike Rio, and Other Major Players

Key Industry Facts in the South America Bike Sharing Market:

In December 2023, The U.S. International Development Finance Corporation (DFC) and IDB Invest are co-investing a combined $23 million in equity in micro-mobility platform Tembici, to support the expansion of bicycle-sharing services in Latin America. The project is expected to grow Tembici's active users in Brazil, Colombia, Chile, and Argentina from 300,000 in 2023 to more than 1 million by 2029. The number of trips is projected to more than triple, to close to 600 million by 2029. This will significantly reduce annual CO2 emissions, equivalent to removing 15,000 passenger cars off the road, by increasing the number of bike trips in cities as an alternative to cars. Tembici will help protect both the health of residents and the climate globally.

In April 2023, Uber Technologies Inc. announced a deal with Brazilian bike-sharing company Tembici to make electric and common bicycles available on its app in Latin America amid a push for greener initiatives. The deal was aimed at making it easier for people to travel short distances on bicycles instead of cars, while also helping the firm in its goal of becoming a fully zero-emission platform by 2040.

South America Bike Sharing Market

Base Year:

2022

Forecast Period:

2023-2030

Historical Data:

2017 to 2022

Market Size in 2022:

USD 234.00 Mn.

Forecast Period 2023-30 CAGR:

3.50%

Market Size in 2030:

USD 308.13 Mn.

Segments Covered:

By Type

  • Traditional Bike
  • E-bike

By Sharing Type

  • Docked
  • Dockless
  • Hybrid

By Model

  • Free-floating
  • P2P
  • Station based

By Region

  • South America (Brazil, Argentina, Rest of SA)

Key Market Drivers:

  • Bike-Sharing as a Key Diver of South America

Key Market Restraints:

  • Unequal distribution of programs

Key Opportunities:

  • Empowering Low-Income Communities acts as a Major Opportunity

Companies Covered in the report:

  • Tembici, Bike Rio, Grow Mobility, Bici Q , and Other Major Players.

Frequently Asked Questions

What would be the forecast period in the South America Bike Sharing Market research report?

The forecast period in the South America Market research report is 2023-2030.

Who are the key players in the South America Bike Sharing Market?

Ecobici, Bici Q, Movete, BKT, Moventia, Tembici, Bike Santiago, Encicla, Bim Bim Bikes, Grow Mobility, Loop, Bike Rio, and Other Major Players

What are the segments of the South America Bike Sharing Market?

The South America Bike Sharing Market is segmented into Type, Sharing Type, Model, and North America. By Type, the market is categorized into Traditional Bike, and E-bike. By Sharing Type, the market is categorized into Docked, Dockless, and Hybrid. By Model, the market is categorized into Free-floating, P2P, Station based. By region, South America (Brazil, Argentina, Rest of SA).

What is the South America Bike Sharing Market?

The South America Bike sharing refers to a system in which bicycles are made available for shared use to individuals on a short-term basis. These systems typically operate through rental stations where users can pick up bikes for a short period, often paying by the hour or through a subscription service. Bike sharing has gained popularity worldwide due to its convenience, affordability, and environmentally friendly nature, promoting sustainable urban transportation.

How big is the South America Bike Sharing Market?

South America Bike Sharing Market Size Was Valued at USD 234.00 Million in 2022, and is Projected to Reach USD 308.13 Million by 2030, Growing at a CAGR of 3.50% From 2023-2030.

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