The NORDIC bike-sharing market is poised to register a CAGR of over 6% during the forecast period (2020 - 2025).
- NORDIC cities are implementing stricter regulations such as prohibiting the entry of motor vehicles in city centers and promoting electric vehicles in public transport, and other environment-friendly alternatives in city centers such as bike-sharing/ e-bike sharing.
- Increasing traffic congestion, insufficient mass public transport, increasing rates of road fatalities, growing awareness among peoples for environmental concerns, will drive the bike-sharing market. Bike-sharing provides a convenient way of transportation at minimum cost without any hassle.
- The current bike-sharing platforms are using various technologies such as IoT, QR codes, smart-locks, and GPS technology for providing dockless bike-sharing services. Dockless sharing does not have the requirement to distribute the fleet and from the user perspective, they don’t have to face the hassle of finding an available docking station.
- Citizens of countries such as Norway were always surrounded by digital solutions, and they trust on technology. Another fact which supports this point is strong network connectivity throughout the country, which supports online bike-sharing schemes.
Key Market Trends
E-Bike Rentalis Providing the Growth in Market
In 2019, Finland, Sweden, Norway, Denmark, and Iceland have signed a declaration to collectively work towards carbon neutrality. One of the important aspects of this declaration is to decarbonizes the transport sector along with that they will encourage local companies, investors, local governments, organizations, and consumers to upscale their efforts towards carbon neutrality.
Cycling is one of the best alternatives for greener urban transport in these countries. For instance, Helsinki in Finland which is already considered one of the best cities in the world to cycle, with around 70% of the citizens opt for cycling at least for some time, and around 10% of all journeys being undertaken by bicycle and plan of local authorities in Helsinki is to increase this number to 15% by 2020,
Also after the introduction of e-bike cyclists are moving toward it as the electric motor can easily assist with up to 25 km/hand through control unit on e-bike level of assistance can be set. Existing bike-sharing companies are replacing or adding electric bikes in their fleet to stay in the competition.
For instance, in 2018, JCDecaux SA an advertising company and bike-sharing company announced that it has been awarded a contract by the city of Stockholm for advertising street furniture through e-bike sharing. According to the contract, the company will operate and maintain 5000 e-bikes at 300 dockless e-parking bike stations.
Tourism will provide the boost to the Market
Bicycle touring is famous in countries such as Sweden, Finland, and Norway, these countries natural beauty is worth exploring in bikes. These countries have rich forests, several lakes, rivers, waterfalls, and rich wildlife which makes this group of countries a tourist paradise. A suitable time for bicycle touring in NORDIC countries summer.
During bicycle touring in Sweden, Finland, and Norway till anyone is not causing any damage to the natural environment tourists can move from one country to another as there is a regulation called “The Right to Roam” or the “Allemannsretten.”
Even the cities of the NORDIC countries are bicycle-friendly as there are alternative roads by which there is no pressure of traffic. Along with that, there is a wide network of bike paths, less traffic, the well-maintained road makes these countries safer to cycle on the majority of its streets.
The NORDIC bike-sharing market is fragmented with the presence of the number of regional players active in each country, along with that new startups are entering into the market. The market is highly driven by factors like advanced technology, easy to use renting schemes, growing investment, and startups entering into new countries. To provide a more convenient experience to the commuter, major bike rental service providers are expanding their market reach and adding more advanced features in their bikes. For instance,
- In 2018,oBike a Singapore based company launched its pilot project of dockless bicycle sharing service at the University of Oslo (UiO). Company bikes are equipped with smart locks and can be found through the app. The company plans to enter into other markets such as the Czech Republic, Greece, Italy, Norway, Poland, Portugal, and Sweden.
- In 2018, CityBike a Finland based bike-sharing startup partnered with Stage Intelligence a scheme management solutions provider for including artificial intelligence in the bike-sharing platform.
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