Got this from IBISworld today. Interesting analysis of why Sydney is such a bad cycling city: hills!
Enjoy.
S.
- Bike revenue to hit the fast lane -
On the eve of International Ride to Work Day (20 June), there’s good news for bike shops and manufacturers: business information analysts IBISWorld estimate that bicycle industry revenue is set to grow by 17.2% over the next five years, topping $3.2 billion.
Despite years of ridership growth, the bicycle industry has yet to substantially benefit from the green trend. Since 2005, the number of Australians strapping on a helmet and hitting the streets has risen by 15.5%, with over 2 million Aussies now riding regularly. However, many of these riders simply dusted off bikes they already owned – which has meant the industry is yet to see sales matching the growth in riders.
Solid growth in commuter cyclists has been supported by new and improved cycling lanes and bike paths – not to mention exploding urban populations, higher fuel and parking prices and traffic congestion.
According to IBISWorld General Manager (Australia), Mr Robert Bryant, 2008 saw a rapid rise in the number of cyclists on our roads - jumping by 21.2% as the price of fuel reached record highs (increasing by 28% to reach $1.60 per litre in July of that year) – and the number of cyclists has continued to steadily increase since.
“Alongside high fuel prices, increased traffic congestion is also a primary factor driving more Australians to ditch the car in favour of the bike, particularly as public transport continues to be overcrowded and unreliable in many cities,” said Mr Bryant.
“Initiatives such as International Ride to Work Day further encourage Australians to take to two wheels. The number of Australians participating increased ninefold from 2006 (10,181 participants) to 2009 (95,000).”
The bicycle industry is about to begin seeing a boost as well. According to IBISWorld analysts, the $2.6 billion industry has actually declined over the past five years, due to the global financial crisis and poor consumer spending, but that is about to turn around.
IBISWorld forecasts that this year 1.2 million bikes will be sold in Australia, with the average price of $927 – driven up by pricy sports cycles, which sell for an average of $2,800. As consumers begin spending more freely, greater bike sales are expected to continue – particularly as traffic congestion continues to increase, alongside Australians’ health-consciousness and subsequent desire for a more active lifestyle. In addition, recent unrest in the Middle East has once again caused fuel prices to soar further supporting increased bicycle sales in 2011.
IBISWorld expects an additional $723.7million will be spent on a range of cycling accessories in 2011-12 from fashion and helmets to lights and repair kits and further $100 million will be spent on repairs and maintenance.
“Although the industry has slumped 13.1% from its $2.8 billion peak in 2005-06 due to the global financial crisis, we expect Australia’s bicycle industry to grow by 17.2% over the next five years to be worth a healthy $3.2 billion, with sales and distribution of bikes contributing 65% of revenue” Mr Bryant said.
While it has the highest population – and worst traffic jams – New South Wales’ lack of bike paths, hilly suburbs and proliferation of tight one-way streets has resulted in it having the nation’s lowest cycling rate. Just 7% of NSW residents cycle, well below the 10% observed in Victoria or 13% in the ACT.
To promote greater adoption of bicycles for transport the City of Sydney has developed the Cycling Strategy and Action plan 2007-2017. The plan aims to increase the number of trips in the City of Sydney from 2% of all journeys in 2006 to 10% by 2016.
The Victorian Government has also implemented a strategy to boost cyclist numbers called the Principle Bicycle Network. The network is designed to provide 2,400 kilometres of shared and dedicated bicycle paths in Melbourne. These initiatives will continue to support growth in bicycles sales over the next five years.
Interesting press release about growth in cycling
- simon.sharwood
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Hill + overweight population will always make a sinking feeling.
Fortunately there'll be increasing number of eBikes to the rescue.
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