Market Trends of Vietnam Bike-Sharing Industry
E-bikes Segment to Gain Traction during the Forecast Period
The government's aggressive push to promote the reduction of carbon emissions from the transport sector fosters the demand for sustainable transportation, consequently leading to increasing demand for e-bicycles in the sharing ecosystem, among other electric transportation mediums. This is further facilitated by the increasing traffic congestion in the country, owing to the higher two-wheeler usage. Therefore, to reduce carbon emissions, the government is actively encouraging citizens to use sustainable transportation mediums, which not only assists in reducing carbon emissions but also helps curb traffic congestion, thereby positively impacting the growth of the e-bike market segment.
- According to the General Statistics Office of Vietnam, the road passenger traffic in Vietnam stood at 123.52 billion person-kilometers in 2022 compared to 78.03 billion person-kilometers in 2021, recording a Y-o-Y growth of 58.2% between 2021 and 2022.
- According to a survey conducted in 2023, private motorcycles were the leading mode of transportation in Vietnam, with 86.84% of the 1,140 respondents stating that they use motorcycles for daily commutes, while bicycles were only preferred by 3.51% of consumers.
Companies such as G-Bike, TriNam, and TUMI are actively strategizing to expand their e-bike fleets in their sharing service model to complement the government's effort to reduce carbon emissions. These companies also cater to the growing need of consumers for sustainable transportation. E-bikes also enhance consumers' convenience when traveling as they offer a higher range and lower pedaling efforts compared to traditional bicycles. With the integration of e-bikes in sharing fleets in the coming years, the demand for this segment is projected to increase.
- In August 2023, TriNam Group announced its plan to deploy at least 500 electric bikes of the 1,000 bikes deployed in Hanoi as a bike-sharing model. To ensure that consumers can easily access these e-bikes, they are placed at certain tourist sports, buses, and parks across 79 rental stations within the city.
Assessing the lucrative opportunity, various domestic and international players, especially those of Chinese origin, are expected to integrate the e-bike sharing market in Vietnam to increase their profitability prospects, which, in turn, will contribute to the surging demand for this market segment. Moreover, with the development of dedicated bicycling paths for e-bikes, a massive demand for utilizing the new energy transportation medium will exist, thereby contributing to the market's growth during the forecast period.
Tourism Segment to Witness Surging Demand during the Forecast Period
The growing number of tourists arriving in Vietnam and the increasing preference of these consumers for lower-cost traveling services within the country are leading to excessive demand for bike-sharing services. Traditionally, tourists preferred car rental services or services provided by their tourism agency. However, with more tourists preferring to travel at their desired time, the demand for bicycle-sharing services has witnessed rapid growth in recent years. Cycling and walking within the city are the preferred choice for international travelers as it helps them to visit places based on their preferences and time.
- According to the Vietnam National Administration of Tourism, the annual revenue of the tourism sector in Vietnam touched VND 678.3 trillion (USD 26.9 billion) in 2023 compared to VND 495 trillion (USD 19.6 billion) in 2022, representing a Y-o-Y growth of 37.0% between 2022 and 2023.
Various companies operating in the ecosystem are actively strategizing to develop bike-sharing rental stations near tourist hubs and spots to cater to the increasing need. Companies like TriNam, Mobike, and Hue Smart Bike are spending hefty sums to expand their rental station network across these tourist sports. With the growing tourist arrivals from different countries, the demand for bike-sharing services is expected to record surging demand during the forecast period.
- According to the General Statistics Office of Vietnam, the number of international arrivals in Vietnam touched 12.6 million in 2023 compared to 3.66 million in 2022, representing a Y-o-Y growth of 244.2% between 2022 and 2023.
Apart from the demand by tourists, consumers prefer availing this service for daily commutes and leisure purposes, owing to the inclination toward a healthy lifestyle. Furthermore, the growing young population in the country also enjoys these services as they help them explore places at a lower cost compared to other transportation mediums. With the incorporation of subscription plan models and aggressive marketing strategies, the bike-sharing service model is projected to witness significant growth during the forecast period.
