Middle East & Africa Bike Sharing Market Research Report 2023

Middle East & Africa Bike Sharing Market Synopsis:

Middle East & Africa Bike Sharing Market Size Was Valued at USD 282.28 Million in 2023, and is Projected to Reach USD 382.05 Million by 2032, Growing at a CAGR of 3.42% From 2024-2032.

Bicycle sharing, a system enabling individuals to rent bikes for short periods affordably, has emerged as an innovative solution for urban transportation in the Middle East and Africa (MEA). This approach offers convenient, eco-friendly mobility, catering to the region's efforts to ease traffic congestion, encourage healthier lifestyles, and curb carbon emissions.

• Bike sharing services in the MEA region find diverse applications, serving short commutes, sightseeing, exercise, and leisure. They particularly excel in providing a last-mile connectivity option, efficiently bridging the gap between transit stops and final destinations for commuters using public transport.
• Encouraged by increasing urbanization, growing environmental consciousness, and government backing for sustainable transport, the MEA bike sharing market displays promising growth. Nations like the United Arab Emirates, South Africa, and Morocco witness the establishment and growth of bike sharing networks, often through collaborations between public and private entities.
• The bike sharing landscape varies across the MEA region. While some cities enthusiastically embrace bike sharing, others encounter challenges like insufficient infrastructure, safety issues, and cultural factors influencing adoption rates.
• The potential for bike sharing in the MEA region remains substantial. As urban development continues and the focus on sustainable mobility solutions intensifies, the market is primed for expansion. With concerted efforts from governments and stakeholders to address infrastructure gaps and advocate for cycling-friendly policies, the bike sharing industry is expected to flourish, enhancing accessibility and fostering more sustainable transportation ecosystems across the region.

Middle East & Africa Bike Sharing Market Trend Analysis:

Transforming Transportation and Cultures in the Middle East and Africa

• The Middle East and Africa are experiencing a growing trend centered on prioritizing cycling infrastructure and promoting a biking culture. This movement is fueled by various advantages that specifically cater to the region's distinct needs and challenges.
• Enhancing accessibility and ensuring safety are crucial factors. The introduction of dedicated cycling lanes tackles safety issues prevalent in crowded urban areas, encouraging both families and commuters to adopt cycling as a dependable mode of transportation. Implementing measures like roundabouts for traffic calming purposes not only improves safety but also creates a conducive environment for cyclists and pedestrians alike.
• There is a strong emphasis on the positive impacts on health and the environment, particularly in regions grappling with air pollution challenges. The promotion of cycling not only alleviates traffic congestion but also addresses air quality concerns, aligning with sustainability objectives. Furthermore, the focus on physical activity aligns with efforts to enhance public health, which is especially vital in these regions.
• From an economic perspective, investments in cycling infrastructure offer a dual advantage. They generate employment opportunities in construction and maintenance, while also stimulating growth in the bike-sharing market, thereby creating jobs in rental services and technology development. Moreover, supporting local businesses along cycling paths contributes to economic expansion by increasing foot traffic and consumer spending.
• Government initiatives in the Middle East and Africa, exemplified by Dubai's ambitious Bike Sharing Master Plan and Abu Dhabi's comprehensive cycling strategy, serve as role models for fostering a biking culture. Initiatives in Rwanda and Kenya further highlight the region's dedication to sustainable transportation solutions.

The Integration of Advanced Technologies for Improved User Experience

• The Middle East and Africa is expected to hold great potential for advancing their bike-sharing markets by embracing cutting-edge technologies, aiming to enhance user experiences and expand market reach.
• The integration of advanced technologies offers a promise of increased convenience and efficiency, particularly vital in regions seeking to streamline transportation systems. Innovative smart locking systems, utilizing RFID or Bluetooth, enable swift and hassle-free bike access, reducing waiting times for users. Mobile apps providing real-time bike availability and trip tracking empower users with immediate information, simplifying planning and utilization of bike-sharing services. Furthermore, offering various payment options aligns with the region's digitalization trends, making transactions more straightforward.
• Merging bike-sharing with other transportation modes significantly enhances accessibility and convenience. This multimodal integration facilitates seamless connections between bikes and public transport, addressing the common challenge of last-mile commuting in many cities across the Middle East and Africa.
• Technological advancements also contribute significantly to bolstering safety and security measures. Geo-fencing features help prevent theft and vandalism, ensuring bikes stay within designated areas. Emergency call support systems embedded in apps enhance user safety by enabling quick reporting of incidents or requesting assistance, thereby creating a safer biking experience.
• Personalization remains a significant factor, and technological innovations cater to individual preferences. Features like route planning, gamification elements, and data-driven insights contribute to a tailored user experience, encouraging greater bike usage and promoting healthier lifestyles.

Middle East & Africa Bike Sharing Market Segment Analysis:

Middle East & Africa Bike Sharing Market Segmented based on type, sharing type, and model.

By Type, Traditional Bike segment is expected to dominate the market during the forecast period

• Traditional bikes are considerably more affordable than e-bikes, making them accessible to a broader consumer base, particularly in regions with lower average incomes. The cost-effectiveness of traditional bikes appeals to many individuals, especially in areas where economic constraints prevail.
• Furthermore, the lack of adequate infrastructure poses a challenge for the widespread adoption of e-bikes. The absence of dedicated charging stations and proper bike lanes limits the feasibility and convenience of using e-bikes compared to the more established and versatile traditional bicycles.

• Cultural preferences deeply rooted in the region also contribute to the continued dominance of traditional bikes. Generations have relied on traditional bikes for transportation and daily errands, fostering a cultural inclination towards these familiar and reliable modes of transport.
• The relatively new concept of e-bikes in these regions contributes to limited awareness. The unfamiliarity with the benefits and functionalities of e-bikes hinders their widespread adoption compared to the well-established presence and understanding of traditional bikes.

By Sharing Type, the Dockless segment held the largest share of 70% in 2022

• The flexibility and convenience offered by dockless systems stand as a primary driver of their dominance. Users appreciate the freedom to locate and drop off bikes within specified zones without the constraints of fixed docking stations. This flexibility is especially appealing in densely populated urban areas where finding available docking points can be challenging with docked systems.
• Another critical factor bolstering the dominance of dockless systems is the lower infrastructure costs associated with their implementation. Unlike docked systems necessitating dedicated stations and docking infrastructure, dockless setups require minimal physical infrastructure, making them more financially viable, especially in markets with limited resources and infrastructural development.
• The integration of technological advancements, particularly the widespread use of smartphones and mobile payment solutions, has significantly contributed to the success of dockless systems. These systems rely on user-friendly mobile apps for bike rentals, authentication, and payment, aligning with the tech-savvy preferences of modern consumers in the region.
• The scalability inherent in dockless systems is a substantial advantage. They offer operators the flexibility to expand swiftly into new areas without the logistical constraints of installing fixed stations. This adaptability to changing demands and the ability to rapidly broaden market coverage enhances their attractiveness to operators seeking growth opportunities in the Middle East and Africa.

Middle East & Africa Bike Sharing Market Regional Insights:

United Arab Emirates (UAE) Currently Leads The Bike-Sharing Market In The Middle East And Africa Region

• The United Arab Emirates (UAE) has emerged as a frontrunner in the bike-sharing market within the Middle East and Africa region, holding a substantial market share of approximately 25%. This leading position owes itself to several influential factors that have propelled the growth and adoption of bike-sharing initiatives within the country.
• One of the key factors contributing to the UAE's prominence in the bike-sharing realm is its early adoption of such programs. Initiatives like Dubai's 'Careem Bike' and Abu Dhabi's 'Biky' were launched as early as 2018-2019, signifying the nation's proactive approach towards embracing bike-sharing solutions ahead of other regional counterparts.

• Government support and proactive policies have played a significant role in nurturing the bike-sharing ecosystem in the UAE. Investments in cycling infrastructure, coupled with supportive regulations and incentives, have fostered a conducive environment for bike-sharing programs to flourish across various emirates.
• The influx of tourists in the UAE, attracted by the country's diverse offerings and health-conscious travel trends, has further fueled the demand for convenient and environmentally friendly transportation alternatives such as bike-sharing. This demand surge among health-conscious travelers has significantly contributed to the success and expansion of bike-sharing services in the country.
• The UAE's readiness to adopt and integrate cutting-edge technologies into bike-sharing programs has been instrumental. The utilization of mobile apps and smart locking systems has enhanced user experiences, making bike-sharing more accessible, convenient, and aligned with the tech-savvy preferences of the UAE's population and visitors alike.

Middle East & Africa Bike Sharing Market Top Key Players:

• Careem Bike
• Cyacle
• ArborBike
• Nextbike
• Donkey Republic
• GoBike
• Nablus Bike Share
• Bbox
• Mobike
• HelloRide
• EasyWheels
• PBSC, and Other Major Players

Key Industry Facts in the Middle East & Africa Bike Sharing Market:

In April 2023, Careem Bike appointed PHAR as its exclusive partnership agency. PHAR Partnerships is thrilled to officially announce its appointment by Careem BIKE as its exclusive partnership agency. Careem BIKE aims to enhance livability through sustainable, eco-friendly transport, boasting 175 stations and 1,750 E-Bikes in Dubai, expanding to 65 stations and 700 E-Bikes. PHAR launched the Careem Bikeshare Partnership Programme to collaborate with firms aligning with the UAE's eco-transport vision.

In October 2023, Careem Bike, integrated into the Careem Everything App, has played a significant role in environmental sustainability by offsetting a substantial 2,976,482 tons of CO2, akin to the emissions of 834 cars. This initiative aligns with the UAE's ambitious objective to slash emissions by 40% before 2030. Concurrently, Careem's ride-hailing sector witnessed a remarkable shift, with 53% of trips in 2023 completed through hybrid or electric vehicles. This fleet upgrade comprises over 75 electric Teslas and more than 1,400 hybrids, which, compared to internal-combustion engines, emit a mere one-third of emissions. Careem's proactive efforts underscore a commitment to promoting cleaner transportation and aiding the UAE's eco-friendly targets, marking a substantial step towards sustainable mobility solutions.