Industry Trend Analysis - Competition In Bike Sharing Industry To Benefit NB-IoT Providers - NOV 2017


BMI View: The pace of expansion in the bicycle sharing industry will slow due to market saturation in most of the Tier 1 and 2 cities and tighter government regulations. As the market matures, we expect competition in the industry to intensify, which would encourage some players to adopt Narrowband Internet of Things (NB-IoT) technology in a struggle to gain competitive advantages.

We believe that the pace of domestic expansion in the bike sharing industry is likely to slow over the coming quarters as a result of both market saturation in most of the Tier 1 and 2 cities and tighter government policies. In fact, various cities have reported congestion caused by shared bicycles, and some cities have banned companies from deploying new bicycles on streets. As market growth slows, competition between incumbents will likely intensify as they strive to gain or retain market share. They should look to narrowband Internet of Things (NB-IoT) technology to gain comparative advantage by improving user experience and their own inventory management, while also tapping into the big data market.

Pace Of Market Expansion To Slow

Slower User Growth Points Towards Market Saturation
Mobile App Active Users, mn
Source: Wind, BMI

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