The Japan Bicycle Components Aftermarket is anticipated to grow at a steady pace, recording a CAGR of 5.40% during the forecast period between 2025 and 2035. In 2024, this development was propelled by growing consumer demand for high-performance and long-lasting aftermarket parts, especially among urban dwellers and cycling enthusiasts.
The boom in e-bike popularity drove demand for battery packs, motors, and drivetrain units, with conventional bicycles experiencing an uptick in sales of lightweight alloy frames, disc brakes, and ergonomic saddles.
According to the research report, the industry is expected to reach USD 860.17 million in 2025 and USD 1,455.43 million in 2035. The increasing demand for lightweight, high-performance, and durable bicycle components, coupled with rising consumer interest in cycling as an environmentally friendly and health-conscious mode of transportation and recreation, will drive this growth. Another factor expected to impact component sales is the rapid adoption of electric bicycles.
Consumers will look for performance upgrades, so demand for advanced drivetrain technology, lightweight frames, and smart accessories will grow. Additionally, sustainability trends will drive manufacturers to create eco-friendly components and parts from recycled materials.
With the increasing integration of technology-based solutions, like IoT-enabled components and AI-based performance analytics, the demand in the sector will also evolve. Consumers in Japan (who have notoriously high expectations for precision engineering) will still push demand for premium components. Moreover, online retailers are predicted to grow, providing cyclists with easy access to various things.
Market Metrics
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 860.17 million |
| Industry Value (2035F) | USD 1,455.43 million |
| CAGR (2025 to 2035) | 5.40% |
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A recent Future Market Insights (FMI) survey analyzed past and present trends in Japan’s bicycle component landscape, gathering input from manufacturers, retailers, cycling enthusiasts, and policymakers.
Over three-fourths (73%) of those surveyed indicated that e-bikes have become the chief catalyzing force driving demand for advanced features in bikes, such as high-efficiency drivetrains, lightweight frames, and integrated connectivity systems. The move toward customization and premiumization, manufacturers said, is transforming the after sector as consumers look for high-performance parts specific to their riding styles.
Retailers noted a spike in online component sales, with more than 60 percent saying they were moving toward digital channels. Consumers increasingly use e-commerce to their advantage, in search of lower prices, product selection or easier access.
Shoppers increasingly treat sustainability as a decision driver, according to nearly 55% of retailers surveyed, resulting in demand for green components made from recycled materials or biodegradable composites. The survey also delved into the challenges of the automotive supply chain, which has been reporting disruptions in production as commodity prices and delivery constraints have changed, with 42% of component suppliers now indicating having faced supply chain issues.
Despite this, they expect investment in research and development (R&D) to continue to improve product durability and performance with 67% of industry executives optimistic about long-term growth. Many also expect more partnerships between Japanese companies and foreign companies to broaden technological capabilities.
Regulatory developments emerged as a key concern among stakeholders also came to light, with nearly one in two respondents (49%) stating that evolving government policies on emission control, import tariffs, and safety standards will have a significant impact on the industry.
| Countries | Regulatory Impact |
|---|---|
| Japan | The Japanese government provides subsidies for e-bikes, encouraging adoption. Stricter safety standards for lithium-ion batteries and braking systems have been introduced to ensure rider safety. |
| United States | The Consumer Product Safety Commission (CPSC) mandates safety regulations for bicycle components, particularly brakes and electrical systems for e-bikes. Tariffs on imported components affect pricing. |
| Germany | The St.VZO (German Road Traffic Licensing Regulations) enforces strict component standards, especially for lighting and braking systems. The government also offers incentives for sustainable bicycle production. |
| China | New national standards require e-bike components to meet stringent weight and speed limits. The government is encouraging local manufacturers to focus on battery efficiency and fire safety regulations. |
| France | The government provides grants for e-bike purchases, boosting demand for sector components. Stricter European Union (EU) regulations on emissions are influencing material choices in production. |
| United Kingdom | Post-Brexit trade policies have affected import costs for bicycle components in the UK. While the UK has developed its own regulatory framework, some safety and emissions standards may still align with EU regulations. However, divergence in regulatory requirements is expected to grow over time, impacting component manufacturing and compliance processes. |
| 2020 to 2024 | 2025 to 2035 (Forecast) |
|---|---|
| Steady growth due to increased cycling adoption, especially post-pandemic. Urban commuting and e-bikes gained traction. | Continued growth driven by technological advancements, smart biking solutions, and sustainability innovations. |
| Surge in demand for fitness and commuting bikes. Supply chain disruptions affected component availability. | Strong demand for high-performance, personalized, and eco-friendly components. Connectivity features will become more popular. |
| Lightweight materials, electronic shifting systems, and early smart biking tech gained traction. E-bike components saw strong adoption. | AI-driven components, integrated GPS, energy-efficient drivetrains, and lightweight, sustainable materials will drive innovation. |
| Government promoted cycling infrastructure. Stricter environmental regulations encouraged sustainable components. | Cycling-friendly policies will continue. More stringent regulations on carbon emissions and battery disposal for e-bikes may emerge. |
| Established brands dominated, but smaller players gained traction. Mergers and acquisitions reshaped competition. | Industry consolidation may continue. Collaborations between tech companies and bicycle manufacturers will lead to new innovations. |
| Road groupsets, derailleurs, and wheelsets were in high demand. E-bike components gained momentum. | Smart components, e-bike parts, and sustainability-focused materials will grow fastest. Customization and after-sale services will expand. |
| Specialty bicycle retailers led the sector. E-commerce gained traction. Budget-conscious buyers relied on discount and department stores. | Online sales will grow further. Direct-to-consumer models will rise. Physical stores will focus on service-oriented experiences and customization. |
| Urban adoption surged due to traffic congestion and eco-awareness. Rural growth was moderate due to limited infrastructure. | Urban cycling infrastructure will keep expanding. Rural areas will see more growth due to cycling tourism and adventure biking trends. |
| Early adoption of sustainable materials. Consumers started showing interest in longer-lasting components. | Sustainability will be a major driver. Demand for recyclable, biodegradable, and ethically sourced materials will rise. Brands will introduce circular economy initiatives. |
| Supply chain disruptions, raw material shortages, and pricing fluctuations caused sector instability. | Managing rising production costs, competition, and regulatory compliance will be key challenges. Brands must innovate to stay profitable. |
The bicycle component aftermarket sector in Japan is witnessing a consistent expansion across multiple segments, propelled by changing consumer preferences and advancements in technology. The bicycle component aftermarket in Japan is likely to be dominated by the road groupset segment, with a share of 55.9%.
The demand for derailleurs has also been increasing as cyclists demand smoother and more efficient gear transitions. As technology evolves, so do us cyclists who are upgrading our bicycles, both on the road and in the professionals, thanks to electronic shifting systems.
Newer lightweight and durable materials have also garnered interest with the introduction of advanced derailleurs that facilitate rapid and accurate shifting, as well as years of dependable service. Due to the strong road cycling culture prevailing in Japan, road grouplets segment dominates the overall sector.
Cycles would increasingly use high performance grouplets which incorporate advanced materials and electronic shifting functionality. The weight saving drive and aerodynamic performance have led to premium road grouplets created for both competitive and leisure riders. The suspensions segment is growing steadily as mountain biking and off-road cycling become increasingly popular.
As comfort and control is paramount to cyclists who need to absorb gaps in the road to make it to the next climb, suspension systems are a common feature across nearly all high-performance models. riders benefit from adaptive systems that are customized to the terrain with adjustable suspensions and smart technologies.
The segmented wheel sets are highly consumed, due to the demand for wheels which are aerodynamic, lightweight, and durable. Wheel sets that enhance speed, stability and endurance are what cyclists look for. Carbon fiber is still a mainstay, offering high-end solutions for road and mountain bikers.
Specialty bicycle retailers remain the top sales channel, with cyclists looking for expertise and high-quality products. The bicycle component Landscape in Japan is likely to be dominated by the Department store segment, with a share of 36.8%.
It means enthusiasts want in-depth discussions before purchasing high-end components, and specialty stores are their first choice. In parallel, there are discount and department stores catering to the budget-conscious consumer who just wants components that work.
People who exercise and recreate strive for cycling as one of the key training options which is beneficial for multi-line dealers and outdoor service stores. Stores cater to a wide range of cyclists, from casual riders to professionals, offering a variety of high-quality bicycle components and accessories.
E-commerce remains robust, allowing other sales channels, such as online platforms, to exert greater influence. The mountain bike continues to grow as off-road cycling becomes increasingly more popular. Riders require tough, long-lasting parts that are capable of handling harsh environments. In comparison, the hybrid and cross-bike category appeals to urban commuters and leisure riders looking for speed without compromising comfort.
Japan’s long-standing road cycling culture keeps road bikes at the forefront of the segment, with enthusiasts and professional riders continually upgrading components to enhance performance. Enthusiasts and pro riders routinely upgrade components to enhance performance, fueling demand for lightweight, aerodynamic components.
Models purpose-built for easygoing riding are also beginning to take off, especially among casual riders, many of whom are older and looking for something simple to use. The youth bike sector is benefitting from increasing cycling awareness among parents looking to promote outside play for kids. Brands launch durable safety-minded parts designed specifically for children.
In a similar vein, demand in the cruiser bike segment remains stable, attracting riders looking for style and comfort. The recumbent and tandem bike sector is a small niche segment but has ample opportunity for specialization, targeting buyers interested in unique riding experiences.
This means that these specific bikes also need specialized components that support both stability and comfort. The electric bicycle industry is booming as sustainable movement solutions are rapidly gaining in the urban environment. Consumers require high-performance components that boost efficiency and range, such as state-of-the-art battery systems and motorized drivetrains.
The folding bike segment is growing, particularly in urban environments where it helps save space. Commuters seek small, lightweight parts that improve portability and durability. With new cities creating cycling-friendly infrastructure, folding bikes are also gaining traction, subsequently increasing demand in the market.
The Kanto region, which includes Tokyo and surrounding prefectures, is Japan’s most populous and most urban area. Bicycling is a very practical mode of transportation, coupled with the constant demand for bike components. E-bike use has increased and so has demand for segment components like specific batteries and motors.
Components that are built to withstand the rigors of city cycling are a must for urban cyclists, while recreational cyclists are in search of performance upgrades. With its extensive retail infrastructure including numerous specialty bike shops and online destinations, the region has a well-developed cycling industry.
Chubu's terrain ranges from coastal to mountainous since it is in central Japan. Cycling is popular both for transport and recreation especially in beautiful areas such as the Japanese Alps. This diversity creates needs for many different components, from hardier gears for mountain biking to lighter parts for riding on roads. Chubu has manufacturing hubs, meaning that quality parts for the cycling industry can be sourced locally. Additional interest in high-performance landscape parts is driven by cycling events and tourism.
The Kinki region also referred to as Kansai includes cities such as Osaka and Kyoto. Bicycles are core to daily Taylor life, as a lot of locals commute short distances by bike. This utilitarian use creates constant demand for replacement parts. Tourists and recreational cyclists flock to the region's diverse cultural heritage and heritage sites and cycling routes, creating demand for landscape upgrades.
Cycling enthusiasts in the Kinki region seek high-quality components for both daily commuting and performance upgrades, driven by a strong local cycling culture. Local manufacturers and retailers meet a full range of consumer needs, from basic maintenance parts to specialty materials for performance enthusiasts.
Southern Japan’s Kyushu and Okinawa also enjoy a warm climate, so these areas are perennially great cycling destinations as well. Due to low maintenance needs, bicycles are commonly used for commuting within urban centers like Fukuoka. The area also features picturesque roads that draw recreational cyclists, so there is interest in performance-increasing landscape equipment.
Localized campaigns calling for cycling tourism have also contributed, as have suppliers such as those mentioned here, putting devices on the landscape and encouraging retailers to carry a range of components to satisfy local demand as well as those visiting.
Northeastern Japan is home to the rural Tohoku region, known for its green sectors and a climate that features four distinct seasons. This is the peak cycling season, which means cyclists in the region seek components specialized for long-distance and touring.
Cycling and sustainable tourism has become common in the area, and it is learned that plans to develop cycle lanes throughout the area as part of revitalization continue, with foreign demand for better bicycle components following suit. To serve Tohoku cyclists, local retailers often emphasize durable and weather-resistant parts.
| Company | Market Share & Insights |
|---|---|
| Shimano Inc. | Holds a substantial share in Japan due to strong domestic presence. |
| Accell Group N.V. | Holds ~8% of the global industry share; strong in electric and high-performance bicycles. |
| Giant Manufacturing Co. Ltd. | ~10% of global sector share; significant presence in the Asia-Pacific region, including Japan. |
| Specialized Bicycle Components | Strong global presence; contributes meaningfully to Japan's aftermarket, but exact share is unknown. |
| Campagnolo S.R.L. | Focuses on premium road cycling components; has a dedicated but smaller share in Japan. |
| Hero Cycles Limited | Emerging player in Japan; among the largest global integrated bicycle manufacturers. |
| Merida Industry Co. Ltd. | Taiwanese company with a significant global presence; also contributes to Japan’s industry. |
| Rohloff AG | Specializes in high-end gear hubs; niche but dedicated industry in Japan. |
| Dia-Compe | Japanese manufacturer with a strong legacy in brakes, headsets, and suspension forks. |
The automotive and mobility industry includes the Japanese aftermarket for bicycle components. The industry encompasses sectors such as sporting goods, transportation equipment, and sustainable mobility. The industry is growing steadily, driven by rising bicycle use, especially in urban areas, with Japan still using environmentally friendly means of transport.
Cyclists' wishes for sustainable, healthy, and cutting-edge performance technology lead to a growing demand for high-performance parts, intelligent accessories, and electric-assist bike parts. The government is also contributing to industry growth through cycling infrastructure and green mobility policies, making bicycles the choice for everyday and leisure activities.
On the macroeconomic level, Japan's aging society and modest economic growth are influencing the bicycle aftermarket. Elderly consumers are spurring demand for ergonomic and electric-assisted products, while younger cyclists are investing in performance upgrades.
Increased fuel prices and environmental issues are also leading to increased adoption of bicycles, driving long-term sector sustainability. Supply chain disruptions, unstable raw material prices, and low-cost import competition, though, are challenges for manufacturers and retailers.
The accelerated e-commerce and direct-to-consumer platforms are transforming the business, enabling consumers to have higher accessibility to aftermarket parts and increasing competition among conventional retailers.
Growth Opportunities
Rising demand for high-performance and technologically advanced components will foster the growth of the Japanese bicycle component landscape. The explosion of electric bicycles (e-bikes) sales is a huge opportunity, as consumers want efficient battery systems, intelligent drivetrains, and lightweight materials.
The trends of customization and personalization are also driving demand for premium segment parts as one of the emerging trends for the landscape, allowing riders to customize their bicycles to suit specific performance requirements. Sustainability and green parts provide an additional growth avenue for growth.
As governments, manufacturers are hopping on to the band wagon of green mobility, supporting them with recyclable materials, biodegradable lubricants and energy-minimizing brake systems. The movement toward smarter cycling integrations, be it GPS components or AI-powered performance analytics, also creates a pathway for companies that are willing to integrate digital tech in their products.
Strategic Recommendations
Recommendations will also be essential to work with tech companies to create connected cycling solutions in order to remain competitive. Manufacturers also need to get involved in urban mobility projects with city governments and bike advocacy groups, encouraging infrastructure investment that will create long-term segment demand.
In addition, localized production can also reduce risks stemming from imports and rise in raw material prices by streamlining supply chain operations. By focusing on high-value items, sustainable processes, and digital business transformation, companies can establish a strong presence in Japan’s evolving bicycle component market.
The year 2024 saw increased mergers, acquisitions, and partnerships in Japan's bicycle component aftermarket. Myelo Co., Ltd, a South Korean corporation, signed a memorandum of understanding (MOU) with JATCO Ltd. in March for a prototype.
This partnership focuses on providing prototypes and laying the groundwork for a joint venture aimed at developing, producing, and introducing drive units for electric-assist bicycles. More specifically, JATCO has developed a unique 2-in-1 drive unit that incorporates an electric-assist motor and gearbox, which could improve e-bike performance and aesthetics. MYVELO intends to display an e-bike incorporating this unit at EUROBIKE 2024 in Germany.
Extending its scope, JATCO introduced a prototype electric-assist bicycle, in collaboration with HODAKA CORPORATION, in September 2024, featuring its own drive unit. This prototype is expected to go into mass production with a launch to the market in 2025.
Combining design experience in bicycle manufacturing stemming from HODAKA and drivetrain technologies from JATCO, the partnership offers a line of advanced electric-assist bicycles designed for consumers. In the month of July, 2024, Yamaha Motor Co., Ltd undertakes a strategic merger with Yamaha Motor Electronics Co., Ltd, a 100% owned subsidiary.
With this merger, the aim is to strengthen Yamaha's electrically power-assisted bicycle business, accelerate research and development in new mobility fields, and, as well as reinforcing electrification efforts across motorcycles and outboard motors. This integration will allow Yamaha to heighten its global manufacturing structure and respond more quickly to the demands of market conditions.
Shimano Inc. continues to dominate the market with a comprehensive line of components designed for exceptional strength and durability. Shop SRAM LLC competes by offering a wide range of performance-oriented bicycle components, including high-quality drivetrain systems and braking components.
Campagnolo S.R.L. designs ultra-high-precision road cycling components toward the premium segment. The HODAKA CORPORATION and Yamaha Motor Co., Ltd. are domestic manufacturers that are also expanding their product portfolios by innovating electric-assist technologies as well as incorporating electronics to keep up with changing consumer preferences.
The sector is expanding with greater consumer demand for cycling for well-being and for sustainability, enhanced e-bike part demand, and innovation in high-performance and lightweight materials.
E-bikes are driving high-efficiency drivetrain, advanced battery technology, and long-lasting component demand. Consumers are moving toward performance enhancements, like smart accessories and light frames, so e-bike parts are one of the most rapidly expanding areas of the aftermarket.
Sustainability is increasingly playing a central role in buying decisions, with customer demand increasing for recycled-content materials and biodegradable composites.
Though specialty bike stores continue to be the store of choice for expert advice and superior components, online sales are booming. More customers are relying on e-commerce websites for convenience, improved prices, and greater selection.
The industry is challenged by supply chain disruptions, unstable raw material costs, and counterfeit or cheaply imported components as competition.
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Bicycle Component Aftermarket in Japan
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