How would you go about estimating the size of the European bicycle market? Would the below be an appropriate approach?
EU population = 450M, people per household = 3, so # of households = 150M
Assume on average 1 bike per household - some will have more, some will have less but overall a lot of Europeans use bikes to get around. So there is a total of 150M bikes.
Assume the life cycle of a bike is 5 years, so 30M new bikes purchased each year.
If I estimate the average cost of a bike is 300 euros - some are a lot more expensive but some can also be basic, then the market size is 9B.ย