Why so Many Bikes have SRAM Parts

Just a heads up, this one is pretty bike jargon heavy, sorry for all of you non cyclists. I’m exploring the idea of writing more on the bike industry/business; as I think it could be fun to dive deeper into that world. As always, thanks for reading and please let me know what you think. 

In recent days, a new RockShox Reverb has been spotted, and there has also been a new patent filed by SRAM for what appears to be a new disc brake mount standard. This brake mount seems to follow a similar concept to the universal derailleur hanger released a few years ago, which largely standardized a component that was previously unique to each frame. In doing so, it simplified the setup of the derailleur; this new brake mount could do the same for the braking system. With the news of these two new products from SRAM, I’ve been reflecting on their position in the industry, speculating on what’s next for them, and considering what that might mean for the other bike component manufacturers.

SRAM has grown to become the most popular bike component maker, especially for original equipment (OE) specs on new, prebuilt bikes. It seems that every year, fewer mid- and high-end bikes are being spec’d with competitors like Shimano, Fox, or DT Swiss. Likely, the reason for this is that SRAM has several brands under its umbrella. So, if you are a bike brand shopping for parts to spec on your new bike, you can essentially buy everything from SRAM. You could get the whole drivetrain and brakes from SRAM, then choose Zipp wheels and Truvativ bars and stems. This allows SRAM to offer competitive pricing that other brands can’t match when they only supply one component.

As SRAM has grown over the last 10-plus years, they have done a great job leveraging their scale to solidify their position as a market leader. SRAM acquired RockShox in 2002 and Avid in 2004, and since then have been able to bundle their offerings for competitive pricing. But their scale offers more than just cost savings; it also enables them to invest more in R&D, making their products even more competitive. Furthermore, due to their large market share, they can influence the direction of various aspects of the bike industry to move in a favorable direction. They combined these two advantages masterfully when they introduced the universal derailleur hanger, which became widely adopted as a new standard. Once it was adopted by a large proportion of frame manufacturers, they released the T-Type drivetrains that use the same interface the hanger uses to mount to the frame. Other competitors could not have launched this system first because they would not have been able to convince frame manufacturers to adopt the new standard. SRAM was able to leverage their scale to accomplish this.

So, what's next for SRAM? First, we can expect to see more bikes spec’d with SRAM components, making it increasingly difficult for other brands to compete. It seems likely that SRAM will gradually introduce some of their higher-end technology to the entry-level and mid-range market. In fact, there have been spy shots of a mechanical version of their T-type system, which is expected to target this segment. It's worth noting that this is one of the few remaining niches where Shimano excels, particularly with their Deore and SLX groupsets. On the other end of the spectrum, SRAM’s cutting-edge composites are likely to remain at the forefront of innovation. This is due to their ability to invest heavily in top engineers and other resources to continue pushing the boundaries of what’s possible in bike components.

So, moving forward, how will the other big brands continue to compete against SRAM? Well, companies like Shimano, Fox, and DT Swiss are largely aligned when it comes to OE sales. This alignment results from the package deals SRAM can offer to bike brands, meaning that bikes typically come fully spec’d with the SRAM family of brands—or, in some cases, fully spec’d with competitors. A good example of this can be seen with Yeti Cycles. Historically, Yeti had a strong partnership with Fox suspension, even using Fox’s Kashima coating on their Switch Infinity component. During this period, Yeti bikes were almost exclusively equipped with Shimano drivetrains. However, due to SRAM's dominance in electronic drivetrain offerings, Yeti now primarily offers SRAM drivetrains. As a result, Shimano not only lost out on drivetrain sales, but Fox also lost out, as those builds now come with RockShox instead. This example highlights how, if either Fox or Shimano loses an OE sale, the other is likely to lose as well. The same pattern holds true for other components: on the road side, if a bike features a SRAM drivetrain, it is more likely to be paired with Zipp wheels and finishing kit. For this reason, a partnership between these other big players seems like a natural fit, as there is minimal overlap in their offerings. Typically, when one of them wins a deal over SRAM, the others benefit as well.

As the larger component brands seem to be heading toward consolidation, especially on the OE side of the industry, there may be more room for small, independent boutique brands to market directly to consumers with aftermarket upgrades. One thing is for certain: cyclists love upgrading their bikes to make them stand out. As parts become more ubiquitous on pre-built bikes, there will be more space for unique, cool aftermarket offerings. We’re already seeing this shift in derailleur options. Historically, this part of the bike was dominated by larger companies, but in recent years, smaller brands like Ingrid and Vivo have introduced more choices. Hopefully, we’ll continue to see success from small brands offering cool options for enthusiasts.

Although bundling components can provide savings for OE sales, which are passed down the supply chain to retailers and ultimately to consumers, I believe that in the long term, the lack of competition could be harmful to the industry. We rely on competition for continued innovation and pricing pressure to keep the big brands, like SRAM, in check. As consumers, we should support a variety of brands, especially those whose products resonate with us. It will be interesting to see how this story unfolds: Will SRAM continue to grow in dominance, or will innovation emerge to disrupt their lead? Shimano is rumored to be releasing a new MTB drivetrain this year, which could remind the industry that there are alternatives to SRAM.