Following the Covid-19 pandemic, the bicycle industry, particularly electric bikes, experienced significant growth. However, sales have declined since 2022, with projections indicating a further 10-15% drop in 2024. Contributing factors include the durability of bicycles, limited innovation, and a growing second-hand market that offers affordable alternatives. Many consumers already own electric bikes, reducing the frequency of new purchases, while traditional bicycles also face challenges as upgrades become less compelling.
In the aftermath of the Covid-19 pandemic, the bicycle industry witnessed a remarkable surge in popularity. As the health crisis subsided, the electric bicycle market flourished, with a variety of affordable options becoming available just when consumers needed a way to escape and enjoy outdoor activities. During the lockdowns, numerous bike paths, affectionately termed “Coronapistes,” were established, providing safe spaces for cycling enthusiasts.
Despite this impressive growth, the electric bicycle sector has seen a downturn since its peak, where sales hit 738,500 units in 2022 out of a total of 2.586 million bicycles sold. The trend continued into 2023, with sales dropping to 678,500 electric bicycles.
Projected Decline of 10 to 15% in Bicycle Sales
Recent statistics shared at the early-year meeting of the Union Sport & Cycle indicate a potential decline of 10 to 15% for the bicycle market in 2024. Patrick Guinard, the president of France Vélo, noted, “The cycle industry is not immune to this trend, with classic and electric bicycle sales expected to decrease by -10 to -15% in 2024.“
This downturn is impacting the entire market, and several factors contributing to this trend are becoming apparent.
Most Consumers Already Own Bicycles
Bicycles are known for their longevity and minimal maintenance requirements, making them durable investments. It’s not uncommon for individuals to replace their cars more frequently than their bicycles, as these are not typically subject to planned obsolescence.
For Further Insight
We have gathered comprehensive sales data for electric bicycles spanning from 2007 to 2023, showcasing a significant evolution in the market.
For Further Insight
Consumers are not likely to change bicycles frequently, especially since the pandemic, during which few groundbreaking innovations have emerged. While there have been advancements, many electric bicycles purchased in 2020 or 2021 remain competitive with the latest models. Consequently, those interested in electric bicycles are likely already equipped, explaining the drop in sales in this category. Nonetheless, electric bicycles still constitute a substantial portion of the market, representing 30.45% of total bicycle sales in France in 2023, a figure that may remain stable in 2024.
Traditional bicycles are also feeling the impact of this trend. The introduction of disc brakes and the increasing popularity of electric derailleurs have prompted many cyclists to upgrade. However, with many already having made these upgrades, the frequency of bicycle replacements has decreased. Transitioning from 11 to 12 speeds often does not justify the expense of acquiring a new high-end bicycle.
In April 2024, Jérôme Valentin, President & CEO of Cycleurope Industries and Vice-President of Union Sport & Cycle, brought attention to the growing influence of second-hand bicycles in relation to diminishing sales.
The Impact of the Second-Hand Bicycle Market
“This marks the first year where we see a decline in electric bicycle sales. There are three main factors contributing to this trend, with second-hand bicycles being a significant one. Companies specializing in refurbishing electric bicycles have emerged, inevitably taking market share away from new electric options,” he explained.
It is plausible that the thriving second-hand electric bicycle market, which offers enticing deals, has contributed to this notable 10-15% sales decline. To gain a comprehensive understanding of the market’s dynamics, it would be beneficial to incorporate second-hand electric bicycle sales into the Cycle Observatory’s reports.