Bike Market Slump: Revenue Drops in 2024 despite Previous Boom
Cycling sector experienced decline in revenue during 2024 - Cycling industry experiences a decline - reveals reduced revenues in 2024
Let's dive into the recent trends in the bike industry in Germany,, where we've seen a rollercoaster ride of growth and contraction.
From 2019 to 2022, the bike market rode high, with revenue soaring from 16.5 billion euros to a peak of 29.3 billion euros - that's an impressive growth! But when you consider inflation, it's evident that the revenue has stagnated since 2022. Last year, the general economic crisis took a toll on the bike market, with companies grappling with sluggish demand, price wars, and the repercussions of an inventory overflow.
It's a tough time for bike manufacturers, retailers, and service providers; the crisis has left its mark on the sector, affecting demand, prices, and even inventories. The market stretches across manufacturing, trade, and services, but it doesn't include construction markets or online providers.
Turning the corner, there's a glimmer of hope. A survey by the think tank T3 reveals an improvement in industry sentiment in recent months. Companies are reporting a more positive current business situation, and inventory levels are getting back to normal. In an April poll of Future Bike members, a whopping 70% predicted a rosy future!
The "Zukunft Fahrrad" association, known as the Future of the Bike, is advocating for the federal government to support the bike industry like other vehicle industries in Germany. They suggest focusing on areas such as digitalization, supply chain security, and sustainable production. Additionally, the association believes that e-bikes should be considered in measures to promote e-mobility, with provisions like securing company bike leasing in the income tax law.
But there's another crucial factor that needs attention - the bike infrastructure. The association asserts that it's often outdated and inadequate, with a massive investment backlog responsibility. Their demand? A whopping 30 euros per federal citizen per year to transform bikes into a central means of transport in an efficient and high-performance mobility system.
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While the bike market has seen its ups and downs, the Future of the Bike association is calling for focused attention from the government to boost growth and sustainability. With the right support, the bike industry could once again ride the wave of success.
- Despite the slump in the bike market in Germany, the Future of the Bike association is advocating for the federal government to invest in infrastructure and support the industry, similar to other vehicle industries, by focusing on areas such as digitalization, supply chain security, and sustainable production.
- The bike industry in Germany, plagued by economic crises and sluggish demand, could once again experience success with the right government support, as the "Zukunft Fahrrad" association suggests securing company bike leasing in the income tax law and investing a substantial amount annually towards transforming bikes into a central means of transport in an efficient and high-performance mobility system.
