Bicycle fair - Slow start for the bicycle industry - a lifeline for company bikes
In the first four months of the year, fewer bicycles have been sold and produced in Germany. The sales decreased by around 10 percent to approximately 1.45 million wheels by the end of April, according to the Industry Association ZIV at the start of the Leading Bike Trade Fair (3.-7. July) in Frankfurt. Traditional bicycles sold 650,000 units less than in the same period last year, a nearly 20 percent decline, while higher-end and economically significant E-Bikes remained relatively constant with nearly 800,000 units.
Manufacturers' production figures have shrunk significantly due to substantial remaining stock from previous years being available in the market. A decrease of nearly 18 percent was seen in the total production of 970,000 units across all types of bicycles. However, ZIV managing director Burkhard Stork still sees the possibility that 2024 could return to a normal year with a sales volume of 4.3 million bikes. There is still a healthy demand and significant growth potential.
Approximately 1,800 exhibitors showcase a range of innovations and advancements, particularly in the E-Bike and cargo bike sectors. The goal for many suppliers is to make these categories easier and more accessible. The trade fair is initially open to trade visitors and later open to the public as a festival over the weekend.
Study sees potential for work bikes
Leasing bicycles for employees is a lifeline for the industry. According to a Deloitte study, there is further potential in the business of leased work bikes. Only 37 percent of the 16.8 million employees have the opportunity to lease a work bike, according to a Deloitte analysis. Of these, only about 10 percent have signed a lease contract.
"The potential is far from exhausted," says study author Kim Lachmann. Among the 204,000 participating employers, on average, around 90 percent of their employees have not yet leased. The number of companies is also increasing continuously – an average of 46 percent per year since 2019.
The sales of leasing providers increased to 3.2 billion Euros in the previous year (2022: 2.6 billion Euros). They delivered 790,000 bikes to customers, compared to 680,000 bikes the previous year. The fleet of three-year leased work bikes grew by around 400,000 to 1.9 million units. Most of these were high-end and expensive bikes. E-Bikes accounted for around 80 percent. Their average price in the leasing market was 3,750 Euros, 800 Euros more than the average price in the entire bicycle market. The majority of the transactions were handled through local bicycle retailers.
- Despite the decrease in traditional bicycle sales, the Leading Bike Trade Fair in Frankfurt am Main, scheduled for July 3-7, will showcase innovations and advancements, particularly in the E-Bike and cargo bike sectors.
- Many companies in Hesse, Germany, are considering investing in company bikes, including E-Bikes, as a lifeline due to the potential growth in the leased work bike market, according to a Deloitte study.
- To combat the decreasing number of bicycles sold and produced in Germany, some companies are turning to alternative modes of transportation, such as E-bikes, which have seen relatively stable sales figures.
- Frankfurt, being a major city in Germany, is expected to have significant traffic with a large number of E-bikes on the roads, as they account for around 80% of the leased work bikes in the market.
- Visitors of the Leading Bike Trade Fair in Frankfurt can expect to see a variety of E-bikes, including those used for leasing purposes, as they represent a substantial portion of the industry's growth potential and sales volume.
