Bicycle Retail Market: Size and Growth Trends

This article was written by our expert who is surveying the industry and constantly updating the business plan for a bicycle shop.

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The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the bicycle shop market.

What is the current global market size for bicycle retail?

The global bicycle retail market in 2025 is between $63 billion and $126.7 billion depending on inclusions (channels, accessories, and service scope).

This range reflects the difference between core bicycle retail revenue and a broader read that includes accessories, apparel, parts, and all channels worldwide. For a bicycle shop business plan, anchor your base-case on the lower bound and use the upper bound to size adjacent revenue opportunities.

Use your catchment population and cycling penetration to localize this range to your trade area and build a defensible top-down TAM.

Always complement the top-down TAM with a bottom-up view from service bay capacity, fittings per week, and average ticket by category.

You’ll find detailed market benchmarks for ticket sizes and mix in our bicycle shop business plan.

How fast did the market grow in the past five years and what is the CAGR?

The bicycle retail market expanded at a solid high-single-digit pace over the last five years.

Across reputable sources, the recent 5-year CAGR generally falls in the ~7.4%–9.9% band. For a bicycle shop, this supports planning assumptions for steady unit throughput growth, particularly in service-heavy SKUs like e-bikes which drive recurring visits.

When converting these rates into revenue, separate mix effects (e-bikes, premium road/gravel) from pure volume to avoid overestimating unit growth.

Stress-test your plan with a downside scenario 300–400 bps below your base CAGR to reflect local competition or weather variability.

We cover this exact sensitivity setup in the bicycle shop business plan.

What growth and market size are projected for the next 5–10 years?

The global market is on track to roughly double over the next decade.

By 2030, credible projections span $137–245 billion, converging around ~$241 billion by 2034. For a bicycle shop, that means compounding demand for sales and workshop services, particularly as e-bike adoption deepens beyond early adopters.

Translate these macro figures to store-level revenue by modeling local e-bike penetration, parts and labor share, and accessory attachment.

Build inventory turns around seasonal peaks and pre-order windows that follow supplier lead-time cycles.

Where is demand strongest today, and how will regions evolve?

Asia Pacific holds the largest share today, while Europe is growing the fastest; North America leads in premium price points.

APAC’s >30% share benefits from manufacturing density and accelerating e-bike adoption; Europe’s double-digit growth is policy-led with heavy infrastructure support; North America maintains strong demand for high-end road, gravel, and mountain bikes.

For a bicycle shop, regional patterns translate into inventory mix: city/trekking for dense urban areas, high-end builds for affluent suburbs, and cargo/e-utility where incentives exist.

Watch local policies (VAT changes, subsidies, parking rules) because they can swing category mix quickly.

What is driving current growth in bicycle retail?

Three forces are pushing demand: health/fitness, urban mobility, and sustainability.

Health consciousness brings new riders and returning customers who upgrade gear as fitness improves. City policies that reallocate street space, add lanes, and subsidize e-bikes increase commuter adoption and drive frequent service needs.

Sustainability goals steer consumers away from short car trips and into bikes and e-bikes; employers and campuses add secure parking and charging to reinforce the switch.

Seasonality still shapes traffic, but policy and e-bike utility smooth out off-season dips with year-round commuting.

This is one of the strategies explained in our bicycle shop business plan.

What challenges or barriers could slow growth?

Constraints remain: supply volatility, regulatory friction, and competition from substitutes.

Lead times and component availability can whipsaw inventory; tariffs and fragmented safety rules complicate assortment and margins; used and micromobility substitutes (scooters, rideshare) compete for short-trip use cases.

Wholesale failures and inventory overhangs in certain markets have also stressed retailer cash flows post-pandemic.

Proactive purchasing calendars, diversified suppliers, and stronger service offerings help defend margins.

• Plan inventory with phased POs to reduce overhang risk.
• Negotiate vendor dating aligned to seasonal sell-through.
• Standardize service menus and bookable tune-up plans.
• Add trade-in/used programs to capture value buyers.
• Track tariff/standard changes to avoid stranded stock.

Which bicycle categories sell most, and how do their growth paths differ?

E-bikes grow the fastest; city/trekking and road hold large revenue shares; conventional bikes still dominate units.

In 2025, e-bike revenue is estimated near $39.6B with sustained growth toward the mid-2030s; city/trekking and road/gravel are major revenue pillars; children’s and cargo are smaller but strategic for lifetime customer value and utility commuting.

Stock parts and diagnostics for e-bikes and prioritize fit services for road/gravel to lift average tickets.

Keep a balanced floor: commuters for volume, performance for margin, and kids’ for household lifetime value.

How important is online retail versus brick-and-mortar?

Offline still dominates globally; online is gaining each year.

As of 2024–2025, brick-and-mortar accounts for a majority—often >50–80%—while online channels compound at roughly ~13.5% CAGR. For a bicycle shop, this argues for an omnichannel approach: online discovery and booking, in-store fitting, assembly, and service upsells.

Use online to pre-qualify customers, capture deposits, and schedule fittings, then close with premium in-store experiences.

Integrate live inventory, next-day builds, and service slots into your website.

Who is buying—by age, income, and location?

Demand is broad, with distinct growth pockets.

Young riders buy entry and mid-range performance; older riders adopt e-bikes for assisted fitness and mobility. Higher-income urban households over-index on premium road/gravel and e-cargo with full accessory bundles.

Urban consumers drive most growth due to commuting incentives and lane availability; rural areas skew toward value and MTB trail communities.

Target offers accordingly: commuter bundles and financing in cities, suspension service packages near trail networks.

Get expert guidance and actionable steps inside our bicycle shop business plan.

How do government incentives and infrastructure shape the market?

Policy is a major accelerator for bicycle shops.

Bike-lane investments, VAT reductions, and e-bike subsidies directly increase store traffic and conversion. Employers adding end-of-trip facilities (showers, lockers, charging) reinforce daily use and service frequency.

Monitor national and municipal programs because they change yearly and can shift category mix (e.g., e-utility and cargo spikes during incentive windows).

Document eligibility requirements in-store and online to speed on-the-spot applications.

It’s a key part of what we outline in the bicycle shop business plan.

Who are the leading companies and retailers, and what are their shares?

The market is fragmented but led by a handful of global brands.

Giant is widely cited as the largest single company with around ~8.2% share in some datasets; other major names include Hero Cycles, Accell Group, Merida, and Specialized. For a bicycle shop, these brands influence consumer preference and parts ecosystems.

Carry at least one global leader plus a complementary performance or urban brand to diversify supply risk and price points.

Use demo fleets and fit programs to convert brand interest into higher-margin builds.

What consumer and tech trends will shape future growth?

Three shifts matter most: connected tech, subscription/usage models, and the formalization of second-hand.

Connected accessories and GPS/anti-theft features raise attachment rates and service opportunities; subscriptions and financing broaden access and smooth cash flow; certified second-hand programs professionalize trade-ins and increase upgrade velocity.

Battery stewardship (testing, refurbishment, recycling) becomes a differentiator as e-bike volumes rise.

Community rides, fit labs, and workshops deepen loyalty and reduce price shopping.

• Offer connected anti-theft + recovery registration with each e-bike sale.
• Pilot commuter subscriptions with included tune-ups and flat fixes.
• Launch certified used with warranties to capture value segments.
• Add battery diagnostics and end-of-life recycling partnerships.
• Run skills clinics and local events to build repeat traffic.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Mordor Intelligence — Bicycle Market
2. Fortune Business Insights — Bicycle Market
3. Precedence Research — Bicycle Market
4. Grand View Research — Bicycle Market
5. Future Market Insights — Bicycle Market
6. Future Market Insights — E-Bike Market
7. ZIV — Market Data Presentation (Germany/Europe)
8. NBDA — Challenges for Bicycle Retailers
9. Rodgers Reidy — Global Bicycle Industry Challenges
10. UnivDatos — Bicycle Market