The E-Bike Market Slows Down - Germany's E-Bike Industry Faces Challenges in 2024
Cycling Sector Sees a Slump - Reduced Revenue Reported for 2024 - Cycling industry experienced a decline in revenue in 2024
The euphoria surrounding the e-bike market has cooled down, and the industry is now grappling with economic difficulties. From 2019 to 2023, the sector did see substantial growth: from 16.5 billion euros to 29.3 billion euros. However, when adjusted for inflation, revenue growth stagnated in 2022, as revealed in a study.
Last year, the economic crisis made a significant impact on the bike market. Companies ended up battling falling demand, price cuts, and the lingering effects of overstocked warehouses. The study encompasses manufacturing, trading, and services within the bike industry. Construction markets and online providers are not considered in this analysis.
As per a T3 think tank survey, the sentiment in the bike industry has improved in recent months. The current state of business has been assessed as "significantly more positive," and "inventory levels are normalizing noticeably." In a June survey of Future Bike members, 70% of respondents assumed a positive business development.
The association appeals to the federal government for assistance similar to that extended to other vehicle industries in Germany—for example, in areas like digitalization, supply chain security, and sustainable production. It suggests that e-bikes should also be included in measures to promote e-mobility—for instance, by securing company bike leasing in the income tax law.
The association also emphasizes the need for investment to modernize bike infrastructure. They insist on allocating 30 euros per federal citizen per year to make the bike a "central means of transport in an efficient and high-performance mobility system."
- Economic Downturn
- Bike
- Government Support
- Digitalization
- Infrastructure
- Sustainable Production
Further Insights
Despite the recent slowdown, the e-bike market is projected to grow moderately over the next decade, with annual sales increasing by about 6%. However, due to inflationary pressures, prices are anticipated to rise by around 4% per year.During this period, Germany's e-bike market has exhibited stable demand but no rapid growth spurt, compared to some neighboring countries like Norway.
The broader German economy is currently grappling with a downturn, causing pressure on consumer spending and investment in sectors like e-mobility. The motorcycle market, a cousin in terms of mobility trends, has experienced a steep decline in sales. Such economic difficulties exacerbate the challenges faced by the e-bike industry.
To overcome these obstacles, industry voices are calling for targeted government support in key areas like digitalization, supply chain security, and sustainable production. Such interventions are seen as essential for maintaining the sector's competitiveness, fostering innovation, and ensuring resilience against economic cycles and geopolitical uncertainties.
- The economic downturn has also affected the employment policy within the e-bike industry, with many companies facing layoffs and reduced hiring due to the shrinking market.
- Despite the challenges, the e-bike industry associations are advocating for government support in digitalization, sustainable production, and infrastructure development, as these sectors could create employment opportunities and boost the economy.
