According to findings from IBISWorld, the demand for bicycles surged as Australians took to cycling, leading to a rise in profits from 2020 through 2022.

The sector continues to thrive, particularly in the sales of parts, accessories, and repair services.

Bicycle Industries Australia CEO Peter Bourke mentioned that retailers, manufacturers, and importers are optimistic about the upcoming festive season.

“Our busiest times have traditionally been Christmas and the summer months… a bicycle wrapped under the Christmas tree remains a cherished gift,” he remarked.

While traditional bike shops offer advantages such as expert fittings, personalized advice, and skilled repair services, they are adapting to a changing marketplace.

One example, highlighted by the IBISWorld research released in 2025, was Pedal Group’s 99 Bikes chain of stores across Australia.

The company expanded rapidly, increasing its number of physical stores to boost its market share.

But since the close of the pandemic, slumping demand caused the company to deal with oversupply issues, hampering its expansion.

And Australian cycle companies are not alone in facing a post-COVID sales slump.

Remember Peloton? The sports company turned out millions of exercise bikes and treadmills fitted with smart technology, fuelled by demand from fitness enthusiasts who were confined to home.

Sales boomed during lockdowns, but Peloton’s fortunes began to fade as vaccinations increased, gyms reopened and rivals offered competitive products.

Once the darling of the US stock market during COVID, by February 2022, its share price had collapsed and a painful company restructure followed, including shedding 2800 workers.

The rising popularity of e-bikes is also another challenge to sales of conventional, or analogue, bicycles.

The technology is expanding the market by appealing to a wider range of consumers than conventional, or analogue, bikes, requiring less pedalling and easier hill-climbing.

Many bike shops are now stocking e-bikes, but they’ve been competing with sales from private individuals and online suppliers, often spruiking powerful and illegally altered machines.

Australian import regulations controls on e-bikes were relaxed in 2021, leading to a flood of such e-bikes capable of travelling at more than 50km/h.

But in December 2025, after a spate of deaths and serious injuries of e-bike riders, federal and state authorities agreed to reinstate a key import standard to define legal e-bikes.

This would include the motor cutting out at a maximum assisted speed of 25km/h. 

Looking ahead, the hope is a safer and better-regulated market will create a level playing field for established bike dealers.

Bourke says the industry is adapting to the heady changes, but the traditional local bicycle store selling everything, from children’s bikes with trainer wheels, to mountain bikes, commuter machines and racing cycles is probably on its way out.

“The general type of range will gradually fade away … what you will see is shops becoming more specified in what bikes they sell,” he said.