Australia bicycle market, valued at AUD 2.95 billion in 2024, is experiencing substantial growth, driven by increased health-consciousness, eco-friendly transportation trends, and the growing popularity of cycling for both recreation and commuting. With a projected compound annual growth rate (CAGR) of 4.99% from 2025 to 2034, the market is expected to reach approximately AUD 4.80 billion by 2034. As Australians increasingly embrace cycling as a mode of transport and leisure, the demand for bicycles—ranging from traditional road bikes to innovative electric bicycles—continues to rise.

We will explore the factors driving the growth of the Australian bicycle market, key trends, and the future outlook of this dynamic industry.

Australia Bicycle Market Overview

The Australian bicycle market encompasses a broad range of bicycles, from traditional road and mountain bikes to e-bikes and hybrid models. Additionally, bicycle accessories, such as helmets, pedals, lights, and bike racks, contribute to the overall market size. Over the past few years, the market has experienced growth driven by increased awareness about the environmental and health benefits of cycling, particularly for commuting and recreational purposes.

With the development of advanced technology and infrastructure, cycling is increasingly seen as a convenient, eco-friendly alternative to traditional vehicles. Whether for commuting, leisure, or fitness, bicycles are playing an integral role in shaping the future of transportation in Australia.

Key Drivers of Growth in the Australia Bicycle Market

1. Health and Fitness Consciousness

As Australians become more health-conscious, many are turning to cycling as a fun and effective form of exercise. Cycling provides cardiovascular benefits, helps maintain a healthy weight, and improves mental health. The growing awareness of the benefits of physical activity and the desire for more sustainable lifestyles are pushing individuals to adopt cycling as a part of their daily routines.

The rise of fitness-oriented cycling events, such as charity rides and competitive cycling races, is also contributing to the growth of the market. Australians are increasingly embracing cycling as part of a balanced lifestyle, which has spurred interest in fitness bikes, including road and mountain bikes.

2. Increased Demand for Eco-Friendly Transportation

Australia has seen a growing shift toward sustainability, and cycling is seen as an environmentally friendly mode of transportation. With concerns over air pollution and traffic congestion, more Australians are turning to bicycles as a cleaner, greener alternative to traditional vehicles.

In cities like Sydney, Melbourne, and Brisbane, local governments are investing in cycling infrastructure, including dedicated bike lanes, bike-sharing programs, and improved road safety measures. This is encouraging more commuters to choose bicycles over cars, especially for short-distance travel.

3. Growth in E-Bikes

The demand for electric bikes (e-bikes) in Australia is rapidly increasing. E-bikes provide the benefits of traditional cycling but with the added convenience of a motor that assists with pedaling. This makes them an attractive option for people who might not otherwise consider cycling, such as those with mobility challenges or individuals who want to commute longer distances without overexerting themselves.

As e-bike technology improves, with longer-lasting batteries and better motor efficiency, these bicycles are becoming more affordable and accessible to the average consumer. E-bikes are expected to be a major growth driver in the Australia bicycle market over the next decade.

4. Urbanization and Cycling Infrastructure

With urbanization on the rise, Australians are looking for alternative transportation solutions to navigate crowded cities. Cycling offers a flexible, cost-effective, and time-efficient way to get around, especially in urban areas with heavy traffic congestion. As cities expand, more people are choosing bicycles as an alternative mode of transport.

Australian cities are also focusing on developing cycling-friendly infrastructure, such as dedicated bike lanes, bike-sharing programs, and improved public bike racks. These measures are enhancing the convenience of cycling and promoting it as a viable alternative to driving.

5. Rising Popularity of Recreational Cycling

Cycling is no longer just a means of transportation—it has become a popular recreational activity in Australia. The stunning natural landscapes and outdoor culture in Australia make cycling a favored pastime. Whether it’s on scenic cycling trails, around beaches, or in national parks, Australians are increasingly using bicycles for leisure and recreation.

Cycling clubs and events, such as "Tour de Australia," have gained momentum, bringing together cycling enthusiasts from across the country. With the rising demand for recreational bicycles and accessories, the market for bicycles in Australia continues to thrive.

Trends Shaping the Australia Bicycle Market

1. Electric Bicycles (E-Bikes) Growth

As mentioned earlier, e-bikes are witnessing rapid growth in Australia. E-bikes are appealing because they provide a perfect blend of convenience and physical activity. The electric motor assists the rider while pedaling, allowing them to travel longer distances or tackle challenging terrains with ease.

E-bikes are available in several types, including city, mountain, and hybrid e-bikes. They are also proving to be an excellent alternative for commuting, especially for those who want to avoid arriving at work sweaty or tired. As e-bike technology becomes more advanced, with longer battery life and faster charging capabilities, demand for these bikes is expected to increase substantially in the coming years.

2. Customization and Personalization

Consumers are increasingly looking for bicycles that suit their unique needs and preferences. Customization options allow cyclists to choose the frame size, color, style, and even the type of components and accessories that come with their bicycles.

Bike manufacturers are responding by offering a wide range of customization options, such as personalized decals, custom-built frames, and specialized accessories. This trend is popular in the high-end bicycle segment, where customers expect premium products that meet their specific requirements.

3. Growth of Online Bicycle Sales

The rise of e-commerce has significantly impacted the Australia bicycle market. Consumers are increasingly buying bicycles and cycling accessories online, which offers them the convenience of browsing and purchasing from the comfort of their homes. Many online platforms also offer custom-built bicycles, personalized fittings, and a range of bike accessories, making it easier for consumers to get everything they need in one place.

The rise of online retailers and direct-to-consumer brands is also contributing to competitive pricing and a wider variety of products. Consumers can easily compare prices, read reviews, and purchase bicycles from trusted brands without having to visit a physical store.

4. Cycling for Commuting

As traffic congestion worsens in major cities, more Australians are opting to cycle to work, especially for short to medium distances. This trend is especially prevalent among urban dwellers who need a reliable, cost-effective mode of transport. Commuter-friendly bicycles, such as hybrid bikes and e-bikes, are growing in popularity as they provide a practical solution for those seeking to avoid high fuel costs and parking fees.

Cycling infrastructure in cities like Sydney and Melbourne is also improving, with dedicated bike lanes and bike-sharing systems, further encouraging cycling as a commuting option.

Market Segmentation in the Australia Bicycle Market

The Australia bicycle market can be segmented in various ways to understand the trends and growth drivers more comprehensively:

By Bicycle Type

1. Road Bikes – Designed for speed and long-distance travel on paved roads.
2. Mountain Bikes – Built for off-road riding on rugged terrains.
3. Hybrid Bikes – A combination of road and mountain bikes, suitable for both on-road and off-road use.
4. Electric Bikes (E-Bikes) – Bikes equipped with an electric motor to assist with pedaling.
5. Specialty Bikes – Includes folding bikes, kids’ bikes, and performance racing bikes.

By End-User

1. Individual Consumers – Primarily for leisure, fitness, and commuting purposes.
2. Corporate and Government Buyers – Bicycles purchased for use in corporate fleets or by local authorities for public programs.

By Distribution Channel

1. Online Retail – E-commerce platforms offering a wide selection of bicycles and accessories.
2. Physical Retail – Traditional bike shops, sporting goods stores, and department stores.
3. Direct-to-Consumer – Brands selling directly to consumers through their own retail outlets or online platforms.

By Region

1. New South Wales
2. Victoria
3. Queensland
4. Western Australia
5. South Australia