Bicycle Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Over the next five years, the industry is expected to double down on creating high-quality products that consumers are willing to pay a premium for; in addition, high fuel prices are expected to promote greater use of bicycles. For these reasons, industry research firm IBISWorld has added a report on the Bicycle Manufacturing industry to its growing industry report collection.

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High fuel costs and a focus on premium products will spur the industry's recovery

The Bicycle Manufacturing industry has had trouble changing gears over the past five years: Industry revenue has only grown at a rate of 0.3% per year on average to $872.2 million from 2008 to 2013. The industry is highly influenced by the prosperity of US consumers, and industry firms suffer when their customers have little disposable income and are pessimistic about the future of the economy. As such, the recession caused steep declines in industry revenue because consumers held back on discretionary purchases. This trend yielded an industry-wide revenue decline of 5.0% in 2009, indicative of falling bicycle demand in the United States. “Cheap imports produced with low-cost labor have also been challenging the industry, so domestic producers have been responding by closing facilities or relocating facilities abroad to compete,” says IBISWorld industry analyst Nima Samadi. “Cannondale, one of the few remaining domestic bicycle manufacturers, ended production in the United States in 2010, moving production to a facility in Taiwan instead.” This move directly affected the total number of establishments operating in the United States, decreasing this number at a 1.3% average annual rate to 44 in the five years to 2013.

The Bicycle Manufacturing industry has a low level of market share concentration; Trek Bicycle Inc. is the only major industry player. The industry is composed of small, independent workshops and builders that may outsource aluminum extrusion or other materials shaping to machine shops or other contract facilities; they may also undertake the entire manufacturing process themselves, as does American Bicycle Group. IBISWorld estimates that the average operator has a relatively small staff and produces a small number of frames or completed bikes each year. “The industry's concentration level is not expected to change substantially during the next five years as some small-batch workshops close and other startups open in cities with strong cycling cultures,” adds Samadi.

Over the five years to 2018, the industry is expected to experience a slight resurgence by doubling down on creating high-quality products that consumers are willing to pay a premium for. In addition, although fuel prices have fallen slightly from recent record highs, oil availability is expected to remain a pressing issue. Higher fuel prices are expected to promote greater use of bicycles, as they incur no fuel costs. Additionally, environmental concerns, including global warming, will lead to increased cycling and investment in bicycle-related infrastructure. The creation of new dedicated bicycle lanes and an emphasis on bicycle traffic management are expected to make it easier for people to safely ride in congested areas and increase commuting by bike; greater accessibility will boost demand for bicycles. As a result of these trends, and despite an expected 0.2% fall in revenue over 2013, the industry is anticipated to grow in the five years to 2018. For more information, visit IBISWorld’s Bicycle Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures bicycles. These products are used for transportation, leisurely travel and competitive racing.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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