Bicycles: second edition of the "Bicycle Ecosystem" study carried out by Banca Ifis

From the data that emerge from the second edition of the research “Bicycle Ecosystem”, created by Banca Ifis to propose a perspective of the two-wheeled pedal sector, a protagonist in the sustainable transition, with over 3,2 million pieces made in 2021, Italy is the first European manufacturer of bicycles and leader in smart mobility. A trend also linked to the phenomenon of e-Bike and restoring, the return of production activities to Italy. The increase in turnover was also positive, increasing by +7,4% compared to 2020, to 1,6 billion euros.
The study, introduced as part of the award “Italian Green Road Award – Oscar of Italian Cycling”, of which the Institute is the main partner this year, dealt with the aforementioned reshoring and another topic linked to the development of the sector: the cycling.

Two interesting trends

Il restoring it is one of the main aspects that give dynamism to the sector, also taking into account some phenomena triggered by the macroeconomic context: increase in production costs in the Far East, a destination for production delocalisation in the last thirty years; crisis in global supply chains; anti-dumping duties; increase in demand for the evolution of smart mobility; economic and environmental impact of the transport sector and quality and innovation relating to technologically advanced countries.
Banca Ifis' Market Watch estimates that the creation of 2,8 bicycles per year will return to Europe, with a speed up in the two-year period 2022-2023, in practice 18% of total European production. An opportunity that also includes the need for professional figures with the necessary skills; approximately 30% of companies currently have difficulty finding them. Entrepreneurs are reacting and 24% will increase investments in staff training, according to reports.
Throughout Europe, the interest of investment funds in the production of bicycles is increasing, in 2021 there was an exploit with +175% in the number of M&A operations finalized and a growth in investments, also in collateral services such as sharing, insurance dedicated and rental.
Il cycling is the other highlighted theme. In Italy there are 4.900 routes suitable for two wheels for a total length of 90.000 km; 4.940 tourist operators with a cycle tourism offer and 4.550 hotels offering services dedicated to cycling. There are 8 million Italians affected by the phenomenon, approximately 16% of the adult population. On this side, the most active region is Trentino-Alto Adige and the North-East is the most popular destination, for 32% among cycling tourism destinations.
The variety of the offer with increasingly necessary services also remains a crucial aspect. A total of nine services are usually included in tourist packages and four are those most used by cycle tourists: accommodation, insurance coverage, bicycle rental and group tours. The service with the greatest potential for growth is the tourist guide, as indicated. An interest that leads 90% of Italian tourism operators to expect growth in revenues.
Cycle tourism itself is also connected to concepts such as: inclusion, health, safety e sustainability. An increased cost of energy and a growing interest in sustainability issues could encourage the use of bicycles even on holiday. Greater accessibility to the e-Bike, then, makes this type of vehicle more affordable even for less trained or young segments of the population. Every year in Europe, according to the data provided, over 2 million tons of carbon dioxide and sulfuric pollution are saved, thanks to the "return" of the production of bikes, e-bikes and components to the old continent. Each relocation in the European bicycle industry leads to savings of between 30 and 50 million tonnes of harmful emissions. Speaking of social sustainability, for every 1.000 bikes returned to assembly in the Old Continent each year, 3 to 5 jobs are generated, while for every 1.000 e-Bikes the range varies between 6 and 9 jobs.

The research

The study highlights the dynamism and resilience of the sector. An increase in the production of is expected in the three-year period 2021-2023 bicycles by more than 7% year-on-year. At the top thee-Bike which, given an increase of 25%, reaches 11% of production, growing by 9% from 2020, as reported. Italy remains the leading European producer with a market share of 21%, followed by Germany and Portugal. The export/import balance of bicycles is positive for 1,3 million pieces and up by +23% on 2020.
The increase in demand translates into revenues with +7,4% in 2021 compared to 2020 and +7,3% as the average annual growth in producers' turnover expected in the two-year period 2022-2023. It could exceed 1,8 billion euros.
Another interesting aspect of the Italian bicycle sector is also highlighted: innovation. 25% of producers increased the share of investments in the two-year period 2020-2021 and another 70% left them unchanged while moving forward with technological innovation, as indicated.

Image: Confindustria ANCMA