Trends for the Cycling Industry in Australia - March 2024.

As the over supply of bicycles in this country is at an all time high and the road / gravel cycling industry in Australia seems to have large participation rates but lowering new bike unit sales, navigating the years ahead in this industry grows more complex. Higher revenue year on year seems likely with the increased sales in E-Bikes however a rapid declining number of bricks and morter retailers means lower levels of service. During the covid years, like much of the world, Australia has been experiencing a period of rapid evolution and growth, fueled by technological advancements, (everyone is on disc brakes these days) and changing consumer behaviors, with an increasing focus on health. Here's a look at what I think are the latest trends and a prediction of what we might expect next in the Australian road cycling scene.

In no particular order .... Latest Trends in Australian Road Cycling

1. E-Bikes and Performance Enhancements: The popularity of electric road and gravel bikes has surged. These bikes appeal to riders looking for a little assistance on challenging terrains and longer rides. They're particularly popular among commuting cyclists and older riders who appreciate the boost to keep up with the faster cycling groups they may have onced dominated in the past.
2. Gravel Bikes Rise: The blending of road cycling with off-road capabilities has seen a significant rise in the popularity of gravel bikes. These versatile bikes are designed to handle a variety of surfaces, making them appealing for Australian cyclists who enjoy exploring both urban environments and the vast, rugged landscapes of the country. Gravel Events are dominating the calendar for fun well attended events, that are somewhat filling the declining numbers of the many Gran Fondos that we have been use too.
3. Cycling Infrastructure and Community Engagement: Australia has been investing in cycling infrastructure, with new bike lanes and paths being developed. For the road cycling groups, bunch rides etc, these developments, in the most part, are going unused and are not impacting on purchase currently however as they improve I see that the barrier of entry being "scared to ride on the road" will lessen and have a positive impact. This, combined with a strong community and what feels like a re-surgence at the local club scene, races, and social events, the fostering of a vibrant cycling culture should give the industry some buoyancy in the next 12-24 months.
4. Wearable Tech and Performance Tracking: Advanced wearable technology, including GPS and heart rate monitors, have become the norm and even more integrated into road cycling. Cyclists are increasingly using these tools to track their performance, navigate routes, and improve their training regimens. Training platforms that can work both outside and in, need further development and the technology is coming. Not going to see me wearing apple glasses while I ride anytime soon but a training device that can give me audio prompts, thats integrated into my heart rate, power and the GPS location .... and maybe even traffic and front and rear radar technology could be something that will become common.
5. Sustainability and Cycling Advocacy: There's a growing emphasis on cycling as a green alternative to motor vehicles. This is reflected in advocacy for better cycling infrastructure, events promoting cycling to reduce carbon footprints, and the use of sustainable materials in cycling gear and apparel.
6. Inflation and Higher living costs: As at Feb 2024 disposable income is at a 10 year low and although continued moderation of inflation there is still some pain to go with the RBA suggesting mid 2026 before reaching a midpoint. This will see a decline in plus $5000 bike purchases over the next 6-18 months.
7. Over Supply of mid ranges road and gravel bike: I left this until last as I believe coupled with the above there is going to be all out price war in the $5000 to $10,000 price point for road and gravel bikes. This is going to effect independent bike shops and I believe really effect the level of service and after sale care as profitability is dumped. Finding niche and specialized product offerings is going to be key from some retailers to survive.

My predictions for the Next Trends

1. Customisation and Personalisation: As the market for road bikes becomes more saturated, manufacturers may look to offer more personalised options. This could range from even more custom paint programs to fully bespoke bike builds that cater to individual performance metrics and aesthetic preferences. Although this is definitly not a new thing, I think we will see a surge in this offering to try and differentiate.
2. Integration of Smart Technology: The integration of smart technology as mentioned above in bicycles is likely to advance. Future road bikes might feature built-in navigation systems with real-time performance analytics that are built in to the handle bar/stem cockpit and integrate with glassess and earphones. Safety features like collision avoidance systems powered by AI are also on the horizon. Expect beeps from your Garmin soon.
3. Virtual Reality (VR) and Indoor / outdoor Training: With the rise of platforms like Zwift, indoor training has become increasingly popular. However in more recent times there has been a drop off in online racing and the use of home trainers as everyone was "allowed to go ride with my friends again" post covid. The next step will involve more immersive VR experiences, allowing cyclists to train in a virtual environment that closely mimics real-world conditions and landscapes, further blurring the lines between indoor and outdoor cycling. Outdoor, gamify, devices will also be in the market in near future.
4. Focus on Health and Mental Wellbeing: The link between cycling and mental health is likely to become a more prominent part of the cycling narrative. Programs and initiatives promoting cycling as a way to improve mental wellbeing could become more widespread, supported by research and community-based initiatives. Now I know what your thinking ... Of course he is saying that he works for a Mental Health organisation but the data doesn't lie and I believe their is science backed merit to back this prediction.
5. Sustainable Practices in Manufacturing: As environmental concerns continue to gain traction, the demand for eco-friendly cycling products will grow. This could lead to innovations in sustainable materials for bikes and gear, as well as more responsible manufacturing processes that reduce waste and carbon emissions.

Given these trends and predictions, the road cycling scene in Australia is poised for some continued growth and evolution albeit being forced to navigate some immediate tough times ahead. I believe technology, sustainability, and community engagement are at the heart of its key success factors and the cycling Industry in Australia needs to move with the times, adapt to the needs and wants of the consumer and search for ways to inspire more humans to ride bikes!

Written by Vaughan McVilly