Company bike leasing has emerged as a significant growth driver for the bicycle sector, according to a study by Deloitte’s Sport Business Group in partnership with the industry association Zukunft Fahrrad. From 2019 to 2023, the total revenue of company bike leasing providers surged from 0.7 billion to 3.2 billion euros, nearly quintupling. This reflects an average annual growth rate of 46 percent.

Source: RadMarkt

The study, “The German Company Bike Leasing Market,” surveyed the largest providers using a standardized questionnaire. These companies represent approximately three-quarters of the market. The collected data was then extrapolated to estimate the overall market size based on dealer information.

The survey revealed that the fleet size of bicycles and e-bikes leased through employers has grown by an average of 45 percent annually since 2019, expanding from 400,000 bikes in 2019 to 1.9 million by the end of 2023. This marks nearly a fivefold increase over five years, with 23,000 bikes newly leased in 2019 and 790,000 in 2023.

Leasing strengthens brick-and-mortar retail

Kim Lachmann, Director and bicycle market expert at Deloitte stated “Company bike leasing has now become one of the most relevant market drivers in the bicycle market – especially in the past year, which has been challenging for the industry. High bicycle stocks and a simultaneous slight decline in customer demand due to inflation posed problems for many market participants. However, we continued to see stable growth in company bike leasing – both in terms of volume and price. It is also clear that it is strengthening brick-and-mortar retail in particular. Almost 90 percent of users buy their bikes there.”

Leased bikes tend to be higher-priced, with about 80 percent being e-bikes and an average price of 3,500 euros in 2023—almost 1,700 euros more than the average price of bikes purchased in the overall market. According to the study’s authors, this price difference is a significant factor in the observed strong sales growth in the bicycle market.

The study also found that around 37 percent of employees in Germany now have access to company bike leasing. The number of employees eligible for company bike leasing contracts through their employers grew from 5.3 million in 2019 to 16.8 million in 2023.

Untapped potential

“The company bike leasing sector has grown immensely in recent years, but the potential is far from being exhausted. On average, around 90 percent of employees at participating employers are not yet leasing. In addition, the number of participating companies is increasing continuously – by an average of 46 percent annually since 2019. Company bike leasing is perceived by employees as an attractive offer,” says Kim Lachmann.

In 2023, around 204,000 employers offered their employees the opportunity to lease company bikes, up from around 45,000 in 2019.

Wasilis von Rauch, Managing Director of Zukunft Fahrrad, emphasized the market’s resilience, describing company bike leasing as a billion-dollar market that benefits both employees and companies through health and climate protection advantages. He noted that approximately two-thirds of commuters have a journey suitable for bicycles or e-bikes, often faster and more enjoyable than other modes of transport. Rauch urged policymakers to support this trend by creating conducive framework conditions.