Belgium’s bicycle industry worth almost €1 billion
Comments Off on Belgium’s bicycle industry worth almost €1 billionSource: FPS Mobility of Transport
FPS Mobility and Transport publishes a new study, conducted by Transport & Mobility Leuven (TML) on Belgium’s cycling economy and its socio-economic effects on the nation.
In Belgium, cycling is seen as an important part of its society and economy with its numerous benefits, however there haven’t been many studies analysing its economic impact, leading to its Minister of Mobility Georges Gilkinet requesting for it to be studied.
Findings from TML revealed that in 2022, Belgium’s bicycle sector achieved a total net value of €951 million with nearly 18,000 full time employees. With these results, it has been noted that the sector has grown by almost 90% in the previous 8 years, and that it still has great potential to grow even further.
Gilkinet commented the following of the published findings: “By creating jobs and prosperity, the bicycle sector has important economic benefits for our country. Thanks to this study, we have a complete and objective picture of this for the first time. But above all, this study highlights the enormous growth potential of this sector. It will help policymakers to make the best choices for the future, not only in terms of mobility, but also in terms of the economy and public health.”
The study included the following findings:
COVID-19 boosted cycling popularity
The COVID-19 pandemic played a key role in accelerating the shift toward cycling in Belgium, as social distancing measures led to a preference for individual transport options. This trend, combined with the rise of e-bikes and supportive government policies, significantly increased the adoption of cycling as a mode of transportation.
Diverse and growing cycling industry
The cycling sector encompasses a wide range of activities, including bicycle production, sales, rental services, tourism, logistics, infrastructure, insurance, and events. In 2022, the cycling economy’s net added value was highest in cycle tourism (€214 million), infrastructure development (€207 million), and bicycle sales (€214 million). The sector’s employment rate grew by 147% since 2015, with logistics (7,021 FTEs), tourism (3,358 FTEs), and sales (2,813 FTEs) as the top job creators.
Electric bicycles drive sales and industry growth
For the first time, electric bicycles accounted for over half (51%) of all bicycle sales in 2023, totaling around 620,000 units. The surge in e-bike popularity has increased the average bicycle price from €1,244 in 2019 to €1,915 in 2023, indicating a 31% real increase. The convenience of electric assistance for longer distances and hilly terrains is a major factor behind this shift.
Future growth and professionalisation
To sustain the cycling sector’s growth, the study suggests improving infrastructure, enhancing bike availability, and implementing favorable policies, such as tax incentives and mileage allowances. The most impactful scenario involves encouraging 15% of employees to lease bicycles, which could generate €750 million in additional income, benefiting related industries like parts, accessories, and insurance.
Rosanne Vanpée, Senior Researcher at TML, commented, “Every 1,000 leased bicycles generate €2.8 million in net value and 27 full-time jobs annually.” It has also been noted that active commuting improves physical and mental health, resulting in broader economic gains for workers and society.
TML’s study findings underscore the cycling sector’s crucial role in Belgium’s economy, with ample opportunities for further growth and sustainable development.