Text & Photo: Wheel Giant
Contrary to widespread expectations of a post-pandemic "recovery," 2025 proved to be a year of structural disintegration and intense reshaping for the global bicycle industry. From the tepid atmosphere at the Taipei Cycle Show to a wave of bankruptcies across Europe and North America, the sector is undergoing a profound shuffle.
Weighed down by inventory destocking, geopolitical friction, tariff barriers, and escalating ESG compliance pressures, the old order is crumbling. However, amidst this turmoil, a new competitive landscape is emerging—driven by cross-industry tech disruptors and a strategic shift in global manufacturing hubs.
1. Supply Chain Migration: The Shift Eastward
In 2025, cash flow became the ultimate determinant of survival, forcing European manufacturers to aggressively restructure cost bases. This has triggered an acceleration of production capacity moving toward Eastern Europe (e.g., Poland, Hungary) in search of operational resilience.
Accell Group: Ending over a century of manufacturing history in the Netherlands, the industry giant plans to relocate operations entirely to Hungary by 2026.
Sprick: The German manufacturer is consolidating its resources into Poland.
This migration stems from a crisis of confidence. Even with aggressive discounting to clear pandemic-era inventory, overall European sales volume dipped nearly 5%, battering investment valuations. Notably, GBL’s valuation of Canyon plummeted by 43%. Meanwhile, traditional powerhouses like Pierer Mobility retreated after suffering a €400 million loss in its bicycle division, highlighting the risks of cross-industry expansion during a downturn.
2. Technology & Strategic M&A: The New Battleground
Despite the market gloom, capital continued to flow toward core technologies and software-defined mobility:
Strategic Acquisitions: SRAM and BRP strengthened their technical moats by acquiring key component makers (Ochain and FIT 2.0, respectively). Rebirth Group acquired Cowboy, aiming to stabilize the e-bike brand’s vertical integration amidst bankruptcy rumors.
Software & Automotive Crossover: US EV maker Rivian launched Also Inc., introducing modular e-bikes that challenge traditional hardware-centric manufacturing. Additionally, Avinox spun off from DJI to operate independently, signaling that electronic control systems have become the new frontier for brand differentiation.
3. The "Compliance Cliff": Tariffs and ESG
Geopolitics and Social Responsibility (ESG) have evolved from corporate buzzwords into existential metrics.
Tariff Blowback: The US "America First" policy led to soaring component tariffs, causing a sharp drop in Chinese exports and forcing companies like the Electric Bicycle Co. (EBC) into bankruptcy.
Human Rights Due Diligence: The Taiwan supply chain faced significant pressure from US Customs (CBP) regarding migrant worker labor practices.
Industry leaders Giant and Merida swiftly implemented "zero-fee" recruitment policies to mitigate risks.
Associations like TBA and BAS launched industry-wide due diligence initiatives, proving that supply chain transparency is now a mandatory ticket for international market entry.
4. The Changing of the Guard
2025 marked the exit of long-standing industry titans, symbolizing the end of a specific era of leadership.
Janus Smalbraak: Stepped down as CEO of Pon Holdings after a 25-year tenure.
Marc van Rooij: The President of Shimano Europe, a key figure in the group for over 34 years, announced his retirement.
Simultaneously, the traditional trade show model faced an identity crisis. A split between major German industry associations and Eurobike highlights a shift away from massive exhibitions toward precise, dealer-focused events. The departure of Stefan Reisinger, a long-time core leader of Eurobike, further underscores this structural pivot.
Future-Proofing Through Resilience
The fragmentation of 2025 is not merely a dip in the business cycle; it is a permanent rewrite of the industry playbook. The past thirty years of globalized labor division, blind capacity expansion, and reliance on explosive consumption growth are over.
As the industry navigates this "winter," victory will not be determined by production scale, but by adaptability—specifically in software-hardware integration, regulatory compliance, and supply chain resilience.
