Belgian bicycle economy worth nearly billion euros

According to a new study by research firm Transport&Mobility Leuven (TML), the Belgian bicycle economy is worth nearly a billion euros and has experienced growth of some 90% over the past eight years.

Along with the Netherlands, Denmark, and Germany, Belgium is one of the largest cycling countries in the world. Many car manufacturers see the bicycle industry’s growth potential as an opportunity.

17,400 full-time jobs

In 2022, the bicycle economy created a net added value (NAV) of 951 million euros, a growth of 90% in eight years. Thus, the NAV of the bicycle economy grew much faster than the rest of the Belgian economy. It also accounts for more than 17,400 full-time jobs, up from less than 10,000 in 2019. The coronavirus crisis boosted the bicycle sector since 2020.

Nonetheless, the automotive industry remains much more significant. In 2022, that sector accounted for a NAV of 19,5 billion euros and some 162,000 full-time jobs. However, the employment potential of the bicycle sector is 100 times higher per euro of value creation than in the automotive industry.

Car manufacturers see an opportunity

The higher job intensity in the bicycle sector means that when this sector grows (in NAV), more new jobs are created than with the same growth in the automobile sector.

However, a decline in job intensity in the bicycle industry has recently been observed due to the increasing degree of automation in the production process and the increasing share of e-bikes in sales.

What is remarkable is that many car manufacturers see the bicycle industry’s growth potential as an opportunity. The rise of EVs has put pressure on car companies’ workshop turnover.

As a result, the automotive sector wants a piece of the pie in the bicycle industry, a trend observed among distributors (such as D’Ieteren) and parts manufacturers.

According to the report, the automotive industry’s participation in the bicycle industry brings significant growth benefits, especially for the further professionalization of the bicycle market and the bicycle as a product.

Effect of e-bike sale

In general, bicycle tourism, bicycle infrastructure, and the sale of bicycles and parts create the most significant added value. Logistics, in turn, accounts for the highest number of jobs, 7,000 in total. These often involve couriers working for platforms such as Uber Eats and Deliveroo.

The rise of electric bicycles also significantly affects all these figures. Last year, for example, for the first time, more e-bikes than traditional bikes were sold. In 2023, 619,605 bikes were sold in Belgium.

The mandatory, tax-free bike allowance and the expanded bike leasing program, both unique, also prove to be an accelerator – since May 2023, all private sector employees who bike to work are entitled to a bicycle allowance. For example, the percentage of workers with a lease bicycle increased by a quarter between May 2023 and the end of June 2024, to 1,9% of workers.

Specter and Jaegher: two companies that aim at the top segment

As speed pedelec maker Specter has proven, the Belgian bicycle industry is doing well. The Ghent-based company has just raised 2 million euros in fresh capital. With this, it wants to grow further in Europe but also looks at the United States. Specter targets the top segment. The standard version costs 8,990 euros, but a “long-range” variant costs 10,690 euros.

The Ghent-based custom bicycle brand Jaegher, in which former cyclist and world champion Tom Boonen invests, has also just presented a new showroom with a workshop. Jaegher makes about 100 fully customized road and gravel bikes a year. Remarkably, those bikes are not made of carbon but of inox and stainless steel.

The new workshop is located at the Arsenaal site in Gentbrugge. According to the newspaper Het Nieuwsblad, the entry price for a custom-made Jaegher is 7,000 euros, although the company’s most expensive bike costs 22,000 euros.