Bicycles have been around for more than 200 years but were far from a high-growth industry before 2020 when bike sales exploded during the pandemic. However, the years following the worst of the pandemic have been a different story.

Someone on a highway riding a bike overlooking a mountain.
Image source: Getty Images.

The cycle shifted from above-average demand for bicycles to a gradual decline. In 2023, bike sales of around $4 billion in the U.S. represented a 24% decline from 2020, although sales were still up 23% compared to 2019.

The bike industry is experiencing a period of significant transition and challenges following a pandemic-induced boom and subsequent downturn. Retailers and manufacturers have faced challenges with high inventory levels. While traditional bikes remain dominant, electric bicycles (e-bikes) are also gaining market share. Discounts are prevalent as retailers work to clear inventory, but these discounts can impact margins and profitability.

The global bicycle market is projected to continue growing, with the potential for significant expansion in the coming years. Factors that drive bicycle sales include an increased interest in exercise and wellness, more time spent outdoors, environmental consciousness, and bike-sharing technology.

Despite the bumpy ride that bicycle businesses are experiencing right now, some analysts still think that the global bicycle market size could reach $274.1 billion by 2032, a compound annual growth rate of more than 11% from its current valuation.

Stocks that play a part in this suddenly expanding industry could present an investment opportunity for those with the appropriate investment horizon and risk appetite.

How to invest

Investing in bike stocks in 2025

Bicycle manufacturing stocks -- part of the industrial sector of the economy -- are difficult to invest in directly. Many bike companies are subsidiaries of larger manufacturing conglomerates, transportation parts suppliers, vehicle makers, and the like. However, a few stocks that are more focused on bicycling could present an opportunity to bet on the industry's growth in the years ahead. 

Data as of Jun 10, 2025.
Company name Company ticker Market cap Industry
Shimano OTC:SMNNY $13 billion Leisure Products
Peloton Interactive NASDAQ:PTON $3 billion Leisure Products
Halfords Group Plc OTC:HLFD.F $463 million Specialty Retail

1. Shimano

Japanese manufacturing conglomerate Shimano is a top name in outdoor gear. Its bike components are regularly featured on all sorts of bicycle models, from affordable to high-end road bikes. From brakes to cranksets, Shimano is an important parts supplier for the biking industry.  

Historically a slow-and-steady industrial business, Shimano's sales have come under pressure recently as spending patterns have slowed while global inventories remain high. Still, if you're looking for a way to bet on bicycles, electric bikes (e-bikes) and related outdoor equipment may be a long-term, durable consumer trend, and Shimano should rank as a smart way to profit over time.  

2. Peloton Interactive

There was arguably no bigger fitness and gym business beneficiary from the pandemic than Peloton. The at-home high-end workout equipment company picked up millions of users in a brief time, but momentum slowed dramatically starting in 2021 as people began leaving home once again. Competition for connected workout equipment increased, and a tragic accident led to a recall of its premium treadmill.

Consumer spending patterns have also changed significantly since the pandemic, affecting companies across a range of industries, and Peloton has been no exception. Peloton went through multiple rounds of layoffs, including a shakeup in May 2024, and Barry McCarthy stepped down as CEO in May 2024, just two years after taking the job.

The company recently refinanced almost $1 billion of loans that had an original maturity date in 2026 to a new five-year plan and is engaging in aggressive cost-cutting efforts to reduce annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year.

Peloton's revenue has been declining, particularly in hardware sales. The company has also been experiencing higher-than-expected subscriber churn, especially for its app subscriptions. While Peloton is making efforts to turn things around, its long-term future remains uncertain, particularly as it navigates the post-pandemic environment.

Peter Stern, a former Ford (F 0.63%) executive, is now leading Peloton's transition and focusing on improving margins and reducing operating costs. Of course, Peloton is not a traditional bicycle company. Its popular bike product is stationary, relying on a large tablet and engaging content to keep users pedaling like mad.

Just bear in mind that Peloton's steep slowdown from triple-digit percentage revenue growth a few years ago will likely continue to create some incredibly volatile share price action. This is probably a stock for only the most aggressive investors with a well-diversified portfolio and healthy risk appetite.

3. Halfords Group

Halfords Group (along with its Tredz subsidiary) is the leading motoring and cycling retailer in the U.K. Much like the other companies on this list, Halfords Group was not a growing business leading up to 2020.

Halfords Group began a concerted effort to increase its online sales and focus on core offerings back in 2018. The pandemic provided a surge of activity for the company. In early 2021, the company also launched its own e-scooter and e-bike brand, Carrera, as it retools its offerings for a new generation of cycling and motoring enthusiasts.

Halfords reported positive sales in the most recent financial year despite facing a 30% decline in bike volumes amid challenges in the broader bike industry. Don't expect this to be a high-growth company. But if bicycle popularity remains strong, Halfords Group could be a long-term winner in the industry.

Related investing topics

Should I invest?

Are bike stocks a good investment?

Whether it's a way to enjoy the outdoors, a sporting event, or a short-distance commute solution, bikes feature prominently in the transportation industry. Just bear in mind that the post-pandemic slowdown could cause some volatility in bike stocks in the near term.

Nevertheless, the growth forecast in this industry over the next decade or so is nothing to balk at. Investing in bikes could be a lucrative ride.

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Peloton Interactive. The Motley Fool has a disclosure policy.