The bike industry isn't dying, but it is certainly shedding its skin. If you’ve stepped into a local bike shop lately and noticed more dust than customers, or perhaps an overwhelming number of heavy e-bikes crowding out the lightweight racers, you’re seeing the fallout of a three-year hangover. Honestly, the "boom" of the early 2020s did more damage than we care to admit. It created a ghost of demand that manufacturers chased right off a cliff, and now, in early 2026, the industry is finally hitting the pavement. Hard.
Why Bicycle Retailer and Industry News is Obsessed with 2026
We are currently witnessing the Great Correction. For the last 18 months, bicycle retailer and industry news has been dominated by one word: inventory. Or, more accurately, the desperate purging of it. You’ve likely seen the headlines. Brands like Rad Power Bikes have been navigating Chapter 11 bankruptcy proceedings, recently closing corporate stores in St. Petersburg and Vancouver. Even the giants aren't safe. Accell Group, a titan of European manufacturing, is effectively abandoning its century-long history in the Netherlands to move production to Hungary and Poland.
It’s a bloodbath of "right-sizing."
When you look at the numbers, it’s easy to get pessimistic. Giant Group and Shimano have both signaled a retreat from the aggressive growth targets of the past. But here’s the thing: while the corporate offices are panicking, the actual act of riding a bike is more popular than ever. The disconnect is that the industry built a mountain of mid-range mountain bikes when the world actually wanted commuter e-bikes and specialized gravel rigs.
The E-Bike Regulatory Mess
If you own an e-bike, or you're thinking of buying one, you're now part of a legislative warzone. Just this month, the National Bicycle Dealers Association (NBDA) held a safety panel to address what they call the "Electric Motorcycle Challenge." Basically, there’s a flood of "out-of-class" vehicles—bikes that go 30+ mph but look like bicycles—that are ruining it for everyone.
✨ Don't miss: Jerry Jones 19.2 Billion Net Worth: Why Everyone is Getting the Math Wrong
New Jersey is currently the flashpoint. Guest editorials in industry journals are slamming recent state legislation, arguing that "quick-fix" safety rules are making it harder for law enforcement to tell the difference between a pedal-assist bike and an unregistered moped. For the local shop owner, this is a nightmare. They are being asked to service bikes with proprietary batteries and mystery electronics that might literally blow up in their workshop.
Liability is the new boogeyman.
32-Inch Wheels and "Wagon Wheel" Fatigue
Technologically, the industry is trying to innovate its way out of the slump. Have you heard of 32-inch wheels? No, that’s not a typo. While most of us just got used to 29ers, brands like Mavic are reportedly experimenting with even larger "wagon wheels."
It sounds ridiculous. It probably is for anyone under 6’4”. But it’s a classic move: when sales of standard gear flatline, create a new "standard" to force an upgrade cycle. Whether riders will actually buy into 32-inch wheels in 2026 remains to be seen, but the chatter at events like Velofollies in Belgium and the Iowa Bike Expo suggests a lot of skepticism. Most riders just want their 12-speed drivetrains to stop creaking.
🔗 Read more: Missouri Paycheck Tax Calculator: What Most People Get Wrong
The Return of the "Real" Bike Shop
There is a silver lining. The "digital-only" direct-to-consumer (DTC) craze is hitting a wall. People realized that buying a $5,000 carbon bike online is great until the integrated hydraulic routing starts leaking and the nearest authorized service center is three states away.
- Commencal, a brand famous for its DTC-only model, is now aggressively expanding its North American dealer network.
- Cascade Bicycle Studio in Seattle just acquired Ambedo, leaning into a "fit-first" hybrid model.
- Service is becoming the primary product.
The shops surviving right now aren't the ones with the most bikes on the floor; they're the ones with the best mechanics. High-margin service models are the only way to pay the rent when Specialized or Trek are running 40% off sales on their own websites.
What You Should Actually Do Now
If you're a rider or a buyer, the news isn't all gloom. It’s actually a buyer’s market, provided you know where to look.
First, stop waiting for "the next big thing." The 2026 trends—like TPU inner tubes replacing tubeless or the return of hooked rims—are mostly refinements. If you find a 2024 or 2025 model on clearance at your local shop, buy it. The frames haven't changed that much, and the components are likely better than the cost-cut versions coming in 2027.
💡 You might also like: Why Amazon Stock is Down Today: What Most People Get Wrong
Second, check your e-bike's battery certification. With the UL 2849 standard becoming the industry benchmark, shops are increasingly refusing to work on non-certified batteries. If you buy a "no-name" e-bike from a massive online marketplace today, you might find it unrepairable by tomorrow.
Third, support the service department. If your local shop closes, your ability to get professional maintenance goes with it. The industry is shifting from selling "stuff" to selling "expertise." That expertise has a price, and it's worth paying.
The bicycle world is correcting itself. The junk is being filtered out, the over-leveraged brands are folding, and the core of the sport—the local shop and the dedicated rider—is what's left. It’s a messy process, but frankly, it’s one that was long overdue.