More than 90,000 bicycles have been purchased since the Cycle to Work Scheme was introduced two years ago.
According to the Irish Bicycle Business Association, the scheme has achieved its most important aim of encouraging people to cycle to work.
Under the programme, employers buy a bicycle for their employees, who pay it back through salary deductions over 12 months.
Tax efficiencies mean employees save more than half the original cost of the bike. The association estimated the scheme has generated €67.5 million in bike sales and another €40.5 million in sales of accessories.
Association spokesman David Walsh said retailers estimated 15 per cent of parents who bought a bike through the scheme came back and bought a child’s bike.
He said the scheme has not only prompted people to cycle to work but that many had increased their physical activity during the weekend.
Mr Walsh said until the scheme was introduced, participation in cycling was in decline and car travel was on the increase. Since the scheme came into operation, cycling journeys have increased by more than 50 per cent.