Electric Bike Market Insights, 2030
The global electric bike market size was valued at USD 40,312 million in 2019, and market is projected to grow USD 118,657 million by 2030, registering a CAGR of 10.5% from 2020 to 2030.
Factors such as implementation of government regulations to encourage the use of electric bikes, consumer inclination toward use of e-bikes as an eco-friendly & efficient solution for commute, increase in fuel costs, and rise in interest in cycling as a fitness & recreational activity are expected to drive the e bike market growth.
Electric bike is a bicycle with an integrated electric motor drive mechanism and battery, which produces power for causing or assisting propulsion. Various kinds of globally available e-bikes range from electric bikes with a small motor to assist the pedal-power of the rider to more powerful e-bikes that produce power to completely drive the bike using throttle.
Electric bikes are a flexible, versatile, eco-friendly, and trendy mode of transport. Consumers look up to them as an ideal substitute for scooters, smart cars, and public transport. These bikes help tackle traffic congestion, owing to the smaller size of e-bikes, attain higher speed with lesser effort, and health benefits attained with peddling. These factors lead to rise in popularity of electric bikes across the globe. High cost of e-bikes and ban on use of e-bikes in major cities of China hinder the market growth. Furthermore, improvement in bicycling infrastructure & battery technology is expected to offer lucrative opportunities for the electric bike market growth.
By Product
Throttle on demand is projected as the most lucrative segments
The global market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Rise in awareness among people toward the environmental benefits of adopting e-bikes considerably fuels the growth of the global market. In addition, increase in air & noise pollution and the desire for a clean and better future propel the demand for e-bikes over the conventional ones. Furthermore, government support in regions such as North America, Europe, and developing countries in Asia-Pacific to promote the usage of electric bikes drives the electric bike market growth. Inclination toward personal well-being and the urge to maintain physical fitness further propel the need for electric bikes for commuting in Europe.
Asia-Pacific has garnered a significant share in the e-bikes market, due to huge adoption in high populous cities such as China and Japan. In addition, increase in initiatives for environmentally friendly vehicles & bikes and development of related infrastructure from the several governments such as India are anticipated to boost the growth of electric bike market in Asia-Pacific.
By Region
LAMEA would exhibit the highest CAGR of 14.00% during 2020-2030.
China has strengthened its industry leadership by making profits across all scopes of the supply side of electric bicycles including current & projected production of electric bicycle and their components, such as electric motors and lithium-ion battery cells. For instance, according to the Ministry of Industry and Information Technology, in the first 10 months of 2020, over 25.48 million units of electric bicycles were produced in China, a year-on-year increase of 33.4%. In addition, China launched various initiatives for green transportation and implemented regulations regarding emissions, which drive the electric bike market.
Netherlands is leading the European market in terms of electric bikes. Owing to the strong cycling infrastructure, two out of five new bikes sold in the Netherlands are e-bikes. For instance, according to the data by Rai Association and Bovag, 420,000 new e-bikes were bought in 2019, accounting 41.7% of total new bicycle sales in the Netherlands. Conversely, 34% and 12% of the bike sales were normal tour/city bicycles and children bikes, respectively. Furthermore, increase in adoption of electric bikes is expected to overtake the mechanical bikes in near future in Netherlands, which, in turn, is driving the electric bike market growth.
By Drive Mechanism
Others is projected as the most lucrative segments
The global electric bike market is segmented into product type, drive mechanism, battery type, and region. Depending on product type, the market is bifurcated into pedelecs, speed pedelecs, throttle on demand, and scooter & motorcycle. By drive mechanism, it is fragmented into hub motor, mid drive, and others. On the basis of battery type, it is classified into lead-acid, lithium-ion (Li-ion), and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Battery Type
Others is projected as the most lucrative segments
Key players in the e bike industry Accell Group, Derby Cycle, Fuji-ta Bicycle Co., Ltd., Giant Manufacturing Co., Ltd., Jiangsu Xinri E-Vehicle Co., Ltd., Mahindra & Mahindra Ltd. (GenZe), Prodecotech, LLC, Tianjin Golden Wheel Group Co., Ltd., Trek Bicycle Corporation, and Yamaha Motor Co., Ltd. are some of the leading key players operating in the electric bike market.
Key Developments in E Bikes Industry
- In September 2020, Giant Manufacturing Co., Ltd. launched Trance X E+ Pro 29, an all-new E-bike for trail riding. It has high-performance SyncDrive Pro motor, new Maestro suspension system, and adjustable frame geometry.
- In September 2020, Trek Bicycle Corporation launched Domane + ALR, an electric road bike. This electric road bike is made of aluminum and has range up to 104 kilometers with 250 Wh battery.
- In July 2020, Raleigh Bicycles, the subsidiary of Derby Cycle, launched a new electric cargo bike range called Raleigh E-Cargo in the UK and Ireland. The Raleigh E-Cargo bikes are designed to carry up to 100kg in weight and have a range of up to 75km (46 miles) on one single charge.
- In February 2019, Mahindra & Mahindra Ltd. collaborated with Silicon Valley-based electric personal mobility startup GenZe, for North American automotive division. This collaboration is aimed to expand Mahindra’s zero-emissions personal transportation solution in North America.
Implementation of Government Regulations to Encourage the Use of Electric Bikes
Governments of various countries are taking initiatives to reduce the carbon footprints by encouraging the use of electric bikes, electric vehicles, and bicycles, owing to increase in awareness toward the hazardous effects of using vehicles running on fossil fuels. Moreover, governments are constructing bicycle-friendly streets, which are encouraging individuals to opt for bicycle as a key mode of commute. Electric bicycles, scooters, and motorcycles have gained significant attention from various governments as reliable and efficient types of light motor vehicles (LMVs), which help in reducing the carbon footprint.
Furthermore, to encourage the use of these environment-friendly vehicles, governments around the world are supporting for the purchase of electric mobility, in terms of tax credits and incentives. For instance, in June 2019, the Indian Government announced a plan to lower the goods & service tax (GST) on e-vehicles from 12% to 5% for faster adoption of electric vehicles. Furthermore, infrastructure facilities such as guarded bicycle parking facilities, construction of more bicycle (express) routes, and establishment of battery charging stations in many countries by the governments significantly boost the adoption of electric bikes by users, thereby propelling the growth of the e bike industry.
Consumer Inclination Toward Use of E-Bikes as an Eco-Friendly & Efficient Solution for Commute
Increase in global carbon emission by fuel combustion has been one of the major concerns for governments and environmentalists from the past few decades. This, in turn, rising demand for electric vehicles across the globe, thereby supplementing the growth of the e bike market. In addition, due to rise in cost of fuel at international level, increase in pollution, and traffic congestion especially in urban areas have increased the popularity of electric bikes across every continent. Moreover, higher running and maintenance cost of fuel vehicle leads to shift in preference for electric bike in daily commute, which, in turn, propels the e bikes market growth.
High Cost of E-Bikes
High cost of e-bikes is a major factor that restrains the growth of the E bikes market. The cost of the battery and technology makes e-bikes costlier as compared to traditional bicycles, conventional scooters, or motorcycles. Hence, consumers find conventional scooters or motorcycles superior in performance with same or less price. Moreover, the use of lithium–ion batteries or drive mechanism of motor incurs maximum cost, thereby restraining the growth of the market. Hence, upsurge in adoption of e-bikes in countries other than China is limited by high costs. However, the electric bike market is fastest growing globally, which may reduce the impact of this restraint in the near future.
Improvement in Bicycling Infrastructure and Battery Technology
E-bikes are less expensive than cars, do not require license, and can be used on existing bicycling infrastructure. Rapid urbanization and less preference of consumers to use cars due to increased traffic congestion are anticipated to offer lucrative opportunities for e bike market expansion. In addition, governments of various countries focus on the development of infrastructure for e-bikes, including bicycle tracks and public charging stations with the inclination of consumers toward e-bikes.
For instance, Sanyo (Japan) opened two solar parking lots in Tokyo where around 100 electric bicycles can be recharged from solar panels. Moreover, consistent technological innovations in e bike by market players is propelling the market growth. For instance, in 2017, commercial bike racks & bike parking systems manufacturer, Bikeep introduced the solution of smart bicycle rack that provides electric bicycle charging. The solution will be available for the most popular e-bikes. Thus, all these factors collectively are expected to offer remunerative opportunities for the expansion of the global E-bikes market during the forecast period.
Key Benefits for Stakeholders
This study presents analytical depiction of the global electric bike market analysis along with current trends and future estimations to depict imminent investment pockets.
The overall electric bike market opportunity is determined by understanding profitable trends to gain a stronger foothold.
The report presents information related to the key drivers, restraints, and opportunities of the global electric bike market with a detailed impact analysis.
The current electric bike market is quantitatively analyzed from 2019 to 2030 to benchmark the financial competency.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Electric Bike Market Report Highlights
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Analyst Review
An e-bike is a bicycle with an integrated electric motor, a battery, and a controller that assists with increased propulsion. It makes use of chargeable batteries, which have different capacities depending upon their size. Peddle assist, throttle on demand, speed pedelec, and electric moped or motorcycle are the different categories of electric bikes. Increase in government support for electric bikes and implementation of stringent laws toward CO2 emission drive the growth of the global electric bikes market. Moreover, consumer inclination toward the use of e-bikes as an eco-friendly and efficient solution for commute and increase in fuel costs supplement the market growth. In addition, rise in interest in cycling as a fitness and recreational activity and improvement in cycling infrastructure & battery technology fuel the market growth.
At present, electric bikes are widely being used in various applications, including daily commuting, food & medicine deliveries, logistics, and others. Numerous companies such as Accell Group, Derby Cycle, Giant Manufacturing Co., Ltd., Trek Bicycle Corporation, and Yamaha Motor Co., Ltd. have been operating effectively in the electric bike market to offer advanced products, which further propels the growth of the global market.
However, high cost of e-bikes and ban on use of e-bikes in major cities of China hinder the market growth. On the contrary, improvements in bicycling infrastructure & battery technology are anticipated to offer potential opportunities for the market growth.
Among the analyzed regions, Asia-Pacific is the highest revenue contributor, followed by Europe, North America, and LAMEA. On the basis of forecast analysis, LAMEA is expected to lead during the forecast period, due to increase in concerns related to emission of hazardous pollutants in the developing countries such as Brazil, Argentina, South Africa, and Saudi Arabia.
The global electric bike market size was valued at USD 40,312 million in 2019, and market is projected to grow USD 118,657 million by 2030
The global electric bike market is projected to grow at a compound annual growth rate of 10.5% from 2020-2030 to reach USD 118,657 million by 2030
Key players in the e bike industry Accell Group, Derby Cycle, Fuji-ta Bicycle Co., Ltd., Giant Manufacturing Co., Ltd., Jiangsu Xinri E-Vehicle Co., Ltd., Mahindra & Mahindra Ltd. (GenZe), Prodecotech, LLC, Tianjin Golden Wheel Group Co., Ltd., Trek Bicycle Corporation, and Yamaha Motor Co., Ltd.
Asia-PAcific region is leading the market presently in terms of revenue. However, LAMEA and North America region is expected to provide more business opportunities for the key players operating in the global electric bike market.
Factors such as implementation of government regulations to encourage the use of electric bikes, consumer inclination toward use of e-bikes as an eco-friendly & efficient solution for commute, increase in fuel costs, and rise in interest in cycling as a fitness & recreational activity are expected to drive the e bike market growth.
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