According to a recent report published by Allied Market Research, titled, “Electric Bike Market by Product, Drive Mechanism, and Battery Type: Opportunity Analysis and Industry Forecast, 2020–2030,” the global E-bikes market was valued at $40.3 billion in 2019, and is projected to reach $118.6 billion by 2030, registering a CAGR of 10.5% from 2020 to 2030.
Asia-Pacific dominates the market, in terms of revenue, followed by Europe, North America, and LAMEA. China dominated the global electric bike market share in 2019. However, Mexico is expected to grow at a significant rate during the forecast period, owing to series of initiatives taken by private companies, local governments, and federal officials to promote the adoption of electric vehicle
The electric bike has an integrated electric motor, pedals, and rechargeable batteries for forwarding propulsion. E-bikes allow commuters to travel greater distances and at higher speed than conventional bicycles. They are less expensive than electric scooters, motorcycles, and mopeds, and do not require insurance or a license. E-bike is an upcoming technology that has already gained traction in various countries, including the U.S., Netherland, China, India, and Japan. However, the e-bike industry overall is still in an early stage of development with significant room for growth across the world.
The most common types of e-bike includes commuter-type, e-mountain bike, e-cargo bike, and compact & foldable bike. Although pedelec e-bikes are most commonly used, e-mountain bikes and e-cargo bikes have witnessed increasing popularity.
By product, the market is categorized into pedelecs, speed pedelecs, throttle on demand, and scooter & motorcycle. The scooter & motorcycle segment accounted for the highest revenue in 2019, as scooter & motorcycle aid in significantly reducing of carbon dioxide (CO2) emission and noise pollution. However, the throttle on demand segment is anticipated to witness highest CAGR of 14.0% during the forecast period, owing to increase in popularity of throttle operated electric bicycles among commuters.
On the basis of drive mechanism, the electric bike market is segregated into hub motor, mid-drive, and others. The hub motor segment accounted for the highest revenue in 2019, owing to the factors such as hassle-free installation, cost-effectiveness, and better performance.
By battery type, the market is categorized into lead acid battery, lithium ion (Li-ion), and others. The lithium ion (Li-ion) segment accounted for the highest revenue in 2019. The growth is attributed to their light in weight, high capacity, and also shown a sharp decline in price in recent years.
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 market growth. However, high cost of e-bikes and ban on use of e-bikes in major cities of China hinder the market
growth. Conversely, advancements in bicycling infrastructure & battery technology are expected to offer lucrative opportunities for the market expansion during the forecast period.
Covid-19 Scenario Analysis
- Due to the COVID-19 pandemic, commuters are mostly preventing public transportation and adopting e-bikes as a safe, convenient, and affordable alternative to public transportation.
- The COVID-19 pandemic has changed the way people commute, and bicycling has become even more popular around the world. As a major bicycle manufacturer and with the largest market for e-bikes, China has witnessed a growing demand in this field.
- Owing to the government restrictions on public transport due to social-distancing guidelines, commuters are adopting the e-bike as the mode of day-to-day transportation.
- Industry participants see short-term disruption in electric bike development and its services during outbreak, owing to the travel ban for vehicles including cars and bus, which may create new opportunities for adoption of electric bikes.
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.