Ebike Market

[497 Pages Report] The global ebike market is projected to grow from USD 48.7 billion in 2024 to USD 71.5 billion by 2030 at a CAGR of 6.6%. The worldwide demand for ebikes increased rapidly, especially during Covid, as customers saw them as a low-cost, eco-friendly solution for commutes. Government bodies in various cities worldwide have initiatives to build bicycle highway lanes. Apart from the driver, such as individual travel during Covid, the ebike market growth is also driven by the growing e-commerce business where ebikes are used for last-mile delivery. Asia Oceania leads the global eBike market, followed by Europe and North America.

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Market Dynamics

DRIVER: Rising demand for micro-mobility services due to increasing concerns for first- & last-mile mobility.

While city populations are expanding, new investments are being made in high-speed intracity public transportation networks through metros and BRTS systems to meet the surging demand for efficient transit means. Such a mode of transport offers economy, comfort, and speed, significantly enhancing urban mobility. One recurrent issue with these systems is the first- and last-mile mobility problem when commuters struggle to reach their final destinations from transit hubs. Micromobility solutions, notably e-bikes, are essential in bridging the gap. E-bikes improve public transit systems by providing convenient and adaptable short-distance mobility options. As cities continue to enhance their transit systems, the demand for e-bikes grows. Lyft (US), Lime (US), Helbiz Inc. (US), and Veo (US) are some of the players in the micro-mobility market..

Significantly, the rise of micro-mobility services acts as a springboard for the ebike market by increasing awareness, providing trial experiences, and catering to different transportation needs. Countries like the US, China, Taiwan, The Netherlands, Germany, India, the UK, France, Paris, etc., are seeing extreme demand for micro-mobility services, contributing to the ebike market's growth.

RESTRAINT: Regularity uncertainty and lack of dedicated infrastructure in emerging economies.

Government laws and terminologies are diverse regarding eBikes. Some countries have regulations at the national level, but states and provinces decide the authority and legal road use regulations. Therefore, any change/update in the regulation of eBikes impacts the market demand. For example, China, which is one of the largest eBike markets globally, announced a regulation on eBikes, wherein bicycles are classified as eBikes only if they can pedal assist, have a maximum speed of up to 25 km/h, and have a motor power of up to 400W. Any eBike exceeding 25 km/h is considered a moped.

Also, Class-II and Class-III e-bikes are not allowed in some European and Asian Oceania regions because their high-speed limit and throttle usage can cause traffic problems. India is an exception-it allows Class-II bikes. Most European countries, other than Italy and the UK, have banned Class-II e-bikes by the law of the European Union. Class-III e-bikes are not widely available in Europe. Fast eBikes are also known as s-pedelec. Switzerland is the largest market for s-pedelec in Europe. In the United States, California does not allow Class 3 e-bikes with throttles, and Colorado and Washington restrict e-bikes with motors exceeding 750 watts. This kind of uncertainty in the regulations across countries makes it difficult for ebike manufacturers to offer different products as per the country's laws.

One of the other restraining factors for the growth of the eBike market is the need for proper infrastructure, such as bike paths and bike lanes, in emerging economies of Asia, Oceania, and North America. Though some cities in North America are making efforts to overcome these restraints, these efforts are limited to a few provinces. For example, Austin (US) has finished constructing 115 miles of new bike lanes, Pittsburgh (US) has completed an additional 50 miles of network miles, Providence (US) has developed 43 miles of fresh bikeways, and Denver (US) has built 100 miles of new bikeways. A large number of regions still do not have such dedicated lanes for bikes. Therefore, lack of infrastructure restraints the growth of e-bikes, especially in the emerging markets of North America and Asia Oceania.

OPPORTUNITY: The trend toward connected e-bikes

Connected eBikes are intelligent and omniscient bikes capable of communicating critical data on their condition and use. In some cases, connected bikes can also receive information and commands remotely. Connected eBike systems allow both data gathering and data mining. Bosch's SmartphoneHub can connect eBikes to a smartphone and support eBike riders before and after their journey. The Lock premium function offered by Bosch transforms the Kiox-connected onboard computer into the key to greater security. This feature provides more biking security and makes the pedelec less attractive to thieves. Intelligent onboard computers — such as the Nyon from Bosch — determine the pedaling force and frequency during the journey and use this information to calculate the cyclist's performance and energy consumption.

Urban Arrow (The Netherlands) partnered with Comodule (Estonia). It launched a cargo bike equipped with Comodule's connectivity solution, offering advanced security features like location tracking, a digital lock, and activated movement alerts. Riders can conveniently access these features through the Urban Arrow app, ensuring constant connectivity with their bike. Alongside the security functions, the app provides essential information such as the bike's battery status, range, and ride data.

The emergence of connected solutions such as mission control and e-tube ride functions by firms like Specialized Bicycle Components Inc. and Shimano Inc. broadens the technological capability of e-bike users. Additionally, the demand for such connected e-bikes is expected to be further propelled around the globe, mainly by urbanism, digitization, and sustenance issues. The trend is also in tandem with the forecast that 70% of the world's population will become urban dwellers by 2050, leading to increased congestion on the road and thus providing the avenue for the increase in the number of e-bikes on the road.

CHALLENGE: High price of Ebikes

The price of the eBikes is significantly higher than that of a regular bicycle, which costs around USD 400 on average. The price of an eBike varies between USD 1,500 and can cost as much as USD 5,000. Their premium edition is sold at almost double the cost of a regular eBike. The price of an eBike varies region by region. For example, being technologically advanced, Europe and North America charge a very high price for an eBike. In the Asia-Oceania region, eBikes represent a very price-sensitive market that might be challenging for a buyer.

Earlier, lead-acid-equipped eBikes were prevalent in China. Their price ranged between USD 400 and USD 500. However, according to the new regulations announced in China in 2019, all eBikes must be equipped with lithium-ion batteries, thereby increasing the price of eBikes to USD 700-800. Thus, if the prices rise, customers will turn to electric two-wheelers or scooters in the same price range. Thereby, eBikes may face a decline in sales. According to the survey conducted by Shimano, about 40% of the respondents showed their concerns about increasing pricing. So, the companies should ensure that they lower the price of the eBike without compromising the quality of their build and enhancing their performance. However, pricing incentives to purchase eBikes could successfully market the eBikes and address the price concerns..

EBike Market Ecosystem

The analysis of the ebike ecosystem sheds light on various market participants, including raw material suppliers, component manufacturers, ebike producers, and end users. Two primary motordrive technologies dominate the bike industry. The first is the hub motor drive, which can be situated either in the front or rear of the bike and integrated into the wheel hub. The second technology is that of a mid-drive motor mounted to the bicycle at the bottom bracket, providing much better balance to the rider owing to its frame-specific mounting. Next is the dominant technology of lithium-ion batteries because of their pervasiveness in utilization and adoption in most e-bikes within the market. The lead acid battery, adopted several times back due to its low cost and easy availability, has been phased out over time from most of Asia Oceania.

Growing demand for electric mountain bikes (e-MTB).

e-MTB has gained rapid momentum over the last few years in demand compared to other types, such as city/urban and cargo e-bikes. Thus, mountain eBikes would amount to more than 1/4th of the total ebike market in 2024 due to demands from recreational activities and growing health concerns. Europe, Asia-Oceania, and North America lead the electric mountain bike market. With growing interest in mountain biking in Europe, the region has prompted the eMTB market with a share of >50% in recent years. Europe has major eBike manufacturers such as Giant Manufacturing Co. Ltd, Kalkhoff Werke GmbH, Trek, and Riese & Müller supporting the demand.

According to Eurobike, almost every third e-Bike sold in Germany is an e-mountain bike. Europe is the largest market for mountain e-bikes, owing to an increase in the percentage of trips made by bicycles. The growth in the number of trips by e-bikes has been witnessed among young adults between 18 and 30. This age group mostly prefers mountain e-bikes as they are robust. In e-bike riding, the European region is dominated by males, with 90%. Mountain biking associations have undertaken efforts and initiatives to increase awareness regarding mountain biking sports and events. International Mountain Biking Association Europe, or IMBA Europe, and Cycling Industries Europe (CIE) agreed on a 3-year cooperation in early January 2023 to fuel and expand European mountain bikes. This is a welcome development and likely to make a profound difference to the growth and further popularity of mountain biking in Europe.

Mountain biking is one of the off-road sports gaining popularity in North America. Crossroad biking is also famous in this region due to the rising number of women and kids entering this sport, which previously was dominated by men. Many cyclist organizations such as League of America Wheelman, IMBA, and Bike Centennial have undertaken initiatives and projects to encourage more individuals to enter this sport. The growing Asia Oceanic region also indicates that, in countries like India, for example, e-MTB is the preferred segment of e-bikes. People's interest in adventure and fitness has been the leading cause of the popularity of the e-mountain bike. Increasing demand for e-MTB bikes would be supported in light of these factors.

The Class-III segment is projected to grow at the highest rate in the ebike market.

Class III eBikes are also known as s-pedelec. They are expected to be the fastest-growing segment at a CAGR of 14.9% in value during the forecast period. In the EU region, Class III eBikes have a speed limit of >45 km/h, with 4,000 W power, and require registration, license, helmets, and mirrors & reflectors. They can only drive on roads and private lands but not on pedestrian biking infrastructure. An eBike must have a speedometer fitted. While some areas are trying to implement particular regulations concerning Class III eBikes, making the vehicle even more mainstream and legitimate to get around, this might encourage people to use these bicycles. Examples of Class III eBike include Specialized Turbo Vado SL 4.0 EQ, Model C by Electric Bike Company, and Aventon Level.

The hub motor segment is projected to be the largest ebike market.

Hub drive bikes are well-suited for urban and city commuting, providing consistent power delivery on flat terrain. They are also quieter than mid-drive motors. For instance, Bafang Electric (Suzhou) Co., Ltd. (China) has created the HR-Series, which stands out for its high efficiency. These drive systems have an output torque of up to 45Nm at 250W, care for the riders on more extended tours, and have an excellent battery economy. The development of such advancements and focus on improving motor units to improve ebike performance is expected to drive the market for electric motors during the forecast period. Although most manufacturers have moved away from hub motors in favor of mid-drive motors, since they are much smaller, lighter, and easily integrated with the bike frame, hub motors require less maintenance since there are fewer moving parts than mid-drive motors. That would also likely reduce longer-term ownership costs.

Asia Oceania is the largest market for hub motors, as the region is a cost-sensitive market. Hub motors are less expensive than mid-drive motors, which can be a significant factor for budget-conscious riders looking for an affordable entry point into the world of eBikes. China is an important hub for eBike manufacturing, and its expertise in producing cost-effective hub motors further drives down the overall price of eBikes in the Asia-Oceania region.

North American ebike market is projected to grow at fastest rate during the forecast year 2024-2030

North America is the fastest-growing ebike market. The mountain and city ebikes are popular in North America. City E-Bikes are expected to account for the largest market share due to the increased adoption of electric bikes for daily commuting, recreation, and fitness activities. Cargo eBikes are expected to grow at the fastest CAGR due to the increased adoption of electric bikes for transporting goods from one place to another, as well as traffic congestion and rising fuel prices in North American cities. Cargo eBikes are gaining popularity among consumers due to their robust nature of the operation. The growth of the e-commerce industry and food delivery at large propels last-mile delivery even further, adding to the demand for cargo eBikes. These zero-emission cargo bikes efficiently navigate traffic jams and require less parking space than traditional delivery vehicles. This goes hand in glove with the growing environmental concern and government initiatives toward sustainable transportation. The government is also introducing a 1-year pilot project that enables a rebate of up to USD 1,700 for business owners to purchase cargo eBikes. To reduce emissions, governments in North America are offering incentives to buy cargo E-Bikes. These factors would increase the demand for E-Bikes in North America during the forecast period.

Key Market Players

The key players in the Ebike market are Accell Group N.V. (Netherlands), Giant Manufacturing Co., Ltd. (Taiwan), Yadea Group Holdings., Ltd. (China), Yamaha Motor Company (Japan), and Pedego Electric Bikes (US). Major companies’ key strategies to maintain their position in the global market are vital global networking, mergers and acquisitions, partnerships, and technological advancement.

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Recent Developments

• In April 2024, Pedego launched its Fat Tire Trike e-bike with three tires and a low-step frame design. It is equipped with PEDALSENSE, propulsion software that provides various riding options, such as throttle drive, torque assist, and cruise assist.
• In March 2024, Pedego launched its Pedego MOTO, which is equipped with both front and rear suspensions to provide comfort on rugged terrain. A 48V battery producing 750W powers it.
• In January 2024, AIMA Technology Group Co Ltd. and Bafang Electric (Suzhou) Co., Ltd formed a strategic partnership to create a specialized motor called Route 66 for Santa Monica.
• January 2024, Brose Fahrzeugteile has continuously enhanced its magnesium drives, mainly focusing on the acclaimed Drive S Mag. The motor weighs only 2.9 kg (6.4 lbs), which makes it one of the lightest eMTB motors. The motor produces up to 90 Nm of torque, which assists hill climbs. These specific advancements have notably prolonged the lifespan of the product.
• In November 2023, Accell Group NV and Refurb Battery will extend their partnership, building on the success of their pilot program to repurpose 5,000 discarded electric bike batteries. This initiative reduced over 100 tons of CO2 emissions.
• In October 2023, Rad Power Bikes partnered with Uber Eats to launch a pilot program in Miami, Florida, allowing Uber Eats delivery workers to deliver on e-bikes.
• In September 2023, Ride1Up, an American e-bike company, announced a partnership with Walmart to sell its e-bikes online and in select Walmart stores.
• In July 2023, Specialized, an American bicycle company, launched its new cargo bike, the Turbo Como Cargo. The Turbo Como Cargo is designed for businesses that want to make deliveries or transport goods more sustainably.
• In June 2023, Bosch introduced the compact Performance Line SX drive designed for eGravel bikes, eUrban bikes, and lightweight eMTBs. The company also introduced the Purion 200, combining a control unit and color display, and the Kiox 500, featuring a large display ideal for treks or daily rides. It also integrated eShift electric gear shifting for hub gear systems. The eBikes will feature high energy density and lightweight design with the new CompactTube 400 and PowerMore 250 batteries.
• In April 2023, Bafang Electric introduced the rear hub motor, H720, which has two-shift automatic shifting. This rear hub motor provides the ideal propulsion solution for every e-fat bike or other concept. The H720 is available in 250W, 500W, 750W, and 1,000W variants
• In January 2023, the Innovator is a folding electric bike. Its electric motor aids pedaling, making climbing hills or riding longer distances easier. With a large battery capacity, the Innovator promises a decent range on a single charge, potentially reaching up to 55 miles
• In October 2022, Yadea Group launched the Y80 bike, which features a 350W engine delivering 100Nm torque and is powered by a 36V 10.5Ah large-capacity battery with a range of up to 80km.
• In April 2022, Pedego Electric Bikes opened a store in Orlando, Florida. The store serves the growing region's market with sales, rentals, and services.
• In January 2022, Yamaha introduced two new models of e-bikes for all-terrain mobility under the sports electric-assist bicycle product range.
• In September 2022, Pedego introduced the Pedego Avenue, a commuter e-bike designed to provide a comfortable riding experience, even on challenging hills. The Pedego Avenue features a balanced frame geometry and an integrated battery, which work together to give the rider a smooth and effortless ride.
• In January 2022, Giant unveiled the all-new Trance X E+, eMTB, equipped with features that make it suitable for paved roads to off-road trails. It has a powerful motor, lightweight frame, and smooth-riding tubeless tires, allowing riders to tackle a variety of terrains.

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