The global E-bike battery pack market revenue was valued at USD 10.2 billion in 2023 and is projected to reach USD 33.9 billion by 2032, registering a CAGR of 14.2% during the forecast period (2024-2032). In recent years, the electric bike battery pack industry share has increased, owing to rising demand for electric bicycles as a sustainable and convenient means of transportation. The European E-bike battery industry grows at 14.5% CAGR, fueled by UK infrastructure investments and EU cycling initiatives. In Asia-Pacific, China leads with a 14.7% CAGR driven by rising electric bike adoption and MaaS innovations.
E-bike battery packs are a crucial component of electric bicycles, providing the power required to run the electric motor. Due to its high energy density, lightweight design, and long cycle life, these rechargeable battery packs often use lithium-ion (Li-ion) or lithium-polymer (LiPo) technology. The growth of the market results from the growing acceptance of electric vehicles in response to environmental concerns. Other factors driving market expansion include government initiatives and technological advancements. However, the E-bike battery pack market has challenges; considerations such as high cost, limited battery life, charging time, and safety concerns are reviving global growth. The market will likely develop because of new opportunities and rising consumer awareness.
The growing popularity of electric bicycles as an environmentally responsible and efficient means of transportation is a significant driver of E-bike battery pack sales. Consumers are increasingly aware of the advantages of electric bikes for commuting, leisure, and fitness. Several governments are launching programs to reduce carbon footprints by promoting electric vehicles and bikes. This trend is aided by growing knowledge of the negative impacts of fossil-fuel-powered automobiles. Furthermore, governments are focusing on building bicycle-friendly streets and encouraging people to use bicycles as transportation.
The electric two-wheeler market in January 2024 continued its outstanding growth pattern from CY2023, with total sales reaching 81,343 units, representing a significant 26 percent year-on-year gain over January 2023. The China Bicycle Association (CBA) predicts that e-bike exports will increase by 20% yearly in 2023 due to high market demand. According to the CBA, over 350 million electric motorcycles were on Chinese roads in 2022. The CBA also expects the number of electric motorcycles on Chinese roads to increase as demand rises and legislative actions are implemented.
Furthermore, the International Energy Agency (IEA) predicts that the number of electric two-wheelers, including E-bikes, will reach 500 million globally by 2030, up from 260 million in 2019. This development indicates the growing acceptance of e-bikes as a sustainable mode of transportation. The expanding global usage of E-bikes, driven by environmental consciousness, health trends, urban mobility needs, and technology improvements, highlights the E-bike battery pack market trend. Producers and stakeholders are ready to capitalize on these trends as the market evolves to drive innovation and grow market prospects.
The initial cost of E-bikes, including the battery pack, is frequently more than that of traditional bicycles. This can disincentive potential customers, mainly when economic issues substantially affect purchasing decisions. Electric bikes typically cost between USD600 and USD 2,500. However, some electric bikes can cost up to USD 8,000. A variety of factors determine the cost of an e-bike. A basic commuting e-bike costs USD 1,000 to USD 4,000, whereas a specialized high-end e-bike might cost USD 10,000 to USD 12,000. Recharging an empty battery takes approximately four to six hours, depending on capacity. If your electricity tariff is USD 0.10 per kWh, a complete recharge should cost between USD 0.40 and USD 0.60 per charge.
According to a Deloitte analysis, E-bikes' more significant initial cost than traditional bicycles may discourage potential purchasers, particularly in price-sensitive areas. In many circumstances, consumers may see the initial expenditure as prohibitively expensive, even if the long-term benefits, such as fuel and maintenance savings, surpass the initial cost. For example, electric two-wheeler sales in India are predicted to fall by more than 60% by June 2023 due to considerable price increases. On June 1, 2023, the government cut the subsidy incentive cap from 40% of a vehicle's worth to 15%, capping the subsidy at Rs 10,000 per kWh of battery. Furthermore, according to data from the European Cycling Industry Federation (ECF), e-bike sales in Europe fell by 11% in the first half of 2023. This is a considerable reduction from the market's 22% growth rate in 2022.
Moreover, the high initial cost of E-bikes may limit market adoption, especially in areas where disposable income is low or where buyers prioritize price above other considerations. Manufacturers and politicians must address this barrier by implementing subsidies, financing choices, and incentives to make E-bikes more accessible to more customers.
Continuous advances in battery technology, particularly in energy density, charging efficiency, and overall performance, present a substantial opportunity for the market. These developments can result in longer E-bike ranges, shorter charging periods, and a better overall user experience. Developing high-energy-density lithium-ion batteries represents a significant advancement in E-bike battery technology. For example, battery chemistry developments, such as nickel manganese cobalt oxide (NMC) or lithium iron phosphate (LiFePO4), help to increase energy density, resulting in lighter and more efficient battery packs.
According to McKinsey & Company, global demand for Li-ion batteries is predicted to skyrocket over the next decade, with the amount of GWh required rising from approximately 700 GWh in 2022 to around 4.7 TWh by 2030. Batteries for mobility applications, such as electric cars (EVs), will account for the vast majority of demand in 2030—approximately 4,300 GWh, an unsurprising trend given that mobility is quickly expanding. This increase is evidence of the ongoing developments in lithium-ion battery technology.
Furthermore, solid-state batteries represent another path for innovation. These batteries, which use solid electrolytes rather than liquid electrolytes, have the potential for increased energy density, a longer lifespan, and improved safety. QuantumScape and other companies are currently developing solid-state battery technology.
| Study Period | 2020-2032 | CAGR | 14.2%% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 10.2 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 33.9 billion |
| Largest Market | Europe | Fastest Growing Market | Asia-Pacific |
European Electric-bike battery pack market share is estimated to grow at a CAGR of 14.5% over the forecast period. The UK government is also investing in e-bike infrastructure and creating demand in the country. The UK government enlarged the Local Electric Vehicle Infrastructure (LEVI) Fund in February 2023, allocating £57 million in public and commercial finance to 25 local authorities. The plan is to install 3,400 charge points and 1,000 gullies. The UK government also has a zero-emission vehicle (ZEV) mandate, which mandates that 80% of new cars and 70% of new vans produced in the UK have zero emissions by 2030, rising to 100% by 2035.
Furthermore, the European Cyclists' Federation (ECF) issued a policy brief on August 29, 2023, stating that the EU will invest around €3.21 billion in cycling projects between 2021 and 2027. According to the ECF, cycling will become a strategic priority in Europe by 2023. Companies such as Bosch, a German multinational, have played an essential role in developing improved E-bike motors and battery systems. The integration of high-quality and efficient battery packs has been critical to the success of European E-bike businesses.
Asia-Pacific is anticipated to exhibit a CAGR of 14.7% over the forecast period. With the high consumption of electric bikes to battle heavy traffic and rising automobile pollution, China accounts for more than half of the Asia-Pacific e-bike battery pack market. E-bike consumption is predicted to increase as e-bike buying costs fall in the Chinese market, ultimately fueling the expansion of e-bike battery packs in the country. The MaaS (mobility-as-a-service) concept is gaining steam in China, and bike-sharing companies like Meituan's Mobike have put numerous electric bikes on the road to meet increased demand in 2021. Bike-sharing firms work with battery manufacturers to switch out drained and defective batteries at specialized kiosks. Investments are being made to improve charging infrastructure, and technologies such as artificial intelligence are helping to estimate demand better.
In addition, Japan remained Asia-Pacific's second most promising market for electric-bike battery packs. The rising customer base across all age groups and the adoption of electric sports bicycles are significant drivers driving the country's market growth. North America is expected to lead the electric battery pack industry. This is due to the growing popularity of electric vehicles, increased demand for renewable energy storage systems, and favorable government legislation. Significant market participants in the region, such as Tesla and General Motors, have also contributed to North America's e-bike battery pack market growth.
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The market is further segmented by battery type into Lithium-Ion and lead-acid.
Lithium-ion accounts for the largest share of the market based on battery type. The increased demand for lithium-ion batteries in the e-bike battery pack industry is an important trend. Lithium-ion (Li-ion) batteries are the most prevalent and commonly utilized type of battery in electric bicycle applications. They provide great energy density, lightweight structure, and long cycle life. Li-ion batteries are well-known for their ability to give constant and stable power to electric bicycles, resulting in longer ranges and better overall performance. The chemistry of lithium-ion batteries allows for efficient energy storage and release, making them ideal for the needs of electric vehicles. Furthermore, advances in lithium-ion technology have resulted in the development of several subtypes, such as lithium iron phosphate (LiFePO4) and nickel manganese cobalt oxide (NMC), each with distinct advantages in terms of safety, lifespan, and energy density.
While lead-acid batteries are less popular in modern electric bicycles, they have traditionally been utilized in several types. These batteries are distinguished by their simple design, low cost, and lengthy history of use in various applications. However, lead-acid batteries are heavier and have a lower energy density than their lithium-ion counterparts. They are also likelier to have shorter cycle lives and slower charging times. Due to these constraints, lead-acid batteries are increasingly being phased out in favor of lithium-ion technology. The demand for less weight, greater ranges, and improved overall performance drives the shift to lithium-ion batteries in the e-bike sector.
The market is fragmented into Mid-Motor Air Suspension and Hub Motor based on motor type.
Mid-Motor Air Suspension generates the most revenue in the market. Mid-motor electric bikes have the motor near the bike's center, usually around the bottom bracket area, and connect directly to the crankset. This arrangement promotes a more balanced weight distribution and a lower center of gravity, which improves stability and handling. Mid-motor systems are frequently used for off-road or mountain biking because they give superior traction and handling on uneven terrain. Furthermore, mid-motor designs are noted for their efficient power distribution, which allows the motor to take advantage of the bike's gears for peak performance, particularly on climbs. The mid-motor arrangement is popular among e-MTBs (electric mountain bikes) and commuter E-bikes that want a balance of power and maneuverability.
Electric bikes with hub motors incorporate the motor into the hub of one or both wheels. In a hub motor design, the motor produces a direct force that propels the wheel forward. Hub motors are noted for their simplicity, ease of installation, and quiet operation. They are often used in both front and rear-wheel drive configurations. Front hub motors are frequently preferred due to their ease of installation, although rear hub motors can benefit from improved traction, particularly when climbing hills. Hub motor E-bikes are popular for commuting and pleasure since they offer a smoother and quieter ride. While hub motors lack the advanced torque sensing and power efficiency of other mid-motor systems, they are regarded for their minimal maintenance and simple construction, making them appropriate for a wide range of E-bike applications.
The market can be bifurcated by battery pack position into Rear Carrier, Down Tube, and In-Frame.
Down Tube influenced the market. Down tube battery packs are integrated into the downtube of the E-bike frame, resulting in a sleek and visually appealing appearance. This configuration improves stability and handling by lowering the center of gravity. Down tube battery packs are widely used in various E-bike categories, including commuter, mountain, and road bikes. Integrating the battery into the downtube frequently protects against the elements and potential damage. Furthermore, this positioning enables bigger battery capacities while maintaining the E-bike's balance and mobility. Down tube battery arrangements are commonly linked with a sleek and integrated appearance, which appeals to riders who value a smooth and clean design. Rear carrier battery packs are located at the back of the E-bike and are usually integrated into or installed on the rear carrier rack. This location has the advantage of being easily accessible and convenient to install. Rear carrier battery packs are commonly found on commuter E-bikes and urban variants, making them useful for riders who value cargo-carrying capabilities. While the rear placement may affect the bike's balance, it provides more centered weight distribution than other rear-mounted designs. The design is popular for its user-friendly characteristics, making removing and replacing the battery easier when necessary while leaving the main frame open for other applications or designs.
Before the pandemic, worldwide economies were going on the way of protectionism. Open business sectors were presently transforming into closed markets. These arrangements brought about the US-China exchange war, making the Chinese enterprises force their products in arising economies like Mexico, Malaysia, and Brazil. An absence of Chinese merchandise in the US market allowed different competitors an opportunity to recover the lost portion of the overall industry.
Be that as it may, the Chinese unloading products in overabundance set off a cost battle in areas where they were sold at lesser costs. This pattern impacted essential domestic markets and imprinted their overall revenues. The inaccessibility of Chinese products in the US likewise set off a price battle because of less inventory. It prompted a cost increment and impacted the customers. Further, customer buying power was low because of the absence of financial products, decreasing demand, and productivity.
The COVID-19 pandemic has injured the worldwide economy at extraordinary levels. Global boundaries were shut to contain the spread of the infection. Furthermore, most of the hit economies had forced lockdown, which brought about numerous ventures to suffer huge losses, and some experienced permanent shutdowns. In addition, a large portion of the workers moved back to their homes. Hence, there is an extreme labor shortage in the e-bicycle producing industry.
Interest in e-bicycle battery packs is predicted to increase across the globe as the COVID-19 emergency has set with effective vaccination programs around the world. Supply chains have continued working after the second and the third waves of COVID-19 hit numerous worldwide business sectors. Since the interest for E-bicycles is rising quickly, the claim for EV batteries and e-bicycle battery packs is prospering, working for the general e-bicycle battery pack market and pushing it to develop at a sound development rate.
This, on the whole, is expected to drive the worldwide E-bicycle battery pack market in the post-COVID-19 period. Besides, original equipment manufacturers (OEMs), who stopped the battery production, are believed to re-emerge again in the e-bicycle battery pack market. This would help in significant growth of the market.
January 2024- Samsung SDI plans to increase order acquisitions using SBB's new product appeal and develop an LFP product to meet the market's demand for low-cost batteries.
October 2023- Giant Group and Liv confirmed their support for GreenEDGE Cycling.
October 2023- Shimano released fresh firmware for Shimano power meters and updated the E-TUBE PROJECT Cyclist application, respectively.
