The global e-bike battery pack market size is expected to grow at a CAGR of 14.2% during the forecast period, 2022–2030
The battery is an instrumental and most expensive part of an e-bicycle. It is the central consideration in how long the bicycle can be utilized without charging. While picking an electric bike, the battery is the part that should be prioritized. The global e-bike battery pack market is categorized according to battery type, position, and regions.
|Market Size||USD Million in 2029|
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
With the aborning environmental concerns, safeguarding the environment represents a basic test on society and legislatures worldwide, given the shortage of natural resources. Subsequently, the rising interest in e-bicycles is an optimal answer for the test. Thus, the legislatures and global associations have established rigid outflow standards to diminish fossil fuel by-product levels.
Further, the exhaustion of petroleum product levels at an alarming rate has raised worries for the future. E-bicycles, particularly pedelecs, are ending up being the best and the most dependable method of transportation. In addition, with being an excellent method of transportation, they are also preferred as sporting exercises as cycling tours have become increasingly popular among the youth.
Moreover, these bicycles permit the shoppers to explore off-beat territories, which are generally challenging without an electric engine. Since individuals are searching for secure and suitable transportation methods during the COVID-19 pandemic, the e-bicycle market is blasting, considering the incorporation of e-bicycles by individuals in everyday use. These elements are making e-bicycles famous around the world.
E-bicycles are more costly than ordinary bikes because of costs connected with configuration, wiring, small motor, and battery power. The expense of an e-bicycle is significantly subject to its grade and quality. For example, the cruiser-type e-bicycle's typical price is about USD 3,050, and the cost can go from about USD 1,500 to USD 7,900. The average cost of a mountain e-bicycle is USD 4,150, and the prices can go from USD 1,200 up to USD 9,000.
In 2018, the European Commission initially distributed a proposition to transform the EU VAT framework, wherein regular bicycles profited from the diminished or no VAT. E-bicycles were excluded from the scheme, and the Member States were likely to oblige to apply standard VAT rates on them. Additionally, the significant expenses of new e-bicycle batteries and substitution of the equivalent are likewise impeding the development of the market, as individuals lean towards spending less cash on purchasing new batteries for e-bicycles.
In Europe, bikes have decided paths in some urban regions and rural areas. Pharmacies and other disaster management organizations use e-bicycles on these paths to deliver essential items. This way, they can keep away from traffic in populated regions and reach those in need quickly.
In August 2019, an experiment was carried out with e-bicycles, in which the Transportation Research Interdisciplinary Perspectives Journal gave more than 10,000 adults across seven European nations e-bikes. The examination recommends that e-bicycle riders get more exercise than pedal bicycle cyclists to invest more energy on their e-bicycles. Accepting this viewpoint, a few fitness centers have begun presenting exercise programs, including e-bicycles rather than the indoor customary cycling equipment.
In May 2020, eBikeGo, an electric bike startup in India, sent off a membership-based eBikeGo Environ electric freight bike that is great for last-mile transport. It takes around 3 hours to charge completely and can run for up to 70 km, with a weight limit of 200 kg. Also, in North America, delivery services, like Domino's, have begun utilizing e-bicycles for transportation of brief distances.
Due to the expanded reception of e-bicycles over a couple of years, it is expected that this practice would start in other regions too. Different applications additionally incorporate Croatia, utilizing e-bicycles for postal delivery services. The bicycles used can arrive at a speed of 25Kmph and range up to 60Kms. The reception of e-bicycles across numerous areas is likewise anticipated to drive the market over the forecast time frame.
The global e-bike battery pack market is divided into North America, Europe, Asia-Pacific, Central, South America and the Caribbean, and the Middle East and Africa.
Factors driving growth include increased awareness of environment-friendly transportation options such as e-bikes, cycle-to-work schemes, and a government commitment of more than USD 2 million for cargo bike subsidies. The region's e-bike manufacturers are introducing the latest e-bikes in the country with a high-power battery to increase the range of the e-bikes and attract new customers.
The government of the United Kingdom is also investing in developing infrastructure for e-bikes and increasing demand in the country. In May 2020, the government announced a USD 2 billion package to boost bicycling and walking countrywide. To maintain social distance, new roads will be built. USD 2 billion is not new funding; it is part of the USD 5 billion in new funding announced in February 2020 for cycling and buses.
Due to its high consumption of electric bikes to combat heavy traffic and rising vehicle pollution, China has contributed more than half of the Asia-Pacific e-bike battery pack market over the last two years (2017–2018). Consumption of e-bikes is expected to rise due to lower e-bike purchase costs in the Chinese market, ultimately driving the growth of e-bike battery packs in the country.
Further, to gain a competitive advantage in the highly competitive market, industry players are banding together to meet the country's high demand for batteries. For example, in 2019, Hellobike formed a partnership with CATL Battery and Ant Financial. The USD 145 million partnership is for constructing an e-bike battery infrastructure to support the country's growing demand for e-bikes. Hellobike already offers e-bike rechargeable battery swap services for some of its self-operated e-bikes.
E-bicycles have an effective motor and a giant incorporated battery, and for long rides, it's not a preferred option. For this, a different battery range, i.e., the e-bicycle range extender, is being sent off in the market so that the biker doesn't need to examine the battery status continuously. At present, little and medium organizations have begun using imaginative strategies to make more strong batteries to compete in the exceptionally cutthroat market.
The market is sectioned into mid-motor and hub motor based on the motor type. Mid-motor motors were intended to refine a few issues found in hub motors. The most significant benefit that mid-motor has over-center machines is their staff proportion. This section is expected to grow at a CAGR of 13.3 % during the forecast period.
The market is fragmented into rear carrier, down tube, and in-frame based on battery pack position. This battery pack position is reasonable for lighter batteries on daintily stacked bicycles, planned for delicate riding, for the most part for driving. This sector is predicted to grow at a CAGR of 12.6 % by 2030.
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.
Some of the key players in the global e-bike battery pack market are