Electric Bicycle Market

Market Overview

The global electric bicycle market is expected to grow at a CAGR of approximately 13.2% during the forecasted period 2021-2030 with an estimated revenue of USD 118,650 million,

Market Dynamics

Electric Bicycles: Healthier and Eco-friendly Mode of Transport

An electric bicycle is a bicycle with a built-in electric motor drive mechanism and battery that generates power for causing or assisting propulsion. Due to the range and use of a small motor, e-bicycles are gaining popularity worldwide. It aids the cyclist's pedal power. According to market research firm NPD Group, the pandemic bike boom increased e-bike sales by 145 % from 2019 to 2020, more than doubling the rate of classic bicycles. While estimates vary, industry experts estimate that the number of e-bicycles purchased by Americans in 2020 was around half a million.

Electric bicycles are a versatile, eco-friendly, and fashionable mode of transportation. Customers regard them as a viable alternative to scooters, cars, and public transportation. Because of their compact size, these bicycles help alleviate traffic congestion, achieve higher speeds with less effort, and benefit from the health benefits of peddling. The factors contribute to an increase in the popularity of electric bicycles worldwide.

Positive government regulations and policies encourage electric bicycles, and an increase in interest in cycling as a fitness and recreational activity is expected to drive market growth. Advancements in bicycling infrastructure and battery technology, and an increase in the trend of connected electric bicycles, are expected to provide lucrative opportunities for market growth.

Increasing Consumer Awareness of Electric Bikes' Health Benefits to Drive Market

Electric cycling can assist people in riding their way to health, fitness, and a more fulfilling existence in general. It potentially has a lower risk of health conditions, ranging from heart disease to obesity. It encourages people to engage in physical activity.

A CU Boulder study quantified the health benefits of replacing car commuting with a class 1 electric bicycle. As compared to driving a car, riding an electric bike helped contributors improve blood sugar control, increase essential cardiovascular endurance, and meet their physical activity recommendations in just one month. As a result, these major factors are expected to drive the electric moped market.

Demand for Eco-Friendly Transportation Is Fueling Market Growth

People's lives are becoming increasingly hectic, necessitating increased travel. As environmental and health concerns continue to grow, there has been an increase in pollution emitted by vehicles. As a result, governments and international organizations worldwide establish strict emission standards to lower carbon dioxide emissions levels.

E-bicycles are the best solution to this problem because they are environmentally friendly, and they provide a solution to the daily travel dilemma. The demand for e-bicycles is increasing as a result of this.

Segmental Analysis

Lithium-ion Batteries hold a Large Market Share:

The battery market is classified into lead-acid and lithium-ion (Li-ion). When it comes to electric bicycles, lithium-ion batteries are common. They can withstand up to 1000 charge cycles throughout their lifetime. The new Lithium Phosphate battery is more robust and safer to use than previous generations of lithium-ion batteries.

Although lead-acid batteries are substantially less expensive than lithium-ion batteries, they are three times as heavy as their lithium-ion counterparts. It also has improved battery chemistry, a better power-to-weight ratio, more efficient charging, and a longer battery life cycle than other types of batteries.

Mid Drive Motors to Account for a Sizable Market Share

The electric bicycle market is categorized into hub motor and mid-drive based on the motor type. In comparison to a similar powered traditional hub motor, mid-drive motors are known for higher performance and torque. The mid-drive motor drives the crank rather than the wheel itself, multiplying its power and utilizing the bike's existing gears.

The mid-drive motor is designed to make maintenance and service possible. The entire motor assembly can be removed and replaced by simply removing two special bolts – without affecting any other aspect of the bike. It improves the overall handling of an electric bike by distributing the weight more evenly.

Impact of covid-19

Despite the COVID-19 pandemic, the electric bicycle industry is one of the few sectors that has seen significant development in recent years. When it comes to the electric bicycle market, the impact of COVID-19 has been positive, with global e-bike sales increasing throughout the lockdown period. Even after the lockdowns, people remain cautious and prefer not to use public transit or mobility-sharing services for commuting purposes. During the epidemic, the e-bike is believed to be a simple, inexpensive, and safer mode of transportation. The adoption of electric bicycles has increased exponentially, and they have displaced non-motorized bikes in many places.

Furthermore, due to government restrictions on public transportation due to social-distancing guidelines, commuters are turning to electric bicycles as a mode of daily transportation. According to the New York Times, bike sales in the United States increased by 85 % in March 2020. As a result, the electric bike industry is poised for greater growth post-Covid-19.

Regional Analysis

APAC to Drive Market Growth in the Forecasted Period

Due to high sales of electric bicycles in the region, Asia Pacific is expected to lead the electric bicycle market during the forecast period. APAC dominated the market, with China accounting for the largest electric bicycles share, estimated to be 8.6 billion in 2020. The dominance of the market in the region is attributed to factors such as extensive bicycle infrastructure in developed and developing countries, including China and Japan, high vehicular and public transit congestion, and increasing stringency of emission regulations for gasoline motorcycles.

Europe is expected to experience significant market growth. Germany is the dominant country in Europe, followed by France and Italy. E-bicycles are a popular mode of transportation in Germany. The innovative nature of the product, fully-integrated batteries and drives, appealing designs, and the use of high-quality materials are some of the factors driving e-bicycle market sales. Apart from Germany, countries such as France, Italy, the Netherlands, and Spain saw a surge in demand for e-bicycles.