Electric Bike Market Size, Share & COVID-19 Impact Analysis, By Propulsion Type (Pedal Assist and Throttle), By Battery Type (Lead Acid, Lithium-ion, Nickel Metal Hydride, and Others), By Application (City/Urban, Mountain/Trekking, and Cargo/Luggage), and Regional Forecasts, 2023-2030

The global electric bike market size was valued at USD 37.47 billion in 2022. The market is projected to grow from USD 43.32 billion in 2023 to USD 119.72 billion by 2030, exhibiting a CAGR of 15.6% during the forecast period.

An electric bike is a bicycle with a motor and rechargeable batteries that assist the rider and alleviate some of the pressure of pedaling. E-bikes enable users to cycle further and more often without getting tired than conventional bicycles. They are a better alternative for users with limited mobility and are cheaper than traveling by cars. Quickly rechargeable batteries, lightweight motors, and technological advancement of bicycle components have led to increased adoption of electric bicycles as an efficient, eco-friendly, and convenient travel method.

COVID-19 IMPACT

COVID-19 Accelerated Consumer Adoption of Electric Bike Triggering Market Growth

As public transit declined due to the COVID--19 pandemic, for instance, ridership of subway trains alone dropped by 90% in New York City, such circumstances began rolling out fleets of electric mobility. The adoption of electric bikes has increased exponentially, and they have displaced non-motorized bikes in many places. The e-bike industry in the U.S. reacted positively during the COVID-19 pandemic. For instance, according to the Light Electric Vehicle Association (LEVA), the imports of e-bikes increased to 450,000 Units in 2020 and 790,000 in 2021, an increase of around 76% & 80%, respectively, compared to the pre-pandemic demand of 250,000 units in 2019. This significant increase in demand for e-bikes has positively affected the revenue and expansion opportunities for several key players in the market.

For instance, the annual revenue of VanMoof doubled in 2020. Furthermore, the company raised USD 128 million and USD 53.5 million in funding in 2021 and 2020 to expand production and accelerate growth. Companies are actively involved in the overall bicycle infrastructure to develop advanced cycling networks in future. For instance, in March 2023, the U.K. transport department announced a USD 2 billion plan to boost cycling and walking during and after the lockdown. The country’s government announced USD 200 million for new active travel schemes across England, including USD 35 million for the National Cycle Network and USD 8 million for the new e-cycle program. Similarly, Rad Power Bikes raised around USD 300 million in two rounds in 2021, focusing on increasing production capacity outside the Asia Pacific region. Hence, such initiatives from players during the pandemic boosted demand for e-bikes.

LATEST TRENDS

Increasing Integration of Connectivity Solutions in Bicycles to Augment Market Growth

Connectivity applications such as V2X (vehicle-to-everything) can protect drivers by alerting them if a bicycle or scooter is at risk. For instance, Tome announced that it is working with SAE Industry Technologies and nine other members to develop a bicycle-to-vehicle (B2V) communication standard. Subaru, GM, and Ford bike companies, including Trek Bicycle and Specialized, are a combined part of the B2V board. In January 2021, various B2V prototypes and models were presented at the CES event. For example, Specialized is working to partner with B2V technology for its Specialized Ride app for its electric bike customers. Hence, rising connectivity measures for bicycles are expected to influence the global electric bike market positively.

DRIVING FACTORS

Increase in Fuel Costs Due to Supply Shortages to Propel Market Growth

Increase in fuel costs over the past decade have led to rise in adoption of bicycles as a mode of daily commute. The rise in fuel prices is the result of a surge in crude oil costs which are majorly controlled by the Organization of the Petroleum Exporting (OPEC) countries. For instance, in September 2021, surging vehicle demand coupled with supply shortages increased crude oil prices to USD 79 per barrel. Moreover, prices are expected to keep growing due to limited sources of crude oil in the future.

Furthermore, the government is actively developing the charging infrastructure required for adopting electric bicycles. In addition, the federations are offering overall cost benefits with respect to e-bikes by offering incentives, schemes, and subsidies. As a result, consumers are more inclined toward the use of electric bicycles considering the benefits and eco-friendly nature. Bicycles equipped with electric motors help in maintaining higher speed more effectively as well as make the ride more comfortable on rough roads. Therefore, increase in fuel cost is expected to fuel the consumer inclination toward use of electric bicycles, thereby boosting the electric bike market growth.

RESTRAINING FACTORS

High Purchase Cost & Absence of Standardized Regulation among Countries to Restrain Electric Bike Adoption

E-bike adoption remains limited on a larger scale due to high purchase costs. In 2020, a survey of self-selected electric bike owners in North America found that the average price of an e-bike varies depending on the propulsion type and type of components/frames used. The difference is huge and varies individually by country. Moreover, the wholesale cost of a mountain bike in the U.S. is USD 620 as per Bicycle Retailer and Industry News 2019. Furthermore, there is no standardization of e-bike classes among countries. For example, the 22 countries out of 30 in the U.S. classify bikes in class 1, 2, and 3. This is due to no standardization and conflict between federal, state and local regulations in the United States. Additionally, In China, some cities limit the operation of e-bikes depending on power rating. Similarly, in European countries e-bike classes are categorized based on power rating, speed (mph), and other factors. Hence, the high cost associated with such bikes and non-standardized regulation are hampering the market share globally.

SEGMENTATION

By Propulsion Type Analysis

Pedal Assist to Dominate the Market Owing to Better Battery Life and Lower Servicing Needs

The market is segmented by propulsion type into pedal assist and throttle.

The pedal assist segment held the largest market share due to its better battery life, lower servicing needs, and the ability for users to choose from the three to five modes of pedal assist, depending on the model.

The throttle segment is anticipated to exhibit a higher CAGR during the forecast period. Factors such as decreased pedaling effort in scenarios such as accelerating up a hill or cruising will drive the growth of this segment. The rise in the use of mountain off-road bikes will proportionally lead to the growth of throttle propulsion systems.

By Battery Type Analysis

Lithium-ion Batteries Held Largest Share Owing to Low Cost

Based on battery type, the market is segmented into lead acid, lithium-ion, nickel metal hydride, and others.

Lithium-ion is the most popular and optimal type of battery for an e-bike. It has the best combination of total weight and capacity. They offer higher efficiency batteries and adequate battery capacity. Lithium-ion batteries have twice the voltage and three times the capacity of lead-acid batteries. This has made the segment the fastest growing in the market.

The lead acid segment held the second-largest share of the market. Factors such as low cost and easy recycling are attributed to the dominance of this segment in the market.

By Application Analysis

Stringent Emission Norms and Government Initiative to Promote the Use of Green Vehicles to Boost City/Urban Segment Growth

Based on application, the market is segmented into city/urban, mountain/trekking, & cargo/luggage.

The city/urban segment is the dominant and fastest-growing segment. The rising demand for eco-friendly transportation and the support offered by government initiatives has resulted in the growth of city bicycles used for daily commuting.

The mountain/trekking segment is expected to grow considerably during the forecast period due to the growing demand for sports and adventurous activities favoring worldwide mountain/off-road bike adoption. It is the second largest segment in the market. The use of e-bikes in recreational and trekking activities is increasing rapidly. Growing awareness about performance-based adventure sports will support segment growth.

The cargo/luggage segment is expected to grow due to its use for transporting small goods for commercial or personal use. This is anticipated to drive market growth.

REGIONAL INSIGHTS

Asia Pacific to Hold Major Share Backed by Presence of Leading OEMs and Stringent Emission Norms

Regionally, Asia Pacific dominated the global market, with China accounting for most of the e-bike market share. Factors such as extensive bicycle infrastructure in developed and developing countries, including China, India and Japan, high vehicular and public transit congestion, and increasing stringency of emission regulations for gasoline motorcycles are attributed to the dominance of the market in this region.

Europe is expected to show significant growth in the forthcoming years. Heinrich-Boll-Stiftung European Union published the second edition of the European Mobility Atlas in July 2021. According to the report, the e-bike manufacturers and parts industry are active in 23 of the 27 EU member countries. There are around 900 Small & Medium Enterprises (SMEs) that directly and indirectly employ approximately 120,000 people and have invested more than USD 1.09 billion in R&D. According to the report, 60% of electric bikes sold in the EU are also produced in Europe, and sales are expected to reach around 13.5 million units by 2030.

North America is also expected to show good growth in the forecast period. According to NABSA, bike-share systems deploying e-bikes increased from 28% in 2019 to 44% in 2020. Several cities, such as Washington, D.C., New York, and San Francisco, have lowered speed limits, closed certain roads to traffic, and added dedicated lanes for two-wheelers. These factors are attributed to elevate e-bike use in this region.

KEY INDUSTRY PLAYERS

Accell Group Dominates the Market Owing to Productive Partnerships and Industry-Leading Products

Accell Group is one of the leading players in this market. The company has a workforce of approximately 3,100 employees across 15 countries. Moreover, the company’s products are sold to customers and dealers in over 80 countries. Accell has a strong brand reputation in Europe and an extensive product portfolio through its Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe, and Carqon. XLC. brands. These brands have enabled the company to capture a larger market share.

LIST OF KEY COMPANIES PROFILED:

• Giant Bicycle, Inc. (Taiwan)


• Hero Cycles Ltd (India)


• Accell Group (Netherlands)


• Robert Bosch GmbH (Germany)


• Kalkhoff Werke GmbH (Germany)


• Pedego Electric Bikes (U.S.)


• Panasonic Corporation (Japan)


• Mobility Holdings, Ltd. (Tern) (Taiwan)


• Trek Bicycle Corporation (U.S.)


• Shimano Inc. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• December 2022: Hero Motors and Yamaha Motor Co. signed an agreement to create a 'Global E-Cycle Drive Unit company' at Hero E-Cycle Valley in Ludhiana. The 100-acre Hero E-Cycle Valley currently manufactures both conventional and electric cycles for Global Cycle OEMs, along with cycle components such as alloy rims, aluminum frames, and handlebars. It will also manufacture HYM Drive Systems, with a million units capacity annually.  


• October 2022: Hero Lectro, the e-cycle division of Hero Cycles Ltd., introduced two new e-cycle models, the H3 and H5, in India. The new e-cycles provide first-in-segment features for the Indian market, including a smart LED display and a high torque 250W BLDC rear hub motor. It is capable of achieving a max speed of 25 km/h. Additionally, an IP67 Li-ion 5.8Ah in tube battery can provide a full charge in 4 hours with a range of up to 30 km on a single charge.


• August 2022: Pon Holdings and Porsche announced a joint venture for an e-bike. Porsche eBike Performance GmbH, based near Munich, will develop whole e-bike systems comprising motors, batteries and software for connectivity. Stuttgart-based P2 eBike will then use these systems to launch a new generation of Porsche eBikes. However, the company also envisions selling to third-party bikes


• January 2022: Giant bicycles partnered with Team BikeExchange-Jayco, to return to professional road racing at the UCI WorldTour level for the world's leading cycling brand. The 29 men representing 12 nations will race with Giant bikes and focus on Grand Tours. This partnership will mark a major milestone for Team Bike Exchange-Jayco as it embarks on its 11th World Tour pro peloton season.


• July 2021: Tern collaborated with the delivery service provider, Dutch-X, to deliver goods to retail customers across New York. Dutch-X recently acquired a fleet of Tern electric cargo bikes to assist in making greener and more efficient deliveries.

REPORT COVERAGE

The global market research report covers a detailed focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report delivers an in-depth analysis of several factors that have contributed to its growth in recent years.

Report Scope & Segmentation