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The global e-bike drive unit market size was USD 27.15 billion in 2022. The market is projected to grow from USD 31.85 billion in 2023 to USD 82.84 billion by 2030, exhibiting a CAGR of 14.6% during the forecast period.
An electric drive unit (e-bike drive unit) is an electronic device designed to control certain motor characteristics to convert electrical energy into mechanical output precisely. It consists of sophisticated electronic systems or combinations of various motion control systems.
Increasing Demand for E Bikes Due to COVID-19 Pandemic to Drive Market Growth
COVID-19 had a major impact on many industries. With the pandemic forcing people to stay home and avoid public transport, many are turning to e-bikes as an alternative means of transportation. This has increased the demand for drive units for bicycles and e-bikes.
The sales continued driving the market growth during the post-pandemic period due to an increase in the movement of people and their inclination toward a sustainable future. For example, in January 2022, Aventon Ebikes stated that in 2021, it witnessed a 301% increase in website sales in Los Angeles, U.S.
The pandemic disrupted the supply chains, leading to a shortage of components and raw materials and delays in production. This affected the availability of the market leading to the increased price of the product.
Several manufacturers had to slow down or temporarily shut down production due to the restrictions and guidelines imposed by the government during the pandemic. This also affected the availability of drive units in the market.
However, the pandemic highlighted the importance of domestic production to several countries, which led to a shift toward local manufacturing. This benefited the drive unit manufacturers based in countries with strong domestic markets.
Overall, while the pandemic presented challenges for this market, it has also created opportunities for growth as more people look for an alternative mode of transportation.
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Increasing Application of AI in E-Bike Drive Units to Propel Market Growth
The development and adoption of more powerful, efficient, and higher wattage motors is a trend with most manufacturers. These powerful electric motors provide additional advantages, such as more torque and power, for climbing steep terrains. Furthermore, they also provide faster acceleration benefiting city commuters for long distance rides.
The integration of AI technologies in drive units to optimize power, improve battery life and output, and enhance the riding experience is another major trend among manufacturers. Some companies are developing drive units that automatically adjust power output based on the rider’s pedaling and terrain type. For instance, in August 2022, Vinka (China) unveiled its new AI & IoT based Max System for eBike in EUROBIKE 2022. This new e-drive system, VINKA AIoT Max System, comprises a Vinka drive unit, battery, display, VBox, Vinka life app, Vinka Cloud, and VBox, a smart box developed in-house. It will establish bi-directional communication between IoT devices and Vinka Cloud.
Increasing Adoption of E-bikes to Augment Industry Share
The growing demand for eco-friendly transportation as people have become concerned about the environment has raised the need for e-bikes. As cycling becomes more popular, so does the demand for electric bicycles and it also increased the demand for e-bike drive unit. Furthermore, rising urbanization has led to an increasing inclination toward convenient zero emission mode, elevating the adoption of electric bikes over conventional vehicles. Moreover, health and wellness benefits associated with e-bikes are promoting their use in many developed/developing countries. Technological advancements in battery technologies and motors have made drive units more efficient. This has increased the variety of e bikes available on the market.
High Cost of E-Bike Drive Unit to Limit Market Growth
The high cost of electric bicycle drive units is one of the challenges limiting the market's growth for e-bike drive unit. The type of motor used in an e-bike affects the price of an e-bike. One of the most efficient motors for e-bikes is a multi-speed geared motor with a lightweight battery pack. Additional charges include the cost of charging and battery replacement. Such costs impede market growth during the forecast period. The type of motor used in an e-bike determines its cost. A multi-stage geared motor with a small battery pack is one of the most effective motors for e-bikes. Drive unit laws vary by country and state. This could affect the potential e-bike drive unit market growth.
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Hub Motors to Dominate the Market Owing to Suitability in all Types of E-bikes
The global e bike drive unit is segmented by product type into the mid-drive motors and hub motors. Hub motors dominate the market showing similar conditions during the forecast period. The growth is attributed to the wide range of applications of hub motors. Hub motors can be used in many e-bike designs, including city e-bikes, mountain, cargo, and folding bikes. Thus, the contribution of the hub motor for its popularity due to widespread use is expected to boost the segmental growth.
Mid-drive motors provide higher power and torque than hub motors, making them ideal for high-performance e-bikes. This is especially important for e-bike riders who frequently encounter steep hills or need a passion for off-road riding. Thus, hub motors and mid drive motors make the product type segment grow in the e-bike drive unit market trends.
OEMs Held the Largest Market Share Owing to Large Manufacturing Capacity
Based on application, the market is segmented into OEM and aftermarket.
The OEMs segment is the dominant and fastest-growing segment in the market. OEMs have the scale and resources to efficiently produce large quantities of e-bike drive units, allowing them to offer competitive prices to e-bike manufacturers. This fuels the market growth during the forecast period.
The aftermarket segment also showcases significant growth during the forecast period. There is a large selection of products to choose from in the aftermarket. Some aftermarket companies also offer lucrative warranty schemes to attract consumers, which helps to grow the segmental market. This makes it a convenient option for e-bike consumers who want to source components from multiple suppliers. Thus, the vast availability of the product is expected to drive the aftermarket segmental expansion over the coming years.
Asia Pacific E-bike Drive Unit Market Size, 2022 (USD Billion)
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Asia Pacific Being a Manufacturing Hub with the Presence of Leading OEMs to Lead the E-Bike Drive Unit Market
The Asia Pacific region dominated the market with the largest part in the e-bike drive unit market share. The region has a large population, translating to a large e-bike market revenue and also for e-bike drive unit. Moreover, many of the world’s largest e-bike manufacturers are in the Asia Pacific. These manufacturers have established supply chains and production capabilities that enable them to produce drive units at a lower cost. This fuels the market growth in the region.
Europe is expected to indicate a significant growth in the market. Europe has a more varied topography than other regions, with many hilly and mountainous areas. Mid-drive motors are better suited for these types of terrain as they offer greater torque and power, which is necessary for climbing steep inclines. This augments the market dynamics in the region.
North America is also expected to exhibit healthy growth in the market. The e-bike market in North America has been growing speedily in recent years, driven by increasing interest in cycling for commuting, recreation, and fitness. According to NABSA, bike-share systems deploying e-bikes rose from 28% in 2019 to 44% in 2020. This has created a growing demand for e-bikes and their drive units in the North American region.
Robert Bosch GmbH Dominates the Market Owing to Productive Partnerships and Industry-Leading Products
Robert Bosch is a German-based global engineering and technology company operating in four main business sectors: mobility, consumer goods, industrial technology, and energy & building technology. “Bosch eBike Systems” is a division of Robert Bosch that focuses on developing electric drive systems for electric bicycles. The company product portfolio includes Performance Line CX and Active Line. The Performance Line CX is designed for off-road use and gives riders maximum power and torque. The Active Line is designed for everyday use and provides a smooth and comfortable riding experience. The company claims to offer electric drive systems to more than 70 leading bike brands with 440 subsidiaries and regions and sales and service partners in around 150 countries worldwide.
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The global market research report covers a detailed analysis. It 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. The report delivers an in-depth analysis of several factors contributing to market growth in recent years.
CAGR of 14.6% from 2023 to 2030
Value (USD Billion), Volume (Units)
By Product Type
Fortune Business Insights research report says that the market analysis was valued at USD 27.15 billion in 2022 and is projected to reach USD 82.84 billion in 2030.
The market is expected to record a growth rate of (CAGR) 14.6% during the forecast period.
The increasing adoption of e-bikes is expected to propel the growth of the global market.
Asia Pacific led the market in 2022.
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