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The global electric bike market size was USD 16.86 billion in 2020. The global impact of COVID-19 impacted production substantially during Q2 2020; however, E bike industry witnessed a positive demand shock across all regions during the second half of 2020. Based on our analysis, the global market will exhibit a steady growth of 10.05% in 2020. The market is projected to grow from USD 18.58 billion in 2021 to USD 52.36 billion in 2028 at a CAGR of 16.0% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
An e-bike refers to bicycles with a motor and rechargeable batteries that assist the rider and alleviate some of the pressure of pedaling efforts. E-bikes enable users to cycle further and more often without getting tired as compared to conventional bicycles. It is also helpful to users with limited mobility and offers a cheaper alternative to car travel. Factors such as quickly rechargeable batteries, lightweight motors, and technological advancement of bicycle components have led to increased adoption of electric mopeds as an efficient, eco-friendly, and convenient way to travel.
COVID-19 has Accelerated the Consumer Adoption of Electric Bikes
As public transit declined during the pandemic, for instance, ridership of subway trains alone dropped 90 percent in New York City, it began rolling out fleets of electric mopeds. The adoption of these bikes has increased exponentially, and they have displaced non-motorized bikes in many places. According to Samantha Herr, Executive Director of the North American Bikeshare Association, the pandemic highlighted micro-mobility as an essential transportation service, filling in where transit service stopped, or gaps existed and helping essential workers get to work.
NBC News analyzed bike-share data from 11 of 13 cities in the U.S. that have comparable numbers. According to the study, in May 2020, with 240,000 trips, electric mopeds accounted for only 11 percent of bike-share rides in surveyed cities. In May 2021, they accounted for 38 percent of bike-share rides, increasing to 1.4 million trips. The remaining 62 percent of rides were on non-motorized, conventional bikes.
E bike industry are witnessing a noteworthy spike in sales that began even before the COVID-19 crisis but has sharply augmented as the pandemic-induced lockdown. For instance, according to an article published by the World Economic Forum (WEF), sales of electric bikes increased by 145% in the U.S. in 2020 compared to 2019. For instance, according to the NPD Group, sales of electric type of bikes with average selling prices above USD 1,000 increased by 190% in June 2020 compared to June 2019. Hence, the pandemic has accelerated the surge in demand for such mopeds.
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Increasing Application of Connectivity Solutions for Bicycles to Augment Growth
Connectivity applications such as V2X (vehicle-to-everything) can offer more protection by assuring that drivers are alerted if a bicycle or scooter is at risk. For instance, Tome is working with SAE Industry Technologies and nine other members to develop a bicycle-to-vehicle (B2V) communication standard. Three automakers, Subaru, GM, and Ford, are part of the B2V board and bike companies Trek Bicycle and Specialized. In January 2021, during CES, several new B2V prototypes were introduced. For instance, Specialized is working on integrating B2V technology into its Specialized Ride App. Hence, increasing connectivity solutions for bicycles will positively influence the global E bike industry growth.
Increasing Awareness About the Health Benefits of Electric Bikes Among Consumers to Drive Market
A study from CU Boulder quantified the health benefits of replacing commuting via cars with a class 1 e-bike. The study found that in one month, compared to driving a car, traveling via an electric bike helped contributors improve blood sugar control, increased essential cardiovascular endurance, and reach their physical activity recommendations. Hence, these major factors are expected to drive the market for electric mopeds.
Increasing Adoption of Shared Micro-mobility to Augment Growth
Shared micro-mobility is part of the public transportation ecosystem. As a flexible transportation option with reasonably low operations costs and overhead, shared electric micro-mobility can complement higher-volume fixed-route transit services by providing mobility services for many trips at a lower per-traveler cost. In August 2021, the North American Bikeshare and Scootershare Association (NABSA) published its annual report on the state of the shared micro-mobility industry.
According to the report, North Americans took an estimated 83.4 million trips on shared micro-mobility vehicles in 2020, more than half of the total trips taken during 2019. E-scooters accounted for over a third of all trips. Pedal bikes and electric mopeds formed nearly two-thirds of all trips, and the electric bike market shares in the number of trips increased from 7 million to almost 10 million trips despite all other trip trends reducing during the COVID-19 pandemic. Hence, increasing consumer acceptance of UBI will drive the market growth.
High Purchase Cost to Restrain Electric Bike Adoption
Electric bike adoption remains limited on a larger scale due in part to high purchase costs. In 2019, a survey of self-selected electric moped owners in North America found that, on average, an e-bike costs USD 2,600 to purchase. For comparison, a mountain moped has an average wholesale cost in the U.S. of USD 620 (Bicycle Retailer and Industry News 2019). Hence, the high ownership cost associated with E-bikes will hamper the market shares globally in the forecast period.
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Pedal Assist to Dominate the Market Owing to Better Battery Life
By propulsion type, the global market is segmented into pedal assist and throttle. The pedal assist e bike segment held the largest share of the market attributed 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.
Lead Acid Batteries Held the Largest Share of the Market Owing to its Low Cost
Based on battery type, the market is segmented into lead-acid, lithium-ion, nickel-metal hydride, and others. The lead-acid segment held the largest share of the market. Factors such as low cost and easy recycling are attributed to the dominance of this segment. The lithium-ion battery segment is anticipated to exhibit a higher CAGR during the forecast period. This is due to lithium-ion batteries are superior battery chemistry, better power-to-weight ratio, efficient charging, and better battery life cycle, among other benefits.
Asia Pacific Electric Bike Market Size, 2020 (USD Billion)
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Asia Pacific dominated the market (with China accounting for most of the electric bike market share), and it stood at USD 8.72 billion in 2020. 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 are attributed to the dominance of the market in this region.
Europe is expected to show significant growth in the market. Heinrich-Böll-Stiftung European Union published the 2nd 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 invest more than one billion euros in R&D. According to the report, 60 percent of the electric type of bikes sold in the EU are also produced in Europe itself, and sales are expected to reach around 13.5 million units by 2030.
North America is also expected to show good growth in the market. According to NABSA, the percentage of bike-share systems deploying electric 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 the increase in electric bike use in this region.
Accell Group is a Leading Key Player in the Market Owing to Productive Partnerships and Industry-Leading Products
Accell Group is one of the leading key 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 more than 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 share of the market.
An Infographic Representation of Electric E Bike Market
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The global market research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth electric bike market analysis of several factors that have contributed to its growth over recent years.
Value (USD Billion), Volume (Units)
By Propulsion Type
By Battery Type
Fortune Business Insights says that the global market size was USD 16.86 billion in 2020 and is projected to reach USD 52.36 billion by 2028.
In 2020, the Asia Pacific market size stood at USD 8.72 billion.
Registering a CAGR of 16.0%, the market will exhibit a promising growth rate during the forecast period (2021-2028).
The pedal assist segment held the largest share of the market in 2020.
Positive health and environmental benefits of using electric bikes is the key factor driving the growth of the market.
Giant Bicycles, Accell Group, and Pedego Electric Bikes are the major players in the global market.
The Asia Pacific held the largest share in the market in 2020.
Factors such as increasing adoption of the shared micro-mobility model, rapid urbanization and traffic congestion in cities, and increase in purchase incentives are expected to fuel the growth of the market during the forecast period.
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