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The global electric bike (e-bike) market size was USD 10.05 billion in 2019 and is projected to reach USD 10.90 billion by 2027, exhibiting a CAGR of 8.4% during the forecast period.
In recent years, as electric bicycles have started to provide pedal assistance for riders, their demand has grown substantially. The popularity of electric bicycles is rising owing to the increasing fuel prices, heavy traffic on streets, and rising vehicular pollution. Conventional bicycles account for a large proportion of air pollution. Greenhouse gases released from conventional vehicles can lead to global warming.
Manufacturers are focusing on developing advanced battery packs to achieve high range capacity. For example, on 26th August 2015, Samsung SDI launched an advanced battery pack that has the capacity to run 100 kms in a single charge. Due to the increased power capacity, long-distance range, and medium speed of electric bicycles, they are now considered a feasible transportation option, especially in the urban areas. In recent years, original equipment manufacturers (OEMs) have also started manufacturing electric pedal bicycles, which is another name for pedal-assisted electric bicycles. In pedal assist, the bicycle power is activated by pedaling instead of throttling. Pedal assisted bicycles are beneficial to riders, especially in the hilly areas and rugged terrain, because they can reduce the effort of riders to pedal hard.
COVID-19 Pandemic: Halt of Production of Vital Components in China to Decline Growth
Factory closures and collapse in demand have characterized the early stages of the pandemic induced lockdown. Assembly plants in Europe and North America rely on auto parts sourced from China which is likely to pose a problem for the smaller companies. Additionally, a large number of manufacturers in this market are headquartered, as well as operate their manufacturing facilities in China.
However, the stringent lockdown has severely hindered the production schedules and the recent surge in the number of cases in China in June has led to uncertainty in terms of resuming the manufacturing operations. Furthermore, supply chain disruption has compelled the global manufacturers to identify alternate suppliers, particularly for batteries of the e-bikes. For example, critical elements of the battery such as cobalt and lithium are available only in certain regions and lithium, in particular, is available in large quantities in China.
Delayed production of crucial components such as lithium-ion batteries, coupled with a just-in-time production approach is likely to impact the OEM profitability. Hence, manufacturers need to consider changes to the design of the electric vehicle and materials, as well as decreasing the over-reliance on one country. Furthermore, creating flexibility in the current supply chain can enable OEMs to swiftly shift their production to another plant. Hence, the COVID-19 outbreak is expected to lead to a continued decline in demand over the next year and a greater consolidation owing to accelerated exit strategies of regional manufacturers, particularly in China and India.
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Increasing Demand for Bike-sharing is a Prominent Trend
Bike-sharing is an exciting new mode of public and private transportation that has rapidly emerged in recent years. The growing inclination of consumers towards e-bike sharing is one of the positive trends in the market. These bikes have numerous benefits over the conventional bikes as they reduce the energy required by the rider, increase the driving distance, and are easier to use in hilly areas. Along with the adventure and tourism sector, bike-sharing is also becoming popular in universities and companies. Many huge companies around the globe have come up with a bike-sharing option for their employees, which helps them to travel from one production plant to another.
Bike-sharing is anticipated to become one of the vital modes of transportation in the near future as it helps to eliminate the traffic congestions caused by conventional taxis.
Stringent Emission Norms Imposed by Government to Drive Growth
The rising greenhouse gas emissions is one of the major environmental issues. The governments of various countries have imposed stringent norms on manufacturers to develop vehicles with zero emissions. Key OEMs have heavily invested in R&D to develop environmentally-friendly vehicles. The governments in the developing countries have proposed various subsidies, such as tax-free purchases of electric bicycles. Several tax-free concessions granted by the government have attracted more consumers to buy electric bicycles, which, in turn, are expected to boost the electric bicycle market growth during the forecast period. For example, in October 2018, the European Union removed Value Added Tax (VAT) on e-bikes.
Rising Concern Regarding Traffic Congestion to Boost Growth
Many developing countries are facing traffic congestion, especially in crowded cities. The number of vehicles is increasing every day, resulting in an insufficient existing road infrastructure. Heavy traffic jams affect people's personal and professional lives. As a result, the government and ruling bodies across the globe are taking measures to reduce this traffic congestion. Now, many ruling bodies in the developing cities are encouraging the use of electric bicycles for transportation. Electric bicycles take up the same space as ordinary or traditional bicycles. The use of electric bicycles can reduce the number of private cars and taxis on the road, and because they take up the least road space, they can reduce traffic congestion.
High Maintenance Cost of Battery May Restrain Growth
In recent years, there have been numerous research and development activities in electric bikes and their batteries. Charging and maintenance of the battery is one of the major concerns. Various technical challenges such as quick discharge of the battery after a short trip, as well as slowdown of the bike’s battery in freezing temperature may hinder the growth of the market.
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Lithium-ion Segment to Dominate Backed by Requirement of Less Maintenance
Based on battery type, the market is segmented into lithium-ion, lead-acid, nickel-metal hydride, and others. It is expected that the lithium-ion battery segment will dominate the market during the forecast period. These batteries are lighter in weight, have a higher range than lead-acid batteries, and can start in extreme weather conditions. They also require less maintenance. These are a few reasons which are anticipated to maintain the dominance of this segment over the forecast period.
Stringent norms have been imposed by various governments for the use of lead-acid batteries as their chemicals release harmful gases which may cause serious environmental issues. The release of lead in groundwater may also harm human health. Owing to these factors, the growth of the lead-acid segment is anticipated to decline over the forecast period.
Throttle Segment to Hold the Largest Electric Bike Market Share Fueled by Need to Reduce Vehicle Emissions
Based on the propulsion type, the market is segmented into pedal assist and throttle. The throttle segment holds the maximum share of the global market. Conventional bikes account for one of the major shares of air pollution. This has further fueled the demand for zero-emission e-bikes which are light in weight and are more environmentally friendly.
The ruling bodies in developing countries have imposed stringent norms to replace conventional bikes by 2025. For example, Europe plans to reduce vehicle emissions by 20% by 2025, and hence they have imposed stringent emission norms on manufacturers. India has a large number of conventional bikes and plans to implement BS-VI norms in April 2020 to curb the vehicular emissions. The increasing fuel prices globally owing to the U.S.-China trade war and the growing inclination of consumers towards e-bikes is anticipated to drive the throttle segment over the forecast period.
The pedal-assist segment is expected to show decent growth over the forecast period. In the developed and developing cities, various taxi service providers are looking forward to implementing pedal-assist bikes in place of two-wheeler ride-sharing which would be highly cost-effective. The governments in the developing cities are encouraging taxi service providers to implement more facilities that would prove to be beneficial to the environment, by giving them tax benefits. This move by the government and service providers would help to reduce traffic and curb the vehicular emission.
Asia Pacific Electric Bike (E-Bike) Market Size, 2019 (USD Billion)
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Asia-Pacific is expected to dominate the market over the forecast period. China is a major player in the market in this region, with the largest share in terms of sales volume. Given the high sales and production of electric bicycles, China is expected to occupy 75% of the global electric bicycle market. Around 70% of e-bikes sold in Europe are imported from Asia which is also one of the major factors that are maintaining the dominance of this region in this market.
Europe holds the second-largest position in the market. The stringent vehicular emission norms imposed by the government in this region is expected to drive the market. A sudden rise in the sales have been observed in Europe amid the outbreak of coronavirus is expected to help the region maintain its second-largest position in the market. For example, according to Bike-EU, there have been huge sales of e-bikes in Germany after the government lifted the lockdown in the country. The shutdown of public transportation and regulations imposed by the government to maintain social distancing in the pandemic period has fueled the demand for e-bikes in this region.
Robert Bosch GmbH is a Key Player Backed by Development of Advanced Components
Robert Bosch GmbH is one of the major players in the market. The development of lightweight and technologically advanced electrical components is maintaining the dominance of the company in the market. The rising mergers and acquisitions with major players in order to develop advanced components are, in turn, strengthening the company’s global market position. For example, Bosch partnered with BikeSportz company in Australia and Magura Direct a North American Service provider to strengthen its position and expand its business globally.
An Infographic Representation of Electric E Bike Market
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The market research report provides a detailed global electric bikes market analysis 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 bike industry analysis and developments. In addition to the factors above, the report encompasses several factors that have contributed to the electric bike industry growth over recent years.
Value (USD Billion) & Volume (Thousand units)
By Battery Type
By Propulsion Type
Fortune Business Insights says that the global electric bike market size was USD 10.05 billion in 2019 and is projected to reach USD 10.90 billion by 2027.
In 2019, the Asia Pacific market value stood at USD 8.47 billion.
The market is projected to grow at a CAGR of 8.4% in the forecast period (2020-2027).
The lithium ion type segment is expected to be the leading segment in this market during the forecast period.
Stringent emission norms is the key factor driving the global market.
Robert Bosch GmbH is the major player in the global market.
Asia Pacific dominated the market in terms of share in 2019.
The increasing traffic congestion is expected to drive the adoption of electric bikes.
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