Posted On: NOV-2024 | Categories : Automotive
The global electric bike market is poised for rapid growth. Its value is expected to cross $49.84 Bn by 2024, as per the CAGR of 4.9% from the previous year. This growth is driven by heightened environmental awareness and the rising demand for personal mobility, resulting in the widespread adoption of e-bikes.
E-bikes have rapidly gained popularity in the US, transforming the way people commute and enjoy cycling. The US market has seen tremendous growth in e-bike usage due to technology, enhanced cycling facilities, and an increased focus on environmentally sustainable transportation. The global e-bikes market reached upto 36.5 million units in the year 2022. According to consumer projections, e-bike adoption is expected to rise at a compound annual growth rate of just under 10% between 2022 and 2030 to just under 77.3 million e-bikes in 2030.
The number of electric motorcycles in use has skyrocketed, and as of 2024, nearly 300 million electric bikes are in use worldwide. Numerous causes, including growing urbanization, environmental concerns, and technological developments in e-bikes, can contribute to this spike in popularity.
The e-bike market is expected to generate approximately 51.78 billion U.S. dollars by 2029, with a compound annual growth rate of approximately 8% between 2024 and 2029. The Asia-Pacific region leads the e-bike market, and the European market has gained momentum. E-bikes now account for over half of all bicycle sales in some European countries, with the Netherlands leading the way in 2020. Germany is another significant e-bike market, with 2.2 million units sold in 2022.
The factors contributing to the growth of the market include the integration of connectivity solutions in bicycles and the continuously rising fuel prices. Latest advancements such as Vehicle to Everything (V2X) are ensuring the rider's safety, hence the increase in bike demand.
In addition, acute fuel shortages caused by higher fuel prices have led people to use bikes daily. Governments in various countries are encouraging this shift by improving charging facilities for electric bicycles and even offering incentives for the same. Finally, bikes have been associated with environmentally friendly transport, hence their expanded acceptance globally.
Rising use of e-cargo bikes: E-cargo bikes are becoming increasingly common for urban delivery, especially in North America and Europe. Revenue from the global e-cargo bike market was $2.1 billion in 2023, and it is expected to grow at a CAGR of 11.5% until 2030. In 2023, Germany has delivered over 31,000 e-bike units, leading the market. Logistics businesses widely use these devices for last-mile deliveries. Additionally, 40% of e-bikes sold globally this year feature connectivity options.
Growth of Programs for E-Bike Sharing: Bike rental programs, particularly for e-bikes, are becoming increasingly popular in cities as they help reduce traffic congestion and promote environmentally friendly transportation. In 2023, more than 2 million shared e-bikes are expected to be in use globally, with China, India, and Europe leading the way in developing bike-share initiatives.
It is estimated that the global sales of electric bicycles will exceed 80 million a year by 2030.
Asia-Pacific will remain the largest market and dominant region for medical device upgrades, while Europe and North America will grow at the highest rate.
Solid-state battery technology and autonomous e-bike systems are among the disruptions anticipated to redefine the industry.
City/Urban Bikes: Contributes to 52% of overall sales due to its popularity among commuters.
Mountain Bikes: Contribute to 30% of sales, well preferred by adventurous customers.
Folding Bikes: Contribute to 10% of sales and will be Ideal for busy residents in high-rise buildings with minimal storage areas.
Others (Cargo, Hybrid): The remaining 8%.
Lithium-Ion Batteries: Lithium-Ion Batteries have the highest market share, 85%, followed by Lead-Acid Batteries (10%) and Nickel-Based Batteries (5%).
Entry-Level Models (Under $1,000): Responsible for 30% of sales, setting up attractive prices for cost-sensitive consumers.
Mid-Range Models ($1,000–$3,000): These contribute 50% to gross sales and provide the optimal blend of performance and cost.
Premium Models (Above $3,000): These account for 20% of sales and are popular among enthusiasts and exclusive customers.
China: 29 million e-bikes were sold in 2023, making it the world's largest e-bike market, accounting for more than 60% of total sales. In China, e-bike users outnumber regular bike riders by a factor of three.
India: Sales of e-bikes increased by 10% in 2020, indicating a move toward environmentally friendly modes of transportation.
The Asia-Pacific e-bike market is expected to expand at a compound annual growth rate (CAGR) of 7.9% from 2021 to 2028.
Germany sold 2.1 million e-bikes in 2023, a 13% increase from the previous year. The need for urban logistics drove a 31,000-unit increase in e-cargo bike sales in Germany in 2023.
France: Nearly 781,000 units of E-bikes were sold in 2023, mostly because of government incentives that encouraged environmentally friendly transportation.
Netherlands: In 2023, 453,000 e-bikes were sold in the Netherlands, accounting for more than half of all bike sales.
United States: In 2020, sales of e-bikes exceeded one million units, demonstrating a significant expansion in the market. Due to increased fuel prices and city traffic, sales in the United States are anticipated to reach 6.4 million units by 2025.
Canada: In 2020, e-bike sales increased by 134% compared to the previous year. By 2025, Canada's annual e-bike sales are expected to have doubled, exceeding 600,000 units.
Depending on the model and features, e-bikes in the US typically cost between $800 and $5,000.
Depending on local laws, e-bikes with pedal assistance may travel up to 28 mph.
Compared to automobile owners, e-bike riders can save between $800 and $1,200 annually on transportation expenses.
When compared to automobile users, the average commuter in the UK who rides an e-bike saves £3,300 annually.
Compared to cars, the average e-bike user saves around $1,500 a year on fuel.
As their use has advanced, the incidence of e-bike-related accidents has increased. According to a 2023 Consumer Product Safety Commission study, micro-mobility devices were linked to at least 233 deaths between 2017 and 2022, while injuries from e-bikes rose 21% between 2021 and 2022.
Injuries from e-bike accidents are more likely to affect children. According to the CPSC study, children under the age of 14 were responsible for 36% of micromobility injuries, which is excessive given that they only make up 18% of the US population.
According to a recent National Transportation Safety Board report, 53 people died in e-bike incidents between 2017 and 2022. The NTSB has urged other government agencies to improve their data tracking to better understand injury trends and determine how to make these gadgets safer for riders.
The e-bike market is set to undergo significant changes driven by technological advancements and evolving consumer preferences. Future improvements are anticipated in battery life, with a reduction in charging times, which will enhance user satisfaction. New technologies, such as solid-state batteries, are expected to emerge in the next few years. These batteries promise greater safety and higher energy density compared to today's lithium-ion batteries.
The future of e-bikes looks promising, particularly in emerging markets around the globe. Developing countries, especially those in Southeast Asia and Latin America, where many people rely on motorbikes for their daily commutes, are increasingly choosing e-bikes as a more sustainable alternative. E-bikes are affordable, portable, and environmentally friendly, making them an appealing option for personal transportation in these regions. They have the potential to transform or at least complement current transportation methods.
Therefore, the e-bike market has a positive outlook for future innovations and outlooks that will change the facet of personal transportation, encourage environmental conservation, and increase Sustainable access for many people around the world.