Asia Pacific E-Bike Market Outlook, 2027

Asia Pacific E-Bike Market Outlook, 2027

The Asia Pacific region represents one of the largest markets for e-bikes across the globe, primarily driven by the growing consciousness for the environment. This has shifted consumers’ preferences toward e-bikes as they are eco-friendly, help reduce carbon footprints and can charge through solar power. Besides this, the increasing collaborations between various foreign investors and domestic players have paved the way for a competitive market, offering an attractive price range, which is acting as a major growth-inducing factor. Furthermore, the flourishing tourism industry has prompted a rising number of tourists to opt for e-bikes as a self-driving alternative to commute due to their effortless riding experience. These bikes are also extensively used for various adventure sports, which is increasing their popularity among the younger generation in the region. Globally, the Asia Pacific region leads the market which in terms of value held more than 70% in the year 2021.

According to the report, “Asia-Pacific Electric Bicycle (E-Bikes) Market Outlook, 2027” published by Bonafide Research, the market had around USD 21 Billion market size in 2021 which is anticipated to expand with more than 6% of CAGR for 2022-2027. Governments of several countries in the region, including India and China, are taking initiatives to reduce their carbon footprints by encouraging the use of electric vehicles, electric bikes, and bicycles. The surge in awareness about the harmful effects of vehicles that run on fossil fuels is also encouraging this trend. Additionally, governments emphasize constructing bicycle-friendly streets, thereby encouraging individuals to choose bicycles as a key mode of commute. Electric motorcycles, scooters, and bicycles have gained considerable attention from several governments as efficient and reliable Light Motor Vehicles (LMVs) reduce the carbon footprint.

Factors such as the implementation of government guidelines to boost the use of electric bikes, increasing fuel costs, consumer inclination toward the use of e-bikes as an efficient and eco-friendly solution for commuting, and growing interest in cycling as a recreational and fitness activity are anticipated to drive the market growth. However, the high cost of e-bikes and the ban on the use of these bikes in several major Chinese cities could hamper the market growth. Furthermore, developments in battery technology and bicycling infrastructure are projected to provide lucrative opportunities for the APAC e-bikes market growth.

China captures the largest market share in this region. The Asia-Pacific has garnered a significant share in the e-bike market owing to the high adoption rate in populated cities of China and Japan. Moreover, the preference for electric bikes over conventional modes of transport has grown in this region as they are eco-friendly, lightweight, cost-effective, and require less power. China contributes largely to the e-bike market in terms of value. The efforts to tackle the growing vehicular pollution and traffic congestion issues have resulted in the high adoption of electric bikes in the country. Further, gasoline prices have risen considerably and electricity has become more accessible in rural areas, thus resulting in an increased preference for e-bikes. Therefore, the e-bike market in China is anticipated to expand further in the coming years.

The growing adoption of electric bicycles (e-bikes) has sparked discussion about their position in China’s urban transportation system. While some study has been conducted to assess the effects of e-bikes on the transportation system, there has been little effort done to follow e-bike use trends over time. The Infrastructure support under China within the Asia Pacific Region has been the most technologically advanced and influential electric bikes in the region. In China, there are two noteworthy national policies that have provided the electric bike National Technical Standards (China Central Government, 1999) defined standard sizes and performance characteristics for electric bikes with comparable shape and function to traditional bicycles.

In addition to that, e-bikes are witnessing a huge demand in Japan. Factors such as the expanding customer base and the launch of electric sports bicycles are some of the prime factors driving the market growth in the nation. Also, leading players like Shimano Inc, Panasonic Corporation, and Fuji-ta Bicycle Co Ltd are based in the country, which exhibits an overall positive outlook for the market. In Japan, their usage as a replacement for vehicle travels of less than 10 km is relatively safe. As the population ages, more and more people are unable to drive because of health issues. People over the age of 65 often travel on footways and small roads in electric scooters, electric wheelchairs, and three- and four-wheeled electric vehicles that go at low speed. This 50 percent power aid is now being reviewed by the Japanese government with a goal of raising it to about 70%.

Further, there has been a phenomenal growth in the sales of electric bike sales in Australia. The number of e-bikes being imported into the country has surged in recent years, with sales growing faster than any other segment of the Australian market. Authorities in Melbourne had allotted a budget of $28 million for active transport improvements in its budget for 2019-2020, which provided a further push to the e-bike market’s growth. Owing to the rising exhaust emissions and volatile fuel prices, coupled with an enhanced focus on health, the demand for bicycles has been on the rise in India. The sale of e-bikes, however, is still e-bikes are still in the nascent stages. The limited adoption of these vehicles can be attributed to their high price and the absence of a well-developed infrastructure. However, with the gradually declining battery prices and an increasing consumer preference for e-bikes, India is expected to gain a higher share in the market. The most recent electric bikes have been integrated with an accumulator battery with a capacity of 245-watt hours or more that is considered to be one of the best-in-class experiences provisioned by the manufacturers.

Asia Pacific’s advancements in rechargeable valve-regulated lead acid (VRLA) battery technology have contributed to the rapid expansion of the electric bike market. Growth in the lithium-ion (Li-ion) battery business and a switch from VRLA batteries to Li-ion batteries may lead to further advancements in performance and cost. VRLA and Li-ion battery technology for e-bikes has been the most important development in terms of technological integration in the market. Because Li-ion batteries cost more than VRLA batteries, a mass market change from VRLA to Li-ion batteries is unlikely to occur very soon.

The demand for e-mountain bikes has significantly increased over varieties such as cargo and city/urban e-bikes over the past few years. This can be attributed to the fact that e-mountain bikes are suitable for off-roading, as their robustness allows for a safe riding experience even on slippery and wet terrain. Moreover, their strength makes them desirable for road traffic, encouraging their use for regular commute for shopping or work purposes in most cities. Increasing urbanization and the low inclination of consumers toward the use of cars due to increased traffic on roads are projected to offer lucrative opportunities for market growth. Additionally, numerous regional companies are emphasizing on the integration of e-bikes with advanced technologies, such as Internet-of-Things, GPS, AI, etc., which have led to various product innovations. The emergence of smart e-bikes that are wirelessly connected to software applications for displaying bike speed, battery status, power levels, and distance covered, will continue to further catalyze the market growth in the Asia Pacific region.

The market is led by the use of e-bikes for city/urban travel, which accounted for a little more than 50% of the market share. Another factor that hurdles the market growth in the region is the high cost of electric bikes. Even though many governments have announced incentives for the purchase of e-bikes, the initial cost is considered too high for the lower economic countries in the region. This pushes them to opt for alternative traditional bikes or public transportation. Strong policy implementation and incentives to support the development of the electric bikes ecosystem are important for the long-term sustainability and growth of the market. Many countries are providing incentives, with an aim to promote the utility of electric bikes. By the first decade of the 21st century, the e-bike market in China began to grow at an exponential rate. Sales of internal combustion engine scooters are strong in China, India, and most Southeast Asian Nations compared to other regions of the world.

Recent Developments:

Trek Corporation has brought in new E Bike technologies into the Asia Pacific market which has been of major importance. It has recently introduced the Marlin 8 under the Mountain Bikes segment. It has been integrated under a light frame with internal cable routing, a smoother-feeling RockShox Judy Silver fork with a TurnKey hydraulic lockout, Shimano hydraulic disc brakes and tubeless-ready Bontrager. The wide-range 11-50 cassette gives you all the gears you need for clawing up climbs and blazing down descents.

The F Wheel has been part of a new electric bike in the PRC – China. There are two models of the bike with two different batteries: a 360Wh model and a giant 1kWh model. The battery cases are the same and they look identical, but one adds a couple more pounds and nearly 200% more range. It runs a 48V system, which if you aren’t familiar with e-bike voltage levels, is a pretty powerful system.

In 2021, Hero Motor (HMC), Hero Cycles' parent company, formed a joint venture with Yamaha, a Japanese two-wheeler manufacturer, to produce electric motors for e-bikes for the global market. The joint venture is the next step in Hero and Yamaha's strategic alliance to collaborate in the e-cycle product segment, which was formed in September 2019.

In 2020, the Indian consumer bicycle brand, AlphaVector, launched a new range of KTM bicycles in the Indian market. AlphaVector becomes the exclusive distributor of KTM bicycles in the Indian market.

In June 2020, Giant Bicycles announced the launch of anthem advanced pro 29 world champion edition frameset. The new frameset is made of advanced composite material offering lightweight structure and XC race geometry with 29er speed and stability. The new product increased the product portfolio of the company.

Covid-19 Impacts:
The APAC e-bikes market witnessed negative growth during the first half of 2020 due to the escalating number of COVID-19 cases. The varying degrees of lockdowns and movement restrictions implemented globally amid the COVID-19 pandemic led to the temporary closure of several assembly and manufacturing units. However, with an increasing number of travelers preferring to avoid public transportation due to the pandemic, the demand for e-bikes as a convenient, affordable, and safe alternative to public transportation has substantially increased.

Major companies present in the market
Accell Group, Brompton Bicycle Limited, Giant Manufacturing Co. Limited, Merida Industry Co. Limited, Pedego Electric Bikes, PON Bikes, Riese & Müller GmbH, Specialized Bicycle Components, Inc., Trek Bicycle, Yadea Group Holdings Ltd

Considered in this report
• Geography: Asia-Pacific
• Historic year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Asia-Pacific Electric Bicycle (E-Bikes) market with its value and forecast along with its segments
• Country-wise toy market analysis
• Various divers and challenges
• Ongoing trends and developments
• Five force models
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Japan
• Australia
• China
• India

Segment covered in the report

By Propulsion Type
• Pedal Assist
• Throttle

By Class Type
• Class 1: Pedal Assist
• Class 2: Throttle On Demand
• Class 3: Speed Pedelec

By Battery Type
• Lithium-Ion Battery
• Lead-Acid Battery
• Others

By Application
• City/Urban
• Trekking (E-mountain Bikes/e-MTB)
• Cargo
• Others (Speed e-bikes, Foldable, Fat Bicycle)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing the government- generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have verified the details obtained from secondary sources.

Intended audience
This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to electric bicycle products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.