Global E-Bike Market Outlook, 2027

Global E-Bike Market Outlook, 2027

An electric bicycle is a bicycle equipped with an electric motor that may be activated to assist with or replace pedalling. The earlier image of these cycles was it being a vehicle for the lazy peddlers or the elder age group people. These bikes/ bicycles allow making pedalling easier by drawing power from the attached battery. The tiring exercise can be made into a fun ride with just acceleration by the press of a button. Electric Bicycles are now considered an alternative eco-friendly & trendy option for public transport, fuel-run vehicles, and smart cars. This is mainly as they are cheaper in comparison to the other alternatives and are also easy to charge. The electric bike market is expected to witness growth due to some of the driving factors for the market such as safe, convenient, and affordable alternatives to public transportation, rapid urbanization, and growing infrastructure development activities in different countries.

The report titled 'Global Electric Bicycle (E-Bikes) Market Outlook, 2027’ published by Bonafide Research identifies and discusses recent developments in electric mobility across the globe. This report not only serves with the facts, figures, and forecasts but also has a detailed study about the Covid effect on the electric bicycle industry. According to the report, the market was valued at more than USD 29 Billion, which is anticipated to reach around USD 49 Billion during the forecast period. Further, the market is projected to rise with more than 8% CAGR for 2022-2027. Many governments across the world are taking initiatives towards the reduction of carbon footprints and encouraging electric bicycles to use is one of the most prominent steps. This is expected to be the major market driver in the coming years.
Globally, the Asia Pacific is the leading region with more than 70% of the market share in terms of value. In China, there are more electric bikes than cars on the road. China held to nearly 50% of the e-bikes in the world as of the year 2021. Given such a huge number in China, it is not unexpected to see slower growth of e-bike production going forward as the market may be becoming saturated. The sales of electric bicycles have grown rapidly in Europe in recent years, following Asia. The market is extremely fragmented, with the major players holding a considerable share of the total market share. The majority of these companies' presence is concentrated in Asia, with Europe and North America being the other important markets.

By type of propulsion, the e-bike market is classified majorly into two segments- Pedal Assisted & Throttle Mode. The main difference between the two is that in pedal-assist the rider is expected to pedal alongside the power received from the motor, whereas in the throttle mode, no pedalling is required and the bike moves solely on the power received from the motor. The market is led by the pedal-assisted, considering its advantage of allowing the rider to ride farther & faster and conquers tougher terrains. On the other hand, the throttle e-bikes allow the rider to make the motor push the bike forward at the ease of a button or a twist, and pedalling is optional.

Based on class type, the e-bikes can be categorized as Class 1: Pedal Assist, Class 2: Throttle On Demand, & Class 3: Speed Pedelec. Of this, the market is led by the class 1 electric bicycle which is pedal-assisted, holding approximately 70% of the market share. In the majority of the states, class 1 electric bicycles are treated like mountain/ pavement bicycles which are legally allowed to be driven in the regular bicycle lanes. E-bikes that are pedal-assist only, with no throttle, and a maximum assisted speed of 28 mph, are included in the speed pedelec segment.

Governments of different countries are supporting the usage of e-Bikes. For promoting the e-Bikes, many governments are arranging awareness campaigns in collaboration with private and non-profit organizations. The final goal for such activities is to reduce the rate of carbon dioxide emission. Governments of different countries are offering subsidies to boost the sale of e-Bikes. For instance, there are new tax incentives in San Diego, including the E-Bike Act that would provide a tax credit of up to USD 1,500 on the purchase of an e-Bike. Thus, such supporting activities and initiatives from the government would drive the sale of e-Bikes. Furthermore, in June 2019, the Indian Government announced a plan to lower the goods & service tax (GST) on e-vehicles from 12% to 5% for faster adoption of electric vehicles. Furthermore, infrastructure facilities such as guarded bicycle parking facilities, construction of more bicycle (express) routes, and establishment of battery charging stations in many countries by the governments significantly boost the adoption of electric bikes by users, thereby propelling the growth of the E-bikes market.

Further, the overall market of electric bikes can be divided into three segments based on the battery used- Lithium-Ion, Lead Acid & others. The lithium-ion battery segment is to lead the market by the end of 2027, with not much share difference from the following lead-acid segment. However, in 2021 the lead acid battery segment led the market. The growth of the lithium-ion batteries can be sited to these being eco-friendly and life cycle & weight ratio in comparison to other batteries. The decline in the price of this battery is also one of the major reasons for its high preference in the coming years.

The e-Bike market is witnessing a lot of technological advancements for more optimized and reliable products. The connected e-Bike is one such advancement, wherein the SIM module enables the e-Bike to send and receive data to and from the cloud without a connected smartphone. The connected e-Bikes provide advanced features like emergency calls, integrated navigation, social media connection, an anti-theft system, and remote diagnostics which attract a more customer base. Therefore, the trend for connected e-Bikes would create an opportunity for the e-Bikes market to develop and grow during the forecasted period. With growing concerns about vehicle emission and traffic congestion, across the world, few automakers, like General Motors, Audi, and BMW, have been planning to enter the growing e-bike market, in order to diversify their portfolios.
The major application of the e-bikes is seen in city & urban travel, as with the increasingly busy lives there has a hike in the need of daily commute. The decreasing reliability & the need to maintain the social distance is hampering the like of public transportation. On the other hand, there has been an increasing awareness about the need for sustainable environmental concerns. In order to give a solution to such challenges, e-bikes are an ideal solution for urban mobility. The use of e-bikes in urban dwellings accounted for more than 50% of the market share. One of the major application trends in the developed regions is the use of electric bikes by e-commerce and food delivery service providers. This is to give a huge boost in the market. Among the major application segments, the cargo segment is expected to be growing as the fastest segment.

Across developed regions like North America and Europe where bicycles have dedicated lanes in cities and suburbs several drug stores and other emergency-related services are employing e-bikes on these lanes to deliver essential services and items over short distances. In this way, they are able to avoid traffic situations in some densely populated areas and are able to attend to the needy in a quicker manner. However, high cost of e-bikes and ban on use of e-bikes in major cities of China hinder the market growth. Furthermore, improvement in bicycling infrastructure & battery technology is expected to offer lucrative opportunities for the electric bike market growth. While electric bikes and scooters though said to be more expensive to purchase as compared to regular two-wheelers, the amount of money saved with respect to rising fuel costs is encouraging several players across logistics, food, delivery, tourism, etc sector.

Some tourism companies are exclusively offering packages termed as ‘Cycling Holidays’. As Europe is home to numerous travel destinations, every year, millions of visitor's flock to the country during holiday seasons. Even tourists are wooed by this new and different experience and are opting for e-bikes to tour prominent sites as well as the country-side in some cases. The e-bike market is highly fragmented, with major players, including Giant Bicycles, Merida, Trek Bikes, Riese& Muller, and Yamaha a low share of the total market. Giant Bicycles is the largest player in the market. The presence of these companies is majorly concentrated in China, with Europe and North America being the other important markets. The companies are diversifying their product portfolios through innovations and new launches to continue being the market leaders.

Recent Developments:

In March 2022, Yamaha announced introducing of two all-new, class 3, power assist bicycles: the Wabash RT and the CrossCore RC, e-Bikes with the all-new Yamaha PWSeries ST drive unit, frame and internally integrated batteries.

In January 2022, Momentum, Giant Group’s “lifestyle-inspired” cycling brand has launched two new electric bicycles the Voya E+1 and Voya E+3. The Voya E+1 takes the form of a drop bar urban bike with an 11-speed Shimano GRX derailleur, while the Voya E+3 has typical flat bars and a 9-speed microSHIFT ADVENT derailleur. The 250 Wh battery claims to provide a range of between 40-72 km (25-45 miles) on a single charge. A provided 4A fast charger can give the battery an 80% charge in less than two hours.

In September 2021, Merida launched the 2021 EX Enduro, which was temporarily discontinued in 2020. This new e-bike is powered by Shimano STEPS.

In August 2021, Riese& Müller Business, the premium e-bikes and cargo bikes manufacturer, expanded its portfolio of sustainable mobility concepts in the business customer segment. It offers four specific models for commercial fleets, targeting municipalities and businesses of all sizes, such as retail, catering, trade, healthcare, or mobility businesses.

In March 2021, Cannondale launched the Adventure Neo range of commuter e-bikes. Cannondale launched a lineup of step-through, Bosch-powered e-bikes for city riding. The Adventure Neo line features four different models, all of which feature an alloy frame, a step-through design, and a Bosch drive system with a battery ranging from 400 Wh to 625Wh.

In March 2021, SUNRA introduced a new e-bike for riders who want more, more distance, more manpower saving, more style & more fun. All of Sunra e-bikes are designed with pedal-assist motors that are located in the same area as your pedals. They feel natural while pedaling, are easy to shift on hills, and provide a boost of smooth, consistent power with every pedal stroke you take.

In July 2021, Hero Lectro, the EV arm of the Hero Motors Company (HMC), announced new partnerships with logistics service providers Fast Despatch Logistics and Turtle Mobility as part of a new ecosystem to enable greater use of e-mobility in last mile delivery. Under the partnership, Hero Lectro’s E Cargo bikes will be rolled out into the last mile delivery space by Fast Despatch Logistics. While Fast Despatch Logistics (FDL) is a global last mile delivery logistics company which has recently marked its entry in India, Turtle Mobility is a start-up that offers solutions for last mile delivery logistics needs including vehicles on lease.

In May 2019, Giant Manufacturing announced to join a B2B platform ConnectBike. Under this project the company will develop more than 300,000 e-bike for providing connected bike sharing platform in the Netherlands and Belgium by 2022.

In April 2019, Accell Group has signed a contract with a Dutch hotel chain for the delivery of 1,300 Sparta e-bikes via B2B partner Zilt bikes. Fletcher Hotels will use the e-bikes, painted in its company colours, to expand its rental portfolio.

In July 2018, Giant Bicycle released its new eMTB models for model year 2019, the Trance E+ and the Stance E+. These models are more based on the Trance and Stance traditional mountain bikes that make their line more consistent. The bikes are called the Trance E+ and Stance E+, respectively.

In August 2017, Germany based e-bike manufacturer, Derby Cycle introduced four new e-bike model families Endeavour (Trekking), Entice (Cross), Image (City) and Berleen (Urban) under its brand named Kalkhoff. The new e-bike are integrated with mid-engine and fully integrated battery

Sanyo (Japan) opened two solar parking lots in Tokyo where around 100 electric bicycles can be recharged from solar panels. Moreover, consistent technological innovations in e-bike by market players are propelling the market growth.

In 2017, commercial bike racks & bike parking systems manufacturer, Bikeep introduced the solution of smart bicycle rack that provides electric bicycle charging. The solution will be available for the most popular e-bikes. Thus, all these factors collectively are expected to offer remunerative opportunities for the expansion of the global E-bikes market during the forecast period.

Moreover, the development of lightweight electrical energy storage systems and emerging new markets will influence the market's growth rate and further boost beneficial opportunities in coming years. Electric bikes are foreseen as a flexible and eco-friendly mode of transportation. Customers’ perception about e-bikes is as they are ideal substitute for smart cars, scooters, and public transport. These bikes help in tackling traffic jams, owing to the compact size of bikes and can attain high speed with minimum efforts plus they also provide health benefits owing to the act of peddling. These factors are raising the popularity of e-bikes across the globe.

Covid-19 Impacts:
Due to the COVID-19 pandemic, commuters are mostly avoiding public transportation. According to industry experts and e-bike manufacturers, such as Rad Power Bike, VanMoof, and Lectric e-bike, e-bikes are increasingly considered an ideal transportation mode as cities emerge from the quarantine approaches in the US and Europe. In addition, owing to the government restrictions on public transport because of social-distancing guidelines, commuters are adopting the bike as the mode of day-to-day transportation. Thus, the electric bike industry is one of those industries that is poised for better growth post-Covid-19. However, the sale of e-bikes was dampened in the first quarter of 2020, as e-bike stores were closed due to lockdown. Apart from increasing consumer preference toward recreational and adventure activities, the adoption of e-bike applications in several sectors, like logistics and e-bike rental services, is expected to drive the market during the forecast period. As cities worldwide emerge from lockdowns, the demand for e-bikes is picking up pace due to their convenience and cost of operations. Regions such as Europe are witnessing a shift in consumer motive for buying an e-bike from leisure to daily use.

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

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

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

Regions & Countries covered in the report
• North America (USA, Canada, Mexico)
• Europe (UK, France, Italy, Germany, Spain)
• Asia-Pacific (Japan, Australia, China, India)
• Latin America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, Qatar, South Africa)

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.