Global Electric Cargo Bikes Market - 2023-2030

Electric Cargo Bikes The global electric cargo bikes market reached USD 940.24 million in 2022 and is projected to witness lucrative growth by reaching up to USD 3,659.2 million by 2031. The market is expected to exhibit a CAGR of 17.0% during the forecast period (2024-2031). The electric cargo bikes market has shown significant growth and bikes are increasingly becoming popular in families and companies.

The electric cargo bikes market has gained immense traction in the past decade due to their designs including highly efficient electric motors and a large cargo area. The large build-in area allows the customer to transport goods in a way that is more efficient and environment friendly than traditional delivery methods leading to making the product a popular choice.

The electric cargo bikes market is expected to gain significant market share over the forecast period, owing to the increasing advancements in the automotive and transportation sector. Various regions across the globe have contributed to boosting the electric cargo bikes market growth, in which the fastest growth is of Asia-Pacific region with a CAGR of 19.9%, whereas South America is the slowest with 11.7%.

The developed regions such as North America and Europe accounted for the largest market share of around 80% of the global electric cargo bikes market in 2022. The growth in the developed regions is due to rising investments and government support for eco-friendly products.

The U.S. has shown the highest growth leading to a boost in the electric cargo bikes trend covering more than 85% at the regional level, whereas countries such as Canada and Mexico are still at an early stage and expected to improve over the forecast period.

Market Trends

The increased demand for electric cargo bikes due to booming e-commerce industry

The growth of e-commerce has led to a surge in demand for last-mile delivery services, for which electric cargo bikes are well-suited. Electric cargo bikes are ideal for urban areas, where congestion and limited parking spaces can make it difficult for delivery vans or trucks to operate efficiently. Electric cargo bikes can make deliveries more quickly and efficiently, reducing delivery times and costs. As e-commerce grows, the demand for electric cargo bikes will likely increase.

The growing e-commerce industry has encouraged key players to invest in the business, thereby driving the global electric cargo bikes market growth. For instance, on November 24, 2022, Amazon, a U.S.-based company focusing on e-commerce, online advertising, digital streaming, cloud computing, and artificial intelligence, announced that it will increase its U.K. electric-cargo bike fleet in the coming years. The expansion aims to make more deliveries on foot to boost the decarbonization of the transportation network it uses to deliver packages across the country.

High initial cost

Vehicles that are mechanically controlled and propelled by gasoline are being widely replaced by ones that are electronically managed and run on a variety of energy sources. However, one of the major restraints that restrict the growth of the electric cargo bikes market is the high upfront cost.

The cost of electric cargo bikes is significantly higher than that of traditional cargo bikes, which already come with a hefty price tag. Electric cargo bikes can cost anywhere from US$ 2,000 to US$ 10,000, depending on the model and features. The high cost is due to the additional components required to make the bike electric, such as the battery and motor, as well as the specialized design of the cargo-carrying portion of the bike. Therefore, due to high initial investment, the small players are unable to deliver good quality products, and the market is consolidated with bigger players offering the services.

Market Segment Analysis

The global electric cargo bikes market is segmented based on product, battery, end user and region.

The rising demand for cost-effective and environmentally friendly solutions for last-mile deliveries

Among products, the two-wheeler segment holds the largest market share covering 75% share globally. These bikes are equipped with a cargo compartment, which is located on the front or rear of the bike and can be used to transport a variety of items, including groceries, packages, and small goods. Two-wheeler electric cargo bikes are becoming increasingly popular in urban areas, as they offer a cost-effective and environmentally friendly solution for last-mile deliveries.

One of the key advantages of two-wheeler electric cargo bikes boosting segmental growth is small size and agility. Unlike traditional delivery vans, cargo bikes can navigate through narrow streets and alleyways, making them an ideal solution for delivering goods in urban areas where space is very less. Moreover, cargo bikes can park in areas inaccessible to larger vehicles, which can help reduce delivery times and improve efficiency.

Another advantage of two-wheeler electric cargo bikes is the low cost of operation. Electric cargo bikes are much cheaper to operate than traditional delivery vehicles, as they do not require fuel or expensive maintenance. Moreover, electric cargo bikes have lower emissions than traditional vehicles, which can help reduce pollution and improve air quality in urban areas.

Market Geographical Share

Europe’s growing investments in adopting alternative options for cars and vans for last-mile deliveries and transportation

Europe holds the largest market share in the global electric cargo bikes market. In many European countries, electric cargo bikes have become a popular alternative to cars and vans for last-mile deliveries and transportation, with several major logistics and delivery companies adopting e-cargo bikes as part of their fleets.

Electric utility and cargo bikes are a regular sight in large cities where they are the best option for quick, environmentally friendly transportation and distribution of products like food, mail, medicine and other things. Therefore, to counteract this trend, on February 15, 2023, Schaeffler, a Europe-based automotive company joined with two-wheeler electric drive expert Heinzmann GmbH & Co. KG to build the ground-breaking Free Drive chainless drive system. The first client fleets utilizing this technology have now begun operating in European city traffic.

In addition to commercial use, e-cargo bikes are also gaining popularity among individual consumers, particularly in countries with strong cycling cultures, such as the Netherlands, Denmark and Germany. The availability of e-bike subsidies and infrastructure, such as bike lanes and parking facilities, also contribute to the growth of the electric cargo bikes market in Europe.

Companies

The major global players in the market include CERO INC, PEDEGO, RAD POWER BIKES INC, XTRACYCLE CARGO BIKES, YUBA BICYCLES LLC, Babboe, DOUZE Factory SAS, Riese & Muller GmbH, Smart Urban Mobility B.V, and BENNO BIKES LLC.

Key Developments
• On November 3, 2022, Yuba Bikes, a California-based electric bikes company, launched its first gained popularity with non-motorized ‘longtail’ bicycles, which are bicycles with an extended deck behind the rider's saddle for carrying various cargo or adult- and child-seated passengers. With the addition of the new Fastrack, Yuba has increased the variety of cargo bikes it offers. The 20-inch-wheeled mid-tail has a patent-pending integrated Dual Rack System out back that can be quickly adjusted four ways to carry various types of cargo or a passenger.
• On March 8, 2023, DOUZE Factory SAS, a France-based company that specializes in the design and manufacture of cargo bikes, announced a partnership with Toyota to co-develop and release a new range of electric cargo bikes.
• On October 13, 2022, DOUZE Factory SAS launched the LT range of electric cargo bikes. The range consists of four models and the bikes have a hauling capacity of up to 205 kg.

Why Purchase the Report?
• To visualize the global electric cargo bikes market segmentation based on product, battery, end user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of electric cargo bikes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping is available in Excel consisting of key products of all the major players.

The global electric cargo bikes market report would provide approximately 61 tables, 58 figures and 201 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies