Japan E-Bike Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Japan E-Bike Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Japan E-Bike Market was valued at USD 1.44 billion in 2021, and it is projected to reach USD 3.1 billion by 2027, registering a CAGR of about 16% over the forecast period.

During the COVID-19 crisis, Japan had 33 deaths per one million citizens, accounting for 8% of deaths in the US and 5% of deaths in the UK. However, with the increasing number of COVID-19 cases, the Japanese e-bike market witnessed an adverse effect in 2020. The various levels of lockdowns and movement restrictions imposed around the world in response to the COVID-19 epidemic resulted in the temporary shutdown of several assembly and manufacturing plants. However, post lockdown, the demand for e-bikes witnessed a significant increase in demand and is expected to continue during the forecast period.

Japan is an Asian country that is no stranger to electric bikes. As per the Japanese Bicycle Promotion Unit, six out of every ten bicycles on the road are electric. E-Bike Motors in Japan is limited to 250W and have a top speed of 24 km/h. Furthermore, all e-bike, both electric and standard, should be registered. Electric bicycles with pedal assist are exclusively available in Japan. If the bike has a throttle, it must be registered as a 50 cc engine or smaller. User will also require a driver's license and bicycle license plates.

However, the high cost associated with the e-bikes may hinder market growth in the upcoming years. Thus, used choices can be a good, affordable option.

Key Market TrendsTechnological Advancement In The E-Bike Segment Is Expected To Foster The Demand Of Target Market

The various technological developments in the E-Bike field are expected to enhance the demand for e-bikes. Technological development such as Connected e-bikes includes a SIM module that allows the e-bike to receive and send data over the cloud without the need for a smartphone. Connected e-bikes also include navigation, remote diagnostics, automatic emergency calls, anti-theft systems, and social media connectivity. Additionally, the companies are showcasing their e-bike with new technologies. For Instance,

• In September 2022, Yamaha has entered the realm of electric bikes, revealing three new e-bikes for the mountain, gravel, and urban markets. The Moro 07, Wabash RT, and Crosscore RC are new additions to Yamaha's e-bike lineup. The Moro 07 is the company's top eMTB, with a unique dual twin frame and Yamaha's own PW-X3 drivetrain, its smallest, lightest, and most powerful drive unit.
• According to Yamaha, the powertrain weighs 2.75kg and produces 63lb ft of immediate power due to zero cadence technology, allowing the eMTB to reach top speeds of up to 25km/h (15.5mph). Yamaha claims that the Moro 07's dual twin frame, which includes dual top and down tubes, provides increased rigidity and better handling.
• In September 2021, myFC (a Swedish micro fuel cell business) agreed, and a prominent bicycle and e-bicycle system manufacturer in Japan agreed to collaborate on technological development and integration.
• MyFC has signed an agreement to test hydrogen fuel cell technology in its e-bike system. Hydrogen will benefit from its ability to store energy while weighing far less than a battery. These modifications will make the bike lighter while maintaining its proportions and add the benefit of a faster refuelling option.

Rapid Adoption And Swappable Battery Feature Will Boost The Demand For E-Bike Over The Forecast Period

While swappable batteries have been sluggish to catch on in the electric car industry, they have proven a big hit for e-scooters and e-bikes, making it easier and cheaper for rental businesses to keep the small vehicles on the streets. These are designed to increase the range of electric vehicles by allowing owners to swap units at dedicated charging stations. While a few companies have begun offering battery swap services, they are significantly more appealing for electric bikes due to their smaller, lighter batteries, which give a limited range but are easy to remove.

• Honda, Kawasaki, Suzuki, and Yamaha have joined forces with energy provider Eneos to form a new company tasked with producing standardized swappable batteries for electric bike. The five companies have formed Gachaco, which will work on a common battery type as well as construct the infrastructure to provide that service.

Although, since more passengers prefer to avoid public transit owing to the epidemic, the demand for e-bikes as a quick, economical, and safe alternative to public transportation has surged significantly. Some foreign brands are started their operation in Japan. For instance,

• In December 2021, EMotorad (EM), an Indian premium e-bike brand, recently started its first overseas operations in Japan and Nepal. The creators see it as a huge chance to reimagine mobility. This will also foster the target market over the forecast period.

Competitive Landscape

Companies have also been evaluating the industry and planning to enter the fragmented sector, while established players have been pursuing various growth strategies such as collaboration, expansion, and so on, in order to enhance their market share and revenue. For instance,

• In July 2021, Panasonic has been named an official partner of the Tokyo Olympics and Paralympics in 2020. Pacers for the keirin cycling track race used the company's electric-assisted sports bicycles. Panasonic hopes that its successful display would usher in a new era of ecologically friendly, efficient transportation and better recreational opportunities.

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