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

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

The Netherlands E-bike Market is valued at USD 935.93 million in 2021 and is and is expected to reach USD 1647.21 Million by 2027 registering a CAGR of 11.97% during the forecast period.

The production of e-bikes experienced a decline as a result of the COVID-19 outbreak and subsequent lockdowns, which included all of the restrictions that followed. However, the market is picking up speed as life slowly returns to normal. People are showing an increased interest in purchasing their method of commuting as a result of the pandemic and the possibility of contamination through public transportation.

Over the medium term, the market is anticipated to be driven during the forecast period by the adoption of e-bike applications in several sectors, such as logistics and e-bike rental services, in addition to rising consumer preference for adventure and recreational activities. Due to their ease of use and low operating costs, e-bikes are gaining popularity as cities around the world emerge from lockdowns.

The Netherlands is a tiny country with well-developed bicycle infrastructure. There are more bicycles than persons in the Netherlands, and many individuals possess multiple bicycles. E-bike sales in the Netherlands have been increasing in recent years, so it's not surprising that the trend continues. E-bikes account for 40% of all new bike sales in the Netherlands as of 2020. It is hardly unexpected that people in the Netherlands quickly adopt electric bicycles. And the fact that one in every three adults in the Netherlands rides an electric bicycle demonstrates how much the Dutch have accepted them. According to the country's Light Electric Vehicle Association (LEVA), 4.6 million inhabitants possess an electric bicycle.

However, there is a distinct demographic trend among electric bike users in the country. They tend to be elderly, with a population of over 50, and have an average or above-average income. That makes sense because e-bikes are frequently used to help riders get back into riding after they've lost their stamina for regular pedal bicycles.

Key Market TrendsGrowing Demand For E-bikes Aiding the Market Growth

The Netherlands saw a surge in e-bike purchases owing to the new tax regulations, which went into effect in January 2020, which are expected to enhance these sales. Residents will be able to obtain interest-free loans from their employers to purchase e-bikes and reimbursement for kilometers ridden. Workers would be able to utilize 'business bikes' for a monthly charge under the leasing system. In addition, according to the Bovag and RAI mobility industry associations, interest-free loans are expected to increase the number of e-bikes on the road by 2022. Such efforts and schemes are expected to impact the expansion of the Dutch e-bike sector.

New subsidies provided for e-bikes, like interest-free loans and reimbursement for kilometers driven kicked off on 1st January 2020, which are the other factors expected to help the market growth over the forecast period. Due to the additional effort required, electric bicycles are also popular among commuters who do not have access to other modes of transportation or a regular bike. These electric vehicles have contributed to a reduction in the number of cars on the road, which has resulted in considerable traffic reduction. According to research conducted in Brussels, a 10% shift from vehicles to two-wheelers might cut traffic by up to 40%.

According to the LEVA, the e-bike industry in the Netherlands expanded to EUR 9.5 billion in 2021, with electric city bikes accounting for roughly 75% of the market. In addition, hybrid electric bicycles have a 17% market share in the country.

According to new research by industry specialists RAI Vereniging and Bovag, electric bicycles are accounted for almost half of the 1.1 million bicycles sold in the Netherlands in 2020. While the country's overall volume of bicycle sales climbed by just 9% in 2020 compared to 2019, the total sales amount increased by 31% to EUR 1.65 billion. Because electric bicycles are often more costly than pedal bicycles, the bigger share of electric bicycles led to a higher expenditure percentage. Companies such as VanMoof and Gazelle have risen to satisfy this need, offering electric bicycles with a classic Dutch design and modern technology.

The market for e-bikes and bicycles as a whole held steady at just over a million units in 2021.The total market value of e-bikes increased by 2.6% in 2020. According to Gazelle, the e-bike and bicycle market are in a very positive mood in the country as e-bike is the answer to a lot of problems, like traffic jams, air pollution, and health issues. The use of bicycles and e-bikes is expanding even faster than the market developments indicate because of the growing number of sharing systems.

With a market share of 42%, the e-bike is the largest category in the Netherlands for the second year in a row with 43%, city bikes are the second most popular type. The growing concerns about health and the environment as well as the stringent emission standards set by international organizations and governments to reduce carbon levels are driving growth in the city/urban segment.

In terms of cargo, the extensive range of logistical deliveries that take place in urban areas entails small shipments that travel short distances. To lessen the negative effects on society, the environment, and the economy, cargo e-bikes are used. Additionally, the demand for electric cargo bikes has increased as a result of recent e-commerce trends.

Today, hybrid bikes only account for 4% of the market. Previously a leading product category, the e-bike has completely replaced it. With a ten percent market share, the other category includes sports bikes like mountain bike, road race, and gravel bike.

Increasing Governmental Support and Infrastructure Funding

In the Netherlands, bicycle use is common. Bicycle travel accounts for 27% of all trips. This number is even much higher in some cities. However, we can still do more to encourage bicycle travel. After all, less than 7.5 kilometers account for more than half of all car trips. This is an acceptable cycling distance for most people. Additionally, the popular e-bike makes it possible to cycle longer distances.

The Dutch government has led a national effort to encourage businesses to pay employees to cycle to work in order to combat increasing road congestion The Dutch infrastructure minister said that people should opt for bikes, and also said that new measures would be taken to encourage cycling. It has proposed a new compensation scheme for adults who work, in which adults will earn 19 cents (17 pence) for every kilometer they cycle as part of their commute.

By 2030, Amsterdam will only allow "emission-free vehicles," and millions of euros will be set aside to improve bike paths, parking, and other cycle infrastructure. Given the Netherlands' well-known pro-bike attitude, it is unlikely that many observers of the cycling industry will be entirely surprised to learn of this plan, despite its boldness.

The majority of options for encouraging bicycle use focus on distances up to 15 kilometers. Cycle superhighways are a crucial component of this, both within and between cities. Municipal and provincial authorities have received encouragement from the federal government in recent years to develop safe cycling routes throughout the region.25 cycle superhighways are currently in use or under construction.

Employees who cycle to work also benefit employers. Employees who cycle are healthier and less likely to miss work due to illness.Furthermore, when more employees commute to work, businesses may be able to save money on parking.As a result, the government is pushing businesses to make cycling facilities better:

A bicycle mileage allowance has been issued to support bicyle usage. Bicyclists can now receive a tax-free mileage allowance of up to EUR 0.19 per kilometer from their employers, the same rate as employees who drive to work.

Simpler tax regulations for private use of a company bicycle:The tax rules for people who use a company bicycle for personal reasons have been simplified as of January 1, 2020.These workers will be required to deduct 7% of the bicycle's recommended retail price from their taxable income each year.This is true for speed pedelecs, e-bikes, and bicycles that the employer pays for. Such factors are pushing the demand for e-bikes in Netherlands.

Competitive Landscape

The major players in the market for e-bikes include Babboe BV, Batavus BV, Royal Dutch Gazelle, QWIC, Van Moof BV, Sparta NL , Giant Manufacturing Co. Ltd, and Trek Bicycle Corporation. Key players are engaging in mergers and acquisitions to gain significant market share. For instance,

• In January 2022, Accell Group the maker of bicycle brands such as Sparta, Batavus, and Raleigh, has been agreed to a consortium led by buyout firm KKR to be acquired for EUR 1.56 billion (USD 1.77 billion).

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