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

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

The Sweden E-bike Market is valued at USD 242.79 million in 2021 and is expected to reach USD 307.74 million in value by 2027 at a CAGR of 4.85% during the forecast period.

COVID-19 has caused a rapid acceleration of the e-bike market, which has truly accelerated sales and transformed cycling attitudes overnight. Many people are still avoiding public transportation or would prefer to rely on it less, and they simply will not accept being stuck in traffic if they don't have to. Over the past year, It is observed that a significant shift in weekend usage, which now accounts for a significant share of usage time and is much more evenly distributed during the day. This suggests that many more people are working from home and riding their bikes owing to the increase in personal transportation.

Over the long term, the e-bike market in Sweden is expected to increase owing to the increase of bike-sharing companies, growing e-commerce activities across the country where e-bikes are used to deliver parcels and also due to governmental iniatives to increase usage of bicycles by people by increasing bicycle infrastructure.

On the other hand, the market is being hindered by prices of e-bikes. In Sweden, e-bikes retails for an average price between EUR 1,650 - EUR 2000. As the e-bikes are expensive to afford, most people are refraining from buying which is expected to hinder the market. To tackle this , Swedish Government has announced a tax rebate upto EUR 1000 to make e-bikes affordable to everyone.

Key Market TrendsGrowing E-bike Rentals and Last Mile Deliveries Aiding Market Growth

As part of a new municipal bike sharing service, the City of Stockholm has partnered with the Spanish company CityBike Global to deploy 5,100 e-bikes in Stockholm. One of the largest public e-bike sharing services in Europe is anticipated to emerge from the project, which is fully operational from April 2022. The service will be funded by advertising and user rental fees, and the e-bikes will cost 10 SEK (USD 1.16) per day to rent or 149 SEK for a year.

Stockholm's bike-sharing program has a new contract that will upgrade 1,200 standard bike fleets to 5,000 hybrid electric models. In contrast to the current system, which only operates from 6 a.m. to 10 p.m. during the summer, the new electric bike is available seven days a week, 24 hours a day.

The current bike-sharing platforms are using various technologies such as IoT, QR codes, smart locks, and GPS technology for providing dockless bike-sharing services. Dockless sharing does not have the requirement to distribute the fleet and from the user perspective, they don’t have to face the hassle of finding an available docking station. Owing to these factors, people are opting for bike sharing services.

The utilization of so-called "Bicycle Benefits" is another rapidly expanding business field. Electric bikes are now available for lease to employees of many businesses and government agencies, much like a workplace vehicle. In accordance with tax regulations, employees are required to pay a minimal monthly fee deducted from their pay. This government incentive aims to encourage people to commute by bicycle rather than by car to work for environmental and health reasons.

The problem of daytime traffic congestion has grown in Stockholm, Sweden, over the past decade as a result of an increase in delivery vehicles brought on by large companies that require supplies and an increase in online shopping. Similarly, restraurants and retail chains are looking at E-bikes and electric cargo bikes as a options for their operations. The delivery e-bikes' increased average speed was the primary factor.They were able to avoid traffic congestion by making use of bicycle lanes.Larger delivery vans lack this luxury, resulting in significantly more time spent waiting in traffic.

Additionally, COVID-19 pandemic has unquestionably accelerated the transition from in-store to online retail.As a result, this transaction has increased the pressure and challenges on online retailers to offer their customers the best variety of last-mile delivery options while also maintaining a sustainable delivery method

Governmental Support To Increase E-bike Usage

In Sweden, around 80% of all urban car trips are less than 4 kilometers, suggesting that biking or walking could replace driving. In 2025, 25% of travel distances should be covered by bicycle, foot, or public transportation, according to the Swedish government. In terms of the city itself, Gothenburg wants to see 12% of all trips taken by bike by 2025. The European Commission has separately targeted the promotion of electromobility and cycling as clean and effective transportation options for sustainable urban mobility. Sweden's cycling numbers should rise in the coming year as a result of these city, national, and continental goals, it is clear that e-bike sales will increase in the coming years

To support the usage of e-bikes in the country, Sweden launched several pilot projects aimed to increase electric bikes by the people. Stockholm started one of the largest public e-bike shares in Europe in August 2021, thanks to an integrated management system that promises to help minimize urban clutter by providing virtual stations where vehicles may be kept after rental.

Additional discounts offered by governments encourage citizens to purchase e-bikes, such as Sweden's subsidy program, which covered 25% of the cost of an e-bike up to a total of $1,129 and led to a 50% increase in sales in past two years.

Competitive Landscape

The major players in the market for e-bikes include Kalkhoff Werke GmbH, Batavus BV, Royal Dutch Gazelle, Blix Electric Bikes, Van Moof BV, Giant Manufacturing Co. Ltd, and Trek Bicycle Corporation. New players are entering the market to gain significant market share. For instance,

• In September 2022, Swedish mobility startup Vassla launched its Vässla Pedal that is said to be designed as a unisex frame for riders of almost any height with the aim of allowing the whole family to use one e-bike. The company claims the bike’s removable battery is sufficient for 100 km (62 miles) of range.

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• The market estimate (ME) sheet in Excel format
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