The e-bike market is expected to grow from US$ 39,660.1 Million in 2022 to US$ 1,08,604.6 Million by 2030. The E-Bike market is estimated to register a CAGR of 13.4% from 2022 to 2030.
Growing urbanization, rising investments in cycling track development, and increasing consumer awareness regarding environmentally friendly transportation drive the e-bike market growth. Governments of several countries announce ample investments and subsidies for the adoption of e-bikes. Also, rising urbanization and increasing government spending on cycling tracks and e-bike connection infrastructure would offer opportunities for the global e-bike market in the coming years. According to the UN Organizations, around 55.0% of people around the globe live in urban areas, and it is growing at a rapid pace to reach 68% by 2050. Transportation systems are not built to cope with the future demand of rising congestion and pollution. To tackle such problems, the key players are launching connected e-bikes with built-in scanners to pay and lock. Several business entities and key players are adopting multiple strategies, such as partnerships and collaborations, to provide connected e-bikes for traveling short distances to avoid traffic congestion.
As of April 2021, the EU countries’ National Environmental Fund offers subsidies ranging from US$ 375 to 540 for e-bike purchases funded by the government. Due to support and funding initiatives of the EU countries’ governments, e-bike sales in these countries increased from 3.7 million in 2019 to 5.5 million in 2022, a rise of 48.6%.
The European e-bike market is the second largest growing owing to rising consumer awareness toward eco-friendly transportation. Germany is home to many automobile manufacturing facilities, which constantly focus on the development of electric vehicles. Further, major European countries such as Spain, the UK, the Netherlands, Germany, and Italy are experiencing tremendous growth in e-bike adoption. As per the Confederation of the European Bicycle Industries (CONEBI), the demand for e-bikes in the region is boosting yearly; the demand grew by ~35% in 2019 compared to the last year. With the increasing count of e-bikes/electric vehicles, the governments of European countries are making significant developments in their EV charging infrastructure; this has also led to a surge in the number of third-party service providers across the countries.
Increasing Prices of Fuel and Rising Adoption of Environment-Friendly Transportation
The average price of gasoline across the world is US$ 3.32 per gallon in 2023 and is projected to reach US$ 3.79 per gallon by 2025 and US$ 5 per gallon by 2030 for regular gasoline. The high price of fuel and the rise in demand for affordable transportation fuel the demand for e-bikes. Further, air pollution is a rapidly growing major environmental concern. The global cost of air pollution reached US$ 2.9 trillion in 2020, representing around 3.3% of the global GDP. Also, air pollution costs at least US$ 95 billion per year in India, which can be reduced by adopting bicycles and e-bike trips. Cycling using e-bikes is used to travel short distances. Adopting e-bike and cycling usage can reduce 2 Giga tons of CO2 emissions annually. At the global level, cycling and e-bike usage can reduce an additional cost by US$ 836 billion annually. Thus, the demand for sustainable, environment-friendly transportation has increased to reduce the cost of this pollution, driving market growth. As a result, several countries’ governments have planned to provide subsidies for clean and green transportation to reduce air pollution. According to the United Nations Organization Report in 2021, the annual investment in sustainable transportation was valued at US$ 1.4 to US$ 2.1 trillion. The spending involves electric vehicle manufacturing, charging stations, and e-bike production.
Asia Pacific is expected to dominate the global e-bike market in 2022 due to the presence of several local manufacturers in China and Japan. China's e-bike production is the largest, reaching around 45.5 million in 2021, owing to the presence of raw material providers, low costs of labor, and favorable government schemes to promote penetration of e-bikes. Also, Chinese consumers are aware of the benefits of environmentally friendly transportation and invest in e-bikes to travel short distances and avoid the traffic in their urban areas. According to the Chinese Bicycle Organization, China is the world's largest consumer and exporter of electric bicycles. In the country, more than 300 million electric bicycles are being used. In 2020, China produced around 41.3 million electric bicycles and exported more than 2.0 million across the world. In the country, more than 50 million people use e-bikes owing to their low cost, convenience, and relatively energy-efficient transportation. China is the dominant country that uses e-bikes as a travel mode.
The e-bike market in Japan and India is growing rapidly owing to rising government schemes and funding to promote e-bike mobility penetration. In March 2020, India’s finance minister launched the PLI scheme that provides subsidies for the e-cycles. The government announced an investment of US$ 0.24 million in creating national manufacturing facilities. The scheme was introduced to promote the production of e-bikes and EVs to meet the local demand.
The E-bike market in China is considered to be a promising market with tremendous potential for growth. Rapid urbanization and rising traffic congestion problems in China created massive demand for e-bikes. In 2021, China sold more than 45 million e-bikes globally and domestically, owing to rising demand from developed and developing countries. China is expected to hold the largest share of the global e-bikes market in 2022 due to the presence of raw materials, low costs of labor, and the presence of several local manufacturers. As of 2022, China has more than 300 e-bikes on its roads, and the count is increasing rapidly. Governments of China and India establish subsidy schemes to promote electric vehicle sales to reduce carbon footprints. The Ministry of Finance and Commerce in China offers the maximum subsidy of up to US$ 36 per vehicle for e-bikes in rural areas, with 80% of subsidies from the central government’s budget and 20% from the provincial budget.
China, India, Japan, Australia, and other countries support the growth of e-mobility manufacturing. The countries are offering incentives and funding for clean transportation adoption across the Asia Pacific countries. The Chinese government offers subsidies from US$ 35 to 80 on e-bike purchases to promote clean transport. There are around 300 million electric bikes in China as of 2021, and the number is increasing rapidly due to their rising popularity and government policy initiatives.
North America's e-bike market is projected to grow with the highest CAGR during the forecast period, owing to the rising adoption of e-bikes for outdoor recreational activities. Outdoor activities such as trekking, bicycle riding, and mountain biking are also gaining popularity in the US and Canada. Also, the government supports opting for environment-friendly transportation. The US Democrats passed the bill with around US$ 1.75 trillion in funding as the Build Back Better Act for society safety.
The market initiative is a strategy adopted by companies to expand their footprint across the world and meet the growing demands of their customers. Players in the e-bike market mainly focus on product enhancements by implementing advanced technologies. Signing partnerships, contracts, and joint venture deals; funding; and inaugurating new offices worldwide permit the company to maintain its brand name globally.
Key players of e-bikes operating across the world are focused on developing lightweight vehicles for short-distance traveling in urban areas. The rising development of e-bikes with advanced motor systems and in-built smart app facilities will drive the e-bikes market growth in the coming years.
- In June 2023, Robert Bosch GmbH, an electric bike motor and drive systems manufacturer, launched an advanced e-bike system and e-bikes. The first product launched by the company includes an e-bike motor named Performance Line SX, designed for manufacturing lightweight e-MTB and e-gravel bikes. Also, the company further launched an e-bike Smart System Software Application for its e-bikes. This system is coupled with the drive units on e-city and e-trekking bikes. The riders benefit from all the Smart with compatible e-shift automatic transmission. Other innovations for E-bike, e-MTB, e-Gravel, and e-Urban include Compact Tube 400 battery and Power 250 range extender, Sprint riding mode (SPRNT), and Mini Remote Drop bar variant for e-Gravel.
- In April 2023, udChalo, an India-based e-bike start-up, launched an electric bicycle named Vir E-Bike for armed forces and individual users in India. The Vir Bike can withstand harsh weather and road conditions in India.
- In January 2023, FIREFOX BIKES, a cycle manufacturer, launched Urban Eco's first application-controlled electric bike in India. The e-bike is made using German technology, with all new features controlled using the Firefox Fit application.
- In September 2022, Yamaha Motor launched the YDX-TORC mountain e-bike model, featuring the top-end PW-X drive unit. Yamaha offers several e-MTB models, including YDX-MORO and YDX-MORO Pro, all-mountain e-bikes.
- In November 2020, AlphaVector, an e-bike manufacturer in India, launched an e-bicycle, Meraki Ninety-One, for just US$ 375, which does not require a license to ride in India.
- In June 2020, Bolt, a ride-hailing firm, launched an e-bike-sharing service in Paris, France. The company further planned to expand to more European countries. The service aimed to contribute to the company’s Green Plan. This adoption of e-bikes helps offset CO2 emissions in the European transportation sector.
Haibike; Aventon Bikes; Giant Manufacturing Co Ltd; Merida Industry Co., Ltd.; Pedego Electric Bikes; Robert Bosch GmbH; Specialized Bicycle Components, Inc.; Shimano Inc.; Trek Bicycle Corp.; and Yamaha Motor Co Ltd are among the key e-bike market players profiled in the report. Several other major e-bike market players were studied and analyzed to view the market and its ecosystem. The e-bike market report provides detailed market insights, which help the key players strategize their growth.