Electric Bike Market Size Expected to Rise $119.72 billion at CAGR 15.6% by 2030
Fortune Business Insights
Updated 8 min read
Fortune Business Insights
Electric Bike Market to Reach USD 119.72 Billion by 2030; Hero Motors and Yamaha Motor Co. Announced Plans to Build a 'Global E-Cycle Drive Unit Company' at Hero E-Cycle Valley in Ludhiana: Fortune Business Insights
Pune, India., July 10, 2023 (GLOBE NEWSWIRE) -- The global Electric Bike market size was USD 37.47 billion in 2022. The market is expected to grow from USD 43.32 billion in 2023 to USD 119.72 billion by 2030 at a CAGR of 15.6% in the 2023-2030 period. This information is provided by Fortune Business Insights, in its report titled, “Electric Bike Market, 2023-2030.” The rising prices of crude oil worldwide have encouraged people to opt for economical and environment-friendly modes of transport, thus facilitating e-bike industry expansion.
Market Drivers & Restraints-
Rising Efforts by Governments to Boost E-Bike Usage to Drive Market Expansion
Rising fuel prices have elevated the adoption of bicycles for commuting daily. This increase in fuel prices is owing to the rising crude oil costs due to rising vehicle demand and supply shortages. Moreover, governments are focused on developing the charging infrastructure needed for adopting electric bicycles. They are also offering overall cost benefits such as incentives, schemes, and subsidies to boost e-bike usage. Also, e-bikes are cost effective and environment friendly which is further boosting their adoption and driving electric bike market growth.
Factors such as the rising development of cycling infrastructure in emerging economies coupled with rising support for e-bikes in the form of incentives will boost the electric bike market growth during the forecast period. The rising adoption of shared micro-mobility activities will further fuel the growth of the market toward a higher boundary.
Product Launches by Leading Players to Drive Market Growth
Mergers and acquisitions, partnerships, collaborations, and product launches help companies in gaining a competitive advantage over leading players. They help the companies in enlarging product portfolio, expanding consumer base, and earning higher profits. For instance, in October 2022, Hero Lectro, the e-cycle division of Hero Cycles Ltd., launched two new e-cycle models, the H3 and H5, in India. The new e-cycles are equipped with a smart LED display and a high torque 250W BLDC rear hub motor. They also offer precise braking and come with dual disc brakes making them a good choice for off-roading as well.
The market contains a large amount of small, large, and medium-sized players that are striving to introduce the latest generation of products for retaining their existing consumer base. Players are also focused on deploying strategic tactics such as mergers & acquisitions coupled with collaborations to consolidate a combinative market share. Other players are also focused on expanding their business practices beyond their existing presence. For example, in January 2022, Panasonic Automotive Systems announced a cooperative agreement with Totem USA.
Pedal Assist to Hold Major Share Backed Lower Servicing Needs and Better Battery Life
Based on propulsion type, the market is split into pedal assist and throttle. Among these, the pedal assist segment held the largest market share owing to its lower servicing needs, and better battery life. Pedal assist cycles enable users to choose from the three to five modes depending on the model.
Lithium-ion Batteries to Lead Owing to Higher Efficiency and Low Cost
According to battery type, the market is segmented into lead acid, lithium-ion, nickel metal hydride, and others. Among these, the lithium-ion segment captured a significant share as its total weight and capacity makes it ideal for e-bikes. These batteries have twice the voltage and three times the capacity of lead-acid batteries. They offer high efficiency at economical cost, thus contributing to segment proliferation.
City/Urban Segment to Hold Largest Share Stoked by Favourable Government Initiatives
As per application, the market is split into city/urban, mountain/trekking, and cargo/luggage. Among these, the city/urban segment captured majority of the market share in 2022 owing to growing demand for eco-friendly transportation and favourable government initiatives.
Geographically, the market is segregated into North America, Europe, Asia Pacific, and the Rest of the World.
Asia Pacific to Dominate Stoked by Imposition of Stringent Emission Norms
Asia Pacific captured majority of the electric bike market share in 2022 owing to development of bicycle infrastructure in emerging and developed economies such as India, China, and Japan. Rising vehicle congestion and imposition of stringent emission norms will further elevate regional market expansion. Additionally, the rising stringency of emission regulations for gas-powered engines will further fuel the growth of the market.
The Europe market is expected to grow significantly in the forthcoming years backed by the presence of a large number of SMEs in the region and rising investments in research and development by these companies. According to the second edition of the European Mobility Atlas, 60% of electric bikes sold in the EU are also produced in Europe, and sales are expected to reach around 13.5 million units by 2030. Europe will occupy a significant market share in terms of global contribution owing to the rising number of e-bikes manufacturers in the region.
North America is projected to showcase significant expansion in the upcoming years due to rising use by e-bikes in bike share systems. Moreover, governments in this region have reduced the speed limit, added separate lanes for two wheelers, and closed some lanes to other vehicles. These efforts to promote electric bike adoption will aid market augmentation in this region.
Report Coverage:
The report contains a detailed approach by encompassing critical factors such as leading companies, product types, and all possible segments and sub-segments during the intended forecast period. Additionally, the report also covers the future market trends coupled with ongoing developments. Also, factors such as market drivers, restraints, and opportunities & threats for the market are also mentioned.
A list of prominent Electric Bike manufacturers operating in the global market:
Giant Bicycle, Inc.
Hero Cycles Ltd
Accell Group
Robert Bosch GmbH
Kalkhoff Werke GmbH
Pedego Electric Bikes
Panasonic Corporation
Mobility Holdings, Ltd.
Trek Bicycle Corporation
Shimano Inc.
Notable Industry Development:
December 2022: Hero Motors and Yamaha Motor Co. announced their plans to build a 'Global E-Cycle Drive Unit company' at Hero E-Cycle Valley in Ludhiana. The 100-acre Hero E-Cycle Valley currently manufactures both electric and traditional cycles and their components such as aluminium frames, alloy rims, and handlebars.
July 2021: Pidgeon announced opening a new facility in Bethesda. This facility will offer a wide range of bike sales, rentals, services, and accessories.
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