CARGO BIKE MARKET ANALYSIS

Market Challenges And Opportunities

Global Cargo Bike Market- Drivers:

Technological Advancement in Cargo Bike

Increasing research and development, and new product launches of technologically advanced cargo bikes, such as extended battery life of electric cargo bikes, are further boosting the demand for the same. For instance, in February 2021, Aberdeen City Council planned to launch hydrogen-powered cargo bikes. Council planned to lower the emission caused due to petrol or diesel powered cargo bikes. This hydrogen powered cargo bikes will be developed under a European project called Fuel Cell Cargo Pedelecs. Under this project, a contract for six e-cargo bikes has been submitted on Public Contracts Scotland to be modified with hydrogen fuel cell subsystems.

Rising Demand of Efficient Transportation

Lower running prices, reduction in transportation times, and lower environmental impacts of using cargo bikes instead of different mediums to transport the goods, are the factors attributing to the growth rate of cargo bike market. For an instance on April 2023 Ferla Bikes introduced its newest cargo bike, Lagom, the most powerful long-tail electric cargo bike ever built.

Global Cargo Bike Market- Opportunities:                      

Manufacturing opportunities in emerging economies

Increasing focus of many governments for reducing carbon emission is expected to significantly boost the adoption of electric cargo bikes, for transportation over the forecast period. For this, governments are implementing various regulations or offering subsidy for the purchasing of electric cargo bikes. For instance, the Italian government allocated EUR 2 million for companies that purchased cargo bikes in 2021.

Research and development activities among market players       

Foldable cargo bikes are convenient to use and park as they can be stored in less space by folding the bike. The companies are focusing on shrinking the bike’s size while still retaining proper cargo qualities. For instance in Nov 2022 Radio Flyer launched small cargo electric bike that folds in half.

Global Cargo Bike Market- Restraints:

Limited driving range

Electric powered cargo bikes has limited range and it travels with a less speed as compared to diesel or petrol powered cargo bikes, owing to their small engine, which is expected to hamper the sales of cargo bikes over the forecast period.

Lack of infrastructure and regulatory support for cycling

Many parts the world there is unavailability of proper infrastructure for cycling. While some countries, such as the Netherlands and Denmark, have well-developed cycling infrastructure and policies that support sustainable transportation options, many other regions lack the necessary bike lanes, parking facilities, and other infrastructure needed to promote the use of cargo bikes for transportation and delivery. This can make it more difficult for consumers and businesses to adopt these vehicles as a viable alternative to cars and trucks. In addition, many countries have regulations and laws that restricts the use of cargo bikes, such as weight limits or restrictions on operating in certain areas, which can limit their utility for certain types of tasks