The global e-bike market is estimated to be valued at US$ 32.04 billion in 2024, exhibiting a CAGR of 13.3% over the forecast period (2024-2031). E-bikes offer an affordable, convenient, and sustainable mode of transportation. Furthermore, growing health consciousness and environment protection initiatives by governments worldwide are further driving the demand for e-bikes.
Market Dynamics:
Rising fuel prices is a key driver propelling the growth of the global e-bike market. As fuel prices continue to rise across the world, e-bikes provide a cost-effective alternative to conventional fuel-run transportation modes. Additionally, growing pollution levels coupled with increasing traffic congestion in urban areas has compelled government authorities to promote eco-friendly commuting solutions like e-bikes. Many cities are developing dedicated bike lanes and implementing favourable regulations to encourage cycling and reduce dependence on automobiles. These initiatives are contributing significantly to the widespread adoption of e-bikes.
Growing Concerns Regarding Pollution Levels and Need for Sustainable Transportation
One of the major drivers for the growth of the global e-bike market is the growing concerns about pollution levels and need for sustainable modes of transportation. With rising pollution levels in cities across the globe due to increased vehicular traffic, many governments are promoting the use of electric vehicles including e-bikes. E-bikes produce zero direct emissions and can help reduce dependence on fossil fuel-powered automobiles in urban areas. Additionally, a shift towards eco-friendly personal mobility solutions is being observed among consumers as well. E-bikes are considered more sustainable than motorcycles or cars as they can contribute to reducing carbon footprint.
Increasing Consumer Preference for Active and Healthy Lifestyles
Another key market driver is the increasing consumer preference for active and healthy lifestyles. E-bikes make cycling more accessible and convenient as they come with electric pedal-assist which reduces the physical effort required. This has boosted their adoption among users of different age groups and fitness levels. E-bikes allow people to incorporate exercise into their daily commute or weekend rides in a low-impact way. The health benefits of cycling such as reduced stress and improved cardiovascular fitness have driven their popularity. Manufacturers are also focusing on designs that make e-bikes suitable for both utility and recreational purposes.
High Initial Purchase Costs and Maintenance Expenses
One major restraint for the e-bike market's growth is the high initial purchase costs compared to conventional bicycles or entry-level motorcycles. Lithium-ion batteries, electric motors and advanced components make e-bikes significantly more expensive. Additionally, e-bike users may also have to periodically replace or repair certain parts like batteries to keep them operational. Such high ownership costs limit the affordability of e-bikes for price-sensitive consumers in developing nations. However, subsidies and tax rebates offered by some governments have helped lower the entry barriers.
Underdeveloped E-Bike Infrastructure in Many Regions
Another challenge is the underdeveloped e-bike infrastructure in several parts of the world. In the absence of proper cycling lanes, signs and traffic rules, many people hesitate to adopt e-bikes for daily use due to safety concerns. Cities need to devote greater resources towards developing a connected network of bike paths, charging points as well as secure parking facilities to promote e-mobility solutions. While urban centers in developed countries have supported infrastructure growth, it remains an obstacle in emerging economies.
Rising Per Capita Incomes and Health-Conscious Youth Population
One significant growth opportunity for the market arises from rising per capita incomes in developing countries. As disposable earnings increase, more people will be able to afford expensive e-bikes for both daily commuting as well as recreational activities. The health-conscious younger demographics are also increasingly exhibiting a propensity to spend on modern technologies and eco-friendly solutions that support active lifestyles. E-bike manufacturers are capitalizing on this trend through innovative models, attractive designs and affordable financing options.
Growing Emphasis on Developing E-Bike Infrastructure
Another key opportunity lies in the growing emphasis of municipal authorities on developing e-bike infrastructure in many countries and regions. Governments around the world are investing heavily in cycling lanes, docking stations, repair stands, etc. to promote micro-mobility solutions. Large investments are also being made to install public battery charging networks. As infrastructure quality improves, it helps overcome range anxiety issues and encourages wider e-bike adoption. The market is also witnessing collaborations between local administrations and e-mobility startups to strengthen bicycle transportation systems.
Link - https://www.coherentmarketinsights.com/market-insight/e-bike-market-2773
Key Developments:
- In November 2023, Giant Group, a leading global bicycle manufacturer, introduced its first throttle-enabled electric bike, the Momentum Cito E+, under its Momentum sub-brand. Momentum focuses on more affordable bikes designed for street, utility, and commuter use. The new Cito E+ model features an innovative glovebox, making it a versatile and convenient option for urban riders. With a 750W motor, 780Wh battery, and a total payload capacity of 408 pounds, the Cito E+ is built for utility and performance, offering an impressive range of up to 75 miles in pedal assist mode. The bike's moto-inspired design, safety features, and wide range of accessories make it a compelling choice for those looking to swap four wheels for two in their daily commute or errands.
- In March 2023, Bharat Forge Limited, a prominent Indian multinational engaged in manufacturing forged and machined components, inaugurated its first electric bike factory through its E-Mobility subsidiary, Kalyani Powertrain Limited, at MIDC Chakan. The facility boasts an initial production capacity of 60,000 units per year, with the potential to scale up to 100,000 units annually. This plant primarily focuses on assembling electric bicycles for Tork Motors Private Limited, in which Kalyani Powertrain holds a 64% ownership stake.
- In December 2022, Hero Motors Company, a prominent Indian automotive component manufacturer, and Yamaha Motor Co., a leading Japanese motorcycle manufacturer, signed an agreement to establish a 'Global E-Cycle Drive Unit' company at Hero E-Cycle Valley in Ludhiana. This 100-acre facility currently produces both conventional and electric bicycles for global cycle OEMs, as well as components like alloy rims, aluminum frames, and handlebars. The new venture will focus on manufacturing HYM Drive Systems, with an annual production capacity of one million units, aimed at meeting the growing demand in the e-cycle market.
- In November 2022, Giant Bicycles, one of the world's largest bicycle manufacturers, unveiled its Stormguard E+ SUV e-bike. This model features a RideDash Evo display that allows users to monitor speed and heart rate, as well as receive email and message notifications. Designed for rugged terrains, the Giant Stormguard E+ SUV e-bike is equipped with a full suspension system offering 100 mm of travel at both the front and rear. Additionally, it is powered by the SyncDrive Pro 2 motor, developed in collaboration with Yamaha, providing a robust and efficient ride experience.
Key Player:
Accell Group NV, Aima Technology Group Co. Ltd, BIONX International Corporation, Bosch, Canyon Bicycle, Derby Cycle Holding GmbH, Giant Manufacturing Co., Ltd., Kalkhoff Werke GmbH, Merida Industry Co. Ltd, Prodeco Technologies LLC, Rad Power Bikes, Riese & Müller, Robert Bosch GmbH, Trek Bicycle Corporation, and Yamaha Motor Group
