The e-bike industry is projected to expand significantly, with an increase from US$ 39,660.1 million in 2022 to US$ 108,604.6 million by 2030. This growth represents a compound annual growth rate (CAGR) of 13.4% from 2022 to 2030.
The surge in urbanization, coupled with heightened investments in the development of cycling infrastructure and a growing consumer consciousness regarding sustainable transportation, is propelling the growth of the e-bike sector. Numerous governments worldwide are announcing substantial investments and subsidies to encourage the adoption of e-bikes. Additionally, the rise in urban populations and increased government expenditure on cycling paths and e-bike connectivity infrastructure are expected to create further opportunities for the global e-bike market in the years ahead. According to the United Nations, approximately 55% of the global population resides in urban areas, a figure projected to escalate to 68% by 2050. Current transportation systems are ill-equipped to handle the anticipated demand stemming from increasing congestion and pollution. In response to these challenges, leading companies are introducing connected e-bikes equipped with integrated payment and locking systems. Various businesses and key players are forming partnerships and collaborations to offer connected e-bikes, facilitating short-distance travel to mitigate traffic congestion.
As of April 2021, the National Environmental Fund in EU countries provides subsidies ranging from US$ 375 to US$ 540 for e-bike purchases, funded by government initiatives. Thanks to these supportive measures, e-bike sales in these nations surged from 3.7 million in 2019 to 5.5 million in 2022, marking a remarkable increase of 48.6%.
The European e-bike market ranks as the second largest globally, driven by a growing consumer awareness of eco-friendly transportation options. Germany, a hub for automobile manufacturing, is continually advancing electric vehicle technology. Major European nations, including Spain, the UK, the Netherlands, Germany, and Italy, are witnessing significant growth in e-bike adoption. The Confederation of the European Bicycle Industries (CONEBI) reports that demand for e-bikes in the region has been increasing annually, with a notable 35% rise in 2019 compared to the previous year. As the number of e-bikes and electric vehicles rises, European governments are making substantial investments in EV charging infrastructure, leading to a proliferation of third-party service providers across the continent.
Rising Fuel Prices and Growing Preference for Eco-Friendly Transportation
The global average price of gasoline is US$ 3.32 per gallon in 2023, with projections indicating it will rise to US$ 3.79 per gallon by 2025 and reach US$ 5 per gallon by 2030 for regular gasoline. The escalating fuel prices, combined with the demand for cost-effective transportation, are driving the e-bike market. Furthermore, air pollution has emerged as a critical environmental issue, with the global cost of air pollution estimated at US$ 2.9 trillion in 2020, accounting for about 3.3% of the global GDP. In India alone, air pollution incurs costs of at least US$ 95 billion annually, which could be mitigated through increased cycling and e-bike usage. Utilizing e-bikes for short-distance travel can potentially reduce CO2 emissions by 2 gigatons each year. On a global scale, promoting cycling and e-bike usage could save an additional US$ 836 billion annually. Consequently, the demand for sustainable and environmentally friendly transportation options is on the rise, prompting governments to implement subsidies for clean transportation initiatives aimed at reducing air pollution. According to a 2021 United Nations report, annual investments in sustainable transportation were valued between US$ 1.4 trillion and US$ 2.1 trillion, encompassing electric vehicle production, charging infrastructure, and e-bike manufacturing.
The Asia Pacific region is anticipated to lead the global e-bike market in 2022, primarily due to the presence of numerous local manufacturers in China and Japan. China is the largest producer of e-bikes, with production reaching approximately 45.5 million units in 2021, supported by an abundance of raw materials, low labor costs, and favorable government policies promoting e-bike adoption. Chinese consumers are increasingly recognizing the advantages of eco-friendly transportation, opting for e-bikes for short-distance travel to navigate urban traffic. The Chinese Bicycle Organization reports that China is the world's largest consumer and exporter of electric bicycles, with over 300 million electric bicycles in use. In 2020, China produced around 41.3 million electric bicycles and exported more than 2 million globally. The popularity of e-bikes in China is attributed to their affordability, convenience, and energy efficiency.
The e-bike markets in Japan and India are also experiencing rapid growth, driven by government initiatives and funding aimed at enhancing e-bike mobility. In March 2020, India's finance minister introduced the Production-Linked Incentive (PLI) scheme, which provides subsidies for e-cycles, alongside an investment of US$ 0.24 million to establish national manufacturing facilities. This initiative aims to boost the production of e-bikes and electric vehicles to satisfy local demand.
China's e-bike market is recognized as a promising sector with significant growth potential. The rapid urbanization and escalating traffic congestion in China have created a substantial demand for e-bikes. In 2021, China sold over 45 million e-bikes both domestically and internationally, driven by increasing demand from both developed and developing nations. China is expected to maintain the largest share of the global e-bike market in 2022, thanks to its abundant raw materials, low labor costs, and numerous local manufacturers. As of 2022, there are over 300 million e-bikes on Chinese roads, and this number continues to grow swiftly. The governments of China and India are implementing subsidy programs to promote electric vehicle sales and reduce carbon emissions. The Ministry of Finance and Commerce in China offers subsidies of up to US$ 36 per vehicle for e-bikes in rural areas, with 80% of the funding sourced from the central government and 20% from provincial budgets.
Countries such as China, India, Japan, and Australia are fostering the growth of e-mobility manufacturing by providing incentives and funding for the adoption of clean transportation across the Asia Pacific region. The Chinese government offers subsidies ranging from US$ 35 to 80 for e-bike purchases to encourage the shift towards sustainable transport. As of 2021, there are approximately 300 million electric bikes in China, and this figure is rapidly increasing due to their growing popularity and supportive government policies.
The e-bike market in North America is expected to witness the highest CAGR during the forecast period, driven by the increasing use of e-bikes for outdoor recreational activities. Activities such as trekking, cycling, and mountain biking are gaining traction in the US and Canada, supported by government initiatives promoting environmentally friendly transportation. The US Democrats have passed a bill allocating around US$ 1.75 trillion in funding through the Build Back Better Act to enhance societal safety.
Market initiatives are strategies employed by companies to broaden their global presence and meet the rising demands of their clientele. E-bike market players are primarily focused on enhancing their products through the integration of advanced technologies. Establishing partnerships, contracts, and joint ventures, along with securing funding and opening new offices worldwide, enables companies to maintain their global brand presence.
Key players in the e-bike market are concentrating on developing lightweight vehicles suitable for short-distance travel in urban settings. The ongoing advancement of e-bikes featuring sophisticated motor systems and integrated smart app functionalities is expected to propel market growth in the coming years.
- In June 2023, Robert Bosch GmbH, a manufacturer of electric bike motors and drive systems, unveiled an advanced e-bike system and new e-bike models. The initial product launch included the Performance Line SX motor, designed for lightweight e-MTB and e-gravel bikes, along with a Smart System Software Application for e-bikes, enhancing rider experience with features like automatic transmission.
- In April 2023, udChalo, an Indian e-bike startup, introduced the Vir E-Bike, tailored for armed forces and individual users, designed to endure harsh weather and road conditions in India.
- In January 2023, FIREFOX BIKES launched Urban Eco's first application-controlled electric bike in India, utilizing German technology and featuring innovative functionalities managed through the Firefox Fit app.
- In September 2022, Yamaha Motor released the YDX-TORC mountain e-bike model, equipped with the high-performance PW-X drive unit, alongside several other e-MTB models.
- In November 2020, AlphaVector, an Indian e-bike manufacturer, introduced the Meraki Ninety-One e-bicycle, priced at just US$ 375, which does not require a license to operate in India.
- In June 2020, Bolt, a ride-hailing company, launched an e-bike-sharing service in Paris, with plans to expand to additional European countries, contributing to the company's Green Plan and helping to offset CO2 emissions in the transportation sector.
Key players in the global e-bike market include 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. The report also examines several other significant e-bike market players to provide insights into the market landscape and ecosystem. The e-bike market report offers comprehensive insights that assist key players in strategizing their growth initiatives.