The global electric bike (eBike) market size is USD 41 billion in 2020 and is projected to grow to USD 70 billion by 2027 exhibiting a CAGR of around 8% during the forecast period.
Government funding and stringent regulations for electric bikes are significant factors that are anticipated to accelerate the growth of the market size of electric bikes. In addition, the growth of the global electric bicycle industry is motivated by the rising willingness of consumers to use e-bikes as an eco-friendly and reliable alternative to commuting and the fuel costs.
In addition to growing user demand for outdoor and adventure sports, during the projected timeframe, the adoption of e-bike applications in many industries, such as logistics and e-bike rental services, is expected to boost the studied market.
Owing to growing urbanisation and the increasing amount of vehicular traffic on the road, the use of electric bikes is increasing. Thanks to their power capability, long distance range, and moderate speed, electric bikes are now considered a viable transportation alternative.
Asia Pacific is expected to account for the largest market during the forecast period
During the projected period, Asia Pacific is anticipated to be the largest e-bike region. In this area, due to growing e-bike purchases in these countries, China, Japan, India, and Taiwan are potential markets.
The Government's Stringent Emission Standards are projected to fuel growth in the size of the electric bike industry. Strict restrictions have been imposed on manufacturers to manufacture zero-emission cars by the governments of various countries. Key OEMs have invested heavily in R&D in order to develop environmental-friendly vehicles. Governments in developing countries have proposed different subsidies, such as tax-free electric bicycle purchases.
It is anticipated that the increasing interest in cycling as exercise would further fuel the scale of the electric bike industry. The interest in cycling as a health and recreational pursuit has been motivated by a paradigm change in fitness-conscious buyers because riding an electric bike provides longer distances for the same amount of peddling.
It is predicted that increasing worries about road congestion and government efforts to alleviate traffic congestion would expand the size of the demand for electric bikes. As they occupy the least space on the lane, the use of e-bikes would reduce the number of vehicles on the road and result in less traffic jams.
Positive impact of COVID-19 on e-bike sales globally
One of the factors projected to boost the market for e-bikes over the forecast period is rapid urbanisation and traffic congestion in cities. Shared versatility for transportation is unlikely to be favoured because of the COVID-19 pandemic. E-bikes are considered an alternative to mass transit that is clean, comfortable and inexpensive. In order to minimise the burden on public transit networks, several nations are moving towards improving e-bikes using both discounts and regulatory improvements. E-bikes are also smaller, easier to charge, and do not need massive improvements in supporting facilities relative to other mobility networks. Therefore, an increase in demand is being observed for e-bikes.
With the adoption of e-bikes, technical developments in the area of e-bikes are taking place and linked e-bikes are one such development. Automatic calls, seamless routing, social media connection, an anti-theft system, and remote diagnostics are some of the essential features provided by the linked e-bike. Bosch, which provides a wired e-bike solution, is one of the main players in the e-bike industry.
Rise in Demand of Greener and Cleaner Mode of Transportation
High traffic congestion in metropolitan areas is rising the worldwide need for e-bikes. Demand for greener and safer modes of transport is growing, driving the global e-bike industry.
International trade policies and regulations
Because of Europe's anti-dumping regulation, the region was initially affected as it was unable to satisfy the demand for parts.
E-bike sales were impacted in the US between 2018 and 2019 because of the trade war between the US and China.
The engine and battery are the two most important components of the e-bike. One of the problems for e-bike manufacturers is regulating the motor's speed and torque over a wide variety of speed and load conditions. Given the limited amount of energy contained in a battery available, the power of the battery must be used as effectively as possible. Hence, it would be necessary for battery manufacturers to decide the correct battery capacity in terms of operation and range.
High Maintenance cost of Battery
Numerous research and development works on electric bikes and their batteries have been carried out in recent years. One of the big issues is charging and servicing of the battery. The development of the market could be hindered by numerous technological problems, such as the fast discharge of the battery after a short trip and the slowdown of the battery of the bike at freezing temperatures.
Key Market Players
Global eBike Market Coverage
Battery Type Insight and Forecast 2015-2027
Hub Motor Insight and Forecast 2015-2027
Basis of Mode Insight and Forecast 2015-2027
Battery Power Insight and Forecast 2015-2027
Class Insight and Forecast 2015-2027
Usage Insight and Forecast 2015-2027
Global eBike Market by Region
Rest of the World (RoW)