E-bikes Market Size, Share, and Industry Trends 2031

The rising demand for green and cleaner transportation modes is significantly fueling the growth of the e-bikes market. E-bikes, which combine the traditional bicycle design with a battery and motor, offer a convenient and environmentally friendly mode of transportation. This press release explores the key drivers of the e-bikes market, including the impact of government policies, advancements in battery technology, and regional market trends.

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Key Drivers of E-Bikes Market Growth

Environmental Concerns and Economic Benefits

People are increasingly turning to electric bicycles for various reasons, including speed, fitness, cost savings, and environmental benefits. E-bikes are easier to ride than traditional bicycles due to the motor assistance, making them a popular choice for commuting and leisure. The global e-bikes market has been growing steadily since the 1990s and is expected to continue its upward trajectory, particularly in Europe, Asia, and North America.

Global carbon emissions from fuel burning have been a major concern for governments and environmentalists. The growing demand for electric vehicles, including e-bikes, is a key factor supporting the market's growth. While e-bikes and scooters may be more expensive initially, the savings on fuel costs make them an attractive option for businesses in logistics, food delivery, tourism, and other sectors. Companies are investing in e-bikes to gain a competitive edge and reduce their environmental footprint.

Tourism and Strategic Partnerships

Tourism organizations are increasingly offering 'Cycling Holidays' packages, attracting tourists to explore popular destinations on e-bikes. Europe, with its numerous tourist locations, is a prime market for this trend. Tourists are drawn to the unique experience of exploring cities and countryside on e-bikes. The global e-bikes market is expected to surpass $25 billion by 2020, with a projected compound annual growth rate (CAGR) of just under 10% between 2021 and 2028, reaching nearly $48.5 billion.

Governments worldwide are promoting safer and cleaner transportation modes to build a greener environment. Legislation encouraging and compensating frequent e-bike riders is expected to further boost the market.

Advancements in Battery Technology

Lead Acid vs. Lithium-Ion Batteries

Lead acid batteries held the largest value share in the e-bikes market in 2021 due to their low cost and recyclability. However, lithium-ion batteries are becoming the preferred choice for e-bikes because of their superior durability, range, efficiency, and lower environmental impact. The lithium-ion battery segment is expected to experience higher growth in the coming years due to its superior chemistry, power-to-weight ratio, charging efficiency, energy density, and lifecycle.

Regional Market Trends

Asia Pacific: Leading the Charge

Asia Pacific is predicted to dominate the e-bikes market throughout the forecast period, driven by high e-bike sales. Key manufacturers in the region include Yadea Group Holdings Ltd., AIMA Technology Group Co., Ltd., and Merida Industry Co., Ltd. The market is particularly strong for Class-I e-bikes, except in India, where Class-II e-bikes are popular due to less stringent regulations. Factors such as extensive bicycle infrastructure, high public transit congestion, and increasing emissions regulations contribute to the market's growth.

Europe: Strong Growth Despite Challenges

Germany, France, and Italy are the leading markets for e-bikes in Europe, driven by innovative product designs, integrated batteries, and high-quality materials. Germany accounted for over 40% of the European market in 2021. The European Commission's anti-dumping and anti-subsidy measures on Chinese e-bikes have significantly boosted the market. Despite a slight decline in 2021 due to COVID-19-related production delays, the market remains robust. E-bike sales in Germany, for instance, climbed by 43% to 2 million units in 2020.

North America: Embracing Innovation

The rapid growth of the e-bikes market in North America is attributed to increased electric vehicle sales and early adoption of ADAS features. Most top-selling passenger cars in the United States now include LED daytime running lights (DRLs) for safety. The market in North America is expected to continue growing as awareness and acceptance of new technologies increase.

Competitive Landscape

The e-bikes market is highly competitive, with major players continuously innovating and forming strategic partnerships. In 2020, Shimano introduced the EP8 mid-drive motor unit, which offers higher torque than previous models. In January 2022, Giant Bicycles partnered with Team BikeExchange-Jayco, marking its return to professional road racing at the UCI World Tour level. In July 2021, Pedego opened a new location in Bethesda, Maryland, offering sales, rentals, services, and accessories for e-bikes.

Prominent players in the e-bikes market include Accell Group N.V. (Netherlands), Yamaha Motor Corporation (Japan), Pon.Bike (US), Giant Manufacturing Co. Ltd. (Taiwan), and Merida Industry Co. Ltd. (Taiwan).

Conclusion

The e-bikes market is poised for significant growth driven by environmental concerns, economic benefits, advancements in battery technology, and supportive government policies. As consumers and businesses increasingly adopt e-bikes for their efficiency and eco-friendliness, the market is expected to expand rapidly, offering numerous opportunities for innovation and investment.