Electric Bicycle Market Size, Share & Trends Analysis Report - Forecast(2024 - 2030)

Electric Bicycle Market Overview:

Electric Bicycle Market size is estimated to reach $50 billion by 2030, growing at a CAGR of 8% during the forecast period 2024 – 2030. The increased focus on sustainability and eco-friendliness has led to rise in the usage of bicycles. However, not everybody is fit or capable of riding a bicycle. Thus, an alternative in the form of Electric Bicycle has entered the market. Electric bicycle, being suitable for people that can ride a bicycle as well as for those who can’t is leading to the growth of demand for electric bicycles.

Like regular bicycles, an electric bicycle can be ridden by using its pedals. Unlike regular bicycles, electric bicycles also have a propulsion system which uses electricity to propel the bicycle. It makes the electric bicycle a little cheaper, albeit slower, alternative to electric motorbikes.

Market Snapshot

                                     

Electric Bicycle Market – Report Coverage:

The “Electric Bicycle Market Report – Forecast (2024 – 2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Electric Bicycle Market.

COVID-19 / Ukraine Crisis – Impact Analysis:

• With the COVID-19 pandemic leading to a decline in public transit, such as a 90% drop in subway ridership in New York City in 2020, a wave of electric mobility initiatives had emerged. Electric bikes saw a remarkable surge in adoption, even displacing traditional non-motorized bikes in several areas. The e-bike industry responded favorably amidst the challenges posed by the pandemic.

• In March 2023, the U.K. transport department announced a $2 billion plan to boost cycling and walking during and after the lockdown. The country’s government announced $200 million for new active travel schemes across England, including $35 million for the National Cycle Network and $8 million for the new e-cycle program.

• Ukraine is a major exporter of raw materials and components used in various industries, including electronics and manufacturing. Disruptions to the supply chain originating from Ukraine has led to delays or shortages in the production of electric bicycles and their components.

Key Takeaways:

• Pedal Assisted Electric Bicycles Dominates the Market

The pedal assist category has dominated the market in 2023, boasting superior battery longevity, reduced maintenance requirements, and the flexibility for users to select from three to five pedal assist modes, depending on the model. 

Meanwhile, the throttle segment is poised to experience a higher CAGR in the forecast period 2024 - 2030. This surge is fueled by factors like reduced pedaling exertion, particularly evident when accelerating uphill or cruising. Moreover, the increasing popularity of mountain off-road biking will further fuel the expansion of throttle propulsion systems.

• Lithium-ion Batteries is the Fastest Growing Battery Type

Lithium-ion batteries reign as the top choice for e-bikes, boasting a significant market share of 65% in 2023, prized for their ideal balance of weight and capacity. They boast superior efficiency and ample energy storage, with twice the voltage and three times the capacity of lead-acid batteries. This superiority has propelled the lithium-ion segment to become the market's fastest-growing sector, while lead-acid batteries, with their lower cost and ease of recycling, maintain a significant presence as the second-largest segment.

• Urban Cycling Remains the Primary Application

The urban cycling sector has stood as the primary and swiftest expanding domain in 2023. The surge in eco-conscious transportation preferences, coupled with governmental backing, has propelled the proliferation of city bikes for everyday commuting purposes. 

Meanwhile, the mountain biking realm is poised for significant expansion during the projected period 2024 - 2030, driven by the escalating global appetite for sports and adventurous pursuits, thus fostering the widespread adoption of mountain/off-road bikes, marking it as the second-largest market segment. Notably, the integration of e-bikes into recreational and trekking endeavors is witnessing a sharp uptick, buoyed by a burgeoning recognition of performance-centric adventure sports, further bolstering segmental advancement. 
Additionally, the cargo transportation niche is slated for growth, attributed to its utility in ferrying small-scale goods for both commercial and personal endeavors, thereby serving as a catalyst for market expansion.

• Governments Promote the Use of Electric Vehicles

Governments worldwide are actively developing the charging infrastructure required for adopting electric bicycles. In addition, the federations are offering overall cost benefits with respect to e-bikes by offering incentives, schemes, and subsidies. For example, the Electric Bicycle Incentive Kickstart for the Environment Act, introduced on 21st March 2023, allows individual taxpayers a new tax credit for 30% of the cost of a qualified electric bicycle. The bill defines qualified electric bicycle to mean a bicycle or tricycle that does not cost more than $8,000 and that is equipped with fully operable pedals, a saddle or seat for the rider, and an electric motor of less than 750 watts. As a result, consumers are more inclined toward the use of electric bicycles considering the benefits and eco-friendly nature. Bicycles equipped with electric motors help in maintaining higher speed more effectively as well as make the ride more comfortable on rough roads.

• High Purchase Costs and Lack of Standard Regulation

Electric bicycle adoption remains limited on the grand scale due to high purchase costs. In the US, average cost of standard bicycle was $308 in 2022. In comparison, average price of an electric bicycle ranges from $1700 to $2618. 
Class 1 and Class 2 Electric Bicycles can be ridden in bike paths and bike lanes, same as traditional bicycles. However, one cannot be sure about where they need to ride when using Class 3 Electric Bicycle. There are regulations that differ country to country, state to state.

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Key Market Players:

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Electric Bicycle Market. The top 10 companies in this industry are listed below:

1. Hero Lectro
2. Trek Bicycle Corporation
3. Giant Bicycle, Inc.
4. Verlinvest (Pedego Electric Bikes)
5. Aventon
6. Leebike
7. Kalkhoff Werke GmbH
8. Juiced Bikes
9. Mobility Holdings, Ltd. (Tern)
10. Shimano Inc.

Scope of Report

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