The pandemic bike boom boosted e-bike sales 145% from 2019 to 2020, more than double the rate of classic bikes, according to the market research firm NPD Group.
Research by Power Systems Research estimates the global e-bike market size at US$ 23.2B in 2022 and expects the market to reach US$ 78B by 2030, exhibiting a CAGR of 10.5%.
E-bikes are bicycles equipped with electrical motors for transforming electrical energy into mechanical energy to assist pedaling. They use rechargeable batteries that require minimum maintenance and provide power to the motor.
Drivers-of-Demand. The cost of Li-ion batteries is declining as the volume of production increases and manufacturing efficiency improves.
- Between 2010 ($1,160/kWh) and 2019 ($156/kWh), the average cost of Li-ion battery packs per kWh fell by more than 86.55%. By 2030, it is predicted to drop by around 35% propelling the global electric bike market forward.
- The expanding use of EVs in the global automotive sector has provided Li-ion battery manufacturers with economies of scale, thereby lowering the cost of Li-ion batteries and making them viable for use in e-bikes.
Source: Power Systems Research
One of the key drivers of E-Bike demand is the desire for a more sustainable mode of transportation. E-Bikes emit no greenhouse gases and have a much smaller carbon footprint than traditional gasoline-powered vehicles.
Governmental agencies in many countries are encouraging the use of e-bikes to reduce fossil fuel expenses, decrease air pollution, and improve air quality. They are also providing subsidies, constructing bicycle routes, and installing electric vehicle charging stations in public places to boost the sales of e-bikes.
Also contributing to the growth in demand for E-Bikes is the increasing popularity of cycling for recreation and commuting. E-Bikes make cycling more accessible, especially for people who live in hilly areas or those who want to cover longer distances without getting fatigued. This has made E-Bikes a popular choice among commuters, recreational cyclists, and elderly people.
E-Bike Market Trends. Several important trends can be seen in the e-bike market. These include:
- Continued rise in the integration of lithium-ion batteries in e-bikes for fast charging and optimized performance of the vehicle.
- Increasing use of mid-drive motors to lower maintenance costs and improve gear usage.
- Key market players are starting to manufacture connected e-bikes integrated with the internet-of-things to intercept and transmit data from the cloud without using a smartphone.
- Seamless connectivity with public transportation systems will enable connected e-bikes to become a critical solution in last-mile connectivity.
- An element of the seamless Mobility-as-a-Service technology with the incorporation of connected elements.
- Multiple features in e-bikes, automatic emergency calling, anti-theft systems, remote diagnostics, integrated navigation/GPS and pedaling assist sensors.
- The integration of technology has also improved the safety of E-Bikes, making them more attractive for riders.
- Growing adoption of e-bikes by logistic companies to travel longer distances at higher speeds and deliver packages is offering a favorable market outlook.
- Increasing popularity of E-Bikes for commuting. As people become more concerned about the environmental impact of their transportation choices, E-Bikes are becoming a popular alternative to traditional gasoline-powered vehicles, particularly for short-distance commuting. This trend is also driven by the convenience of E-Bikes, which are typically easier to park and maintain than traditional vehicles.
E-bike Market Challenges. Product recalls due to possible failures will be a major challenge for the global electric bike market during the forecast period.
Conclusion. The global e-bike market is a highly opportunistic and competitive market owing to the shifting consumer trend towards eco-friendly modes of vehicles. Consumers find e-bikes an economical alternate for the electric vehicles. E-bike sharing services along with support from government organizations to promote the application and adoption of e-bike will drive the market growth over the upcoming years. PSR
Michael Aistrup is Senior Analyst at Power Systems Research
