E-Bike Developments: Top Market Trends to follow in 2022
The past few years have witnessed an exponential rise in fuel prices. Further, people are becoming increasingly aware of their carbon footprint and environmental hazards that come with fuel combustion. Therefore, e-bikes are set to become the future of commuting globally to curb emissions and cut costs. Inkwood Research predicts that the global e-bike market is set to surge with a CAGR of 9.92% in revenue and 9.84% in volume by 2030.
The growth is accelerated by the rising urbanization and the growing consumer inclination to avoid the use of cars to decrease traffic congestion. Furthermore, various e-bike battery and drive mechanism provider companies innovate their product offerings for lower maintenance, higher speeds, lower weights, and longer battery life. These trends offer lucrative opportunities for the market’s expansion.
However, distribution has become a major concern for the e-bike industry. Even though the segment contributes approximately 75% of the total bicycle sales, neither mass retailers nor bike shops presently work towards their distribution. Several manufacturers are trying to find independent dealers and online stores to deliver the vehicles and after-sales service to customers. The shortage of e-bike retailers is worsened by the shortage of e-bike repair shops, as these bikes need regular maintenance to operate smoothly.
Innovative Trends Advance across Segments
Cycling is considered a healthy, low-impact activity with many physical and mental health benefits, such as alleviating stress, building endurance, etc. With the rising inclination of the consumers towards e-bikes, governments of various countries focus on developing infrastructure for e-bikes, including public charging stations, bicycle tracks, etc., in both rural and urban areas. Thus, the urban/city is anticipated to lead the end-use segment with a market value of $51611.77 million by 2030.
Further, the growing interest in cycling as a fitness and recreational activity has increased the demand for e-bikes, fostering growth across various segments, including type, drive mechanism, end-use, battery, and power. The performance of these segments is studied in regions like Europe, Asia-Pacific, and North America.
Europe is expected to lead the global e-bikes market in revenue and volume, with a CAGR of 11.19% and 11.52%, respectively, during the forecast period, 2022-2030. In cities such as Germany, the UK, France, Italy, and the Netherlands, e-bikes can be used without interference with heavy vehicle traffic. The national incentive scheme for purchasing e-bikes in France further supplements the Europe e-bike market. Further, huge investments have been made to boost the business of various key players in the region. For instance, Rad Power Bikes received $150 million in funding to expand its retail and service network.
Scooters are projected to have the highest growth rate in the type segment by 2030. The energy requirements of e-scooters are significantly lower than that of electric vehicles, thus saving a lot on the monthly electricity bills. It also promotes their adoption rates significantly in various developed and developing countries. For instance, Ola is constructing one of India’s largest e-bike manufacturing facilities.
Competitive Stronghold via Partnerships
Companies like Fuji-ta Bicycle, Accell Group, Brose Fahrzeugteile, Hero Electric, etc., are trying to develop independent e-bike technologies and provide sustainable competitive advantage through their innovative product launches. In addition, manufacturers are expanding their presence across North America and Europe to avoid import tariffs, as most production plants are located in China.
Various companies have recently opted to partner with peer companies to gain traction in the global e-bikes market. These partnerships have broadened the scope in terms of revenue and R&D and have also expanded the market base.
- In June 2019, Continental teamed up with German bicycle manufacturer, Kalkhoff, to develop adapted system firmware and components for a customized drive solution.
- In November 2020, Brose Fahrzeugteile SE & Co KG and connectivity expert Comodule partnered to present the Brose Connected Drive, the first modular and coordinated plug-and-play solution for e-bike sharing.
The rise in consumer inclination toward e-bikes as a key mode of transport fuels the growth of the global e-bike market. They are less expensive than cars, do not require a license, and can be used on existing bicycling infrastructure and, therefore, eases the adoption of these bikes for the consumers. Furthermore, governments worldwide are taking drastic measures to cut down fuel combustion for environmental conservation, therefore encouraging the use of e-bikes among the citizens. They also provide e-bike manufacturing plants with lucrative incentives, which benefit the global market.
What was the total value of the global e-bike market in 2021 with respect to revenue and volume?
In 2021, the global e-bikes market was valued at $26511.83 million in revenue and 33188 thousand units in volume.
As per the segmentation analysis, which battery leads the global e-bikes market?
Lithium-ion is expected to lead the battery segment during the forecast period, 2022-2030.