E-Bike Market

Global E-Bike Market:

The global e-bike market size reached US$ 24.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 43.8 Billion by 2032, exhibiting a growth rate (CAGR) of 6.48% during 2024-2032. The rising environmental concerns, rapid urbanization, increasing health and fitness activities, favorable government initiatives, significant technological advancements, increasing awareness about environmental issues and changing lifestyle trends are some of the major factors propelling the e-bike market growth.

E-Bike Market Analysis

• Major Market Drivers: Increasing awareness of environmental issues, such as air pollution and climate change, is primarily driving the growth of the market. In addition to this, the rising cost of fuel is also augmenting the need for affordable electric modes of transportation, such as e-bikes.
• Key Market Trends: Ongoing advancements in e-bike technology are resulting in improvements in battery life, motor efficiency, and overall performance. This is making e-bikes more appealing and reliable to a broader consumer base.
• Geographical Landscape: According to the report, Asia Pacific accounted for the largest market share. Asia Pacific is home to a significant portion of the world's population, with densely populated cities and a growing middle class. Additionally, government authorities in many Asia Pacific countries have actively promoted e-bike as a sustainable and eco-friendly mode of transportation.
• Competitive Landscape: Some of the leading e-bike market companies are Accell Group, BIONX International Corporation, Robert Bosch GmbH, Yamaha Motor Group, Derby Cycle Holding GmbH, Giant Group, Kwang Yang Motor Company Ltd, Merida & Centurion Germany GmbH (MCG), Samsung Electronics Co., Ltd, Continental AG, Prodeco Technologies LLC, Tianjin Fuji-ta Group Co., Ltd, Trek Bicycle Corporation, Pedego, Inc, and Shimano, Inc., among many others.
• Challenges and Opportunities: The e-bike market presents significant growth opportunities fueled by increasing environmental awareness and urban congestion. However, challenges such as regulatory barriers, infrastructure development, and battery technology limitations, require strategic solutions for sustainable expansion. Innovative business models and partnerships with local governments can help overcome these hurdles and drive further adoption.

E-Bike Market Trends:

Growing Environmental Concerns

E-bikes are gaining traction as an eco-friendly mode of transportation since they produce zero emissions and have a much lower environmental impact compared to traditional gasoline-powered counterparts. Moreover, the increasing levels of carbon emission are also creating lucrative growth opportunities for the overall market. A typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year. Furthermore, transport was responsible for about a quarter of the EU's total carbon emissions in 2019, of which 71.7% came from road transportation, according to a report from the European Environment Agency. In response to this, government authorities of various nations are taking initiatives to promote the adoption of e-bikes, which is propelling the e-bike market demand. For instance, the Government of India has introduced a new plan called the Electric Mobility Promotion Scheme 2024 (EMPS). Under the EMPS 2024 plan, the government has set aside Rs 500 crore for electric two-wheelers and three-wheelers. The subsidy for electric two-wheelers will be Rs 5,000 per kWh of battery capacity, capped at 15% of the vehicle's factory price. Similarly, the State Government of Uttar Pradesh, waived off 100% road tax for e-bikes/e-scooters, while 75% had been waived off for e-cars. The subsidy is valid for the first 1,00,000 EVs that have been manufactured and sold in the state. 

Rapid Urbanization and Increasing Fuel Costs

The e-bike market is favorably impacted by the elevating levels of urbanization since densely populated cities require a continent and efficient means of transportation. E-bikes allow riders to navigate through traffic with ease, often taking shortcuts inaccessible to cars and eliminating the need for time-consuming parking searches. Besides this, increases in gasoline costs, traffic congestion during rush hours, and the health advantages of exercise are driving the adoption of e-bikes in several countries, including the United Kingdom and the United States, which is propelling the e-bike market share. With a greater adoption rate in 2019 compared to other regions, Europe was the primary market for the selling of electric bikes. The increasing demand for e-bikes accelerated the adoption rate in 2019 compared to 2018. In line with this, the inflating price of fuel is also prompting individuals to utilize e-bikes for short commutes. For instance, the global fuel energy price index stood at 179.82 index points in March 2024, up from 100 in the base year 2016. 

Increasing Product Offerings

Various industry players are extensively investing in research and development activities to launch e-bicycles with improved battery life and speed, which is positively impacting the e-bike market outlook. For instance, in April 2024, Decathlon launched a new RR900e hardtail e-bike with a Bosch motor. The Decathlon RR900e is a new hardtail e-bike that has been launched in Europe. The 12-speed model features a mid-mounted Bosch motor, a RockShox suspension fork, and various Shimano parts. Plus, you can connect your smartphone via Bluetooth for Bosch Smart Ebike App controls. In addition to this, the entry of new market players offering e-bikes with next-generation technology at fair prices is also contributing to the market growth. For instance, in October 2023, Posco Daewoo, the South Korean conglomerate, announced its plans to re-enter the Indian market. Its return journey is riding on plans to sell electric bikes and e-cycles. The company is betting on the Indian electric 2-wheeler market growing rapidly in the coming years. Furthermore, in April 2024, Hero Lectro, a key player in the electric cycle segment, launched two new e-cycles in the Indian market - the H4 and H7+. These latest models are designed with the specific needs of Indian consumers in mind, offering a blend of style and functionality. The H4 is priced at an introductory offer of Rs 32,499, available in Mystic Purple and Distance Red. The H7+ is slightly higher at Rs 33,499, coming in Lava Red and Storm Yellow Grey.

E-Bike Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global e-bike market report, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on mode, motor type, battery type, class, design, and application.

Breakup by Mode: 

• Throttle 
• Pedal Assist
   

Pedal assist dominates the market

The report has provided a detailed breakup and analysis of the market based on the mode. This includes throttle and pedal assist. According to the e-bike market report, pedal assist represented the largest segment.

The pedal assist e-bike offers a seamless blend of traditional cycling and electric assistance. This feature appeals to a broad spectrum of riders, including both avid cyclists and those new to biking. Cyclists can choose the level of assistance they require, making it versatile for various terrains and fitness levels. This flexibility encourages more people to adopt e-bikes for daily commuting and recreational purposes. Furthermore, pedal-assist technology promotes an active and healthy lifestyle. As a result, various key market players are increasingly investing in the development of such bikes. For instance, Hyderabad-based EV technology provider Gear Head Motors launched the L 2.0 Series electric cycle at a starting price of Rs. 25,000. The L 2.0 Series e-cycle is equipped with a 250-watt GHM motor and offers a range of up to 30 km on pedal assist. It also features fast-charging capabilities via a 3 Amp fast charger. The company has claimed that the battery on this EV can be charged fully in 2 hours through the battery management system.

Breakup by Motor Type: 

• Hub Motor
• Mid Drive
• Others
   

Hub motor hold the largest share in the market

A detailed breakup and analysis of the market based on the motor type has also been provided in the report. This includes hub motor, mid drive, and others. According to the report, hub motor accounted for the largest market share.

Hub motors are integrated directly into the wheel hub, making them easy to install and maintain. This user-friendly design attracts a wide range of consumers, including those who may not have extensive technical knowledge. Moreover, hub motors typically require less maintenance than other motor types, reducing ownership costs and enhancing the overall ownership experience. Another significant factor is the silent and inconspicuous operation of hub motors. They produce very little noise, creating a smooth and unobtrusive riding experience. 

Breakup by Battery Type: 

• Lead Acid
• Lithium Ion
• Nickel-Metal Hydride (NiMH)
• Others
   

Lead acid accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the battery type. This includes lead acid, lithium ion, nickel-metal hydride (NiMH), and others. According to the report, lead acid represented the largest segment.

As per the e-bike market overview, lead-acid batteries are well-established and have a long history of use in various applications. This extensive track record has instilled trust among consumers, particularly those who may be more cautious about adopting newer battery technologies. Additionally, lead-acid batteries are comparatively affordable, making e-bikes equipped with these batteries more accessible to a wide range of consumers. As a result, various lead battery manufacturers are increasingly investing in expanding their operations, especially in emerging markets. For instance, in July 2022, Amara Raja Batteries (ARBL) announced plans to expand its lead-acid business with various options to expand geographically outside India. As a part of the expansion, the company focuses on expanding the lead-acid business, primarily in Africa, the Middle East, and South-East Asia.

Breakup by Class: 

• Class I
• Class II
• Class III
   

Class I holds the largest share in the market

A detailed breakup and analysis of the market based on the class has also been provided in the report. This includes class I, class II, and class III. According to the report, class I accounted for the largest market share.

Class I e-bikes closely resemble traditional bicycles in terms of appearance and operation. They provide electric assistance only when the rider is actively pedaling, ensuring that the riding experience remains familiar to those who have ridden conventional bikes. Class I bikes are usually preferred by consumers who are recreational riders, cycling enthusiasts, and commuters who may be looking for an easier and more enjoyable cycling experience without dramatically altering their riding habits. In response to the escalating demand for class I bikes, various manufacturers are coming up with these models integrated with improved battery life and functionality. For instance, Ride1Up, the San Diego-based electric bike retailer known for some of the best value commuter e-bikes on the market, is updating one of its popular commuter-focused models, the new Ride1Up LMT’D V2. This model comes with several new upgrades. Chief among them is a new torque sensor designed to make the bike as comfortable and responsive to pedal as possible. The inclusion of a torque sensor means that pedaling is as efficient and natural feeling as possible.

Breakup by Design: 

• Foldable
• Non-Foldable
   

Non-foldable represent the most popular e-bikes design

The report has provided a detailed breakup and analysis of the market based on the design. This includes foldable and non-foldable. According to the report, non-foldable represented the largest segment.

As per the e-bike market statistics by IMARC, non-foldable e-bikes offer a level of structural stability and durability that foldable models cannot match. This sturdiness is especially appealing to riders who prioritize reliability and longevity in their e-bike investment. Non-foldable e-bikes are typically built to withstand daily use and varied terrains, making them well-suited for both commuting and recreational purposes. Additionally, non-foldable e-bikes often come in a wider range of styles and configurations, catering to diverse consumer preferences. Whether it's a classic city commuter, a robust mountain bike, or a sleek road bike, non-foldable e-bikes offer an extensive variety of options to choose from. This variety ensures that riders can find a non-foldable e-bike that aligns with their specific needs and riding style.

Breakup by Application: 

• Mountain/Trekking Bikes
• City/Urban
• Cargo
• Others
   

City/urban holds the largest share in the market

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes mountain/trekking bikes, city/urban, cargo, and others. According to the report, city/urban accounted for the largest market share.

The e-bike market forecast indicates that e-bikes are exceptionally well-suited for urban environments. With the increasing congestion in cities and concerns about air quality, people are seeking efficient and sustainable transportation options. In 2021, the congestion level of Mumbai amounted to 53% each, meaning that it took 53% more time to get from one point to another compared to a free flow situation. Comparatively, the congestion level in Wellington and Singapore amounted to 29 percent in 2021. As a result, consumers living in cities and urban areas are increasingly looking for daily commuting and navigating congested streets like e-bikes.

Breakup by Region: 

• Asia Pacific
• Europe
• North America
• Middle East and Africa
• Latin America
   

Asia-Pacific exhibits a clear dominance in the market

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific is home to a significant portion of the world's population, with densely populated cities and a growing middle class. Additionally, government authorities in many Asia Pacific countries have actively promoted e-bikes as a sustainable and eco-friendly mode of transportation. Subsidies, incentives, and supportive regulations have encouraged consumers to embrace e-bikes as a viable alternative to traditional gasoline-powered vehicles, further boosting the market. Besides this, the manufacturing capabilities of Asia Pacific countries, particularly China, have made e-bikes more accessible and affordable. In the Asia-Pacific electric bike or electric bicycle market, China, Japan, and Indonesia accounted for a major share of overall unit sales in the recent years. China held over 90% volume share in the global electric bike market in 2023.

Competitive Landscape:

Leading e-bike manufacturers invest heavily in R&D to develop cutting-edge technologies and improve the overall performance of e-bikes. This includes advancements in battery technology, motor efficiency, and smart connectivity features, all of which enhance the riding experience. Additionally, key players continuously expand their product portfolios to cater to diverse consumer preferences. They offer a wide range of e-bike styles, including city commuters, mountain bikes, and folding models, ensuring that there is an e-bike for every need and lifestyle. Other than this, numerous industry leaders prioritize sustainability by incorporating eco-friendly materials, optimizing supply chains, and reducing carbon footprints in e-bike production. This aligns with the growing demand for environmentally responsible products. Besides this, leading companies are actively expanding their presence in emerging markets, such as Asia and Latin America, where the e-bike market is experiencing rapid growth. This includes establishing local manufacturing facilities and distribution networks. In line with this, key players invest in marketing campaigns to raise awareness about the benefits of e-bikes and educate consumers about their advantages. They also collaborate with local governments and organizations to promote e-bike usage in urban mobility plans. Moreover, providing excellent customer support and after-sales services is a priority. This includes warranty coverage, maintenance services, and readily available spare parts to ensure customer satisfaction and loyalty.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Accell Group
• BIONX International Corporation
• Robert Bosch GmbH
• Yamaha Motor Group
• Derby Cycle Holding GmbH
• Giant Group
• Kwang Yang Motor Company Ltd
• Merida & Centurion Germany GmbH (MCG)
• Samsung Electronics Co. Ltd
• Continental AG
• Prodeco Technologies LLC
• Tianjin Fuji-ta Group Co. Ltd
• Trek Bicycle Corporation
• Pedego Inc
• Shimano Inc.

E-bike Market Recent Developments:

• April 2024: Hero Lectro, a key player in the electric cycle segment, launched two new e-cycles to the Indian market - the H4 and H7+. These latest models are designed with the specific needs of Indian consumers in mind, offering a blend of style, and functionality. The H4 is priced at an introductory offer of Rs 32,499, available in Mystic Purple and Distance Red. The H7+ is slightly higher at Rs 33,499, coming in Lava Red and Storm Yellow Grey.
• April 2024: Decathlon launched a new e-bike, the RR900e Bosch Performance CX, in Europe. As its name suggests, the sporty hardtail model is powered by a Bosch motor, mounted in the middle of the frame, with 250W power and up to 85Nm torque. The RR900e has a 625Wh Bosch PowerTube battery which, according to Decathlon, can provide up to 100km (~60 miles) assistance range.
• March 2024: Gazelle, the very popular Dutch bike brand owned by industry giant Pon Holdings, launched its first Class 3 electric bike in the US. Gazelle said that its new Eclipse is the “first and only Class 3 e-bike in the US to feature Bosch’s Smart System,” which fully integrates the bike’s motor and electronics with the Bosch Flow app for a personalized ride that will receive continuous over-the-air bug fixes and feature updates long after purchase.

E-Bike Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the e-bike market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global e-bike market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the e-bike industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.