Electric Bicycle Market to Reach $65.83 Billion, Globally

Positive government regulations and policies to encourage the use of electric bicycles, increase in fuel costs, and surge in interest in cycling as a fitness & recreational activity drive the growth of the global electric bicycle market.

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PORTLAND — Allied Market Research published a report, titled, “Electric Bicycle Market by Motor Type (Hub Motor and Mid-drive), Battery Type (Lead Acid, Lithium-Ion (Li-ion), and Others), Application (Sports, Fitness, and Daily Commute), Consumer Segment (Urban and Rural), and Power Output (250W & Less Than 250W and Above 250W): Global Opportunity Analysis and Industry Forecast, 2020–2030.” According to the report published by Allied Market Research, the global electric bicycle market was estimated at $24.30 billion in 2020 and is expected to hit at $65.83 billion by 2030, registering a CAGR of 9.5% from 2021 to 2030.

Drivers, restraints, and opportunities-

Positive government regulations and policies to encourage the use of electric bicycles, surge in fuel costs, and rise in interest in cycling as a fitness & recreational activity fuel the growth of the global e- bicycle market. On the other hand, high purchase and maintenance cost of electric bicycles and ban use of electric bicycles in major cities of China restrain the growth to some extent. Nevertheless, improvement in bicycling infrastructure & battery technology and surge in trend of connected electric bicycles are anticipated to pave the way for lucrative opportunities in the future.

COVID-19 scenario-

  • The outbreak of the pandemic led to a steep decline in the sale of electric bicycles, especially in the first phase of the lockdown, as most bicycles stores were closed during the period.
  • Nevertheless, the pandemic has changed the way people commute, and bicycling has become even more popular around the world. As the restrictions have been loosened off in many countries, the sale of e-bicycles has also soared up to a significant extent. This way, the pandemic has had a mixed impact on the global electric bicycle market.

The mid-drive segment to dominate by 2030-

By motor type, the mid-drive segment held the major share in 2020, accounting for around half of the global electric bicycle market, and is expected to lead the trail by the end of 2030. The same segment would also cite the fastest CAGR of 11.4% throughout the forecast period, owing to the factors such as hassle-free installation and better performance.

The lithium ion (Li-ion) segment to retain the lion’s share-

By battery type, the lithium ion (Li-ion) segment contributed to 91% of the total electric bicycle market revenue in 2020, and is expected to dominate by 2030. The same segment would also manifest the fastest CAGR of 10.4% during the forecast period. This is attributed to their light weight and high capacity. Also, the declined price in the recent years has been beneficial to the segment growth.

Asia-Pacific, followed by Europe and North America, held the major share in 2020-

By region, Asia-Pacific held the highest market share in 2020, garnering around two-thirds of the global electric bicycle market. This is due to increase in initiatives for environmentally friendly vehicles & bikes and development of related infrastructure from the several governments such as India. The market across LAMEA, on the other hand, would exhibit the fastest CAGR of 14.0% from 2021 to 2030, owing to series of initiatives taken by private companies, local governments and federal officials to promote the adoption of electric vehicles in this region.

Key players in the industry-

  • CSE EV GROUP CO LTD
  • Fuji-ta Bicycle Co Ltd
  • Giant Manufacturing Co. Ltd
  • Merida Industry Co, Ltd
  • Yamaha Motor Corporation, USA
  • Accell Group N.V.
  • Royal Dutch gazelle
  • Derby Cycle
  • Trek Bicycle Corporation
  • Yadea Group Holdings Ltd.

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