Under the continuous influence of global energy-saving and emission reduction policies, as well as further improvement of electric motor and battery production technology, the global e-bike market has shown a steady growth in the past five years. Affected by the pandemic, more and more people chose bikes during 2020-2022 as a healthy and green way of traveling, which greatly increased the demand for short-distance transportation, including e-bikes. E-bikes produce less carbon, enhance health through pedaling, and eliminate gas costs. Major companies like Uber and Lyft have begun renting out e-scooters by the minute, while e-bike sharing systems are popping up in cities around the world. Beyond the shared models, individual e-bike and scooter ownership is also on the rise.
In this blog, we’ll take a closer look at the rapidly growing e-bike market and the scooter industry. We’ll explore what’s driving the increasing demand, review the latest technological advancements making these vehicles better than ever, and discuss the opportunities and challenges facing the urban micro-mobility movement. With environmental and health consciousness on the rise globally, e-bikes and scooters have an exciting future ahead as alternatives to cars for urban transportation.
E-Bike Market Overview
Key Market Insight
According to the market report, the global electric bike (e-bike) market was valued at $37.47 billion in 2022 and is growing rapidly to $43.32 billion in 2023. It is expected to grow to $119.72 billion by 2030, representing a compound annual growth rate (CAGR) of 15.6%. Significant health benefits of using e-bikes are expected to drive market growth over the forecast period.
Region Insight
The Asia Pacific region presently holds a prominent position in the worldwide market, primarily driven by China, which commands a significant share of the e-bike market. This dominance is attributed to well-established bicycle infrastructure in both developed and developing nations, heightened urban congestion, and the progressively stringent emissions regulations imposed on gasoline motorcycles. Europe is also expected to show strong growth in the coming years based on rising e-bike producers and sales, with the European Union projecting e-bike unit sales of around 13.5 million per year by 2030. North America, especially the United States, is also projected for solid growth based on an increasing number of cities deploying bike lanes and e-bike share programs.
Key Players in the E-bike Market
Key players in the global e-bike market include Giant Bicycle, Hero Cycles Ltd, Accell Group, Robert Bosch, Kalkhoff Werke, Pedego Electric Bikes, Panasonic Corporation, Mobility Holdings, Trek Bicycle Corporation, and Shimano. You can find the best electric bikes on the market from these companies. All of these companies are well-positioned to benefit from the rising global demand for e-bikes. However, the market remains highly competitive as both established brands and newer entrants vie for market share in this rapidly growing industry. Companies are focused on innovation, quality, pricing, and strategic partnerships to gain competitive advantages.
With rising health awareness, urban congestion, environmental concerns, and improving cycling infrastructure in many regions worldwide, the global e-bike market is primed for robust expansion over the coming years.
Electric Bike Market Analysis
Propulsion Type Analysis
- Pedal assist is the largest segment, holding the majority market share due to better battery life, lower servicing needs, and multiple assist modes.
- The throttle segment is expected to exhibit higher CAGR in coming years owing to decreased pedaling effort uphill and increased use of off-road/mountain bikes.
Battery Type Analysis
- Lithium-ion is the most popular and fastest growing battery type due to optimal weight/capacity ratio, higher efficiency, and adequate capacity. Holds the majority e bike battery market share.
- Lead acid holds the second largest market share due to low cost and easy recycling.
Application Analysis
- City/Urban is the dominant and fastest growing segment, driven by rising demand for eco-friendly transport and government support.
- Mountain/Trekking is expected to see considerable growth due to increasing demand for adventurous activities and off-road biking. Second largest segment.
- The cargo/Luggage segment is expected to expand due to the use of transporting goods commercially and personally.
Market Trends
The electric bicycle (e-bike) market has been experiencing rapid growth in recent years driven by improving technology, lower prices, and shifting transportation preferences. Global e-bike sales reached approximately 47 million in 2021, and the market is expected to continue double-digit annual growth rates in the coming years.
Key factors shaping the e-bike market include innovation in batteries and motors leading to longer ranges, smarter features, and lighter weights. Connectivity is also being built into many new e-bike models to enable navigation, fitness tracking, and integration with smartphones. Mainstream consumers are increasingly able to afford e-bikes as average selling prices decline below $1000. Meanwhile, cargo e-bike growth is rising for commercial delivery uses. And while China has led in adoption historically, momentum is now building rapidly in North American and European city centers as well.
Supporting this growth, governments are adapting policies, regulations, safety standards, and infrastructure to accommodate the influx of e-bike uptake. As technology improvements continue to meet consumer demand for convenient and sustainable transportation options, the e-bike market is poised for a strong and transformative decade of expansion globally.
Challenges of the E-bike Market
While the electric bicycle (e-bike) market outlook remains very positive overall, there are some challenges to further growth and adoption. Key issues facing the e-bike industry include:
Battery technology improvements have not kept pace with other advancements, limiting range capabilities for many affordable models. Charging infrastructure also remains lacking in many urban and suburban areas to support longer trips. Safety concerns persist around fires or failures, especially with lower-quality imported batteries. And theft and vandalism risks are elevated due to the high value of e-bike batteries and components.
From a regulatory perspective, confusion remains in many regions regarding where e-bikes can be ridden and parking rules. Licensing requirements also vary widely. These uncertainties discourage some potential users. Additionally, import tariffs and sales taxes in some countries treat e-bikes as luxury products, keeping prices inflated.
Lastly, while e-bike technology has improved greatly, barriers exist for some groups of users. The elderly may struggle with weight and balance issues on cargo models for example. And the disabled community faces accessibility challenges around the design aspects of many current e-bike models.
Overcoming these challenges around technology maturity, infrastructure readiness, regulations, affordability, and inclusive design will help the e-bike market expand beyond early adopters to an even broader audience of users.
What MOKOEnergy Can Do to Help the Electric Bike Market
MOKOEnergy is uniquely positioned to accelerate growth in the rapidly expanding e-bike market. As a BMS board ODM&OEM manufacturer, we have the expertise and capability to directly address key technological hurdles limiting further e-bike adoption. Specifically, we will leverage our specialized engineering talent and position as a high-volume supplier to develop batteries that achieve breakthroughs in critical performance areas like reduced weight, increased range, faster-charging speed, longer lifecycles, and lower costs. We will pursue modular and customizable designs optimized for seamless integration while scaling production capacity ahead of demand. Furthermore, by embracing compatibility standards and providing exceptional technical support, we will earn a reputation as an invaluable partner enabling the entire e-bike ecosystem’s success.
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