In 2020, the market for electric bikes reached USD 46.28 Billion. The electric bike market is anticipated to be worth USD 95.48 billion by 2027, with a 10.9 percent CAGR between 2020 and 2027. Several significant investments in electric bikes were made during the epidemic, including a $150 million investment in Rad Power Bikes. Major investors such as Morgan Stanley Group contributed $150 million to the company's investment. Similarly, the renowned Harley-Davidson has entered the e-bike market, with a potential bike debut in 2020. Derby Cycle, Accell Group, Giant Manufacturing Co., Ltd, Fuji-ta Bicycle Co., Ltd, and Jiangsu Xinri E-Vehicle Co., Ltd are the world's largest electric bike manufacturers.
Critical Insights about the Electric Bikes Market
According to research published in the New York Times, e-bikes provide medium exercise, contrary to popular belief that they do not. In addition, the study followed bikers on a 3-mile journey. This distance is the average time spent commuting to work for most Americans. According to the survey findings, most bike commuters appreciated their commute, as it allowed them to get to work faster and with greater convenience. Additionally, e-bike travel assisted riders in burning 344 to 422 calories. Growing fitness demand, environmental sustainability, and increasing feasibility of utilizing an electric bike in real-world settings continue to be significant drivers of development in the electric bike industry. The original study was published in the American College of Sports Medicine's Translational Journal.
Trends and Developments in Electric Bikes
According to Brandessence Market Research's top analysts, "People's growing need to satisfy mobility demands while preserving social distance amid the covid-19 epidemic is a primary driver of development. Furthermore, this tendency is expected to continue as e-bikes incorporate the much-needed motor and battery assistance to welcome riders of various backgrounds and ages. This tendency reinforces the demand for micro-mobility, a critical indicator for many people to view a bike as a viable alternative to traditional modes of transportation such as automobiles ".
While issues such as inadequate support for e-bike infrastructure remain a crucial limitation in the global electric bike industry, bikers are also concerned about potential accidents and safety. Nonetheless, despite the worries, bike use is expected to skyrocket. On the one hand, different rental and financing options make it easier to buy e-bikes for business and personal use. Furthermore, e-bikes (with a range smaller than 20 miles) do not require registration, a driver's license, or insurance. These are also far less expensive than getting a new vehicle. As a result, increased demand for alternative modes of transportation, the newly added joy of riding bicycles for all bikers, and the growing market for environmental sustainability are projected to remain significant drivers during the 2020-2027 time period.
The market for Electric Bikes
According to the World Economic Forum, electric bicycle sales in the United States surged by 145% between 2019 and 2020. The article also predicted that electric bike sales would expand at double the rate of electric automobile sales. The increased demand for electric bikes for fitness, environmental awareness, and commercial applications such as food delivery continue to be essential drivers of growth in the electric bike market.
Competitive Analysis of the Electric Bikes Market
Electric bike innovation focuses on digitization, outstanding on-road mileage, increased support for traditional paddling, and safety. Some firms have already accomplished incredible achievements, including electric motorcycles that can travel 420 km or 261 miles on a single charge. Similarly, Harley-Davidson is bringing back the historic aesthetic of electric bikes with glossy black paint and honey-colored leather embellishments. The rising attractiveness of electric motorcycles, the increased demand for features, and the presence of large competitors like Harley-Davidson point to a good future in the global electric bike industry. In addition, technological breakthroughs such as 3D printing are also contributing to significant improvements in modern motorcycles. For example, 3D printing has enabled graphene-based production, which has improved stability, robustness, and manufacturing times while also producing a considerably lighter bike. However, as e-bikes become more popular, these improvements have resulted in higher prices.
Furthermore, electric car sales in worldwide cities increase by more than 10% year on year, exceeding population growth rates. Increasing collaboration between significant innovators and growing regional players internationally will provide additional business prospects between 2020 and 2027. As worldwide rivalry for the top electric bike manufacturer heats up, the most significant competitors in the global electric bike market are preparing to make significant expenditures in R&D.
Electric Two-Wheeler Sales are Exploding in Asia
According to the International Energy Agency, more than 90% of governments worldwide have incentives in place for electric vehicles. Furthermore, significant markets such as China, India, and the United States showed support for charging infrastructure. But, again, electric cars account for around 25% of all-electric vehicles on the road. While China, India, and other Asian nations account for most demand (95 percent), other Asian countries are anticipated to catch up quickly. Large populations, low-cost demand for sophisticated mobility, and a growing desire for a more sustainable future are expected to force most Asian countries to push for the adoption of electric vehicles. While this trend has taken off in big countries like China, increased state support for electric infrastructure will encourage comparable growth in other Asian countries.
Market Segments for Electric Bikes
The market for electric bikes is classified into three categories: lead-acid, lithium-ion (Li-ion), and others. Among them, lithium-ion batteries are predicted to account for the lion's share of total worldwide sales. In 2020, this category will account for more than 60% of the market. Increased innovation in lithium-ion batteries, long-proven usage, and comparatively low application cost continue to be significant drivers of its expansion. The electric bikes market study is further divided into three classes: class-1, class-2, and class-3. Class 3 motorcycles, for example, require special registration since their speeds may reach up to 30 miles per hour, restricting their suitability to commercial activities. However, increased demand for mountain riding and expanding electric infrastructure continue to be important drivers of development in the worldwide electric bike market for class-3 bikes. As a result, electric bikes in classes 1 and 2 are expected to dominate the total market share in North America and Europe. In addition, class-3 electric motorcycles are expected to be in high demand throughout Asia.