E-bike Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

E Bike Market Analysis

The e-bike market was valued at USD 35,408.58 million, and it is expected to reach USD 61,869.48 million after five years, registering a CAGR of 6.96% over the next five years.

The global e-bike market was severely affected by the COVID-19 pandemic during the 2020 lockdowns and shutdown of manufacturing facilities and supply chain disruptions. However, the sector has been recovering well since restrictions were lifted. An increase in house sales, new project launches, and increasing demand for e-bikes have been leading the market recovery over the last two years.

Over the medium term, favorable government regulations and policies coupled with increasing interest among adults, especially youth, in cycling as a fitness and recreational activity are expected to drive demand in the market. Besides these, rising investments and product launches by major OEMs in major countries globally and their focus on localizing supply chain facilities create a positive outlook in the market.​

While electric bikes and scooters are said to be more expensive to purchase compared to regular two-wheelers, the amount of money saved with respect to rising fuel costs is encouraging several players across the logistics, food, delivery, tourism, etc., sectors. Accordingly, the companies are investing in procuring these electric two-wheelers and are entering strategic agreements with these vehicle manufacturing companies to gain a notable edge over other competitors in the market. For instance,

• Some tourism companies are exclusively offering packages termed as 'Cycling Holidays.' As Europe is home to numerous travel destinations, millions of visitors flock to the country yearly during the holiday seasons. Even tourists are wooed by this new and different experience and are opting for e-bikes to tour prominent sites as well as the country-side in some cases.

Europe is expected to hold a significant market share, followed by Asia-Pacific and North America. The rising government efforts and incentives and the need to limit pollution are driving the expansion of Europe and Asia-Pacific electric-two-wheeler sector. Major cities in these regions are adding bike lanes to support the rapid adoption of e-bikes at the country level, city level, etc. For instance,

• In December 2020, in New York, Mayor Bill de Blasio announced that the New York City Department of Transportation (DOT) constructed a record 28.6 lane miles of new protected bike lanes across all five boroughs in 2020. After this announcement, the city's total bike lane network reached 1,375 lane miles, 545 protected miles, including nearly 170 miles on the street.

E Bike Industry Segments

An electric bike is a motorized bicycle with an integrated electric motor to assist propulsion. An electric bike is essentially a regular bike with electric components. The only noticeable difference between an electric bike and a regular bike is the added battery pack, a motor, and in some models, a display screen.​ The e-bike market report covers a detailed study of the latest trends and innovations.

The e-bike market is segmented by propulsion type (pedal-assisted and throttle-assisted (power-on-demand), application (city/urban, trekking (e-mountain bikes/E-MTB), and cargo), battery type (lithium-ion battery and lead-acid battery), power (less than and equal to 250 W and above 250 W), and geography (North America, Europe, Asia-Pacific, and Rest of the world).The report offers market size and forecasts in value (USD million) and Volume (Units) for all the above segments.

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E Bike Market Trends

This section covers the major market trends shaping the E Bike Market according to our research experts:

Pedal - Assisted E-bikes Expected to Gain Significant demand in the Market

The pedal-assisted mode of an electric bike works much like a traditional bicycle, with pedals that the rider must manually operate to turn the wheels. However, additional power is supplied by a battery-powered motor mounted on the front or back wheel, depending on the type of bike. The advantages like better battery life, lower servicing needs, and the ability for users to choose from the three to five modes of pedal assist depending on the model, etc. are anticipated to attract new users and are likely to contribute to enhancing the overall development of the market during the forecast period.

In addition, increasing interest among youth towards sports activities like uphill cycling, etc., and the rising awareness towards healthy and fit lifestyles are expected to further propel demand in the market. With the consistent technological advancements, pedelec manufacturers are focusing on enhancing the overall user interface by designing and developing pedelecs that can be integrated with the rider's smartphones and provide them with real-time information on the speed and battery status of their vehicles.

Moreover, continuous product upgrades and new model launches coupled with rising sports events and associated activities encourage existing and new players and are likely to encourage other players in the market. For instance,

• In February 2022, Ninety-One Cycles announced the launch of their latest electric bike, the Meraki S7. The bike comes equipped with a Shimano Tourney 7-Speed Gearset, 5-Mode Pedal Assist, and a smart LCD with speed indication. The bike has all the features of the original Meraki and additionally comes equipped with a Shimano Tourney 7-Speed Gearset, 5-Mode Pedal Assist, and a smart LCD with speed indication.
• In June 2021, woom, a globally-acclaimed kids’ bicycle company, launched its first electric bike (e-bike) for kids in the United States. The premium 250-watt FAZUA drive system enables pedal assist in three customizable settings, up to 12 mph. Riders could download the free Fazua Rider app, which could give the flexibility to fine-tune the power modes, monitor the motor’s data (power output, remaining range, etc.), and record all the stats during a ride, including distance, speed, and elevation.

Pedelec e-bikes are being preferred for their lower prices and are also a preferred choice for health enthusiasts as they demand continuous body motion. Newer generation pedal-assisted e-bikes also incorporate features like fitness and GPS tracking, speed, and battery status, among others. Such developments and trends in the market anticipated to enhance overall demand in the market over the next five years.

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