E-Bike Tire Market Size

E-Bike Tire Market Analysis

The e-bike tire market is expected to reach USD 2,351.93 million, registering a CAGR of 16.28% over the next five years.

The COVID-19 pandemic had a mixed impact on the market, as initial lockdowns and shutdowns of manufacturing units resulted in a slump in demand across the globe. However, as restrictions eased, demand for e-bike tires increased as various dealers witnessed an increase in their sales year over year across the world. E-bike tire demand will rise in tandem with the growing popularity of e-bikes. To meet the rising demand, several e-bike manufacturers are expanding their operations across the world. For instance, Pirelli began producing cycling tires at the Bollate factory near Milan in March 2022. To accommodate the production of Pirelli Cycling's top-of-the-line lines, the facility has undergone a period of modernization and overhaul.

Over the long term, the demand for sports e-bikes is expected to rise in the coming years due to the increased use of bicycles in trekking and leisure activities, and an increase in the number of cycling events. The number of biking expeditions to difficult terrains, such as steep mountain ranges, has increased in recent years. The growing popularity of such expeditions is expected to drive demand for bicycles, which will benefit sales of e-bike tires. With the growing sales of e-bikes, the demand for tires may rise. Several e-bike manufacturers are expanding their facilities to cater to the rising demand. For instance, in February 2021, Vittoria invested EUR 10 million (around USD 12 million) to extend its European operation in Northern Italy. The company will double its European warehouse capacity to support growth in the coming years as part of investments aimed at increasing output.

Tire prices, like any other commodity, are influenced by two major factors such as disruptions in the supply chain and demand for raw materials. There is also volatility in crude oil prices worldwide. Volatility in the prices of crude oil worldwide creates huge fluctuations in the market, influencing the end cost of tires as the production of synthetic rubber and carbon black depends heavily on crude oil. This may hamper the market growth in the upcoming year.

The European market is one of the fastest-growing segments of the e-bike tire market during the forecast period. Germany led the European market, accounting for approximately 40% of the market in the previous year. It was followed by the Netherlands and France, each of which captured more than 11% of the overall market share. The European Commission's anti-dumping and anti-subsidy sanctions against Chinese e-bikes have contributed significantly to the market's growth since 2018. Additionally, the UK government has started taking steps to enhance the adoption of e-bikes and motorcycles in the country. To promote the use of e-bikes, the government has introduced national incentives and plans to increase financial subsidies. The government announced the decision to set a 2035 target for the phasing out of all new motorcycles equipped with an internal combustion engine (ICE).