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The electric bicycles market has witnessed a substantial surge in demand over the past few years owing to the numerous advantages offered by electric bicycles. Electric bicycles provide environment-friendly transportation with zero emissions and are considered as ideal alternatives to short-distance commutes in urban areas. They allow riders to travel longer distances with less physical exertion compared to conventional bicycles. Electric bicycles come equipped with a small electric motor that assists the rider’s pedaling, extending the bicycle’s range per charge cycle. The Global Electric Bicycles Market is estimated to be valued at US$ 51.5Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period from 2023 to 2030.
Key Takeaways
Key players operating in the Electric Bicycles market are Accell Group, Derby Cycle AG, Easy Motion, Jiangsu Xinri E-Vehicle Co. Ltd., Panasonic, Pedego, Stromer, and Yadea Technology Group Co. Ltd., BionX, Bosch, Electric Bike Technologies LLC, Giant Bicycles, GRACE, Superpedestrian, and Trek. The growing environmental concerns and rising fuel prices have encouraged commuters to opt for eco-friendly electric bicycles as an affordable means of transportation. Many cities across the globe have also started investing in bicycle-friendly infrastructure such as protected lanes, which has boosted the adoption of electric bicycles. Furthermore, initiatives by governments to promote non-motorized electric vehicles are augmenting the market growth.
The demand for electric bicycles is substantially increasing across both developed and developing regions due to rising disposable incomes, growing health awareness, and increasing bicycle tourism. Several companies are expanding their production capabilities and dealer networks in high growth markets to tap the vast potential. For instance, Derby Cycle expanded its manufacturing facility in Serbia, Europe to boost production for the European electric bicycles market. Similarly, Yadea group has established manufacturing plants and sales offices in international markets like Europe and Southeast Asia to strengthen its global foothold.
Market key trends
The growing popularity of shared mobility services has opened new opportunities for electric bicycle rental startups in various cities. Several dockless rental electric bicycle operators have emerged, allowing users to locate and unlock bicycles using a smartphone app and drop them at any permitted place after use. This trend is gaining traction as these services provide affordable last-mile connectivity. Furthermore, innovations in battery technologies are leading to increased driving ranges of up to 150 km on a single charge. Technologies such as swappable batteries and battery rentals are further augmenting the battery runtime of electric bicycles.
Porter’s Analysis
Threat of new entrants: Low barrier for new entrants to enter the niche electric bicycles market with possibility of acquiring small/local players.
Bargaining power of buyers: Moderate bargaining power for buyers as electric bicycles market have many global and local players offering varied specifications and designs at competitive prices.
Bargaining power of suppliers: Low bargaining power for suppliers since electric bicycles require generic components like battery, motor which have many substitutable suppliers globally.
Threat of new substitutes: Low threat from new substitutes as electric bicycles have features like eco-friendly transportation, fitness and recreational activities complementing other modes of commute.
Competitive rivalry: High competitive rivalry among established electric bicycles brands to gain market share through new product innovations, expansion into newer geographies/segments and competitive pricing.
In terms of value, Europe accounted for largest share in the electric bicycles market in 2023. High adoption of electric bicycles for daily commute and recreational rides along with supportive government policies for eco-friendly mobility have positioned Europe as major market.
Asia Pacific region is expected to witness fastest growth in electric bicycles market during forecast period. Rising incomes, growing health awareness, environmental concerns and massive infrastructure investment in bicycle lanes in major countries like China, India are factors accelerating electric bicycles demand in Asia Pacific.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
