E-Bikes Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

E-Bikes Market Trends & Growth Drivers

Increasing Integration of Smartphones into Electric Bikes Is a Key Trend

• The electric bike industry is witnessing a shift toward the integration of smartphones with electric bikes. Component and technology developers are constantly focusing on developing gadgets and technology for providing innovative solutions to e-bike riders.
• When integrated with an electric bike, the smartphone can provide real-time information related to speed, battery status, rear view, navigation, and others to the riders.
• For instance, Robert Bosch GmbH has developed COBI.Bike solution for smartphone integration along with a smartphone application for electric bike riders. This has a smartphone charging function and can be attached to the handle to make it an on-board computer.
• Riders are increasingly using these solutions for connecting their smartphones with their electric bikes, which is observed as a major trend in the electric bikes market.

Government Subsidies and Financial Incentives Is a Key Driver

• Subsidy and tax rebate plans by governments across various countries given to customers for buying electric bikes are giving a boost to the growth of the market.
• Subsidy in the form of discounts or reductions in the price of electric bicycles are encouraging people in various countries to purchase electric bikes.
• For instance, the Indian government is granting a subsidy of up to 25% per electric bike to all citizens for up to the next three years. With this subsidy, the sale of electric bikes is skyrocketing.
• Hence, the growing government support in the form of monetary incentives and subsidies to consumers is the major growth driver in the market.

Standardization and Regulatory Landscape Is a Key Challenge

• The e-bikes market is facing product standardization and varying regulatory landscapes introduced by governments and local authorities to electric bike manufacturers and riders in many countries.
• For instance, Australia, the U.S., the U.K., China, Brazil, and several other countries have introduced mandatory requirements that manufacturers and users are strictly required to follow.
• In the U.S., many states, such as Arizona, California, and Oklahoma, have classified electric bikes as class 1, class 2, and class3, and all of them are subjected to different product specifications and riding criteria, such as age, gear, speed, and licensing requirements.
• Furthermore, in Brazil, an electric bike cannot have motor power over 350 W and speed over 25 kmph.
• Moreover, in Australia, bike manufacturers are required to produce and sell pedal-assist electric bikes enabled with a speed of up to 25 kmph.
• All these types of regulations are currently restraining the high use of electric bikes.

E-Bikes Market Analysis

Ownership Insights

• Based on ownership type, the personal category dominates the industry, with an estimated share of 70% in 2024. This is majorly due to the rising usage of owned electric bikes by individuals in transportation and sports activities worldwide.
• Moreover, major markets for electric bikes, such as China, Japan, the Netherlands, and Germany, have a high preference for using personal electric bikes for commuting.
• Additionally, a smaller fleet size of electric bikes in the bike-sharing sector leads to a higher share of electric bikes in the personal category.

Ownership types covered in the report include:

• Shared (Faster-Growing Category)
• Personal (Larger Category)

Propulsion Type Insights

• The pedal-assisted category holds the larger market share. The motor of such e-bikes helps riders complement the energy output of the pedal, to increase the speed.
• Additionally, these bikes are widely used on hills, inclines, and rough terrain, for a smoother ride and lesser stress on the joints, as the motor increases the power output.
• These variants can also have a longer battery life, as people have the option of pedaling them like regular cycles and only using the motor when necessary.
• For instance, the Meraki S7, launched by Ninety-One Cycles in February 2022, offers five pedal-assist modes.
• Whereas, the throttle-assisted category is expected to grow at a higher CAGR of 10.7% in the forecast period. The surge is primarily ascribed to an increase in the use of throttle-assisted e-bikes because they eliminate the need for manual pedaling, by sending power from the motor directly to the wheels.
• There are different types of throttle-assisted bikes, such as twist throttle, thumb throttle, and push-button throttle.

The following propulsion types are included in the report:

• Pedal-Assisted (Larger Category)
• Throttle-Assisted (Faster-Growing Category)

Battery Insights

• The lithium-ion battery category is set to grow at a CAGR of 10.9% in the forecast period. This can be due to these batteries’ fast charging, safety, high output, long life, and nearly 55% lower weight than other batteries, which helps reduce the vehicle weight.
• In addition, as per the Global Change Data Lab article, since 1991, lithium-ion battery prices have fallen by 97%, reducing by an average of 19% every time their capacity has doubled.
• However, the usage of SLA batteries is projected to decline over the next few years because they take more than 9 hours to charge, whereas lithium-ion batteries take nearly 3 hours.
• Moreover, the lead–acid battery is overweight and discharges rapidly, which will also impact the development of the market for such batteries. For instance, China is the world's largest lead–acid battery producer, and hence, market players might be strongly affected there.

Battery types covered in the report are:

• Lithium-Ion Battery (Largest and Fastest-Growing Category)
• Lead-Acid Battery
• Others

Power Insights

• The less than or equal to 250 W category dominates the market. This is because e-bikes with a power output in this range are widely used in cities, along with on rough areas, such as hills and steps, for fitness purposes.
• Some of the OEMs that offer ≤250W motors for e-bikes are Bosch, Brose, and Shimano.

It is further classified as:

• Less than or equal to 250 W (Larger Category)
• Above 250 W (Faster-Growing Category)

North America Is the Fastest-Growing Market

• The North American market is expected to grow at a CAGR of 16.5% over the forecast period. The growth can be ascribed to the rising preference for these two-wheelers for short-distance traveling and off-road activities, such as mountain biking.
• In addition, the California Air Resources Board launched an incentive program in 2023, under which qualifying applicants will get a coupon of $750−$1,250 for a standard e-bike and up to $1,500 for a cargo or adaptive model. People whose earnings are under 225% FPL or who live in underprivileged communities are eligible for extra incentives.
• In the U.S., the electric bikes industry is gaining momentum in many states, as users are adopting electric bikes not only for recreational or health purposes but also for commuting from one place to another.
• Electric bikes are now classified as class 1, 2, and 3 systems; nearly all states have their laws for bikes. However, governments in a few states allow the local authorities to set up their regulations regarding the operation of electric bikes in both personal and shared categories.
• On the other hand, APAC is the largest regional market for e-bikes globally. In the region, bike commuting has long been present as primary transportation in China, Japan, India, and several Southeast countries.
• The electrification in China and Japan has led to the total number of electric bikes reaching 150 million in the region and this number is expected to rise in the near future.
• The pedal-assist electric bikes are the dominating category in the region as many countries limit electric bikes in terms of speed and power.

Further, regions and countries analyzed for this report include:

• North America (Fastest-Growing Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Largest Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Sweden (Fastest-Growing Country Market)
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market Nature – Fragmented

The global electric bikes market is highly fragmented in nature. Based on country, China dominated the industry globally. The key manufacturers, such as AIMA Technology Group Co. Ltd., Yadea Group Holdings Ltd., Jiangsu Xinri E-Vehicles Co. Ltd., Dongguan Tailing Electric Vehicles Co. Ltd., and Zhejiang Luyuan Electric Vehicles Co. Ltd., possess a significant share in terms of unit sales in the market. Moreover, major companies are focusing on geographical expansion to increase their reach.

E-Bikes Market News

• In November 2023, Yadea Technology Group Co. Ltd. and the Madrid Food Bank Foundation announced their collaboration to encourage the new logistics of proximity and urgent distribution of waste food and the prevention of food waste and loss in Spain.
• In October 2022, Yadea Technology Group Co. Ltd. exhibited its latest models at EICMA 2022 in Italy.
• In March 2023, Audi expanded its range of e-mobility products with the launch of the limited-run Audi electric mountain bike powered by Fantic.
• In September 2022, Trek Bicycle Corporation launched an E-Bike Version of the Popular Marlin MTB.