Electric Bicycles Market Size Worth $50 billion by 2030: IndustryARC

The Global Electric Bicycle Market size is predicted to reach $50 billion by 2030, growing at a CAGR of 8% during the forecast period 2024 – 2030 according to the latest market research report published by IndustryARC. The rise of fuel prices along with government attention and incentives to Electric Bicycles are fueling the growth of the Electric Bicycles Market during the forecast period, finds IndustryARC in its recent report, titled “Electric Bicycle Market Size, Share & Trends Analysis Report – By Class (Class 1, Class 2, Class 3), By Propulsion System (Pedal Assist, Throttle), By Battery Types (Lead Acid Batteries, Lithium-Ion (Li-ion) Batteries, Lithium Polymer Batteries (LiPo)), By Motor Type (Hub Drive, Mid Drive), By Price Range (Budget Range ($500 - $1000), Mid-Range ($1000 - $3000), High-End (More than $3000)), By Application (Mountain Trekking, Urban Riding, Light Cargo Hauling, Others), By Power (Less than 250W, 250W – 450W, 450W – 650W, More than 650W), By Torque (Less than 40Nm, 40Nm – 60Nm, 60Nm – 85Nm, More than 85Nm), By Distribution Channel (Direct, Indirect), By Geography – Global Opportunity Analysis & Industry Forecast, 2024 – 2030”

The Asia Pacific has taken the lead globally in the e-bike industry, propelled by significant growth in both production and demand within the region. Around 81% of the market revenue is centered here. In fact, China alone is responsible for more than 60% of the world's electric bicycle production. The dominance of the market in this region can be attributed to several factors. These include the presence of extensive bicycle infrastructure in developed and developing countries like China, India, and Japan, high levels of vehicular and public transit congestion, and the growing stringency of emission regulations for traditional vehicles.

The pedal assist category dominated the market in 2023, boasting superior battery longevity, reduced maintenance requirements, and the flexibility for users to select from three to five pedal assist modes, depending on the model. Meanwhile, the throttle segment is poised to experience a higher CAGR in the forecast period 2024 - 2030. This surge is fueled by factors like reduced pedaling exertion, particularly evident when accelerating uphill or cruising. Moreover, the increasing popularity of mountain off-road biking will further fuel the expansion of throttle propulsion systems.

E-bicycles are less expensive when compared to motorcycles and cars, do not require a license, and can be used on existing bicycling infrastructure. Rapid urbanization and less preference of consumers to use cars, owing to increased traffic congestion are anticipated to offer lucrative opportunities for the market expansion. Across developed regions such as North America and Europe, where bicycles have dedicated lanes in cities and suburbs, several drug stores and other emergency-related services are employing e-bikes on these lanes to deliver essential services and items over short distances. For instance, in 2021, the city's plan, Le Plan vélo de Paris (2021-2026), announced the construction of 180 kilometers of new permanent bike lanes. The plan also includes adding 130,000 new bicycle parking spots.

The surge in fuel costs over the last ten years has spurred an increase in the use of bicycles for daily commuting. This rise in fuel prices can be attributed to the escalating costs of crude oil, largely influenced by the Organization of the Petroleum Exporting Countries (OPEC). For instance, in 2023, a combination of heightened vehicle demand and supply shortages pushed average crude oil prices to $82.49 per barrel. Furthermore, projections suggest that prices will continue to climb due to limited crude oil reserves in the foreseeable future.

Electric bicycle adoption remains limited on the grand scale due to high purchase costs. In the US, average cost of standard bicycle was $308 in 2022. In comparison, average price of an electric bicycle ranges from $1700 to $2618. Class 1 and Class 2 Electric Bicycles can be ridden in bike paths and bike lanes, same as traditional bicycles. However, one cannot be sure about where they need to ride when using Class 3 Electric Bicycle. There are regulations that differ country to country, state to state.

There are intelligent electric bikes that are capable of transmitting crucial usage and status data. Interconnected bikes can also receive commands and exchange information. Integrated e-bike systems facilitate data gathering and analysis. Currently, businesses are actively pursuing comprehensive solutions. Consequently, the e-bike trend is poised to drive market growth in the foreseeable future.

• With the COVID-19 pandemic leading to a decline in public transit, such as a 90% drop in subway ridership in New York City in 2020, a wave of electric mobility initiatives emerged. Electric bikes saw a remarkable surge in adoption, even displacing traditional non-motorized bikes in several areas. The e-bike industry responded favorably amidst the challenges posed by the pandemic.

• In March 2023, the U.K. transport department announced a $2 billion plan to boost cycling and walking during and after the lockdown. The country’s government announced $200 million for new active travel schemes across England, including $35 million for the National Cycle Network and $8 million for the new e-cycle program.

• Ukraine is a major exporter of raw materials and components used in various industries, including electronics and manufacturing. Disruptions to the supply chain originating from Ukraine has led to delays or shortages in the production of electric bicycles and their components.

The key companies profiled in the Electric Bicycle Market Report are listed below:

Bicycle Components Market: The Bicycle Components Market size is projected to grow at a CAGR of 6.1% from 2024 to 2030. The global demand for bicycle components is directly correlated with the rapid industrialization and introduction of new, extremely light but very strong materials. Increasing usage of bicycle as part of fitness activities and fun is boosting the demand for bicycles, which in turn increases the demand for bicycle components.

Electric Vehicle Market: The Electric Vehicle Market size is projected to grow at a CAGR of 27.19% from 2024 to 2030. Initiatives by the government to promote electric vehicles and increase in demand for fuel-efficient and low emission vehicles is significantly boosting the electric vehicle market. 

Electric Vehicle Charging Services Market: The Electric Vehicle Charging Services Market size is projected to grow at a CAGR of 5.36% from 2024 to 2030. The rising demand for electric vehicles is significantly boosting the demand for EV charging services.

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