The e-bike market share is expected to increase by 15.81 million units from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 7.22%.

The e-bike market is categorized by Technavio as a part of the leisure products market. e-bike market research report provides valuable insights on the post-pandemic impact on the market, which will help companies evaluate their business approaches.

What will the E-bike Market Size be During the Forecast Period?

E-bike Market: Key Drivers

The decrease in the cost of Li-ion batteries is driving the e-bike market.  The increase in the usage of EVs in the global automotive sector has provided Li-ion battery manufacturers with economies of scale, decreasing the cost of Li-ion batteries and making them viable for use in e-bikes. As a result, the adoption of Li-ion batteries has increased in e-bikes, particularly by bike-sharing firms. For instance, Yulu Bikes Pvt. Ltd. (Yulu Bikes), an Indian bike-sharing firm, employs domestically manufactured Li-ion batteries in its e-bikes.

Key E-bike Market Trend

The rising popularity of connected e-bikes is another factor supporting the global e-bike market growth in the forecast period. The introduction of ride-sharing, ride-hailing, and car rental services has aided in the adoption of connected automobiles. The worldwide popularity of e-bike-sharing services has resulted in the development of connected e-bikes. E-bike sharing firms and users can both track the real-time location of connected e-bikes. Connected e-bikes allow service providers to track the state of charge of batteries, allowing for more timely repair. Furthermore, connected e-bikes have the potential to improve and expand the e-bike-sharing business model, making it an important aspect of urban transportation. Furthermore, e-bikes have the potential to become an element of the seamless Mobility-as-a-Service (MaaS) with the incorporation of connection elements. A smartphone application can monitor, book, and pay for a bike once it is connected to a service network. Seamless connectivity with public transportation systems will also enable connected e-bikes to become a last-mile connectivity solution. During the forecast period, the popularity of connected e-bikes is likely to propel the global e-bike market.

Key E-bike Market Challenge

Product recalls due to possible failures will be a major challenge for the global e-bike market during the forecast period. Vehicle recalls can be caused by product flaws or the probable breakdown of systems. Formerly, producers were responsible for the whole expense of product recalls. However, as vendor relationships and partnerships with suppliers have improved along the value chain, suppliers and manufacturers have been urged to share the cost of product recalls. Vehicle manufacturers, tier-1 suppliers, and other stakeholders in the value chain have benefited from cost-sharing. It does, however, have a negative influence on their profit margins. As a result, product recalls are a challenge for all stakeholders involved. For instance, in December 2019, Trek Bicycle Corp., which is the parent company of Electra Bicycle Co., recalled 2,840 e-bikes after receiving two reports of the use of wrong bolts to secure the front fender to the fork crown. Similarly, in July 2019, Faraday Bicycles Inc. recalled about 4,450 e-bikes, owing to the possible failure of seat posts. Such recalls incur additional expenses for the manufacturers of e-bikes, which is a challenge for the growth of the global e-bike market during the forecast period.

European E-Bike Market Forecasted to Triple Within Next 5 Years

If buying an e-bike, one in four Europeans would choose a city e-bike. That is one of the conclusions noted in Shimano’s third version of its large consumer survey. The study looked at the place e-bikes have in our societies and how Covid-19 and the events of 2020/2021 have influenced consumer interest in purchasing or using e-bikes.

That demand for e-bikes continues to rise rapidly is underlined by sales in Europe’s biggest markets. In Germany it grew by 37 percent in the first half of 2019 to 920,000 electric bikes; almost the same number of the 2018 sales total. In the Netherlands, turnover-wise sales upped close to 36 percent during the first eight months of this year.

Why buy an e-bike?

The study reveals some interesting details on the motivation of Europeans to buy an e-bike. In Norway, Sweden, Denmark, Italy, Switzerland and Spain the main reason is to avoid the use of public transport as people are still afraid to catch Covid-19 there. Replacement or at least an alternative to using a motor vehicle is given as the main reason in the UK, Austria and Germany. For people in the Netherlands and Poland, daily exercise is the main explanation while only in France, the carbon footprint reduction is the reason to buy an e-bike.

The price of gas is also a pretty good reason, right?

How Much Does an Electric Bicycle Cost?

Electric bicycles are more accessible in China because they are equipped with lead-acid batteries, which are cheaper than other types, bringing the final price of the e-bike down.

By using lead-acid batteries, an electric bicycle costs $167 in China on average. In comparison, e-bikes cost on average $815 in North America, and those in Western Europe cost an average of $1,546, according to Pike Research.

Vendor Insights – dominant vendors in the e-bike market: