The worldwide electric bikes/e-bikes market is estimated to grow at a CAGR of 7.1% from 2018 to 2026. Electric bike also known as a powerbike or an E-bike, which makes use of an integrated electrical motor and rechargeable batteries for forward propulsion. Large variety of e-bikes is available in the market in different design and performance.
The global e-bikes market is driven by many significant parameters such as consumer awareness concerning less air & sound pollution. Some other favorable factors include increasing government incentives on its purchases, alternative to fuel-operative vehicles with the increasing fuel prices, and technological developments in the designing of electric vehicles. Rising purchasing power of customers in tandem with the increase in disposable income and more knowledge towards health consciousness have spurred the demand of e-bikes. The number of consumers contributing towards fuel efficiency is also increasing steadily in several parts of the world where they use eco-friendly alternatives such as electric bikes for transportation.
Many tax credits concerning the purchase of e-bikes have been initiated and implemented by different governments across the world. Agencies such as Office of Energy Efficiency & Renewable Energy have introduced incentives and clean city programs in this aspect. Increasing consumer knowledge coupled with more initiatives taken by the governments towards a sustainable environment are primarily contributing towards the increased sales of e-bikes. Technological advancement in the field is another crucial factor for the growth of this industry. Extensive research & development activities to improvise the products as per the consumer demand and growing modernization is an important consideration by the market players in this field. Some of the improvisations that have lately been worked upon by the companies include making use of alternative raw materials and reduction of the overall product weight.
However, the industry is also subjected to some restraints such as high product price. E-bikes are highly priced and are not affordable by consumer of every class/type, especially in the countries with lower economic growth. Moreover, the maintenance of the electric bikes is costly and requires frequent charging and replacement of batteries.
The global electric bike market is segmented on the basis of product, battery, motor type and regions. Speed Pedelec is anticipated to be the fastest growing product segment over the forecast period. The main reason behind this is the rise in consumer awareness towards health and environment as it results in lesser noise & air pollution and lowers the risk of obesity and metabolic syndromes.
The battery segment of the e-bikes includes rack mount and down tube battery which are used depending upon the mounting locations and the design of the bike. Motor segment of the e-bike includes hub motor and mid drive which are used in the bike as per their functions fastness, durability, and torque requirements.
Asia Pacific is expected to be the major and the fastest growing regional market for the e-bikes. India and China are the major contributors towards the growth of this regional market. This is on account of their large population, increasing consumer purchasing power for the modernized products, and stronger government incentives.
North America and Europe are also the significant regional markets for electric bikes. Different types of e-bikes are used in different countries of these regions depending upon the motor powered speed in the areas. In America, the combination of two product types such as speed pedelec with a throttle element is also preferred product by the consumers.
The global electric bike market is moderately competitive and consolidated on account of presence of some large-scale market players. Some of the major industry players for e-bike market include Accell Group N.V., Robert Bosch GmbH, Derby Cycle Holding GmbH, Giant Manufacturing Company Ltd., and Panasonic Corp.
Electric bike manufacturers have extensively focused on the design and performance of the bikes, which remains a competitive factor for different companies in the industry. Some other notable market players include Mahindra & Mahindra Limited, Bionx International Corporation, Jiangsu Xinri E-Vehicle Co. Ltd., and Prodeco Technologies LLC.