Ebike Market

[420 Pages Report] The global ebike market size was valued at USD 48.7 billion in 2024 and is expected to reach USD 71.5 billion by 2030, at a CAGR of 6.6%, during the forecast period 2024-2030. The worldwide demand for e-bikes is growing rapidly as customers see them as an eco-friendly solution for commutes, with rising fuel prices supporting this inclination. Government bodies in various cities worldwide have undertaken initiatives to build bicycle highway lanes for e-bikes.

European e-bike sales declined in 2023 due to wars, inflations, overstocks of e-bike components, and a global economic slowdown. Furthermore, due to wars, European consumers do not want to spend more money buying e-bikes. According to data from the European Cycling Industry Federation (ECF), European e-bike sales declined by 15.3% in 2023. This is a significant drop from the 11.2% growth the market saw in 2022. In 2024, the ebike market saw a decline of 3.1% and is expected to increase from 2025 due to the growing popularity of e-bikes for commuting and leisure; governments worldwide are investing in infrastructure and incentives to promote e-bike use.

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Market Dynamics

DRIVER: Rising demand for micro-mobility services.

The rising demand for micro-mobility as a service (MaaS) significantly boosts the eBike market in several ways. MaaS platforms offer a convenient and accessible way to try eBikes without the commitment of buying one. This can lead to increased interest and potential future purchases by riders who enjoy the experience. MaaS companies often invest heavily in marketing and promotion, raising public awareness of eBikes and their potential as a transportation option. This benefits the entire eBike market, not just the rental companies. Micro-mobility service companies like Lime, Bird, and Dott offer eBikes alongside scooters as part of their rental fleets. This exposes a broader audience to eBikes, especially in urban areas, and allows them to experience the benefits firsthand. In January 2024, Tier Mobility (Germany), Europe’s leading provider of micro-mobility, partnered with the Netherlands’ primary rail operator, Nederlandse Spoorwegen (NS), to promote sustainable mobility. This integration represents a significant advancement in the realm of MaaS within the Netherlands.

The rise of micromobility services acts as a springboard for the ebike market by increasing awareness, providing trial experiences, and catering to different transportation needs. Countries like the US, China, Taiwan, The Netherlands, Germany, India, the UK, France, Paris, etc., are seeing extreme demand for micromobility services, contributing to the ebike market growth.

RESTRAINT: Varied government regulations and need for proper infrastructure in emerging economies.

Government laws and terminologies are diverse regarding eBikes. Some countries have national regulations, but states and provinces decide the authority and legal road use regulations. Therefore, any change/update in the regulation of eBikes impacts the market demand. For example, China, which is one of the largest eBike markets in the world, announced a regulation on eBikes, wherein bicycles are classified as eBikes only if they can pedal assist, have a maximum speed of up to 25 km/h, and have a motor power of up to 400W. Any eBike exceeding 25 km/h is considered a moped.

Similarly, Class-II and Class-III e-bikes face restrictions in some European and Asia Oceania regions due to their high speeds and use of throttles, which can lead to traffic issues. India is an exception, as it permits Class-II bikes. Most European countries, excluding Italy and the UK, have banned Class-II e-bikes by European Union regulations. Class-III e-bikes are not widely available in Europe. In the United States, California does not allow Class 3 e-bikes with throttles, and Colorado and Washington restrict e-bikes with motors exceeding 750 watts.

One of the other restraining factors for the growth of the eBike market is the need for proper infrastructure, such as bike paths and bike lanes, in emerging economies of Asia, Oceania, and North America, such as India and Mexico. Some cities in North America are making efforts to overcome these restraints. Austin (US) has finished constructing 115 miles of new bike lanes, Pittsburgh (US) has completed an additional 50 miles of network miles, Providence (US) has developed 43 miles of fresh bikeways, and Denver (US) has built 100 miles of new bikeways Therefore, the regulations and lack of infrastructure restrain the growth of e-bikes, especially in the emerging markets of North America and Asia Oceanic.

OPPORTUNITY: The trend toward connected e-bikes

Connected eBikes are intelligent and omniscient bikes capable of communicating critical data on their condition and use. In some cases, connected bikes can also receive information and commands remotely. Connected eBike systems allow both data gathering and data mining. Bosch’s SmartphoneHub can connect eBikes to a smartphone and support eBike riders before and after their journey. The Lock premium function offered by Bosch transforms the Kiox-connected onboard computer into the key to greater security. This feature provides more security when eBiking and makes the pedelec less attractive to thieves. Intelligent onboard computers — such as the Nyon from Bosch — determine the pedaling force and frequency during the journey and use this information to calculate the cyclist’s performance and energy consumption.

Urban Arrow (The Netherlands) partnered with Comodule (Estonia). It launched a cargo bike equipped with Comodule's connectivity solution, offering advanced security features like location tracking, a digital lock, and activated movement alerts. Riders can conveniently access these features through the Urban Arrow app, ensuring constant connectivity with their bike. Alongside the security functions, the app provides essential information such as the bike's battery status, range, and ride data.

Furthermore, companies like Specialized Bicycle Components Inc. and Shimano Inc. are developing connected solutions such as mission control features and e-tube ride functionalities, expanding the technological capabilities available to e-bike users. With urbanization, digitalization, and sustainability driving global trends, the demand for connected e-bikes is expected to rise significantly. This trend aligns with projections indicating that 70% of the world's population will reside in cities by 2050, increasing traffic congestion. Consequently, the ebike market will grow during this forecasted period.

CHALLENGE: High price of Ebikes

The price of traditional bicycles, on average, is nearly USD 400, whereas eBikes are expensive. Their price ranges between USD 1,500 and USD 1,700 and can go up to USD 5,000, with some premium models almost double that. The price of an eBike varies across regions. For example, Europe and North America are technologically advanced, resulting in the high cost of eBikes. In the Asia Oceania region, the market for eBikes is price-sensitive, which can be a potential challenge for buyers.

Earlier, lead-acid-equipped eBikes were prevalent in China. Their price ranged between USD 400 and USD 500. However, according to the new regulations announced in China in 2019, all eBikes must be equipped with lithium-ion batteries, thereby increasing the price of eBikes to USD 700-800. Therefore, with increased prices, consumers would prefer electric two-wheelers or scooters, which fall under the same price range. This might result in a decline in eBike sales. According to a survey by Shimano, almost 40% of the respondents cited this issue. Therefore, manufacturers need to reduce the price of eBikes without declining the build quality and enhancing the performance. However, offering pricing incentives for purchasing eBikes may effectively promote eBikes and tackle the price challenges.

Ebike market Ecosystem

The analysis of the ebike ecosystem sheds light on various market participants, including raw material suppliers, component manufacturers, ebike producers, and end users. Two primary motordrive technologies dominate the bike industry. The first is the hub motor drive, which can be situated either in the front or rear of the bike and integrated into the wheel hub. The second technology is the mid-drive motor, which is incorporated into the bicycle's bottom bracket, offering superior balance to the rider due to its frame-specific design. Lithium-ion batteries are the predominant choice for e-bikes, offering widespread adoption. Lead acid batteries, once popular in Asia Oceania due to their affordability and accessibility, have been phased out over time.

Lithium-ion in the battery segment is forecasted to be the largest ebike market.

Ebikes equipped with lithium-ion batteries are projected to hold the largest market share, attributed to the numerous advantages these batteries offer, including superior lifecycle, high energy density, wide operating temperatures, and a higher power-to-weight ratio compared to other battery types. Lithium-ion batteries have become the preferred choice for electric bikes over lead-acid batteries due to their superior performance and long-term benefits. One of the critical advantages of lithium-ion batteries is their higher energy density, which allows them to store more energy in a smaller and lighter package compared to lead-acid batteries. This translates to more extended range and reduced overall vehicle weight, making lithium-ion batteries ideal for electric bikes. Another significant advantage of lithium-ion batteries is their longer lifespan. They can handle more charge cycles than lead-acid batteries, with lithium-ion batteries lasting 2000-5000 charge cycles, while lead-acid batteries have a shorter lifespan. Lithium-ion batteries require less frequent replacement, making them a more cost-effective option in the long run. Furthermore, the prices of lithium-ion batteries have witnessed a significant decline in recent years, plummeting by approximately 90%. Intensifying competition within the market has compelled manufacturers to slash costs to maintain competitiveness.

The high demand for lithium-ion batteries in the US and Europe can be attributed to several key factors. In the US, the government has been implementing various incentives and rebate programs to promote the adoption of electric vehicles (EVs) and reduce greenhouse gas emissions. For instance, in the year 2023, The Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act in the US proposes providing individual consumers with a refundable tax credit of 30% for purchasing an electric bicycle, with a maximum credit of $1,500 for new bicycles priced under $8,000.

As the Ebike industry continues to expand, the lithium-ion battery market is poised for growth, driven by the exploration of this innovative technology. The focus of manufacturers on crafting lightweight Ebikes has further fueled the widespread adoption of lithium-ion batteries. Major players providing lithium-ion batteries include Robert Bosch Gmbh (Germany), Bafang Electric (Suzhou) Co., Ltd. (China), Samsung SDI (Japan), and Panasonic Corporation (Japan).

Mid Motor is forecasted to be the fastest-growing ebike market in the motor segment.

The mid-drive motor is forecasted to be the fastest-growing segment in the bike market. Mid-drive motors are positioned near the pedals, where a traditional bike's crankset is. This placement allows them to engage the drivetrain directly, resulting in a more natural and responsive riding experience than hub motors on the wheels. Mid-drive motors can be more powerful than hub motors, offering excellent assistance when climbing hills or accelerating. Additionally, they deliver higher torque, which translates to better pulling power, which is especially beneficial for tackling challenging terrain or carrying heavy loads. Mid-drive motors suit various e-bikes, including mountain, commuter, and gravel. Mid motors manage batteries efficiently while consistently delivering power. North America and Europe shifted towards mid-motor motors compared to hub motors because mid-drive motors place the weight near the center of the bike, which can improve handling and balance compared to hub motors concentrated in the wheels. This is a significant advantage for performance-oriented riders and those tackling technical terrain, and these regions are facing high demand for mountain/trekking bikes. Europe has the largest market for mountain/trekking e-bikes, with a market share of 63% in value. Meanwhile, mountain/trekking e-bikes are North America's second fastest-growing e-bike type after cargo e-bikes.

Mid-drive motors are considered more efficient than the hub motors, providing more extended range per charge. According to industry experts, mid-drive motors showed higher efficiency, especially during pedal assist mode, while consuming less battery than the hub motor. Some of the major companies which provide mid-drive motors include Robert Bosch GmbH (Germany), Bafang Electric (Suzhou) Co., Ltd. (China), and Brose Fahrzeugteile SE & Co. KG (Germany).

North American ebike market by value is projected to grow during the forecast year 2024-2030

In North America, cargo ebikes are expected to grow at the highest CAGR due to the increased adoption of electric bikes for transporting goods from one place to another: traffic congestion and rising fuel prices in North American cities. Cargo e-bikes offer a faster and greener alternative to traditional delivery vans or trucks, especially for last-mile deliveries. Ebikes require minimal maintenance and have lower electricity costs compared to gas-powered vehicles. Some regions offer subsidies or tax breaks for businesses switching to e-bikes, further boosting their adoption. This is boosting up the demand for cargo e-bikes.

After the severity of economic uncertainties, the US and Canada witnessed a decline in e-bike sales by 10% and 6.8%, respectively, in 2023 compared to 2022.

The US was the largest market for e-bikes in 2023 in North America. After 2023, both the US and Canada are experiencing a rise in e-bike sales. Industry experts say the US market is rising due to the consumer shift towards eBike aftermarket kit. E-bikes offer a convenient and sustainable alternative to cars, appealing to environmentally conscious consumers. Micromobility as a Service is also rising in the US. Many micro-mobility service providers are establishing their market in North America, including Lime (California), Bird (Florida), and Lyft (New York).

Ebikes represent a sustainable mode of commuting that plays a vital role in preserving the environment. The urgent need to safeguard the ecosystem and minimize the emission of harmful substances into the atmosphere, thus reducing the carbon footprint, underscores the swift adoption of e-bikes in North America. Government participation in promoting sustainable Ebikes has further accelerated market demand for these vehicles across the region. In 2023, the federal government in Canada started offering a 15% tax credit for the purchase of eligible bikes, with a maximum credit of $1,000. Authorities in numerous cities globally have initiated efforts to construct dedicated bicycle lanes for e-bikes, with a strong focus on enhancing biking infrastructure. Major bike players include Trek Bicycle Corporation (US), Specialized Bicycle Components (California), and Pedego Electric Bikes (California).

>Class I eBikes are popular in North America due to their compliance with regulations and the increasing demand for sustainable transportation options. These eBikes are pedal-assist only, assisting while the rider pedals without a throttle. As more people seek eco-friendly modes of transportation, Class I eBikes offer a convenient and environmentally conscious way to commute, contributing to the decarbonization of transportation systems.

City/Urban e-bikes hold the largest market share in terms of value in the US and Canada, as American cities increasingly seek ways to reduce traffic congestion and pollution. High fuel costs and dense traffic conditions in urban areas have driven commuters to seek alternative modes of transportation, such as eBikes, which offer a cost-effective and efficient solution for navigating congested city streets.

Key Market Players

The key players in the Ebike market are Accell Group N.V. (Netherlands), Giant Manufacturing Co., Ltd. (Taiwan), Yadea Group Holdings., Ltd. (China), Yamaha Motor Company (Japan), and Pedego Electric Bikes (US). Major companies’ key strategies to maintain their position in the global ebike market are vital global networking, mergers and acquisitions, partnerships, and technological advancement.

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Recent Developments

• In April 2024, Pedego launched its Fat Tire Trike e-bike with three tires and a low-step frame design. It is equipped with PEDALSENSE, propulsion software that provides various riding options, such as throttle drive, torque assist, and cruise assist.
• In March 2024, Pedego launched its Pedego MOTO, which is equipped with both front and rear suspensions to provide comfort on rugged terrain. A 48V battery producing 750W powers it.
• In January 2024, AIMA Technology Group Co Ltd. and Bafang Electric (Suzhou) Co., Ltd formed a strategic partnership to create a specialized motor called Route 66 for Santa Monica.
• In November 2023, Accell Group NV and Refurb Battery will extend their partnership, building on the success of their pilot program to repurpose 5,000 discarded electric bike batteries. This initiative reduced over 100 tons of CO2 emissions.
• In October 2023, Rad Power Bikes partnered with Uber Eats to launch a pilot program in Miami, Florida, allowing Uber Eats delivery workers to deliver on e-bikes.
• In September 2023, Ride1Up, an American e-bike company, announced a partnership with Walmart to sell its e-bikes online and in select Walmart stores.
• In July 2023, Specialized, an American bicycle company, launched its new cargo bike, the Turbo Como Cargo. The Turbo Como Cargo is designed for businesses that want to make deliveries or transport goods more sustainably.
• In October 2022, Yadea Group launched the Y80 bike, which features a 350W engine delivering 100Nm torque and is powered by a 36V 10.5Ah large-capacity battery with a range of up to 80km.
• In April 2022, Pedego Electric Bikes opened a store in Orlando, Florida. The store serves the growing region's market with sales, rentals, and services.
• In January 2022, Yamaha introduced two new models of e-bikes for all-terrain mobility under the sports electric-assist bicycle product range.
• In September 2022, Pedego introduced the Pedego Avenue, a commuter e-bike designed to provide a comfortable riding experience, even on challenging hills. The Pedego Avenue features a balanced frame geometry and an integrated battery, which work together to give the rider a smooth and effortless ride.
• In January 2022, Giant unveiled the all-new Trance X E+, eMTB, equipped with features that make it suitable for paved roads to off-road trails. It has a powerful motor, lightweight frame, and smooth-riding tubeless tires, allowing riders to tackle a variety of terrains.

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