Electric Bike Industry

The electric bicycle industry experienced a downturn between 2022 and 2023 due to economic uncertainties and excess inventory. Challenges such as supply chain delays, inflationary pressures, and market saturation—particularly in Europe and North America—created short-term instability. Elevated manufacturing costs and weakened consumer purchasing power also contributed to the decline. Seasonal fluctuations further influenced sales.

However, from 2024 onward, a recovery is expected as governments invest heavily in cycling infrastructure, including dedicated bicycle lanes and high-speed cycling corridors. Leading manufacturers such as Accell Group, Pon.Bike, Merida, Giant Manufacturing, and Yamaha Motor Corporation continue advancing lithium-ion battery and hub motor technologies to boost performance and riding efficiency. Europe's s-pedelec market, which dipped in 2023, is projected to regain momentum in 2024 as infrastructure expansions and policy support stimulate adoption.

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Motor Controllers: Fastest-Growing Component Segment

Motor controllers are projected to be the fastest-expanding component segment in the e-bike industry. As global e-bike production scales up, the need for advanced controllers grows simultaneously. Modern controllers integrate torque and speed sensors, enabling smoother, more intuitive pedal-assist support that aligns seamlessly with rider effort. Emerging features such as regenerative braking, enhanced power optimization, and smartphone integration require highly sophisticated controller systems. Key suppliers are innovating aggressively to meet this demand. For example, eBike Labs introduced eBikeOS, an AI-powered controller software platform for urban e-bikes. The system combines core hardware/software management with modular applications that evolve through continuous data analytics, allowing manufacturers to customize performance and functionality.

Class III: Fastest-Growing E-Bike Class

Class III e-bikes—also known as s-pedelecs—are expected to be the fastest-growing category. Unlike Class I and Class II bikes, which typically support speeds of 20–25 mph (32–40 km/h), Class III models offer pedal-assist up to 28 mph (45 km/h). Their higher speed makes them particularly attractive for long-distance commuting and travel in mixed-traffic environments.

Regulations for Class III e-bikes vary across markets. In the United States, they are defined as pedal-assist only, without throttle support, capped at 28 mph. These rules are generally less stringent than those governing mopeds or motorcycles, making Class III e-bikes appealing to users seeking performance without complex licensing requirements.Europe is expected to be the largest Class III electric bike industry in 2024 (value terms), benefiting from more detailed regulatory classifications that align well with higher-powered e-bike categories. Notably, Switzerland is projected to hold 18.1% market share for Class III e-bikes in 2024.

Hub Motor Segment Overview

Many manufacturers remain focused on developing durable, high-performance hub motors known for their simplicity and minimal maintenance needs. Hub-driven e-bikes deliver steady power output—especially effective on urban terrain—and operate more quietly than mid-drive systems.

For example, Bafang Electric (Suzhou) Co., Ltd. introduced the HR-Series, offering up to 45Nm torque at 250W, providing strong performance during long rides with excellent battery efficiency. Although many OEMs are shifting toward mid-drive motors due to benefits like lighter weight and improved integration, hub motors continue to be favored for their reliability, affordability, and reduced upkeep costs.

Asia-Pacific: Largest Regional Electric Bike Industry

The Asia-Pacific region remains the world’s largest industry, led by China, Japan, South Korea, Taiwan, India, and Australia. Despite recent slowing, China still accounted for 62.3% of global e-bike sales in 2023, driven by wide adoption and strong export capabilities.

Japan maintains strong momentum with government-backed initiatives promoting sustainable mobility and s-pedelec adoption. Demand for city and urban e-bikes is accelerating due to rising traffic congestion and increasing health consciousness, while trekking and mountain e-bikes are gaining popularity for recreational and fitness-related use.

Technological advancements—especially in hub motor efficiency and lithium-ion battery design—are significantly shaping product evolution. Strict regulations across China, Japan, South Korea, and Taiwan restrict e-bikes to Class I specifications, ensuring controlled speed and enhanced safety.

Asia-Pacific also remains the largest exporter of e-bikes globally, with China and Taiwan as dominant manufacturing hubs for brands such as Giant and Yadea.

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Major Players

Prominent companies operating in the global electric bike industry include:

Accell Group NV (Netherlands), Giant Manufacturing Co., Ltd. (Taiwan), Yadea Group Holdings Ltd. (China), Yamaha Motor Company (Japan), Pedego (US).

Related Reports

E-bike Market by Class (Class I, II, III), Battery (Li-ion, Li-ion Polymer, Lead Acid), Motor (Mid, Hub), Mode (Throttle, Pedal Assist), Usage (Mountain/Trekking, City/Urban, Cargo), Speed, Battery Capacity, Component, and Region - Global Forecast to 2032