How are Government Initiatives Driving E-Bike Market?

E-Bike Market
E-Bike Market

E-Bike Market Overview

The global e-bike market is predicted to generate a revenue of $25.9 billion by 2025, increasing from $14.4 billion in 2019, and predicted to progress at a 10.3% CAGR during the forecast period (2020–2025). The market is registering growth due to the rising urban road congestion, surging concerns regarding the environment. Rising health concerns, and increasing government subsidies and financial incentives. When ownership type is taken into consideration, the market is divided into shared and personal.

Between these two, the personal division led the market in the past, holding more than 95.0% volume share in 2019. This is primarily because, e-bikes have only been introduced in the shared mobility domain by a few vendors. However, a large number of people have been buying these vehicles for private usage since various years. The shared division is projected to register the faster growth during the forecast period in the e-bike market.

E-Bike Market Size

On the basis of battery, the market is bifurcated into lead acid and lithium-ion (Li-ion), between which, the Li-ion category is predicted to progress at the fastest pace, both in terms of value and volume, during the forecast period. The higher energy density and lightweight nature of these batteries provide the use more range per charge, as compared to lead acid batteries. The lead acid category accounted for the major share of the market in the past, owing to their lower prices.

The Asia-Pacific region has been dominating the e-bike market in the past, in terms of volume. Commuting through bike has been a common means of transportation in a number of countries in the region, such as India, Japan, and China. The increasing sales of low-speed electric two-wheelers in China is further expected to drive the regional market during the forecast period. North America is expected to demonstrate the highest value CAGR during the forecast period. As bikes are being used for recreational purposes in the region.

E-Bike Market Share

The provision of financial incentives and subsidies by governments is a major driving factor of the e-bike market. In various countries, governments are offering subsidies in the form of reduction in prices of discounts on purchase of e-bikes, which is further encouraging people to opt for these vehicles. For example, in 2018, the Swedish government offered a subsidy of 25% per electric bike to all people for up to coming three years. Such initiatives are projected to drive the market in the coming years.

E-Bike Market Trends

A key trend being witnessed in the e-bike market is the growing integration of smartphones in these vehicles. Smartphones can allow rear view and further provides real-time information regarding bike battery status, speed, and navigation. Apart from this, the anticipated integration of e-bikes in shared mobility services is also projected to open up opportunities for the players in the domain. Governments of several countries are introducing targets for integrating low-speed electric two-wheelers in shared mobility services.

Hence, the market is predicted to register growth due to various government initiatives and integration of smartphones in e-bikes.

This study covers

  • Major factors driving the market and their impact during the short, medium, and long terms
  • Market restraints and their impact during the short, medium, and long terms
  • Recent trends and evolving opportunities for the market participants
  • Historical and the present size of the market segments and understand their comparative future potential
  • Potential of on-demand logistics services, so the market players make informed decisions on the sales of their offerings
  • Competitive scenario of various market segments across key countries in several regions for uncovering market opportunities for the stakeholders
  • Major players operating in the market and their service offerings