The growing electric-bike (e-bike) segment, becoming a smart choice for many looking for clean and energy-efficient vehicles for personal mobility, gains preference over conventional bikes and this phenomenon fuels the global valuation of the e-bike market to reach $ 95.50 billion by 2031, a recent report from Transparency Market Research, said.
The increasing number of convenience features in e-bike, especially electric assistance system's algorithms, and the development of dedicated cycling infrastructure in various countries are likely to spur sales in the electric bike market. Moreover, during the COVID-19 outbreaks in 2020, consumers keen on avoiding crowded marketplaces had shown an inclination toward e-bikes for micro-mobility.
The growing demand for e-bikes in advancing the eco-friendly personal micro-mobility will pave the way to more investments by automotive companies in the electric bike market, the market intelligence provider said.
Some of the key players in the e-bike market are AIMA Technology, Trek Bicycle, Panasonic, Mahindra & Mahindra, Hero Electric, Harley Davidson, Energica Motor Company, BYVIN, and BMW Group.
Policymakers in some regions have introduced subsidy schemes to promote the commercialisation of e-bikes over the past five years. The drive has stemmed from the focus of governments to make the transport system more sustainable, especially in urban areas.
According to Transparency Market Research, the sustained impetus of various governments in electrifying the transport system is a key driver for the demand for electric bikes. In the past few years, automotive players in the electric bike market have gained opportunities from the growing focus on e-bikes in promoting personal e-mobility. A key factor underpinning the trend is that e-bikes have demonstrated environmental benefits as low-maintenance light electric vehicles, both for personal transport and cargo movement. Furthermore, manufacturers of e-bikes are keenly geared toward making e-bikes economically sustainable by making them more affordable, thus expanding the avenue in the electric bike market.
Battery Technologies & Cost Reduction
In several countries, the implementation of emission regulations in the transport sector pertaining to conventional bikes and IC combustion engines has become more stringent than ever, given the sector's significant contribution to greenhouse gas (GHG) emissions.
Concurrently, industry players and governments are making concerted efforts in advancing the charging infrastructure to promote electric cycling. On the other side of the spectrum, many two-wheeler manufacturers are integrating advanced battery technologies to boost the market prospect of e-bikes.
In this regard, growing R&D on graphene lithium nanotechnology in e-bike batteries will stridently boost the popularity of e-bikes, notes the study on the global electric bike market. Furthermore, advancements in electric assistance systems will spur prospects of e-bikes in zero-emission mobility, thereby unlocking new revenue streams in the near future, the report said.
The increasing integration of e-bikes with advanced drivetrains, especially braking systems, is likely to improve the durability, safety, and convenience for consumers, thereby helping manufacturers meet next-gen automotive standards.
Market Drivers
Transparency Market Research said numerous countries strive to boost environmental and economic sustainability in urban transport and logistics. This presents a key groundwork for players in the electric bike market to expand their footprints. In addition, electric bikes have also been a promising mode of logistics for essential goods during natural hazards, as have been witnessed by government disaster relief agencies.
The increasing trend of sustainable tourism has brought e-mobility to the forefront. Particularly, in recent months, as economic activity started to gather pace after easing COVID-19 restrictions in various countries, the demand for low-carbon footprint and micro-mobility for covering essential short distances has risen. This has boosted the prospects of e-bikes. Several tourists exploring cities in developed nations have shown an inclination toward e-bikes. The expanding footprint of two-wheelers' sales in developing economies is also likely to generate substantial opportunities in the electric bike market.
Regional Growth Dynamics
North America and Europe electric bike markets have been replete with lucrative opportunities for automotive players.
The European electric bike market has been highly lucrative, fueled by substantial sales of e-bikes in Spain, France, and the Netherlands over the past ten years. Various e-mobility policies and targeted subsidy schemes of respective governments have propelled the growth avenues in Europe. As a result, the regional market held a major share globally in 2020 and is projected to retain its leading position during the forecast period, the market intelligence provider said.
Courtesy: Transparency Market Research. NB: Photo is representational; courtesy: Hero Electric.