GLOBAL E-BIKE MARKET
- E-bikes to rule the US Electric Vehicle market in next decade. In the last couple of years, e-bike sales have been growing steadily in the US, but they still represent a small part of the overall segment in the country.
- Taiwan has strengthened its market position as e-bike supplier for the European market. Looking at the EU import statistics, this country increased its market share from 46 % in 2019 to 51 % last year.
- The pandemic inevitably had an impact on e-bike and bicycle production in Cambodia in 2020. It has become one of the leading bicycles exporting countries. Last year, the total value of bicycles shipped to overseas market increased by 27% from 2019 to approximately $527 million (€ 439 million).
- At least 9% of the consumers in the Netherlands expect to buy an e-bike this year. This will result in a market volume of some 1.2 million e-bikes. That’s a major hike on top of the already successful market last year.
- European demand for Turkish e-bikes quadrupled in 2020. The export value of e-bikes manufactured in Turkey in 2020 reached €32.6 million compared to €7.5 million in 2019.
- Accell Group’s Turkish subsidiary, Accell Bisiklet, is producing a high percentage of these exported e-bikes. E-bikes now make up 42% of their total bicycle exports.
- In 2020, Indian bicycle industry hit a peak that it hadn’t reached in the past decade. the growth rate shot up to 15-20 per cent from the earlier 5-7 per cent a year.
- For example, in May, 4.5 lakh cycles were sold, which doubled to 8.5 lakh the next month. By September, monthly sales figures had reached 11.2 lakh cycles a month.
- E-bike racing is beginning to look more and more like the Next Big Thing in competitive cycling although, as of now, it is limited to mountain, cross-country bikes and enduro cycling. The first stage of the first-ever UCI E-Mountain Bike Cross Country World Cup was run near Monaco starting 2019. But, with the UCI patronage, this race looks to have a long and prosperous future. In addition, the Enduro World Series (also with the patronage of the UCI) has added e-bike racing to its annual events schedule.
- E-Bikes is outselling Standard Bikes in Netherlands. There are 22.5m bicycles in the country of 17m people, and the number keeps rising. However, there’s a bitter twist to it for the old-school cyclist. Standard push-bikes might soon be a rarity. E-bikes now officially outsell them, despite the spiralling prices.
- Out of €1.2bn spent on bicycles last year, €823m accounted for e-bikes. 409,400 electric units were sold in total. The Dutch prefer quality over the cheap stuff, which increased the average price for a sold bike by €200 to €1,207.
- Hero Cycles plans to capture 10% of global e-bicycle market. Hero Electric delivers 12 electric bikes to Pioneer Asia Group. The match producer will give these bikes to its employees to commute to work. Pioneer Asia Group employs more than 400 people, including the factory staff.
- The New York City Council recently approved several bills that will legalize the private use of electric scooters and bicycles in the city’s five boroughs, a change long-sought by food delivery workers and transportation advocates.
- The city will also create a shared electric scooter pilot program that will allow e-scooter companies to apply for permits to operate in the city, with the exception of Manhattan.
- eBikeGo to install 3000 IoT enabled smart charging stations across 5 cities. The company said these charging stations will be installed in New Delhi/NCR, Mumbai, Bangalore, Hyderabad and Chennai starting from 1st December 2020.
Mobility plays a vital role in the current society that we live in. With the growing concern for preserving and sustaining environment for future generations, the governments and international organizations worldwide are enacting stringent emission norms to reduce carbon emission levels.
E-bikes are increasingly considered an ideal transportation mode as cities emerge from the quarantine approaches in the US and Europe. In addition, owing to the government restrictions on public transport because of social-distancing guidelines, commuters are essentially adopting the bike as the mode of day-to-day transportation. As a result, the rising demand for e-bikes is proving to be an ideal solution to the challenge.
Electric bikes are a flexible, versatile, eco-friendly, and trendy mode of transport. Consumers look up to them as an ideal substitute for scooters, smart cars, and public transport. These bikes help tackle traffic congestion, owing to the smaller size of e-bikes, attain higher speed with lesser effort, and health benefits attained with peddling. These factors lead to rise in popularity of electric bikes across the globe.
Apart from the increasing consumer preference toward recreational and adventure activities, the adoption of e-bike applications in several sectors, like logistics and e-bike rental services, is expected to drive the market towards further growth.
GLOBAL E-BIKE MARKET DYNAMICS
Compared to conventional bicycles, currently, the overall demand for e-bicycles is evolving and is expected to become mainstream during the forecasted period.
The ability of e-bicycles to manage the overall speeds more adequately, provides the rider with a comfortable drive on overpasses, mountain areas, and tough roads, thus paving the way to the sales of the e-bicycle market.
With the gaining conscious for being fit and healthy, E-bikes provide a perfect alternative to gyms keeping in mind the current COVID-19 situation, they also provide a sense of recreational purpose.
Factors such as implementation of government regulations to encourage the use of electric bikes, consumer inclination toward use of e-bikes as an eco-friendly & efficient solution for commute, increase in fuel costs, and rise in interest in cycling as a fitness & recreational activity are expected to drive the market growth.
As Europe is now planning on making many roads automobile free, there will be a huge demand for E-bikes. In countries like Netherlands and France where bikes are used widely there will be additional demand for E-bikes and this being an Environmentally friendly option, carbon-neutral and sustainable way of commuting, E-bikes are going to see a huge demand in near future.
However, high cost of e-bikes and ban on use of e-bikes in major cities of China hinder the market growth. Furthermore, improvement in bicycling infrastructure & battery technology is expected to offer lucrative opportunities for the electric bike market growth.
E-BIKE MARKET TRENDS
The popularity of dockless bicycle-sharing systems has been rising lately. This system allows users to locate a bicycle nearby and unlock it electronically. Incepted originally in Europe, dockless bicycle-sharing systems are gaining popularity, particularly in Asian nations, including India and China. Furthermore, recent advances in mobile app development and global positioning system (GPS) have resulted in app-based dockless bicycle-sharing systems.
The growing adoption of such dockless bicycle-sharing systems is expected to fuel the demand for cycles significantly. Chinese bicycle-sharing companies are particularly investing and expanding their operations aggressively in European nations to capitalize on the market opportunities, which is expected to boost market growth further over the forecast period.
It’s not just commuters and tourists who see the benefits of battery-assisted pedalling. Electric cargo bikes offer a quieter and cleaner alternative to vans for making deliveries in urban areas. And as cities turn over more road space to bicycles, motorcyclists may be tempted to switch. Manufacturers like Triumph Motorcycles and Piaggio now offer e-bikes alongside their motorised two-wheelers.
However, just as the shift to battery powered cars opened the door for new players like Tesla, upstarts are staking their claim in the e-bike market. While most conventional bicycles are assembled using mass-produced parts, new manufacturers are building batteries into frames, while adding features such as electric alarms and smartphone controls.
In a sign of the industry’s potential, German industrial giant Robert Bosch earlier this year created a new standalone unit that makes batteries and other parts like anti-lock brakes for e-bikes.
COVID-19 IMPACT ON E-BIKE MARKET
The United Kingdom bike industry’s e-bike sales growth stalled in Q1 and during the country’s COVID-19 lockdown. The industry urged the government to provide financial incentives for e-bike purchases and create a public awareness campaign to encourage e-bike sales.
Renewed enthusiasm for two-wheeled transport has also turbocharged e-bikes. The battery-powered vehicles, which help riders puff up hills or into a strong wind, were already gaining ground, helped by lighter and longer-lasting batteries and better motors. More than 40% of the bicycles sold in bike-mad the Netherlands last year, for example, were electric. In Germany, a third of the 4.3 million new bicycles sold had a battery.
Covid-19 has provided a further spark. E-bikes appeal to commuters who are keen to avoid public transport, but don’t want to dress head-to-toe in Lycra and treat their journey to work like a stage of the Tour de France. Manufacturers have struggled to keep up with demand. VanMoof, a Dutch firm which makes futuristic e-bikes that sell for around 2,000 euros each, is planning to double its manufacturing capacity to 12,000 vehicles a month by the end of this summer.
Governments, spotting an opportunity to reduce carbon emissions, are helping too. Cities like London, New York and Berlin have hastily built new bike lanes, while several countries have offered fiscal sweeteners. Italy is reimbursing citizens for as much as 60% of the cost of a new bicycle, e-bike or e-scooter, up to 500 euros. Electric power also helps stimulate the use of shared-bike schemes, like those operated by Uber Technologies-owned Jump.
U.S. retailers, suppliers, and sales statistics have also indicated that demand for e-bikes has increased significantly due to COVID-19 lockdowns. It has proven to be very good for bike sales, especially for the sales of e-bikes. Customers in the US and Europe are turning to electric bicycles in a very big way and coronavirus is the primary driver of the boom.
With many people staying home and suddenly having more time on their hands and commuters avoiding public transport to follow social distancing recommendations, e-bike sales have never been higher than they are today.
For example, the Arizona-based online e-bike retailer Lectric e-Bikes reported a 140% increase in sales between March 15, when lockdowns began in many US states, and May. E-bikes are becoming a great option for customers in the new coronavirus-era way of living. The dramatic increase in sales shows that, nationally, people are looking to shift how they get around. It’s also a preferable option for those looking to socially isolate while getting fresh air outside.
US E-BIKE MARKET
By 2019, a large chunk of imports shifted away from very few companies who sold primarily through Amazon under various brands. Instead, a large portion of overall imports is now going to consumer-direct e-bike specialists, brick and mortar e-bike specialists (EBDs), and conventional bicycle brands.
And now the US is expected to more than double that import figure to as many as 600,000 e-bikes this year owing to the increase in demand in the present market for e-bikes.
US e-Bike Imports reached Record Levels in 2020. Despite concerns over Trump’s tariffs and huge disruption to e-bike supply chains caused by coronavirus and the trade war instilled between US and China, which is one of the leading manufacturers of bicycles and bicycles parts. The $1,500-$3,000 price point is seeing excellent traction across all major E-bike retail points
The North American region presently has a limited penetration of Class-III e-bikes, with only six states authorizing their operation. Also, Class-III e-bikes in both Europe and North America have a minimum age restriction of 16 years.
Currently, the North American region also has a minimal presence of e-bike manufacturers, resulting in a limited market for e-bikes. However, public awareness about e-bikes and the involvement/ interest of traditional bicycle brands towards e-Bike has created a buzz about e-bikes in the market.
Because e-bike sales started surging last year, large e-bike companies have been managing a delicate balancing act between their sales and customer service departments. Now, as an unprecedented number of new customers receive their e-bikes boxes, some of which inevitably arrive with issues, these companies are finding it difficult to keep their many new customers happy.
Market-visible companies, such as VanMoof and Rad Power Bikes, found themselves scrambling to keep up with their new customer bases and the rapid increase of complaints. After its sales doubled virtually overnight, VanMoof especially found its very prominent presence on social media a handicap as its splashy ads on social platforms were always accompanied by a long list of customers publicly complaining about a lack of customer support.
E-scooter companies have long complained about not being allowed to operate in the largest U.S. city, with more than eight million residents, while permitted in dozens of other U.S. cities.
However, new amendments have been announced along with a pilot program for the e-bike market which is scheduled to start by May 2021 and is expected to last no more than two years, according to the bill. Scooter placement should focus on areas underserved by the city’s docked bike-share program. Relative ease in state policies is only expected to drive this market further towards growth.
ASIA-PACIFIC E-BIKE MARKET
Asia-Pacific dominates the e-bike market as the China is the largest manufacturer and exporter of the e-bikes in the region and e-bikes purchased is increased in the region for cost effective and eco-friendly commuting for short distances, for instance, commuting to workplace or office.
The import and export volumes in China are also large, and China has always been the largest exporter of electric bikes. The Government of India has also encouraged to use electric bikes. By the end of 2035, the government is looking forward to convert fuel vehicles into electric vehicles.
Assembly plants in Europe as well as North America rely on auto parts sourced from China which is likely to pose a problem to small companies. Additionally, a large number of manufacturers in this market are headquartered as well as operate their manufacturing facilities in China.
The most prominent features of China’s E-bikes are the regional characteristics. Currently, Tianjin, Jiangsu and Zhejiang are the major e-bike industrial clusters in China.
In China, the output of electric bikes climbed ~20% YOY to reach 21 million in the January-September 2019. In September 2019 alone, bicycle output dropped 4.3 percent YOY to 3.4 million, while the output of electric bikes rose 31% YOY to 3.16 million. By the end of April this year, China’s output of e-bikes was 6.445 million
In FY 2020, India electric two-wheeler market stood around 152 thousand units in volume terms and is forecast to grow further. Air pollution is the becoming one of the leading causes of death in developing countries with deteriorating air quality. As a result of which, the county’s government is offering subsidies on the purchase of electric two-wheeler by introducing schemes like Fame-1 and Fame-2.
Furthermore, low speed electric two-wheeler does not require any registration from transport authority of the country, which is anticipated to positively influence the growth in the India electric two-wheeler market during the forecast period.
Europe E-BIKE MARKET
Electric bike sales now represent 17% of all complete bicycles sales made in Europe. In pooling a broad spectrum of data from across the EU, it was found that electric bike sales are achieving a growth rate far steeper than that of electric car sales; in fact, electric cargo bikes sold more than electric cars in Germany in 2020.
As far as sales trends go, 60% of electric bike sales at the checkout in Europe are also largely made in the EU. In Germany in the first half of 2020 the bike boom saw sales of bicycles, sports and camping goods beat the market, with retail sales up 1% and car sales down 18%.
EU e-bike imports increased by 10% to meet expanding market from 46 % in 2019 to 51 % last year. Germany, The Netherlands and France are the key markets for the e-bike market in Europe.
German market anticipates on 20% sales increase in 2021 despite the supply chain constraints, Demand for e-bikes and bicycles continues to be bold while production capacities can’t be adjusted so quickly to keep up with demand.
In UK, Sales of bikes selling between $550 and $1,350) more than doubled in April 2020 compared to April 2019. Overall, bike sales rose by 60% YOY by volume and 57% by value
The bicycle market in Europe will possess the second-largest share in the forecast period. The rollout of infrastructure for encouraging and supporting bicycle commutation in Belgium, France, Denmark, and Italy, rising health consciousness, increasing environmental concerns regarding carbon dioxide emissions, rising urbanization, growing use of personal transportation, traffic congestion, popular bicycling events, and the presence of cities that are ideal for bicycle commutation are adding to the global bicycle market growth in the region.
Additional factors adding market growth include rising use of bicycles for its convenience as a form of physical exercise which lets people remain fit, growing use of bicycles for recreational activities, the growing popularity of e-bike tourism, on-going trends of adventure sports, and rising health consciousness are also adding market growth.
Uber Technologies Inc’s European rival, Bolt, launched an electric bike-sharing service in Paris, and said it would expand the offering to more European capitals this year. Ride-hailing service Bolt also offers scooter rental and food delivery.
This new e-bikes sharing service will help to fulfil the demand for light, green individual modes of transport, which has seen growth due to European cities gradually coming out of COVID-19 lockdown.
NEW PRODUCTS DEVELOPED IN E-BIKE MARKET
- Lime electric bike batteries recycled into speakers: British sustainable design company
Gomi is giving 50,000 Lime e-bike batteries a second life by recycling them into zero-waste portable Bluetooth speakers. The limited-edition portable speaker will be available for 30 days on Kickstarter , from 2nd March, priced from £99.June 2020
- The British motorcycle brand Triumph unveiled its first e-bike, an aluminium-frame model that will retail for about $3,750. Damaged Lime e-bike battery cells which would otherwise have been recycled power 100% of the speakers, and the marbled casing is created using 100% recycled plastic waste, which has been saved from landfill.
- National tyre recycling scheme hits 200 sites: Just five months from launch a with Madison now a support partner, tyre recycling business Velorim has now chalked up 200 sites across the UK. The firm hopes to reach 1,000 sites by the end of this year in a bid to help bike shops address the issue of recycling waste rubber.
- The new Mondraker Grommy is a totally new way for young new riders to have fun on two wheels. It’s a kids’ balance bike with a punchy little motor and made from good materials, technology Grommy transforms the humble balance bike, taking it to a whole new level.
- With its innovative and expertly delivered electric motor power and advanced frame and components, they’ve created the first true e-balance bike and it’s available now in two sizes.
- Hyderabad based EV start-up launches electric bike Atum 1.0 at Rs 50,000, Atum 1.0 offers a range of 100 kmph in a single charge.
- Rad Power Bikes has long led the value-oriented e-bike market. The company released two new low-cost models in the last year alone, the $1,199 RadRunner utility e-bike and the $1,099 RadMission city e-bike.
- So-Cal start-up Ride1Up has also gotten into the low-cost e-bike game by relaunching one of its original e-bike models as an updated belt drive e-bike, the $995 Roadster V2. The stealthy e-bike offers most of the utility that daily riders are looking for and is an example of the increased accessibility being seen in the e-bike market.
- Harley-Davidson has been talking about launching electric bicycles to complement its Livewire electric motorcycles. But, it’s not clear when they will come to market as Harley has struggled with work stoppages and reduced sales during the COVID-19 pandemic. It is possible that the Harley electric bicycle launch could be pushed off until at least 2021. GM also has delayed or abandoned its plans to introduce a line of e-bikes
June 2020- The British motorcycle brand Triumph unveiled its first e-bike, an aluminum-frame model that will retail for about $3,750
July 2018– Yamaha introduced 600Wh multi-location in tube battery, for Electrically Power Assisted Bicycles (EPACs), which offer a 20% capacity increase.
March 2018- Accell Group acquired the US-based Beeline Bikes. Beeline Bikes is a mobile bike service company that delivers a turn-key sales, service, and data collection solutions personalized for Independent Bicycle Dealers (IBDs) in North America based on a franchise concept.
September 2017– Bosch e-bike system took over a start-up based in Frankfurt named COBI.
November 2016– Giant Bicycle continued its partnership with Cycling Development Foundation (CDF), which is a joint commitment to support the cycling development in Western Australia.
GLOBAL E-BIKE MARKET SIZE AND FORECAST
The global E-bike market is estimated at $XXM in 2020, growing at double digits till 2025.
Electric bikes are giving the market for two-wheeled transport a big jolt. The pandemic that has boosted demand for bicycles also looks set to accelerate the shift to battery-assisted pedalling. As in the automobile market, though, the change is disruptive. Established players will have to make room for new upstarts.
Sustainability credentials have progressively become an important part of doing business, as well as when selling on to the consumer, who will now pay a premium for genuine eco-credentials.
Modern technology requires modern solutions and so issues like the recycling of e-bike batteries are now frequently brought up. With Decathlon announcing a circular economy drive and OEM parts maker Herrmans offering a sustainable packaging service to its clients, the trend is now deep seated.
The e-bike market is extremely fragmented, with the major players holding a low share of the total market share. Some of the major market players are Giant Bicycles, Merida, Trek Bikes, Riese & Muller, and Fritzmeier Systems GmbH & Co. Kg (M1 Sporttechnik).
Giant Bicycles is expected to be the largest player in this market.
The company’s presence is majorly concentrated in China, with Europe and North America being the other important markets. The companies are diversifying their product portfolio through innovations and new launches and is aiming to continue its spot as the market leader.
The new players are also attracting different investors. In May, VanMoof raised 12.5 million euros from venture capital firm Balderton and Taiwan’s SINBON Electronics. Belgian startup Cowboy’s backers include Tiger Global Management and Index Ventures.
Accell, the $730 million Dutch group which owns brands such as Raleigh and Sparta, earned more than half its revenue from e-bikes last year. Investors are betting that will continue. Giant shares have risen 43% so far this year, and are now valued at 26 times Daiwa Capital Markets’ forecast earnings for 2021. Shimano, the $19 billion Japanese group that controls roughly half the global market for bicycle components like gears and brakes, trades on a forward multiple of 35 times
- E-vehicle maker Nexzu Mobility is looking to foray into the international market, starting with some South Asian countries, and is also in early stage discussions for exports of e-cycles to the US and the UK markets.
- Nexzu Mobility, which was earlier known as Avan Motors, also plans to expand its scooter and cycle range over a period of two years to cater to the increased demand in the domestic as well as international market.
- AlphaVector recently entered the fast-growing e-bicycle segment and launched its flagship model Meraki priced at Rs 29,999. The bicycle has a 250-watt brushless DC motor with a top speed of 25 kmp and is equipped with 6.36AH lithium-ion battery that can be charged completely in 2.5 hours, which offers up to 35 km at full charge. AlphaVector has already received over 100 pre-booking registrations from cities like Mumbai, Bangalore, Delhi, Chennai, Pune, Ahmedabad for its new offering
- While most people associate the marque with powerful gas-guzzlers, Harley-Davidson has quietly planned its foray into the e-bike segment with the Serial 1, a sleek new electric bicycle that draws inspiration from some of the earliest Harleys from the 1910s.
- The Serial 1 features fat white tyres, a sleek black frame, a brown leather seat, logos that light up, and a flexible brown chain. It will be available for sale in March 2021. It is the product of the Serial 1 Cycle Company, which was incubated in-house through its internal R&D programme.
- Tern ‘s North American distributor and brand office, Stile Products is now distributing the Alpine Bike Capsule, for secure outdoor storage of e-bikes and e-cargo bikes. Stile will sell the capsule on its website and via IBDs.
- The Alpen Bike Capsule is a commercial-grade, U.S.-made parking solution designed for use on corporate campuses, apartment complexes, or backyards. The lockable, weather-protected design is compatible with all of Stile’s flagship products, including the Tern GSD electric cargo bike and HSD electric commuter bike.
- Brompton Bicycle has issued a recall of its electric bikes after becoming aware of an issue with the firmware installed on some of its electric folding bicycles. This effects models which have Version 1-2-7 and Version 1-2-8 Firmware installed. Under particular circumstances, if a system failure occurs, there is a low possibility that the electric system may continue to assist the motor even when the rider is not actively pedalling.
Giant Manufacturing, the $4 billion Taiwanese group, saw revenue jump 55% year-on-year in June. British retailer Halfords reported a similar-sized spike in its cycling business in the 13 weeks to early July
- Yamaha Motor Corporation
- Giant Manufacturing Co., Ltd
- Accell Group N.V
- Aima Technology Group Co., Ltd
- Yadea Group Holdings Ltd
- TREK BIKES
- MERDIA INDUSTRIES Co.Ltd