Global e-bike market to reach USD 38.6 billion by 2025: ReasearchAndMarkets

ReasearchAndMarkets in its new report forecasts the global e-bike market to reach USD 38.6 billion by 2025, at a CAGR of 9.01%. Many countries across the globe are facing the problem of traffic congestion, especially in crowded cities. The population of vehicles is increasing day by day, rendering the existing road infrastructure insufficient. Traffic congestion affects each individual’s personal and professional lives. As a result, governments and civic bodies are taking steps to reduce traffic congestion.

Many cities across the world are now actively promoting the use of electric bicycles as a mode of transportation in cities. Electric bicycles take up the same amount of space as a normal or traditional bicycle. The use of e-bikes can reduce the number of cars on the road and result in fewer traffic jams.

Increasing urbanization is one of the key drivers for the e-bike market. Urban population throughout the world is increasing rapidly. According to a UN report, 66% of the world population would reside in urban areas by 2050. Hyper-urbanization in some countries is hampering city traffic by increasing traffic congestion, delays in movement, parking issues, and high travel cost. 

“Class-III segment is estimated to be the fastest growing segment during the forecast period”

The class-III e-bike segment is estimated to be the fastest growing segment of the global e-bike market. Class-III e-bikes, which are also known as speed pedal-assisted electric bicycle, provide assistance only when the rider is pedaling and stop providing assistance when the bicycle reaches 28 mph. These e-bikes are allowed on roads, adjacent bike lanes, or private property due to their higher speed than the other two classes, i.e. class-I and class-II. These e-bikes are expected to help replace cars in many cities. Hence, class-III e-bike segment is expected to be the fastest growing market during the forecast period. 

The research firm in its report says that Class-I e-bikes are anticipated to hold the largest share of the e-bike market. Class-I e-bikes provide assistance only when the rider is pedaling and stop providing assistance when the bicycle reaches 20 mph. This type of e-bike can operate on any paved surface. Also, class-I e-bikes are compatible with e-bike laws of most of the countries. Thus, class-I e-bikes are expected to witness incremental growth during the forecast period.

The Asia Pacific region is estimated to be the largest e-bike market in 2018 and is expected to maintain its leading position during the forecast period said ReasearchAndMarkets in its report.  The region comprises some of the fastest developing economies of the world such as China and India. China, which is the largest market in the Asia Pacific, holds about 98% market share of the region. China’s e-bikes have gained popularity in the European market due to their good quality and technological edge. Most of the Asian economies have recognized the growth potential of e-bikes and, hence, are taking several initiatives to attract major OEMs to manufacture e-bikes in their domestic markets. For instance, the Government of India announced financial support and a scheme called Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME).

The research firm notes that government promotions and schemes have led to an increase in sales of electric two-wheelers over the years.

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