The electric bike market is expected to experience rapid global growth in the coming years, says Fortune Business Insights. The market, which was valued at 35.69 billion USD in 2021, is projected to grow to 91.19 billion by 2029 with a compound annual growth rate (CAGR) of 12.6%.
There are several factors that are affecting this growth with the first being a rise in policy support and the emergence of more e-bike sharing programs. Additionally, cycling infrastructure is improving and being implemented more in emerging economies and urban areas.
Environmental awareness is also a major factor for many people who are looking at alternatives to driving as a way to reduce their environmental impact. Encouraging this momentum, various states have rolled out tax incentives to make purchasing e-bikes more accessible. Just this month two bills were introduced in the U.S. Congress, pushing for safer bike infrastructure and more affordable e-bikes.
Driven by a booming market, technological advancements have made e-bikes cheaper, batteries last longer and In general, made e-bikes a more realistic transportation alternative for many people, says the report. And while there is still a monetary barrier that can hinder growth of the industry, the tax incentives and increase in e-bike share programs will help make e-bikes more accessible.
There are a lot of different players in the e-bike market, with some of the most prominent being Giant Bicycles (Taiwan), Accell Group (Netherlands), Robert Bosch GmbH (Germany), Pedego Electric Bikes (U.S.), Panasonic Corporation (Japan), Bionx International Corporation (Canada), Trek Bicycle Corporation (U.S.), Shimano Inc. (Japan), VanMoof (Netherlands) and Rad Power Bikes (U.S.).
The Asia-Pacific market is projected to be the largest during this period of growth. This is due to an increase in bike infrastructure in China. With the massive amounts of traffic congestion and a public transportation that is overrun, e-bikes are becoming a very promising alternative for the Chinese population. New emission standards and climate regulations also play a factor in e-bike popularity as gas-powered vehicles are slowly starting to be phased out and e-bikes are becoming the most viable, and affordable option for personal transport.
The European market is also set to grow considerably as manufacturing of e-bikes in Europe rising.
While Americans have been the slowest to fully adopt e-bike usage, the report expects the North American market to see some major growth, driven large by more e-bike use in bike shares. North America has already seen a 145% increase in e-bike sales during the 2020 pandemic and while that trend has since slowed down, the boom has expanded the e-bike market in North America considerably.