Over the past few years, passenger transport demand has experienced sustained and robust growth.
But none has experienced phenomenal and unprecedented growth as the personal vehicles, more particularly the electric bikes.
If the current market trend is to go by, FiorMarkets, predicts the e-bike market to grow to 27.3B by 2025.
Also, back in December, Deloitte released a comprehensive technology prediction for 2020 and foresaw a bull market-especially e-bikes.
Various reputable institutions have further compounded the studies, and it only shows how much e-bikes are contributing to the commuter space.
To give you a true depiction of the e-bike growth, we've compiled a comprehensive guide outlining everything you need to know about e-bikes and their growth statistics.
But before we share the stats, let’s first see why e-bikes are such a popular commuter option.
Why Are Electric Bikes So Popular?
It all boils to convenience and practicality.
E-bikes offer genuine opportunities, influencing non-cyclists to switch to pedal-assisted power.
While using a traditional bike is a blast, but with time, it wears you out, and you'll certainly need recovery.
On the other hand, an e-bike lets you ride all year long, thanks to the pedal-assisted riding.
Now, it's easy to think e-bikes are simply electrically-powered vehicles, requiring no pedaling.
In reality, however, using e-bike will result in the burning of calories. Sure, the results can't match those of traditional bikes, but remember, workout isn't the only motivation for purchasing an e-bike.
Who is the electric bike for nowadays?
The leading age group is between 45 and 65 years. Regarding interest, the report further shows the males are the more dominant consumers, leading with 70% while females have a 30% share.
However, the interest ratio in the US is differentiated a lot from the EU, where the males have the dominant share of 90% and women a measly 10%.
But, you need to understand the positioning of e-bikes isn't solely for seniors or those that struggle to ride without assistance.Today, brands are increasingly getting innovative in design and marketing, de-positioning the narrative.
Also, the e-bikes are increasingly shrugging off the bad rap; what was traditionally seen as unfashionable, especially among millennials and Generation Z, is now becoming a common sight and widely accepted.
Traditionally, e-bikes were seen as a commuter option for those who struggled to ride to work due to health issues. But today, there's a sudden acceptance and a positive turn for the e-bikes.
So, there might be a drastic change in the consumer taste in the coming years, and it wouldn't be a surprise for the younger generation to have the biggest share.
How Big Is The Electric Bike Market?
Last year (2019), the global E-bike market was valued at 15.42 billion.
And according to Fortune Business Insights, the market is predicted to reach an estimated 46 B by 2026.
Globally, the Asia Pacific is the largest e-bike market.
The main driver for the upward market trajectory in the e-bike market was the inclination for energy-efficient and the need for a sustainable form of transportation.
How has Covid Impacted the E-bike Market?
Of course, we can't ignore that the emergence of a pandemic has brought everything to a standstill.
Overall, every other sector in the market has been affected, and the e-bike sector is not an exception.
We believe it's going to pass, but you can check the Fortune Business Insights detailed guide on the impact of Covid on the e-bike market for the time being.
E-Bike Market - Growth, Trends, And Forecast (2020 - 2025)
Globally, the e-bike market was valued at 15.52 billion, with Research and Markets predicting a growth of CARG 7.5 in the next five years (2020-2025).
So far, Asia-Pacific is the largest e-bike market, with China being the largest consumer. Other big consumers of the e-bike in the Asia-Pacific market are Japan and India.
However, due to the pandemic and lockdown that followed, production and consumption of e-bikes declined, but the market is slowly picking pace. Away from customer preference inclining towards recreational and adventure activities, the adoption of e-bikes also extends to other sectors such as rental and logistics.
How Many Electric Bikes Are Sold Each Year Worldwide?
Cyling Industry News estimates that approximately 35 million e-bike units are sold annually.
For the longest time, e-bikes were relegated to niche status, and between 2006 and 2012, e-bike only represented 1% of the annual sales.
For instance, in 2013, the Verge reported that only 1.8 million units were sold, with the US consuming a measly 185,00 units.
Fast forward, however, the e-bikes began gaining more acceptance, and now analysts expect a warp speed over the next few years. For instance, Deloitte expects the sale of an e-bike to peak at 130 million units globally between 2020 and 2023.
The firm also predicted that e-bikes are going to outpace other e-vehicles by the end of 2021.
Electric Bicycle Market In US
In the last few years, the US market's cycling space has experienced numerous changes, with the four key trends being:
· Proliferation of e-bikes
· The decline in road bikes
· The decrease in bike-sharing
· The gravel bike rage
Today, we shall look at the proliferation of e-bikes, while at the same time comparing them with other forms of personal electric vehicles.
Currently, it’s estimated there’re 120 to 150 brands actively selling e-bikes in the US.
A major reason why the e-bike industry is staying afloat, compared to that of the traditional bicycles, is the higher price tag for e-bikes. On average, the price of an e-bike is three times the cost of a traditional bike.
And finally, as we had mentioned earlier, the baby boomers contribute to the largest market share of the e-bikes.
E-Bike Demand In The US
Mobility plays a crucial role in our current society. Still, with the rising concerns for preserving and sustaining future generations, there's a rise in demand for personal electric vehicles, particularly electric bikes.
E-bike have proved to be the ideal solution for a sustainable commute system.
Indeed, e-bikes are here to stay with us, and it’s not like they’re fad crazes that go away with time.
Like the rest of the world, the US has experienced immense growth in the e-bike industry over the last couple of years.
Though the demand in the US isn't as pronounced as other regions, it's steadily growing.
A market research firm NPD Group report indicates that e-bike sales jumped by a whopping 91% from 2016 to 2017, and another 72% from 2017 to 2018 to reach 143.4 million. The sale of the e-bike in the US has grown more than eightfold since 2014.
How Many Electric Bikes Are Sold In The US?
An estimated 350,000 e-bike units were sold in the US in 2015. But of course, the number is much higher today, especially with the rapid growth of the e-bike industry.
While the figure is still impressive, it's nonetheless a mere fraction of the total global sales.
But also keep in mind the US market is relatively smaller than that of Asia or Europe. However, e-bikes are increasingly gaining acceptance in the US, and now seen as an effective way to commute.
Nevertheless, tracking the e-bike business in the US is a challenge because of the lack of a Harmonized Tariff Schedule. Many importers for e-bike use different descriptions for e-bikes, with some even declaring them as toys.
What electric bikes are made in the USA?
At a time when every American-based company seems to be importing their products from the Asian market, there’re a few exceptions that have proudly built their bikes locally.
Some of the local brands include:
· Ace American
· Bistro E-bike
· Convergence Tech, Inc.
· Chicago Electric Bicycles
· USA Electric Bike Company LLC.
What Is The Future Of Electric Bikes?
E-bikes aren’t going anywhere soon, and they’re here to stay with us.
According to Deloitte, an estimated 300M units will be on our roads by 2023, doubling the units we currently have now.
Globally, the firm further claims that over 40 million units will be sold by the year 2023.
That said, the industry still has a long way to go- and this is partly why it's also exciting. For now, the industry devoted to developing e-bikes, motors, and components is barely getting started.
A few years from now, expect e-bikes to be lighter, better integrated, and more user friendly.
And make no mistake; the industry is going to grow as people continue to look for sustainable and alternative to using gasoline-powered vehicles for their commute.