The global e-bike market is predicted to generate a revenue of $25.9 billion by 2025, increasing from $14.4 billion in 2019, and predicted to progress at a 10.3% CAGR during the forecast period (2020–2025). The market is registering growth due to the rising urban road congestion, surging concerns regarding the environment, rising health concerns, and increasing government subsidies and financial incentives. When ownership type is taken into consideration, the market is divided into shared and personal.
On the basis of battery, the market is bifurcated into lead acid and lithium-ion (Li-ion), between which, the Li-ion category is predicted to progress at the fastest pace, both in terms of value and volume, during the forecast period. The higher energy density and lightweight nature of these batteries provide the use more range per charge, as compared to lead acid batteries. The lead acid category accounted for the major share of the market in the past, owing to their lower prices.
The Asia-Pacific region has been dominating the e-bike market in the past, in terms of volume. Commuting through bike has been a common means of transportation in a number of countries in the region, such as India, Japan, and China. The increasing sales of low-speed electric two-wheelers in China is further expected to drive the regional market during the forecast period. North America is expected to demonstrate the highest value CAGR during the forecast period, as bikes are being used for recreational purposes in the region.
A key trend being witnessed in the e-bike market is the growing integration of smartphones in these vehicles. Smartphones can allow rear view and further provides real-time information regarding bike battery status, speed, and navigation. Apart from this, the anticipated integration of e-bikes in shared mobility services is also projected to open up opportunities for the players in the domain. Governments of several countries are introducing targets for integrating low-speed electric two-wheelers in shared mobility services.
Hence, the market is predicted to register growth due to various government initiatives and integration of smartphones in e-bikes.
