Electric Bicycle Market Size, Share, Growth & Industry Analysis, By Application (City, Mountain, Cargo), By Battery Type (Lithium Ion, Lead Acid, Nickle Metal Hydride), By Type (Pedal Assist, Throttle Assisted) and Regional Analysis, 2024-2031

Electric Bicycle Market size

Global Electric Bicycle Market size was recorded at USD 48.99 billion in 2023, which is estimated to be at USD 55.57 billion in 2024 and projected to reach USD 146.89 billion by 2031, growing at a CAGR of 14.90% from 2024 to 2031. The notable shift toward micro mobility solutions and rapid urbanization across the globe is propelling market expansion. In the scope of work, the report includes products offered by companies such as Accell Group, Rad Power Bikes Inc., Hero Lectro E-Cycles, VanMoof, Aventon Bikes, Trek Bicycle Corporation, Shimano Inc., GIANT GROUP, MERIDA BIKES, and others.

With rapid urbanization and the rise of megacities, there is a growing demand for efficient and sustainable transportation alternatives that navigate through congested city streets. Electric bicycles or e-bikes offer a practical solution by providing commuters with a cost-effective and flexible mode of transportation that easily maneuvers through traffic and covers short to medium distances. Additionally, the integration of electric bicycles into ride-sharing and rental services is expanding its accessibility and appeal among consumers, particularly millennials and young professionals who are seeking convenient mobility options.

Furthermore, the COVID-19 pandemic has accelerated the adoption of electric bicycles as individuals are increasingly looking for safer alternatives to public transportation and prioritizing personal mobility. As cities continue to invest in infrastructure development and promote cycling-friendly policies, the electric bicycle market is poised to witness substantial growth in the near future.

Electric bicycles, or e-bikes, are bicycles equipped with electric motors for propulsion, thus enhancing rider assistance. They cater to various applications, including commuting, leisure, and exercise, and offer a sustainable and efficient mode of transportation. The market encompasses a wide range of e-bike types such as commuter bikes, mountain bikes, folding bikes, and cargo bikes, each tailored to meet diverse consumer needs.

Analyst’s Review

The expansion of the market is driven by factors such as sustainability initiatives, urbanization, technological advancements, and shifting consumer preferences toward eco-friendly transportation solutions. Key players in the market are strategically focusing on product innovation, technological enhancements, and geographical expansion to capitalize on this expanding demand. Strategies include investing in research and development to improve battery efficiency, enhancing user experience through smart features, and forging strategic partnerships to strengthen distribution networks. Imperatives for key players include fostering brand loyalty, ensuring regulatory compliance, and maintaining competitive pricing to sustain market leadership amidst intensifying competition and evolving consumer preferences.

Electric Bicycle Market Growth Factors

The global electric bicycle market is witnessing substantial growth, mainly fueled by rapid urbanization and increasing traffic congestion. With over 60% of the global population projected to live in urban areas by 2030, the demand for e-bikes as a sustainable and efficient mode of transportation is increasing. E-bikes offer a faster and more convenient alternative to traditional bicycles in congested environments, making them an attractive option for urban commuters who seek to navigate through traffic seamlessly.

Furthermore, the growing emphasis on health and fitness consciousness is fueling the adoption of e-bikes as a form of exercise and active transportation. With consumers prioritizing physical well-being, e-bikes offer an accessible and efficient way to incorporate fitness into daily routines, thereby fostering market growth.

Moreover, the expanding tourism and recreational activities sector is boosting e-bike sales. E-bikes are increasingly becoming a popular choice for tourists and outdoor enthusiasts who wish to explore destinations and engage in outdoor recreation. This is projected to boost the growth of the electric bicycle market as manufacturers respond to this growing demand for e-bikes tailored specifically for tourism and recreational purposes.

However, the electric bicycle market faces challenges due to high initial costs and a lack of standardized regulations. Although the higher price point of e-bikes is deterring some consumers, manufacturers are diversifying their price offerings to widen their customer base. Additionally, the lack of uniform regulations regarding motor power, speed limits, and infrastructure is impeding market growth. Government initiatives to standardize regulations across regions are likely to mitigate these concerns, thereby fostering consumer confidence and facilitating industry growth.

Electric Bicycle Market Trends

The electric bicycle market is witnessing significant growth due to the integration of connectivity and smart features into e-bikes and the expansion of the direct-to-consumer (D2C) sales models. E-bikes are increasingly becoming technologically advanced, incorporating features such as GPS navigation, smartphone connectivity, and anti-theft systems. This integration appeals to tech-savvy consumers who are seeking enhanced functionality and convenience in their riding experience.

Additionally, the rise of the D2C sales model is allowing manufacturers to bypass traditional retail channels and offer e-bikes directly to consumers. Surging adoption of this model is leveraging manufacturers to potentially offer lower prices, maintain greater control over the brand experience, and establish closer relationships with customers. This shift toward D2C sales is potentially disrupting traditional retail channels and reshaping the distribution landscape within the electric bicycle market.

Segmentation Analysis

The global electric bicycle market is segmented based on application, battery type, type, and geography.

By Application

Based on application, the market is categorized into city, mountain, and cargo. The city segment garnered the highest revenue of USD 31.63 billion in 2023. The growing trend of urbanization and the resultant increase in traffic congestion have propelled the demand for e-bikes in cities as a convenient and eco-friendly mode of transportation. Additionally, government initiatives aimed at promoting sustainable mobility solutions are bolstering the adoption of e-bikes for city commuters.

Moreover, the integration of smart features and connectivity is enhancing the appeal of city e-bikes, meeting the needs of tech-savvy urban commuters. As cities continue to invest in smart and sustainable infrastructure and prioritize active transportation, the city segment is poised to witness sustained growth over the forecast period.

By Battery Type

Based on battery type, the market is divided into lithium-ion, lead acid, and nickel metal hydride. The lithium-ion segment captured the largest market share of 72.34% in 2023. Lithium-ion batteries offer numerous advantages over other types of batteries, including higher energy density, lighter weight, longer lifespan, and faster charging times. These features make them ideal for electric bicycles, providing enhanced performance and convenience to users.

Moreover, the decreasing cost of lithium-ion batteries due to technological advancements and economies of scale is boosting their adoption in the global market. As consumers are increasingly prioritizing factors such as range, efficiency, and overall performance, the lithium-ion segment is expected to maintain its stronghold in the electric bicycle market.

By Type

Based on type, the market is bifurcated into pedal assisted and throttle assisted. The throttle assisted segment is anticipated to generate revenue of USD 38.58 billion by 2031. Throttle-assisted e-bikes provide users with the convenience of motorized propulsion without the need for pedaling, thus appealing to a wide range of consumers in search of effortless mobility solutions. This segment specifically caters to individuals who may experience mobility limitations or prefer a more leisurely riding experience.

Additionally, throttle-assisted e-bikes are highly favored for their ease of use in various terrain and weather conditions, making them versatile options for both urban and off-road environments.

Electric Bicycle Market Regional Analysis

Based on region, the global electric bicycle market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Asia-Pacific garnered the highest revenue of USD 20.85 billion in 2023. The region emerges as a dynamic hub for electric bicycles, fueled by rising purchasing capacities and rapid urbanization. With increasing affluence in developing nations across the region, e-bikes are becoming more accessible to consumers in search of efficient and eco-friendly transportation solutions. Moreover, rapid urbanization in Asia-Pacific is creating a strong demand for alternative modes of transportation, which is contributing to the widespread adoption of e-bikes.

Furthermore, the region presents significant opportunities for establishing a local e-bike manufacturing base. By encouraging and supporting domestic manufacturing, countries in Asia-Pacific are striving to foster the production of more affordable e-bikes tailored to the preferences and needs of the local populace. This initiative aims to promote economic growth and employment opportunities while increasing market penetration and accessibility, ensuring that e-bikes become a prevalent mode of transportation across the Asia-Pacific region.

Europe accounted for a significant share of 27.67% in 2023. The region is experiencing substantial growth, mainly propelled by robust government support and a growing focus on sustainability. European governments are actively promoting e-bike adoption through various incentives, including subsidies, tax breaks, and investments in cycling infrastructure. This strong policy backing significantly propels market growth, making Europe a key region for e-bike manufacturers.

Furthermore, the continent presents a promising opportunity for e-cargo bikes in urban logistics, fueled by the expanding e-commerce sector and the rising emphasis on sustainable transportation solutions. With cities increasingly prioritizing last-mile delivery efficiency and environmental sustainability, e-cargo bikes offer a practical and eco-friendly solution. Manufacturers are capitalizing on this opportunity by developing specialized e-cargo bike models tailored to address the unique demands of urban logistics. By leveraging government support and tapping into the growing demand for e-cargo bikes, Europe is poised to maintain its position in the electric bicycle market.

Competitive Landscape

The global electric bicycle market report will provide valuable insight with an emphasis on the fragmented nature of the market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Companies are implementing several strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Electric Bicycle Market

• Accell Group
• Rad Power Bikes Inc.
• Hero Lectro E-Cycles
• VanMoof
• Aventon Bikes
• Trek Bicycle Corporation
• Shimano Inc.
• GIANT GROUP
• MERIDA BIKES
• Yamaha Motor Co., Ltd.

Key Industry Developments

November 2023 (Acquisition): LEV Manufacturing, an electric bicycle producer, in collaboration with Lane VC, a venture capital firm specializing in mobility investments, acquired Serial 1 Cycle Company, an e-bike enterprise headquartered in Lehi, Utah.

The Global Electric Bicycle Market is Segmented as:

By Application

• City
• Mountain
• Cargo

By Battery Type

• Lithium Ion
• Lead Acid
• Nickle Metal Hydride

By Type

• Pedal Assist
• Throttle Assisted

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America