Automotive and Transportation

Electric Bicycle Market Poised to Hit USD 146.89 Billion by 2031: Diverse E-Bike Types Propel Market Growth

Jul 2024

Automotive and Transportation

As per the report published by Kings Research, the global Electric Bicycle Market was valued at USD 48.99 billion in 2023. The market is projected to reach USD 146.89 billion by 2031, growing at a CAGR of 14.90% from 2024 to 2031.

The global electric bicycle market is experiencing significant growth, driven by the increasing emphasis on sustainable transportation solutions and the growing awareness of environmental conservation. Governments worldwide are actively promoting electric bicycles as a means to reduce carbon emissions and alleviate traffic congestion in urban areas. Incentives such as subsidies, tax rebates, and infrastructure development are further propelling the adoption of electric bicycles.

Additionally, the rising health consciousness among consumers is leading to the increased demand for electric bicycles as a convenient and eco-friendly mode of exercise and commuting. This is particularly prominent in regions with high pollution levels and congested road networks. Moreover, advancements in battery technology and the integration of smart features are enhancing the appeal of electric bicycles, making them a compelling choice for a broader consumer base.

Key Insights

  • Based on application, the city segment held the largest market share of 64.56% in 2023
  • Based on battery type, the lithium-ion segment generated the highest revenue of USD 35.44 billion in 2023
  • Based on type, the pedal assisted segment is anticipated to generate a value of USD 108.30 billion by 2031
  • On the basis of region, Asia-Pacific is projected to garner a revenue of USD 9.08 billion by 2031

GEF Capital Signs Partnership Agreement to Expand MURF Electric Bikes Product Innovation

January 2023: MURF Electric Bikes, a manufacturer of rugged adventure e-bikes, partnered with GEF Capital Partners, a global private equity firm dedicated to sustainable investments. Throughout 2023, as MURF launched a new storefront and introduced two new products, along with a limited-edition collaboration model, the company secured growth capital from GEF to support its expansion plans.

Emergence of Subscription and Rental Services to Offer Potential Opportunities for Electric Bicycle Market Development

The emergence of subscription and rental services for e-bikes presents a significant opportunity for expanding market accessibility and reaching a broader audience, particularly in urban areas where storage space is limited. By offering e-bikes through subscription or rental models, companies are overcoming barriers to ownership such as upfront costs and storage constraints, making e-bikes more accessible to consumers. This approach targets individuals who may be hesitant to make an investment in an e-bike.

However, it also provides a convenient and flexible transportation solution for short-term needs, such as commuting or running errands. Additionally, subscription and rental services promote sustainable mobility practices by encouraging shared usage and reducing the overall carbon footprint associated with transportation.

Proliferation of Electric Bicycle Types to Present Lucrative Opportunities for Electric Bicycle Market Expansion

The diversification of e-bike types presents a significant opportunity for market progress, as manufacturers are aiming to respond to diverse customer needs and preferences. With a growing variety of e-bike types such as folding bikes, fat-tire bikes, and luxury e-bikes, consumers have a wider range of options to cater to their specific requirements and lifestyles. This trend is increasing the appeal of e-bikes and fostering innovation and competition among manufacturers, driving product development and technological advancements.

By offering a diverse range of e-bike types, companies are effectively targeting different market segments and capitalizing on niche markets, thereby enhancing market penetration and revenue generation.

North America to Witness Substantial Growth, Registering a CAGR of 14.86% Between 2024 and 2031

Based on region, the global electric bicycle market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. North America is experiencing a surge in cycling participation rates, fueled by growing concerns regarding health and the environment. E-bikes, due to their accessibility and broad appeal across a wider demographic, have the potential to further bolster the popularity of cycling as a leisure activity in both the US and Canada.

Moreover, as North American cities invest in cycling infrastructure, e-bikes are emerging as a viable option for active commuting, particularly for longer distances. Moreover, increasing tourism recreational and tourism activities is propelling the North America electric bicycle market expansion.

Companies Launch Cutting Edge Products to Expand Their Market Reach

The global electric bicycle market is fragmented with key players such as 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., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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