Electric Bike Market Size, Share & Industry Analysis, By Propulsion Type (Pedal Assist and Throttle), By Battery Type (Lead Acid, Lithium-ion, Nickel Metal Hydride, and Others), By Application (City/Urban, Mountain/Trekking, and Cargo/Luggage), By Motor Type (Mid Motor and Hub Motor), By Component (Battery, Electric Motors, Motor Controller, Frame with Forks, and Others (Brake Systems, Wheels & Gears)), By Battery Capacity (Below 250W, 251 W to 450W, 451 W to 650 W, and Above 650W), and Regional Forecast, 2024-2032

The global electric bike market size was valued at USD 43.59 billion in 2023. The market is projected to grow from USD 50.14 billion in 2024 to USD 148.70 billion by 2032, exhibiting a CAGR of 14.6% during the forecast period. The electric bike market in the U.S. is projected to grow significantly, reaching an estimated value of USD 2,825.76 million by 2032, driven by the significantly growing popularity of recreational and leisure bicycling market in U.S.

An electric bike is a bicycle with a motor and rechargeable batteries that assists the rider and alleviate some of the pressure of pedaling. These bikes are designed to assist or augment the rider's pedaling power, providing varying levels of electric assistance to make cycling more accessible, especially in challenging terrains or for longer distances.

The pedal-assist e-bike is the most common type of electric bicycle. They assist the rider's pedaling effort, providing an extra boost when needed. The throttle-controlled e-bikes can be powered solely by the electric motor without pedaling, controlled by a motorcycle similar to a throttle. The increase in fuel costs due to supply shortages are expected to propel the electric bike market growth.

As public transit declined due to the COVID-19 pandemic, for instance, ridership of subway trains alone dropped by 90% in New York City, such circumstances began rolling out fleets of electric mobility. The adoption of E-bikes has increased exponentially, and they have displaced non-motorized bikes in many places. This significant increase in demand for e-bikes has positively affected the revenue and expansion opportunities for several key players in the market.

Electric Bike Market Trends

Increasing Integration of Advanced Technology in Bicycles to Boost Market Growth

E-bikes incorporate advanced technologies such as intelligent connectivity, GPS tracking, and mobile app integration. This allows riders to monitor their e-bike's performance, control certain features, and access navigation tools through smartphone apps. The bikes increasingly incorporate smart connectivity features, allowing riders to connect their bikes to mobile apps via Bluetooth or Wi-Fi. These apps provided various functionalities, such as real-time bike location tracking, monitoring battery status, adjusting pedal-assist levels, and recording ride data. For instance, in February 2023, Trek Bicycle Corporation released two new electric cargo bikes designed for kids and cargo carriers. Both models use Bosch’s intelligent BES3 smart system and the company’s cargo-specific mid-drive motor range. These motors are designed for 250 W and 750 W continuous power. The motors are usually determined to 20 mph (32 km/h) in the U.S., and the throttle-less design keeps them squarely in the Class 1 e-bike designation.

Electric Bike Market Growth Factors

Increasing Adoption of Shared Micro-Mobility Drives the Market Growth

Shared micro-mobility is part of the public transportation ecosystem. As a flexible transportation option with comparatively low overhead and operation costs, shared micro-mobility can complement higher-volume fixed-route transit services by offering mobility services for many trips at a lower per-traveler cost. In November 2023, the North American Bike Share and Scooter Share Association (NABSA) published its annual report on the state of the shared micro-mobility industry. In 2022, the number of consumer micro-mobility trips stood at 157 million, matching the number of trips taken in 2019 before the onset of the COVID-19 pandemic. In 2020, the number of micro-mobility trips declined to 83 million before the commencement of revival the following year. Even though the number of trips in 2019 and 2022 were the same, the share of e-bike trips recorded a substantial rise in 2022, displacing some of the e-scooter and pedal bike trips from the overall number of trips taken. Thus, the increasing adoption of shared micro-mobility is anticipated to drive the growth of the market during the forecast period.

 

RESTRAINING FACTORS

High Cost of E-bikes May Hamper the Market Growth

According to a recent study conducted by the Portland State University, e-bikes have been found to allow more people to ride a bicycle for longer distances despite difficult terrain, physical limitations, and the presence of cargo. However, on the whole, e-bike adoption remains limited due to high purchase costs. The Bicycle Product Suppliers Association (BPSA) stated that the average wholesale cost of an e-bike in America stood at USD 2,000). According to a survey of self-selected North American e-bike owners, on average, an e-bike costs USD 2,600 to purchase. For comparison, the average wholesale cost of a mountain bike in the U.S. stood at USD 620 (Bicycle Retailer and Industry News 2018). The average cost of a conventional bicycle bought at a specialty store was USD 753 in the U.S., and that of the one purchased at a discount, department, or chain toy store was USD 89 on average (National Bicycle Dealers Association 2015). Thus, a substantial difference exists between the cost of e-bikes and conventional bicycles, which may hamper the adoption of electric bikes.

Electric Bike Market Segmentation Analysis

By Propulsion Type Analysis

Pedal Assist Dominated the Market Owing to Better Battery Life and Lower Servicing Needs

By propulsion type, the market is segmented into pedal assist and throttle.

The pedal assist segment held the largest electric bike market share in 2023. This due to several benefits offered by this propulsion type such as lower servicing needs and enhanced battery life. In addition, it offers users the ability to choose from three to five pedal assist modes, depending on the model.

The throttle segment is poised to depict a highest CAGR during the study period. Factors such as the advantage of reduced pedaling effort in situations such as cruising or accelerating up a hill will propel the expansion of this segment. A rise in the use of mountain off-road bikes will proportionally lead to the growth of throttle propulsion systems.

By Battery Type Analysis

Lithium-ion Batteries Held the Largest Share Owing to Low Cost

Based on battery type, the market is segmented into lead-acid, lithium-ion, nickel metal hydride, and others.

Lithium-ion is the most popular and optimal type of battery for an e-bike with leading market share. It has the best combination of total weight and capacity. They offer higher efficiency batteries and adequate battery capacity. Lithium-ion batteries have twice the voltage and three times the capacity of lead-acid batteries.

The lead-acid segment held the second-largest share of the market. This is due to lead–acid batteries typically being less expensive upfront compared to other batteries, making electric bikes using them more affordable for customers. Thus, the lower cost of lead-acid batteries drives the market growth.

By Application Analysis

Stringent Emission Norms and Government Initiatives to Promote the Use of Green Vehicles to Boost City/Urban Segment Growth

Based on application, the market is segmented into city/urban, mountain/trekking, and cargo/luggage.

The city/urban segment is the dominant and fastest-growing segment. The rising demand for eco-friendly transportation and the support offered by government initiatives have resulted in the growth of city bicycles used for daily commuting.  For Instance, in November 2022, The Netherlands’ national government announced an investment in cycling infrastructure valued at USD 862 million. The investment offers more cycle routes, particularly in regional areas. 500 bicycle parking structures will be added to stations in Utrecht and Goes.

The mountain/trekking segment is expected to grow considerably during the forecast period due to the growing demand for sports and adventurous activities, favoring mountain/off-road bike adoption worldwide. It is the second-largest segment in the market. The use of e-bikes in recreational and trekking activities is increasing rapidly. Growing awareness about performance-based adventure sports will support the segment growth.

By Motor Type Analysis

Sustainability In all Types of E-bikes to drive the Hub Motor Market Growth

Based on motor type, the market is segmented into hub, and mid-drive motor.

Hub motors dominated the market, maintaining consistent conditions throughout the forecast period. This growth is fueled by the extensive applicability of hub motors across various e-bike categories, such as city, mountain, cargo, and folding bikes. Consequently, the widespread adoption of hub motors across diverse e-bike designs is anticipated to propel market expansion.

Mid-drive motors provide greater power and torque compared to hub motors, rendering them optimal for high-performance e-bikes. This attribute is particularly significant for riders navigating steep inclines or engaging in off-road adventures. Consequently, the inclusion of both hub motors and mid-drive motors contributes to the expansion of the motor type segment within the e-bike drive unit market trend.

By Component Analysis

Increasing R&D Investments for Battery Technology to Boost the Market Growth

Based on component, the market is divided into battery, electric motors, motor controller, frame with forks, and others (brake systems, wheels & gears).

The battery segment holds the largest market share due to increasing research and development (R&D) investments by bike and battery manufacturers, which have led to continuous improvements in battery technology. Manufacturers prioritizing R&D in battery innovation are often better positioned to offer cutting-edge products, gaining a competitive advantage in the market. The manufacturers are keen to develop technologies that enable rapid charging, reducing the time required to recharge the battery. These type of developments are expected to drive the market growth during the forecast period.

The motor segment held the second largest market share in 2023. The ongoing advancements in motor technology have provided more efficient, compact, and powerful motors. These innovations contribute to improved high performance, reduced weight, and enhanced overall efficiency, making these bikes with the latest motor technology more attractive to consumers.

By Battery Capacity Analysis

Increasing Adoption of 451W to 650W Battery Capacity e-Bikes to Drive the Market Growth

Based on battery capacity, the market is segmented into below 250W, 251W to 450W, 451W to 650W, and above 650W.

The 451W to 650W battery capacity segment holds the maximum share of the market. The segmental growth is attributed to rising adoption of batteries with capacity 451W to 650 W for e-bikes. The batteries provide maximum range and lifespan compare to other batteries with lesser capacities. This development is anticipated to drive the market growth.

The above 650W segment holds the second largest market share. The segmental growth is attributed to balanced performance. The above 650W battery capacity range offers a balanced performance, providing a good combination between range and weight. E-bikes with batteries in this segment are often suitable for both short commutes and longer rides, making them versatile and appealing to a broad range of consumers.

REGIONAL INSIGHTS

Asia Pacific Held Major Share Backed by Presence of Leading OEMs and Stringent Emission Norms

Based on region, the market has been studied across North America, Europe, Asia Pacific, and the rest of the world. 

Regionally, Asia Pacific dominated the global market in 2023, with China accounting for most of the e-bike market share. Factors such as comprehensive bicycle infrastructure in developed and developing countries, such as South Korea, Taiwan, India, and Japan, and high vehicular and public transit congestion are driving the dominance of the segment. Additional factor favoring the regional dominance is the increasing stringency of emission regulations for gasoline motorcycles.

The Europe market for electric bike is expected to show significant growth in 2023. European manufacturers and brands have actively innovated and developed e-bike technology. High-quality design, advanced features, and performance-oriented e-bikes contribute to drive the market growth. Several European countries have implemented supportive policies and incentives to promote the product adoption. These may include subsidies, tax credits, and infrastructure development to enhance the overall electric mobility ecosystem. Such developments boost the growth of the electric bike market.

North America is also expected to show good growth over the forecast period. The segmental growth is attributed to the development of cycling infrastructure, including bike lanes and cycling-friendly routes, which has increased in various North American cities.

The market growth in the rest of the world is attributed to the growing tourism. These bikes are often used for tourism and leisure activities in regions with scenic landscapes and cultural attractions. They offer tourists an enjoyable and eco-friendly way to explore destinations, which helps drive the market growth.

List of Key Companies in Electric Bike Market

Accell Group Dominates the Market Owing to Launch of Industry-Leading Products

Major players in the market for electric bike include Accell Group., Giant Bicycle, Inc., and Trek Bicycle Corporation. The manufacturers focus on expanding their product portfolio, sales network, and partnerships. The companies promoting benefits of e-bikes, such as eco-friendliness, cost saving, and convenience, through various channels to reach a wider audience.

Accell Group is one of the key players in this market. The company has a workforce of about 3,100 employees across 15 countries. Moreover, the products are sold to customers and dealers in over 80 countries. Accell has a solid European brand reputation and an extensive product portfolio through its Batavus, Hercules, Koga-Miyata, Lapierre, Mercier, Loekie, Sparta, and Winora. These brands have allowed the company to capture a larger market share.

LIST OF KEY COMPANIES PROFILED:

• Giant Bicycle, Inc. (Taiwan)


• Hero Cycles Ltd (India)


• Accell Group (Netherlands)


• Robert Bosch GmbH (Germany)


• Kalkhoff Werke GmbH (Germany)


• Pedego Electric Bikes (U.S.)


• Panasonic Corporation (Japan)


• Mobility Holdings, Ltd. (Tern) (Taiwan)


• Trek Bicycle Corporation (U.S.)


• Shimano Inc. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• November 2023 - Giant Group introduced its first throttle-enabled electric bike, the Cito E+. The new model would be released under the company’s Momentum sub-brand of more affordable bikes designed for street, utility, and commuter use. The new Momentum Cito E+ comes with a glovebox.


• March 2023- Bharat Forge Limited, through its E-Mobility subsidiary, Kalyani Powertrain Limited, inaugurated its first e-bike factory in March at MIDC Chakan. The factory's production capacity is 60,000 units per year, which can be increased to 100,000. Unit per year. The plant mainly focuses on assembling electric bicycles for Tork Motors Private Limited, which is 64% owned by Kalyani Powertrain Limited.


• December 2022 - Hero Motors and Yamaha Motor Co. signed an agreement to create a 'Global E-Cycle Drive Unit company' at Hero E-Cycle Valley in Ludhiana. The 100-acre Hero E-Cycle Valley currently manufactures both conventional and electric cycles for Global Cycle OEMs and cycle components such as alloy rims, aluminum frames, and handlebars. The company would also manufacture HYM Drive Systems, with a million unit-capacity annually. 


• November 2022 - Giant Bicycles revealed its Stormguard E+ SUV e-bike. The model has a RideDash Evo display to monitor speed and heart rate and even receive email and message notifications. The Giant Stormguard E+ SUV e-bike has been designed for rougher terrains, with a full suspension system of 100 mm travel at the front and rear. The bike is also powered by a SyncDrive Pro 2 motor, which Giant has developed alongside Yamaha.


• August 2022 - Pon Holdings and Porsche announced a joint venture for an e-bike. Porsche eBike Performance GmbH, based near Munich, would develop whole e-bike systems comprising motors, batteries, and software for connectivity. Stuttgart-based P2 eBike will then use these systems to launch a new generation of Porsche eBikes. However, the company also envisions selling third-party bikes.


• January 2022 - Giant Bicycles partnered with Team BikeExchange-Jayco to return to professional road racing for the world's leading cycling brand at the UCI World level. The 29 men representing 12 nations will race with Giant bikes and focus on Grand Tours. The partnership would mark a major milestone for Team Bike Exchange-Jayco as it embarks on its 11th World Tour pro peloton season.

REPORT COVERAGE

The global market research report covers a detailed focus on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report delivers an in-depth analysis of the several factors that have contributed to its growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
CAGR	CAGR of 14.6% from 2024 to 2032
Unit	Value (USD Billion), Volume (Units)
Segmentation	By Propulsion Type Pedal Assist Throttle
By Battery Type Lead Acid Lithium-ion Nickel Metal Hydride Others
By Application City/Urban Mountain/Trekking Cargo/Luggage
By Motor Type Hub Motor Mid-drive Motor
By Component Battery Electric Motors Motor Controller Frame with Forks Others (Brake Systems, Wheels & Gears)
By Battery Capacity Below 250W 251W to 450W 451W to 650 W Above 650W
By Geography North America (By Propulsion Type, By Battery Type, By Application, By Component, and By Battery Capacity) U.S. (By Propulsion Type & By Application) Canada (By Propulsion Type & By Application) Mexico (By Propulsion Type & By Application) Europe (By Propulsion Type, By Battery Type, By Application, By Component, and By Battery Capacity) U.K. (By Propulsion Type & By Application) Germany (By Propulsion Type & By Application) France (By Propulsion Type & By Application) Spain (By Propulsion Type & By Application) Netherlands (By Propulsion Type & By Application) Italy (By Propulsion Type & By Application) Denmark (By Propulsion Type & By Application) Belgium (By Propulsion Type & By Application) Rest of Europe (By Propulsion Type & By Application) Asia Pacific (By Propulsion Type, By Battery Type, By Application, By Component, and By Battery Capacity) China (By Propulsion Type & By Application) Japan (By Propulsion Type & By Application) India (By Propulsion Type & By Application) South Korea (By Propulsion Type & By Application) Taiwan (By Propulsion Type & By Application) Rest of Asia Pacific (By Propulsion Type & By Application) Rest of the World (By Propulsion Type, By Battery Type, By Application, By Component, and By Battery Capacity )