E-Bike Drive Unit Market Size, Share & COVID-19 Impact Analysis, By Product Type (Mid-drive Motors and Hub Motors), By Application (OEM and Aftermarket), and Regional Forecasts, 2023-2030

The global e-bike drive unit market size was USD 27.15 billion in 2022 and is projected to grow from USD 31.85 billion in 2023 to USD 82.84 billion by 2030, exhibiting a CAGR of 14.6% during the forecast period.

An electric drive unit (e-bike drive unit) is an electronic device designed to control certain motor characteristics to convert electrical energy into mechanical output precisely. It consists of sophisticated electronic systems or combinations of various motion control systems.

COVID-19 IMPACT

Increasing Demand for E Bikes Due to COVID-19 Pandemic to Drive Market Growth

COVID-19 had a major impact on many industries. With the pandemic forcing people to stay home and avoid public transport, many are turning to e-bikes as an alternative means of transportation. This has increased the demand for drive units for bicycles and e-bikes.

• For instance, in March 2021, according to the World Economic Forum, bicycle sales in the U.S. were up 65% between 2019 and 2020, with pandemic lockdowns acting as a key driver for the market. The sales of e-bikes increased by 145% during the pandemic period. In Europe, the predicted e-bike volume will be twice compared to the number of bikes and cars that will be bought every year by 2030.

The sales continued driving the market growth during the post-pandemic period due to an increase in the movement of people and their inclination toward a sustainable future. For example, in January 2022, Aventon Ebikes stated that in 2021, it witnessed a 301% increase in website sales in Los Angeles, U.S.

The pandemic disrupted the supply chains, leading to a shortage of components and raw materials and delays in production. This affected the availability of the market leading to the increased price of the product.

Several manufacturers had to slow down or temporarily shut down production due to the restrictions and guidelines imposed by the government during the pandemic. This also affected the availability of drive units in the market.

However, the pandemic highlighted the importance of domestic production to several countries, which led to a shift toward local manufacturing. This benefited the drive unit manufacturers based in countries with strong domestic markets.

Overall, while the pandemic presented challenges for this market, it has also created opportunities for growth as more people look for an alternative mode of transportation.

LATEST TRENDS

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Increasing Application of AI in E-Bike Drive Units to Propel Market Growth

The development and adoption of more powerful, efficient, and higher wattage motors is a trend with most manufacturers. These powerful electric motors provide additional advantages, such as more torque and power, for climbing steep terrains. Furthermore, they also provide faster acceleration benefiting city commuters for long distance rides.

The integration of AI technologies in drive units to optimize power, improve battery life and output, and enhance the riding experience is another major trend among manufacturers. Some companies are developing drive units that automatically adjust power output based on the rider’s pedaling and terrain type. For instance, in August 2022, Vinka (China) unveiled its new AI & IoT based Max System for eBike in EUROBIKE 2022. This new e-drive system, VINKA AIoT Max System, comprises a Vinka drive unit, battery, display, VBox, Vinka life app, Vinka Cloud, and VBox, a smart box developed in-house. It will establish bi-directional communication between IoT devices and Vinka Cloud. 

DRIVING FACTORS

Increasing Adoption of E-bikes to Augment Industry Share

The growing demand for eco-friendly transportation as people have become concerned about the environment has raised the need for e-bikes. As cycling becomes more popular, so does the demand for electric bicycles and it also increased the demand for e-bike drive unit. Furthermore, rising urbanization has led to an increasing inclination toward convenient zero emission mode, elevating the adoption of electric bikes over conventional vehicles. Moreover, health and wellness benefits associated with e-bikes are promoting their use in many developed/developing countries. Technological advancements in battery technologies and motors have made drive units more efficient. This has increased the variety of e bikes available on the market.

RESTRAINING FACTORS

High Cost of E-Bike Drive Unit to Limit Market Growth

The high cost of electric bicycle drive units is one of the challenges limiting the market's growth for e-bike drive unit. The type of motor used in an e-bike affects the price of an e-bike. One of the most efficient motors for e-bikes is a multi-speed geared motor with a lightweight battery pack. Additional charges include the cost of charging and battery replacement. Such costs impede market growth during the forecast period. The type of motor used in an e-bike determines its cost. A multi-stage geared motor with a small battery pack is one of the most effective motors for e-bikes. Drive unit laws vary by country and state. This could affect the potential e-bike drive unit market growth.

SEGMENTATION

By Product Type Analysis

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Hub Motors to Dominate the Market Owing to Suitability in all Types of E-bikes

The global e bike drive unit is segmented by product type into the mid-drive motors and hub motors. Hub motors dominate the market showing similar conditions during the forecast period. The growth is attributed to the wide range of applications of hub motors. Hub motors can be used in many e-bike designs, including city e-bikes, mountain, cargo, and folding bikes. Thus, the contribution of the hub motor for its popularity due to widespread use is expected to boost the segmental growth.

Mid-drive motors provide higher power and torque than hub motors, making them ideal for high-performance e-bikes. This is especially important for e-bike riders who frequently encounter steep hills or need a passion for off-road riding. Thus, hub motors and mid drive motors make the product type segment grow in the e-bike drive unit market trends.

By Application Analysis

OEMs Held the Largest Market Share Owing to Large Manufacturing Capacity

Based on application, the market is segmented into OEM and aftermarket.

The OEMs segment is the dominant and fastest-growing segment in the market. OEMs have the scale and resources to efficiently produce large quantities of e-bike drive units, allowing them to offer competitive prices to e-bike manufacturers. This fuels the market growth during the forecast period.

The aftermarket segment also showcases significant growth during the forecast period. There is a large selection of products to choose from in the aftermarket. Some aftermarket companies also offer lucrative warranty schemes to attract consumers, which helps to grow the segmental market. This makes it a convenient option for e-bike consumers who want to source components from multiple suppliers. Thus, the vast availability of the product is expected to drive the aftermarket segmental expansion over the coming years.

REGIONAL INSIGHTS

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Asia Pacific Being a Manufacturing Hub with the Presence of Leading OEMs to Lead the E-Bike Drive Unit Market

The Asia Pacific region dominated the market with the largest part in the e-bike drive unit market share. The region has a large population, translating to a large e-bike market revenue and also for e-bike drive unit. Moreover, many of the world’s largest e-bike manufacturers are in the Asia Pacific. These manufacturers have established supply chains and production capabilities that enable them to produce drive units at a lower cost. This fuels the market growth in the region.

Europe is expected to indicate a significant growth in the market. Europe has a more varied topography than other regions, with many hilly and mountainous areas. Mid-drive motors are better suited for these types of terrain as they offer greater torque and power, which is necessary for climbing steep inclines. This augments the market dynamics in the region.

• In September 2022, Yamaha shifted its production unit of drive units to a wholly-owned MBK Industries facility in France, with the launch of a new PWseries S2 drive unit. Thus, the incursion of OEM players in the European market fuels the segmental market growth in the region.

North America is also expected to exhibit healthy growth in the market. The e-bike market in North America has been growing speedily in recent years, driven by increasing interest in cycling for commuting, recreation, and fitness. According to NABSA, bike-share systems deploying e-bikes rose from 28% in 2019 to 44% in 2020. This has created a growing demand for e-bikes and their drive units in the North American region.

KEY INDUSTRY PLAYERS

Robert Bosch GmbH Dominates the Market Owing to Productive Partnerships and Industry-Leading Products

Robert Bosch is a German-based global engineering and technology company operating in four main business sectors: mobility, consumer goods, industrial technology, and energy & building technology. “Bosch eBike Systems” is a division of Robert Bosch that focuses on developing electric drive systems for electric bicycles. The company product portfolio includes Performance Line CX and Active Line. The Performance Line CX is designed for off-road use and gives riders maximum power and torque. The Active Line is designed for everyday use and provides a smooth and comfortable riding experience. The company claims to offer electric drive systems to more than 70 leading bike brands with 440 subsidiaries and regions and sales and service partners in around 150 countries worldwide.

• In March 2023, Bosch eBike Systems partnered with Taiwanese brake specialist Tektro to make this safety gain available to many more eBikers. Tektro's braking system is available for all Bosch eBike types, from eCity and etrekking bikes to eCargo bikes and eMTBs. Besides, the system is optimized for a specially developed ABS mode. The company says this will help reduce accidents involving e-bikes.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH (Germany)


• Panasonic Industry Europe GmbH (Netherlands)


• SHIMANO INC (Japan)


• JINYUXING ELECTROMECHANICAL TECHNOLOGY (ZHEJIANG) CO., LTD (China)


• Yamaha Motor Co., Ltd. (Japan)


• Bafang Electric (Suzhou) Co., Ltd. (China)


• Brose (Germany)


• Ananda (China)


• Suzhou Shengyi Motor Co., Ltd. (China)


• Suzhou Tongsheng Electric Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 - Canadian electric bicycle manufacturer Dost Bikes launched Crate's electric cargo bike. The new Crate comes with both step-through and step-over models with a 200 kg carrying capacity. It is powered by a 120Nm Bafang M600 belt mid-drive motor, reaching a top speed of 45km/hr


• March 2023 - Revonte (Finland) partnered with Passila Bicycles (Finland). Via this partnership, the company will install their e-bikes with Revonte’s ONE Drive System, an eBike drive system.


• January 2023 – Major companies are actively involved in expanding their product with many strategy buildings. Moreover, e bike leading players are focusing on expansion considering the rising sale of e bike thus driving the growth owing to the eco-friendly & rising infrastructure in prime countries such as Germany, the U.S., and others. For example, as per the surveys, Bosch, BMW, and Porsche stated that e-bicycles would become lucrative as consumers look for cheaper and eco-friendly commuting ways. This will ultimately create a demand for untapped business and opportunities for bike component manufacturers, including drive units.


• October 2022 - Porsche collaborated with Shimano to supply the Shimano EP-8 engine for eBike sport and eBike Cross updates. The integrated 85 Nm motor pumps 500w of peak power and amplifies rider input by up to 400%, claimed the companies. Furthermore, an associated app lets riders customize their settings between 10 levels of overall assistance, five levels of start assistance, and three maximum torque settings.


• July 2022 - Shengyi showcased its updated CMT motor range at Eurobike. The company displayed CMT07 and CMT03P at the event.


• June 2022 - Bafang Electric Suzhou launched the mid-mounted drive system M820. The lightweight (2.3kg) compact motor, protected by a magnesium housing, delivers 75Nm at 250W rated power at either 25km/h, 32km/h, or 45km/h.

REPORT COVERAGE

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