The global electric bike market is charging ahead at full speed, projected to surge from $40.3 billion in 2019 to $118.6 billion by 2030, growing at a CAGR of 10.5% over the forecast period (2020–2030), according to a comprehensive report by Allied Market Research.
Asia-Pacific continues to lead the e-bike revolution in terms of revenue, with China dominating global sales. However, Mexico is emerging as a promising market due to favorable government policies and increasing consumer interest in electric mobility.
Electric bikes — equipped with integrated motors, rechargeable batteries, and pedals — are quickly becoming the eco-conscious commuter’s preferred choice. Offering a middle ground between bicycles and motorbikes, e-bikes are cheaper than scooters, don’t require insurance, and support a greener lifestyle. Countries like the U.S., Netherlands, China, India, and Japan are witnessing significant traction in this sector.
Segment Insights:
- By Product:
The scooter & motorcycle segment held the highest revenue share in 2019, thanks to its potential in reducing CO₂ emissions and noise pollution. However, throttle on demand e-bikes are expected to witness the fastest growth (CAGR of 14%) due to their rising popularity among urban commuters. - By Drive Mechanism:
Hub motors dominated the market in 2019, favored for their ease of installation, cost-effectiveness, and reliable performance. - By Battery Type:
Lithium-ion (Li-ion) batteries led the market owing to their light weight, high capacity, and declining prices, making them the go-to choice for modern e-bike manufacturers.
Market Drivers:
Key factors propelling growth include:
- Rising fuel costs and urban congestion
- Government incentives to promote electric mobility
- Growing interest in fitness and recreational cycling
- Advancements in battery technology and cycling infrastructure
Challenges:
Despite the growth potential, the industry faces hurdles such as:
- High upfront costs of electric bikes
- Bans in certain major Chinese cities
- Need for better charging and service infrastructure
Leading Players:
Top companies shaping the global electric bike market include:
- Accell Group
- Giant Manufacturing Co., Ltd.
- Trek Bicycle Corporation
- Yamaha Motor Co., Ltd.
- Mahindra & Mahindra Ltd. (GenZe)
- Derby Cycle, Fuji-ta Bicycle, Jiangsu Xinri E-Vehicle, Prodecotech LLC, and Tianjin Golden Wheel Group
With growing consumer awareness and innovation in design and performance, electric bikes are poised to play a pivotal role in the future of sustainable urban mobility.
