Best E-bikes

An electric bike, often known as an e-bike, is a bike that has an electric motor aligned to the pedal for propulsion. These bicycles use chargeable batteries, which have different capacities depending on their size. There are 2 types of motors used in e-bikes—mid and hub motors. E-bikes are classified on the basis of the power of the electric motor on which they run. Pedal-assist and throttle-on-demand are the two different modes of electric bikes. The market is growing due to an increasing concern about traffic congestion, rapid urbanization, and government initiatives to reduce emission levels and the growing bicycle tourism industry.

Top E-Bike Vendors

1. Yamaha Motor Company
2. Giant Manufacturing Co. Ltd
3. Accell Group N.V.
4. Aima Technology Group Co. Ltd
5. Yadea Group Holdings Ltd
6. Pedego Electric Bikes
7. Merida Industry Co. Ltd
8. Trek Bicycle Corporation
9. Specialized Bicycle Components Inc.

Competitive Scenario

The e-bike market is dominated by some of the key players that have a strong presence across the globe. They are Yamaha Motor Corporation (Japan), Giant Manufacturing Co., Ltd. (Taiwan), Accell Group N.V. (Netherlands), AIMA Technology Group Co. Ltd. (China), and Yadea Group Holding Ltd (China). These companies have obtained supply contracts, adopted expansion strategies, and established agreements and mergers & acquisitions to sustain their position in the market.

Overview 

The e-bike market size, in terms of volume (billion/million units) and value (USD billion/million), for various regions has been derived using forecasting techniques based on the demand and production trends of e-bikes.

An electric bike is a bicycle that is fitted with a battery and an electric motor. These bicycles have a mid or hub motor and use chargeable batteries of different capacities. A hub motor is the most common drive mechanism. It can be fitted on the front or rear wheel. The mid motor is a relatively new technology in which the motor is placed in the bottom bracket of the bicycle.

E-bikes use different types of batteries such as lithium ion, lithium ion polymer, nickel metal hydride, and lead acid. The lead acid battery is widely used in electric bikes due to its low cost and ease of recycling. On the other hand, the demand for Li-ion batteries has grown at a significant rate because of their high capacity, small size, and low weight. E-bikes can be classified as pedal assist or pedelec and power-on-demand or throttle.

Advancements in technology have helped the bicycle industry meet the increasing customer demand and become future ready. Batteries represent a major focus area for manufacturers with better range, efficiency, compact size, and light weight. Also, the industry is focusing on introducing advanced features in e-bikes such as anti-theft, sensors, and smart monitoring e-bike systems.

Rapid urbanization and traffic congestion have discouraged people from using a car as motorized transportation. Instead, many people now prefer to use e-bikes for the daily commute. These vehicles are cheaper than cars and, except for class III bikes, do not require a driving license. In addition, e-bikes are a sustainable means of transportation and can leverage existing and future mainstream EV charging infrastructures. Also, the growing demand for e-bikes among tourists augurs well for the growth of the market.

Governing bodies in various cities have launched initiatives to build bicycle highway lanes for e-bikes and motorized vehicles. In addition, they are also focusing on improving the biking infrastructure. Many governments plan to develop two-way bike lanes on one-way streets to ensure quick commuting of cycles. This will encourage people to use e-bikes for the daily commute.

Yamaha Motor Corporation (Japan), Giant Manufacturing Co., Ltd (Taiwan), Accell Group N.V (Netherlands), Aima Technology Group Co., Ltd (China), and Yadea Group Holdings Ltd (China) are some of the leading players in the e-bike market.

The e-bike market in North America is projected to be the fastest growing market. It is estimated to grow at a CAGR of 19.77%, by value, during the forecast period. The European e-bike market is projected to grow at a CAGR of 18.32%, by value, during the forecast period. The demand for e-bikes has increased tremendously in Europe and North America due to increased urbanization and consumer desire to move away from cars to alternative mobility such as e-bikes.

This section provides information about the major players that offer e-bikes globally. The aim of the analysis is to understand how each market player performs in the defined geographical location. The evaluation of the manufacturers of e-bikes is based on 2 broad categories namely, product offerings and business strategy. The evaluation category under the business strategy includes revenue and growth rate of last 3 years, regional presence, inorganic & organic growth (new product developments, expansions, mergers & acquisitions, joint ventures, partnerships and collaborations) and infrastructure/capacity. The evaluation criteria of the product offerings consists of product features, product offerings, models available, and new product developments.

The analysis includes “company-level” mapping of revenue and regional presence only; all factors include “product level” mapping. The analysis is derived using the weighted average method.

Accell Group N.V., Giant Manufacturing Co. Ltd., Yadea Group Holding Ltd., and Specialized Bicycles Components Inc. are the visionary leaders in the global e-bike market. Giant manufacturing Co. Ltd has a strong product portfolio range with a reasonable price range compared to its competitors in the e-bike market. Yadea offers e-bikes at most reasonable prices amongst all. These companies have their existence in all geographical locations.

Merida Industry Co. Ltd is recognized to be the dynamic differentiator in the e-bike market. The company has a strong product portfolio and an extensive network of channel partners and resellers to increase the deployment of its products across the market. Over the years, the company has concentrated on the organic strategy to be competitive in the market.

Yamaha Motor Corporation, Trek Bicycle Corporation, and Pedego Electric Bikes are recognized as the innovators in the e-bike market. The companies provide innovative product portfolio and strong business strategy to be on par with the visionary leaders in the market. For instance, Trek Bicycle Corporation offers about 17 model ranges with different technical specifications. These players are also found very active in launching new products. These players have performed consistently to meet consumer demands.

AIMA Technology Group Co. Ltd. is recognized as the emerging player in the e-bike market. The company is competing with the innovators of the e-bike segment. It offers e-bikes at competitive prices compared with Giant and reasonable than Accell Group and Specialized Bicycles, which fall under the visionary leader segment. The company is following organic growth strategy for boosting its sales across the globe.

What are the major drivers in the E-bike Market?

Increasing Concerns About Traffic Congestion

Globally, many countries are facing the problem of traffic congestion, especially in crowded cities. The number of vehicles is increasing day by day, rendering the existing road infrastructure insufficient. Traffic congestion affects personal and professional life of the people. As a result, governments and civic bodies are taking steps to reduce traffic congestion.

Many cities are now actively promoting the use of electric bicycles for transportation in cities. Electric bicycles take the same amount of space as a normal or traditional bicycle. The use of e-bikes can reduce the number of cars on the road and, as they occupy minimum road space, result in fewer traffic jams.

Rapid Urbenization

Increasing urbanization is a key growth driver for the e-bike market. Urban population is increasing at a rapid pace. According to a UN report, 66% of the world population would reside in urban areas by 2050. Hyper-urbanization in some countries is hampering city traffic by increasing traffic congestion, delays in movement, parking issues, and high travel cost.

Growing awareness about health is also expected to drive the e-bike market. Nowadays, people living in urban areas are cycling for exercise and recreation and are more inclined toward electric cycles than traditional ones. People use manual pedaling when they are full of energy and switch to the electric motor when they feel tired. Daily office commuters are also using e-bikes more often. They get multiple benefits such as good health, reduced travel cost, and time saving. Also, many people prefer e-bikes over cars for short trips.

Government Initiative to Reduce Emission Levels

Electric bikes have become a popular and important part of the transportation system due to their several advantages over conventional bikes. With increasing concerns regarding environmental pollution, many governments across the world have implemented several regulations and policies to reduce vehicle emissions, effectively encouraging a large section of population to adopt electric vehicles such as e-bikes.

The rising levels of air pollution are a serious matter of concern internationally. The popularity of e-bikes has increased due to the growing demand for green and harmless transportation technology. Also, healthcare organizations have been promoting the use of electric vehicles to reduce air pollution. Other factors such as uncontrolled rise in the prices of fossil fuels have made it necessary to shift from conventional vehicles to electric vehicles. Government initiatives for promoting and subsidizing green technology are expected to drive the growth of the e-bike market.

Growing Bicycle Tourism

Cycle tourism has evolved significantly in the last ten years. Different initiatives such as developing cycling routes and funding cycling-related activities undertaken by the governments have helped in the growth of the industry. Exploring on two wheels is becoming a favorite way to holiday. Tourists increasingly prefer bicycles over other forms of travel. Cycling provides the freedom that many search for in a vacation. It helps to see new landscapes, gives a feeling of being with nature, and offers a healthy break. On the other hand, many tourists cannot use a cycle because of several reasons. These include different fitness levels of family members, topographical challenges (mountainous terrain), and long-distance traveling, which makes exploring on conventional bicycle difficult. E-bikes play an important role in overcoming such hurdles. The multiple advantages of e-bikes over traditional bicycles make them the first choice of tourists. Tourism associations, accommodation vendors, mass transit, and others engaged in the tourism industry are focusing on providing e-bike rides to their guests.

What are the major opportunities in the E-bike market?

Government Initiatives to regulate e-bikes & improve infrastructure for e-bikes

Although e-bikes have become popular across the globe, they can be seen in a few countries. The European countries and a few states in the US have regulated the use of electric bicycles. In Asia, e-bikes can be seen in Japan and India. In recent years, many governments have made regulations for the use of e-bikes. For instance, the governments of China and South Korea have introduced regulations for e-bikes. Recently, in the US, New York City allowed the use of pedelec e-bikes. Also, several countries are now focusing on developing independent bike lanes, parking space, and charging infrastructure for e-bikes. Government regulations and initiatives for the promotion of e-bikes and related infrastructure can provide a growth opportunity for the e-bike market.

Bike-sharing

Bike-sharing is a thrilling new model of public and private transportation that has rapidly emerged in recent years. It offers a healthy, sustainable, and alternative transportation choice, particularly for short trips. The new trend in the cycling world is e-bike, and this trend is now changing the bike-sharing industry. It has multiple benefits over traditional bicycles. Currently, there are 0.04 million shared e-bikes present globally, and approximately half of them are in China.

Electric bikes (e-bikes) can provide a higher level of service compared to regular bike share systems. Electric bicycles reduce the effort required by the rider, promoting greater travel distances and easier use over hilly terrain. While the high price of e-bikes is a major concern for a rider, sharing electric bikes can overcome price barriers by dividing the cost between many users. Unlike the traditional bike-sharing system, e-bike companies have introduced dockless e-bike sharing, which benefits both the rider and service provider. Also, many countries such as the US, China, and Germany are introducing e-bikes in public bike-sharing programs. These bike-sharing programs can help tremendously in the growth of the e-bike market.

Other Market Dynamics

Restraints:
 Underdeveloped aftermarket services
 Technological challenges
 Unplanned infrastructure in developing countries

Challenges:
 Limited distribution channels
 Misconstrued perception about cycling

Why E-bike is adopted?

In recent years, bicycles have transformed from an old-fashioned recreational product to a less polluting mode of transport and a compact ultra-light personal mobility tool. An electric bicycle is a new form of urban transport that is developing a new mobility approach, especially in countries with large population and increasing concerns about the environment. Traffic congestion, increasing fuel prices, and demand for healthy lifestyle are the key factors driving the growth of e-bikes. Electric bicycles are economical and offer simple solutions for these problems.

An electric bike is a bicycle that is fitted with a battery and an electric motor. These bicycles have a mid or hub motor and use chargeable batteries of different capacities. There are two types of motors used in e-bikes. The hub motor is the most common drive mechanism. It can be located on the front or rear wheel. The mid motor is a relatively new technology in which the motor is placed in the bottom bracket of the bicycle.

E-bikes use different types of batteries such as lithium-ion, lithium-ion polymer, nickel metal hydride, and lead acid. The lead acid battery is widely used in electric bikes because of its low cost and ease of recycling. On the other hand, the demand for Li-ion batteries has grown at a rapid pace because of their high capacity, small size, and low weight. E-bikes can be classified as pedal assist or pedelec and power-on-demand or throttle.

Advancements in technology have helped the bicycle industry meet the increasing customer demand and become future ready. Batteries represent a major focus area for manufacturers with better range, efficiency, compact size, and light weight. Also, the industry is focusing on introducing advanced features in e-bikes such as anti-theft, sensors, and smart monitoring e-bike systems.

Increasing urbanization and traffic congestion have discouraged people from using a car for motorized transportation. Instead, many people now prefer to use e-bikes for the daily commute. These vehicles are cheaper than cars and, except for class III bikes, do not require a driving license. In addition, e-bikes are a sustainable means of transportation and can leverage existing and future mainstream EV charging infrastructures. Also, the growing demand for e-bikes among tourists augurs well for the growth of the market.

Governing bodies in various cities have launched initiatives to build bicycle highway lanes for e-bikes and motorized vehicles. In addition, they are also focusing on improving the biking infrastructure. Many governments plan to develop two-way bike lanes on one-way streets to ensure quick commuting of cycles. This will encourage people to use e-bikes for the daily commute.

E-Bike Market, By Class

The e-bike market has been segmented on the basis of class, that is, Class-I, Class-II, and Class-III. Class-I e-bikes are pedal-assist only, with no throttle, and have a maximum assisted speed of 20 mph. Class-II e-bikes have a maximum speed of 20 mph but are throttle-assisted. While Class-III e-bikes are pedal-assist only, with no throttle, and have a maximum assisted speed of 28 mph. Class-II e-bikes are not compatible with the European e-bike laws. In Asia, there is no defined classification structure for e-bikes. According to the EU definition, the Asian e-bikes fall under the Class-I segment.

E-Bike Market, By Battery Type

the e-bike market has been segmented on the basis of battery type, that is, lithium ion, lithium ion polymer, lead acid, and others (nickel cadmium (NiCd), nickel metal hydride (NiMh), solid state batteries, etc.]. Lithium ion batteries are default batteries used in e-bikes these days. These batteries last longer and generate more power for their weight than other batteries.

E-Bike Market, By Motor Type

the e-bike market has been segmented based on hub motor and mid motor. Hub motors, which place the electric motor in the center of a bicycle wheel, are certainly the most common form of electric bicycle motors. Mid-drive motors, which house the motor closer to the center of the bicycle and transfer the motor’s power to the rear wheel via the bicycle’s chain drive, have become much more common over the last 2–3 years, and are cutting significantly into the hub motors’ lead share as the king of e-bike motors.

E-Bike Market, By Mode

the e-bike market has been segmented by mode type into pedal assist mode and throttle mode. Pedal assist is the largest and fastest growing segment in the global e-bike market. Pedal assist, also referred to as pedelec, is a mode that provides power only while pedaling. It has a more intuitive feel compared to the throttle mode. There is no need to hold the throttle in a certain position in pedal assist mode.

The throttle mode operates like a motorcycle or scooter. When the throttle is engaged, the motor provides power and propels the driver and the bike forward. A throttle allows to pedal or just kick back and enjoy a free ride. Most throttles can be fine-tuned like a volume dial between low and full power. Throttle e-bikes do not comply with the e-bike laws and regulations in many countries and, thus, are not allowed. This is expected to lead to negative growth during the forecast period.

E-Bike Market, By Region

In recent years, an over-dependence on oil for transportation has caused tremendous loss to the environment. Nearly every vehicle on the road contributes to the emission of hazardous gases that cause global warming. Due to the changing climate, developed regions such as Europe and North America and some countries in the Asia Pacific region have adopted stringent emission norms. Electric vehicles are considered ideal for reducing emissions. Many countries are now providing subsidies and tax exemptions to promote the sale of electric two-wheelers. Increasing concern about traffic congestion and rapid urbanization are expected to drive the growth of the e-bike market.

Bicycles have transformed from an old-fashioned recreational product to a less polluting mode of transport and a compact ultra-light personal mobility tool. An electric bicycle is a new form of urban transport that is developing a new mobility approach, especially in countries with large population and increasing concerns about the environment, traffic congestion, increasing fuel prices, and healthier lifestyle. Electric bicycles can play a key role as they are economical and offer a simple solution for these problems.

North America is expected to be the fastest-growing market for e-bikes during the forecast period. Developing economies in Asia such as India, Taiwan, and South Korea are also expected to offer growth opportunities for e-bike market.

E-Bike Industry Trends

Motor Drive Technology

There are 2 major motor drive technologies used in e-bikes. A hub drive motor drive is the first technology used by the industry. Hub motors are simple in construction with an electric hub inside the bicycle’s hub, commonly driven by DC brushless motor, which performs better, is reliable, and quieter. It can be located either on front or rear wheel with each configuration having its own benefits. But, at the same time, it has some technology gaps, that is, the hub motor makes the wheel heavier, gives less power when it comes to the hilly and mountain roads, and disrupts the balance of a bike toward front or back.

In the mid drive motor, the latest and advanced technology, the frame is specifically designed to incorporate the motor in the bottom bracket of the bicycle, which gives a good balance to the rider. Climbing is where the mid drive motors have an advantage over hub motors. Also, it offers better torque even at low power levels.

Battery Technology

E-bikes use different types of batteries such as lead acid, nickel cadmium, nickel metal hydride, lithium-ion, and lithium-ion polymer. The lead acid and lithium-ion battery technologies are the most widely used in e-bikes. The lead acid bike batteries are cheap and easy to recycle but weigh twice as much as NiMh batteries and thrice as much as lithium batteries. They also have much less usable capacity than the other 2 battery types and their lifecycle is half that of nickel and lithium batteries. A few countries in the world such as China and India use lead acid batteries due to its less cost and easy availability. On the other hand, nickel cadmium and nickel metal hydride are more expensive and hazardous in nature. The use of nickel cadmium batteries is becoming obsolete.

Lithium-ion phosphate batteries are now the first choice of e-bike users and manufacturers because of their longer life than other battery types and higher power to weight ratio. The price of these batteries is slightly higher, but it has shown a decline in recent years. The new technology and lithium-ion polymer, the future of e-bike battery technology, are considered better in terms of weight, price, and efficiency compared to Li-On.