E-Bike Market to Grow by USD 28.3 Billion (2025-2029), Driven by Sustainability and Environmental Concerns, Report on AI's Role in Market Transformation - Technavio

NEW YORK, Jan. 21, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global e-bike market size is estimated to grow by USD 28.3 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of over 10.4% during the forecast period. Increasing sustainability and environmental concerns is driving market growth, with a trend towards popularity of connected e-bikes. However, product recalls due to possible failures of e-bikes poses a challenge. Key market players include Accell Group NV, Avon Cycles Ltd., BH BIKES Europe SL, Cortina Bikes, Giant Manufacturing Co. Ltd., Greenwit Technologies Ltd., Hero Cycles Ltd., Hero Ecotech Ltd., Kalkhoff Werke GmbH, Klever Mobility Europe GmbH, myStromer AG, Pedego Electric Bikes, PIERER Mobility AG, Riese and Muller GmbH, SCOTT Sports SA, SHIMANO INC., Trek Bicycle Corp., TVS Motor Co., Yamaha Motor Co. Ltd., and Zhejiang Luyuan Electric Vehicle Co Ltd.

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Key Market Trends Fueling Growth

The e-bike market is experiencing significant growth, driven by trends such as micro-mobility and sustainable mobility. Tech-savvy consumers seek connectivity features like GPS navigation and app-based monitoring. Mid-drive motors and Li-ion batteries offer power on demand and longer range. Manufacturers invest in R&D to improve battery technology, including Lithium-Iron Phosphate and carbon-reinforced belts for durability. Hub motors and pedal assist systems make cycling up steep terrains easier. Contractual agreements with public transportation systems and bike-sharing services expand reach. IoT-enabled systems offer remote assistance and vehicle-to-everything connectivity. Despite high upfront costs, the modular design and lightweight materials make e-bikes a cost-effective and eco-friendly alternative to cars. Sealed lead acid battery type is giving way to more advanced and efficient Li-ion batteries. Pedelecs and electric cycles offer power transmission solutions for urban commuters. Aerodynamic designs and IoT connectivity enhance the user experience. Battery chemistry and motor technology continue to evolve, reducing carbon footprint and offering power transmission solutions for various terrains. 

The rise of ride-sharing, ride-hailing, and vehicle rental services has significantly boosted the adoption of connected vehicles, including e-bikes. Connected e-bikes, integrated with real-time location tracking, have become essential components of urban mobility through e-bike-sharing services. These bikes can be easily booked, paid for, and located via smartphone applications, enhancing the bike-sharing business model and seamlessly integrating it into the Mobility-as-a-Service (MaaS) network. 

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Market Challenges

• The e-bike market is experiencing significant growth, driven by the demand for sustainable and affordable urban mobility solutions. However, challenges persist in areas like micro-mobility business models, investment in manufacturing and R&D, and connectivity features. Mid-drive motors and Li-ion batteries are popular choices for power transmission, but high upfront costs and battery chemistry can impact investment decisions. Pedal assist and power on demand technologies are essential for tech-savvy consumers, while durability and modular components are crucial for long-term use. Bike-sharing and IoT-enabled systems are transforming urban transportation, but challenges remain in battery technology, steep terrains, and maintenance. Public transportation integration, vehicle-to-everything communication, and app-based monitoring are key areas of focus for e-bike manufacturers. Sustainable mobility and clean transportation are top priorities, with a shift towards lightweight materials, aerodynamic designs, and IoT-enabled systems. Hub motors and sealed lead acid battery types are also popular, but lithium-ion batteries offer better power and efficiency. Overall, the e-bike market requires a balance between innovation, affordability, and sustainability.
• Product recalls in the e-bike market can result from defects or potential failures in vehicles. Historically, manufacturers have shouldered the entire cost of these recalls. For instance, in January 2024, Ride Aventon recalled 2,300 Sinch.2 folding e-bikes due to safety concerns, while Pacific Cycle recalled 1,700 Ascend Cabrillo and Minaret e-bikes due to fire hazards. However, recent advancements in supplier relationships and collaborations have led to cost-sharing in product recalls. This cost-sharing arrangement reduces the financial burden on vehicle manufacturers, tier-1 suppliers, and other stakeholders in the e-bike value chain.

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Segment Overview 

This e-bike market report extensively covers market segmentation by

1. Battery Type
• 1.1 SLA batteries
• 1.2 Li-ion batteries
2. Propulsion 
• 2.1 Pedal assist
• 2.2 Throttle assist
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa
4. Drive

1.1 SLA batteries- SLA batteries, also known as sealed lead-acid (SLA) batteries or gel cells, are a common type of rechargeable battery used in electric bikes (e-bikes) due to their affordability, reliability, and low maintenance requirements. These batteries are partially sealed and contain a coagulated sulfuric acid electrolyte. While they are heavier and larger than lithium-ion batteries, SLA batteries offer practicality for those with a lower budget and do not mind the added weight. However, they have functional disadvantages, such as lower energy density and capacity, which impacts the e-bike's overall performance. Additionally, SLA batteries contain approximately 70% lead, leading to environmental concerns during manufacturing, usage, recycling, and disposal. Despite these drawbacks, the SLA batteries segment is expected to remain a significant player in the global e-bike market due to their cost-effectiveness.

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Research Analysis

The electric bike market is experiencing significant growth as more people embrace sustainable transportation solutions. Electric bikes, or e-bikes, offer a quiet and efficient alternative to traditional gas-powered vehicles for urban commuting and recreational activities. With various electric bike brands catering to diverse needs, consumers can choose from different designs, speeds, and ranges. Safety is a top priority, with electric bike laws and regulations in place to ensure rider and pedestrian safety. Maintenance is essential for optimal performance, and e-bike maintenance tips can help extend the life of these innovative machines. Renting an electric bike is also an option for those who want to try before they buy. E-bikes are not just for adults; they come in various sizes for families, seniors, and even kids. Off-road e-bikes provide an exciting experience for adventure seekers, while accessories like helmets, lights, and racks enhance functionality. E-bike reviews offer valuable insights into different models' performance, design, and user experience. Electric bike technology continues to evolve, with advancements in battery life, motor efficiency, and user interface. E-bike insurance is available to protect against theft and damage. Overall, the electric bike industry is transforming the way we travel, offering a cleaner, quieter, and more accessible transportation option for all.

Market Research Overview

The E-Bike market is experiencing significant growth due to the increasing demand for sustainable and cost-effective urban mobility solutions. The integration of technology, such as connectivity, IoT-enabled systems, and GPS navigation, is transforming traditional bicycles into smart electric vehicles. Mid-drive motors and Li-ion batteries are becoming the norm, offering pedal assist and power on demand for tech-savvy consumers. Manufacturing innovations include modular components, carbon-reinforced belts, and aerodynamic designs, enabling e-bikes to tackle steep terrains and offer longer battery life. However, high upfront costs and maintenance requirements remain challenges. Battery technology advancements, such as Lithium-Iron Phosphate and lightweight materials, are addressing these concerns while promoting sustainable mobility and reducing carbon footprints. The market also includes bike-sharing programs and contractual agreements, offering flexible options for urban commuters.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Battery Type
• SLA Batteries
• Li-ion Batteries
• Propulsion
• Pedal Assist
• Throttle Assist
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa
• Drive

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio