- The ebike market is set to grow from USD 51.5 billion in 2023 to USD 77.2 billion by 2028, driven by eco-friendly commuting and government incentives.
- Class-I ebikes lead globally; North America sees growth with Class-II models.
- Lithium-ion batteries dominate, and Asia Oceania, led by China, emerges as a global E-Bike production hub.
The global ebike market is set to grow rapidly, with huge predictions for 2028
The ebike market is on a break-neck ascent, according to a report from Markets and Markets. The sector is projected to soar from USD 51.5 billion in 2023 to a staggering USD 77.2 billion by 2028. That’s a robust Compound Annual Growth Rate (CAGR) of 8.4%.
What’s fueling this growth? It’s a fusion of health, eco-friendliness, and budget-friendly commuting. These factors marry together to provide a formidable solution to urban traffic and pollution issues.
European and American regions are driving the global surge. By and large, governments in these regions are investing in dedicated bicycle lanes and offering incentives to propel ebike adoption. Notably, electric mountain bikes (e-MTBs) are stealing the spotlight, witnessing a surge in demand.
What’s Driving the Market?
- Class-I Ebikes: Pedal assist only, maximum speed of 20mph.
- Class-II Ebikes: Maximum speed of 20mph, however, these models are throttle-assisted.
The Class-I Ebike segment takes the lead globally, with an anticipated slow growth trajectory during the forecast period. However, the Class-II Ebikes are revving up their engines, capturing an expanding market share. North America is sprinting ahead in market growth, driven by government incentives, including a 30% tax credit on new electric bicycle purchases in the US.
Lithium-ion batteries are emerging as the powerhouse of the E-Bike market. They’re eco-friendly, boast a robust lifecycle, and boast a superior power-to-weight ratio. Plus, the price tag of these batteries has plummeted by nearly 90%. This is largely thanks to economies of scale and fierce market competition.
Asia is the epicentre of ebike production and sales, led by China, followed by Japan and India. China, with a staggering 45% CAGR, is a frontrunner in global ebike sales.
In this surge, city/urban ebikes are reigning supreme in Asia and Oceania, fueled by China’s 2% boost in sales due to regulatory interventions. Meanwhile, Japan sticks to Class-I E-Bikes, and India is just stepping into the ebike arena, catering to both Class-I and Class-II models.
The ebike revolution is charging ahead globally, transforming how we commute and embracing a cleaner, greener future on two wheels. Now that governments are investing heavily in cycling infrastructure in many cities, we need the incentives to match. Ebikes are an easy win for decarbonisation and public health on multiple levels. Be it exercise, air quality, noise pollution, traffic, you name it, ebikes are the answer.