Government Initiatives Towards Promoting Eco-Friendly Vehicles
Growing technological advancements has helped severely in contributing towards the development of eco-friendly solutions for minimizing carbon emissions. Owing to the various environmental concerns being raised by prominent international bodies, the government of various countries has taken initiatives to promote electric vehicles, including electric bicycles. Moreover, stringent government norms and regulations worldwide is anticipated to raise the adoption of electric vehicles. Such factors are anticipated to drive the growth of the global electric bicycle market.
Rising Fuel Prices And Increasing Traffic Congestion
The fuel prices have been skyrocketing in the recent years. As such, this trend has resulted in the prospective opportunities amongst people to look for electric vehicles as an alternative means of transportation vehicle. Also, the concern for the increase in traffic congestions owing to the significant growth in the number of vehicles owned, has also majorly contributed towards the growth of electric bicycles. People are switching to cheaper alternatives to avoid the rising fuel costs. Such factors are anticipated to drive the growth of the global electric bicycles market.
Upsurge in the Enthusiasm For Fitness And Exercise Regimes
People nowadays are drawn towards a healthy lifestyle, especially in the urban areas. The trend towards fitness is influencing many people to take cycling as an alternative for commuting to office or to nearby areas. The comfort in using electric bicycles is that the customers experience the ease of traveling without sweating as compared to conventional bicycles. The ease of comfort that is being provided, along with the health benefits associated with cycling are some of the considerable factors that are estimated to promote the growth of the market.
Increasing awareness towards rising pollution levels and the increasing global warming worldwide, along with the necessity to lead a fit and healthier lifestyle are some of the significant factors boosting the market growth. Additionally, these bikes act as a cheap alternative to bimotored vehicles. Driven by these prominent features along with favorable government regulations for permitting e-bikes as a means of public transport, the global folding bicycles market is estimated to grow with notable CAGR during the forecast period, i.e., 2020-2028. The market is segmented by product type, battery type, conversion kit type, motor type and by application. The product type is further segmented into pedelecs, power on demand and pedal assist with the throttle on demand, out of which, the pedelecs segment is anticipated to grow significantly throughout the forecast period. Pedelecs have many benefits over typical bikes, such as, high mobility, that is helpful for older folks while mounting hill or for travelling long distances in a shorter time. Moreover, these types of e-bikes require less effort when going uphill or while riding against the wind. On the other hand, the sealed lead-acid segment, which is a sub-segment of the battery segment, dominated the market, owing to its low cost and ease in recycling the battery. However, the growth and popularity of lithium type battery is increasing significantly, owing to their lightweight and high-performance capabilities.
Lack Of Road Network for Cycling and High Product Cost
Unavailability of proper roads and cycling tracks in several developed and developing nations, coupled with the increasing cost of electric bicycles, which might not be affordable for low and middle income group individuals are some of the factors anticipated to act as a restraint factor towards the growth of the global electric bicycle market.
Our in-depth analysis of the global electric bicycle market includes the following segments:
By Battery Type
By Product Type
By Conversion Kit Type
By Motor Type
On the basis of regional analysis, the global electric bicycle market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
The market of electric bicycle in Europe is expected to grow significantly during the forecast period owing to the presence of a developed infrastructure for cycling as well as for the presence of the cycling culture amongst the individuals in the region. The market is majorly driven by nations, such as, Germany, UK, and France. Moreover, presence of several electric-powered bicycle manufacturers in the nations are also anticipated to drive the growth of the electric bicycle market in Europe.
The electric bicycle market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.