New opportunity for E-bikes to go global, surging into the new overseas market worth hundreds of billions

New opportunity for global expansion of E-bikes in a lucrative overseas market worth billions

Due to the increase in demand for outdoor activities and changes in commuting habits, E-bikes (electric bicycles) have started to appear in people’s sight and the market has rapidly grown. Especially in Europe and America, E-bikes have become a new favorite for people’s transportation, and in 2021, the number of E-bikes purchased by Americans has surpassed the total number of electric and hybrid cars.

So, what are the pioneers of E-bikes going abroad? What are the current characteristics of the market? And what are the segmented categories?

01. Pioneering Brands of E-bikes Going Abroad

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Yadea

As the leader in the domestic two-wheeler industry, Yadea formulated a globalization strategy very early on and has been striving towards this goal.

In November 2022, Yadea attended the 2022 European Bicycle Exhibition held in Frankfurt, Germany. In addition to Yadea’s Y80 product, the new Yadea e-bike product – TROOPER001 was also exhibited. The bike has a more powerful 400W motor and a large-capacity battery with a range of up to 90 kilometers, and is equipped with smart functions such as Bluetooth smart lock, smartphone integration, and stunning appearance, which has caused a strong response in foreign markets.

GIANT

The old bicycle brand Giant, with more than 40 years of accumulation in the bicycle field, has early layouts in the European and American E-bike market with its strong R&D and dealer network.

In addition to its own bicycle technology, Giant’s E-bike is also equipped with intelligent auxiliary systems, Yamaha motors, and Panasonic batteries, dedicated to providing consumers with a better riding experience.

DYU (Dayu Smart Bicycle)

Dayu Smart Bicycle officially went abroad in 2017 and has won the favor of many overseas consumers with its product differentiation design.

Unlike the traditional E-bike’s vehicle size, Dayu Smart Bicycle adopts the biomorphic design of dolphins leaping up, coupled with the foldable compact design, accurately capturing the demand of the subdivision market for leisure entertainment and light exercise, and successfully occupying the minds of overseas consumers.

Currently, Dayu Smart Bicycle has exported to more than 60 countries worldwide, with more than 1 million users globally. In the E-bike’s going abroad raceway, Dayu electric vehicles continue to develop new products based on the needs of the subdivision market, filling the gaps in the European and American markets and providing better quality electric bicycle products to global consumers.

****VELOTRIC****

The electric bicycle brand VELOTRIC completed 50 million yuan in Series A financing in February 2023. According to the founder of VELOTRIC, this funding will be used to expand the company’s influence in the US market.

Velotric focuses on the fastest-growing entry-level product market and strives to reduce the price of high-quality products to a level that every user can afford. In addition, Velotric focuses on product self-research, putting safety and reliability in the first place. Currently, the products launched have passed the strict UL2849 certification in North America.

02. Insights into the E-bike market

Currently, the demand for E-bikes comes mainly from Europe, North America, and the Asia-Pacific region. With the development of the new energy electric revolution in these countries and the long-standing bicycle culture, the international market for E-bikes has grown significantly.

According to Precedence Research, the global electric bike market is expected to reach around US$40.98 billion by 2030, and will expand significantly from 2021 to 2030 at a compound annual growth rate of 9.6%.

Asia-Pacific region

The Asia-Pacific region contributed approximately 88% of the global electric bike market in 2020 and will maintain its status as the world’s largest electric bike market. Especially in the China-Japan-Korea region, the government is also promoting various measures to encourage the use of electric bikes to solve urban congestion, reduce carbon dioxide emissions, and promote a healthier lifestyle.

According to Mordor Intelligence’s report “Trends and Forecast for the Asia-Pacific Electric Bike Market”, the compound annual growth rate of the bicycle market in the Asia-Pacific region is expected to be 4.51% from 2020 to 2025.

Europe

The European market is mainly dominated by Germany, France, Italy, and the Netherlands, and the market penetration rate has reached 20%.

According to the “European Electric Bicycle Market Growth Trend Forecast” report by Mordor Intelligence, the European electric bicycle market was worth $9.01 billion in 2021 and is expected to reach $18.26 billion in 2027, with a compound annual growth rate of 12.97% during the forecast period (2022-2027).

Germany leads the electric bicycle industry in Europe. According to data from the Federal Statistical Office, as of early 2021, German households owned 7.1 million electric bicycles, up from 5.9 million in 2020. This means that one out of every eight German households has an electric bicycle.

(Image source: Mordor Intelligence)

One of the reasons for the rapid and sustained growth of the e-bike market in Europe is the tax breaks and subsidies offered by major European countries for e-bikes. For example, consumers in the UK can apply for a tax break of 30% of the sales price, up to a maximum of £1,500; and Belgium has a policy of 100% tax breaks for merchants, and so on.

North America

According to data from Mordor Intelligence, the North American electric bicycle market was approximately $800 million in 2021 and is expected to reach $1.62 billion in 2027, with a compound annual growth rate of 12.51% during the forecast period (2022-2027).

The demand for electric bicycles in North America is soaring. People of different ages can use electric bicycles. Young people use them for commuting and exercise, while elderly people mainly use them for shorter and safer commutes.

On November 19, 2021, the U.S. House of Representatives passed the “Build Back Better Act”. According to the bill, citizens who purchase electric bicycles can receive a tax credit of 30% of the purchase price of the new vehicle.

China becomes the main exporter of E-bikes

The strong demand for E-bikes in overseas markets has provided many business opportunities for domestic Chinese merchants. China’s well-developed supply chain system has made it the main exporter of E-bikes. According to data provided by the Economic and Information Bureau of Jinhua City, Zhejiang Province, in 2021, the export volume of E-bikes produced by Jinhua increased by 99.6% year-on-year, and the increase in orders for E-bikes from overseas generally exceeded 20%.

According to statistics from the General Administration of Customs, the import and export scale of electric bicycles in China has continued to grow, with exports as the main trade. In 2021, China exported 22.9 million electric bicycles, a year-on-year increase of 27.7%; the export value was 5.29 billion U.S. dollars, a year-on-year increase of 50.8%.

As Chinese manufacturing continues to deepen its E-Bike overseas blueprint, Chinese brands will occupy a larger market share internationally and have the possibility of entering millions of households globally.

03. Subcategories of E-bikes

As a new energy subdivision track, E-bikes can be divided into several categories according to their main functions.

E-MTB (Electric Mountain Bike)

E-MTB, or Electric Mountain Bike, is mainly suitable for users with strong outdoor needs such as off-road and mountain climbing.

Currently, electric mountain bikes on the market generally have higher requirements for their accessories in order to ensure their off-road performance. Therefore, the price of electric mountain bikes is relatively more expensive than other types.

E-Road/Commuter

E-Road electric bikes are for users who want to satisfy their cycling needs on the road. These users often only need a little assistance at specific times, which provides the advantages of pedaling efficiency without adding too much unnecessary weight, helping users go further with the same amount of body strength.

E-Commuter electric bikes cover many types of bicycles, such as Gravel bikes, Touring, or Compact. Essentially, they are mainly used for cycling on paved roads. However, compared to professional road bikes, they have more different demands, with less emphasis on efficiency and more on comfort with larger seats.

E-Folding Electric Bikes

E-Folding electric bikes are often used as auxiliary tools for the last mile of public transportation. They are easy to store without taking up space and can solve the problem of difficult parking. The small and lightweight design is popular among female users.

E-Cargo Electric Bikes

E-Cargo can be considered a leisure travel bike in the E-Bike industry. It is equipped with a front basket or rear rack, in addition to the usual bicycle features, and its frame structure is designed for strong load-carrying capacity. It can carry children, pets, and more goods. It is very popular in Europe and can replace cars for many transportation tasks.

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