Current status and expectations of the global electric bicycle motor industry

History of the development of electric bicycles around the world

Electric bicycles are two-wheeled bicycles that use onboard batteries as auxiliary energy, have pedal riding capabilities, and can achieve electric assist and electric drive functions. In 1881, French engineer Gustave Trouvé developed the world’s first electric bicycle. Its appearance is not the common two-wheeled electric bicycles of modern times, but a three-wheeled electric bicycle.

Due to the limitations of the economic and technological levels at the time, Gustave could only choose a relatively stable tricycle as the object of transformation into an electric bicycle. The tricycle at that time was powered by batteries, which is similar to the power source of modern electric bicycles.

In 1895, Ogden Bolton, an inventor in Ohio, USA, applied for the first patent for electric personal travel tools. His idea changed human understanding of the concept of power for personal travel tools.

The development history of electric bicycles is longer than that of fuel vehicles. However, with the development of fuel vehicle technology, electric bicycles have long failed to make breakthroughs in the research of energy technology and mileage. From the early 1920s to the late 1960s, the development of electric bicycles entered a period of silence.

It was not until the 1970s that electric bicycles became a hot spot for technological development again due to the outbreak of the Middle East oil crisis and the increasing concern of mankind for the natural environment.

Current situation of the electric bicycle market

Today, North America and Europe are the main consumer markets for electric bicycles. According to data from consulting firm Deloitte, the sales of electric bicycles in North America and Europe have increased from 2.5 million in 2017 to 6.4 million in 2021, an increase of more than 2 times. Among them, the sales of electric bicycles in the United States increased by 26% from 2020 to 2021, while the sales in the European market increased by 22%.

The expansion of the overseas electric bicycle market is due to the influence of sports health, convenient transportation, energy saving and economy. Electric bicycles can not only reduce contact, but also help improve physical fitness as a sport. Compared with cars and public transportation that are easy to get stuck on the road, driving a smaller electric bicycle can avoid traffic jams.

Compared with traditional fuel vehicles in terms of energy saving and economy, electric bicycles are more environmentally friendly, and users can also avoid the economic burden brought by rising fuel prices. Under the policy of low-carbon emission reduction, some countries have also provided certain economic subsidies for electric travel.

Electric bicycles have attracted more and more attention from the primary market in recent years. According to the technology media The Verge, in the European market alone, many VC institutions invested a total of US$165 million in the electric bicycle category from 2019 to 2020, exceeding the total investment in this category from 2015 to 2018.

In addition, more and more DTC brands in the electric bicycle field have obtained financing, including VanMoof, Cowboy, and Rayvolt in Europe, and Rad Power Bikes, Super73, and SWFT in the United States. According to ebikeshq statistics, 73% of the demand for electric bicycles is priced between US$1,000 and US$4,000, and about 26% of the products are above US$4,000.

Development potential of the electric bicycle market

The electric bicycle market is expected to exceed US$100 billion, with great potential business opportunities. According to data from market research firm Markets and Markets, the global electric bicycle market size will be US$49.7 billion in 2022 and is expected to reach US$80.6 billion in 2027, with a compound annual growth rate of 10.2% from 2022 to 2027.

According to data from the China Economic Industry Research Institute, the global electric bicycle market supply has a compound annual growth rate of 7% from 2015 to 2020. Although limited by the impact of the macroeconomic downturn in 2020, electric vehicle sales increased by 29% year-on-year to 47.6 million units.