Market Overview
Electric bike technology is the latest disruption in the fields of transportation and logistics. Running on electricity rather than fossil fuels is the greatest aid offered by electric bikes to the environment. Lower purchase and maintenance costs, fewer access limitations and faster commute are some of the key factors driving the adoption of electric cargo bikes in the region. The growing inter and intra-city freight delivery in the region is promoting the growth of e-cargo bikes. Rad Power Bikes LLC, Riese & Müller GmbH, XYZ CARGO and DOUZE Factory SAS are some of the leading manufacturers operating the region.The governments across the region are launching several assistance programs to achieve their sustainable transport goals. According to industry estimates, the sales of e-cargo bikes in Europe witnessed a growth of nearly 60% in 2019 and is likely to grow by another 50% in 2020
Market Dynamics
Drivers
- Growing demand for eco-friendly transportation
- Government initiatives
- Reduced cost of lithium-ion batteries
Restraints
- Increased concern about battery lifecycle and High cost of e-bikes
Growing demand for eco-friendly transportation
Mobility plays a vital role in the present-day society we live in. However, the various modes of transportation cause serious environmental damage. As preserving the environment for future generations, especially because of the growing scarcity of natural resources, is one of the greatest challenges for the society and the government, the demand for eco-friendly modes of transportation such as e-bikes is growing. E-bikes are gradually becoming the bicycle of the future. They are considered eco- friendly, reliable, and recreational modes of transportation as they offer both the fun of cycling and some of the advantages of automobiles. They allow the riders to ride with ease on rough terrains, which are difficult to ride without the aid of electric motors. Moreover, e-bikes are noiseless and emission-free, promote health, require minimal space for parking, and have significantly low costs. Thus, these bikes are becoming popular across the world. We expect that e-bikes will be used instead of cars for a substantial share of short-to-medium distance trips that can be done through cycling over the coming years.
Regional Analysis
Europe is the leading region by overall market share, with financial incentives, exhaustive choices in upgraded models, and creation of separate bike lanes during peak traffic hours contributing to the growth in sales volume of electric cargo bikes. Currently, Germany is Europe’s largest market for cargo bikes in terms of volume. The sales of electrically assisted cargo bikes alone surged to 21,000 in 2017, which is 42% more compared to 2016. Germany is the largest market for electric cargo bikes in Europe, holding nearly 32% of the total sales in 2019. The rapidly growing demand from the commercial, public and private sectors will lead the market over the forecast period. According to industry estimates, the unit sales of e-cargo bikes in the country witnessed a growth of 80% in 2018.
The growth of the market is also dependent on the assistance provided by federal and local governments. However, the country is yet to develop a national financial assistance policy for e-cargo bikes at industry level. As of 2019, XYZ CARGO and Riese & Müller GmbH are leading in the sales of e-cargo bikes in Germany. Also, some other leading European manufacturers such as DOUZE Factory SAS are operating the domestic market. Electric cargo bikes have huge opportunities in Germany owing to large retail suppliers presence. Germany is the major destination hub for Europe's largest retail suppliers such as Schwarz, Aldi, Rewe, Edeka, and Metro. At the top of the list was the German retail group Schwarz with an annual turnover of 113 billion euros. Schwarz owns the supermarket chains Lidl and Kaufland, both of which also have branches in Europe. Apart from Schwarz Group and Aldi, Germany has three more supermarket retailers that trailblaze in Europe. The respective turnover figures of Rewe and Edeka set the competition between the two chains on edge, with the former having the lead by a narrow margin.
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DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year, we have secured more than 100 unique customers from established organizations all over the world.
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