The electric bicycle market - UK

Since 2020, the global e-bike market has been experiencing a growth, driven by the increasing demand for sustainable transportation options. In 2022, the market generated a significant revenue of $49.7 billion and is anticipated to surge to $80.6 billion by 2027, expanding at a CAGR of 10.2%. This growth has been bolstered by government initiatives encouraging the adoption of bicycles, particularly in Europe, where the sale of e-bikes has been rising. The UK's e-bike market, valued at USD 0.24 billion in 2021, is also expected to grow to USD 0.44 billion by 2027, with a CAGR of 10.56%.

The pandemic contributed to an increase in demand for e-bikes, causing shortages and price hikes, while also impacting the e-bike supply chain, which is heavily reliant on components sourced from Asia, predominantly China. In terms of distribution channels, physical stores still hold the largest share, although online sales are becoming increasingly significant. National cycling strategies in Europe, aiming to coordinate cycling policies and goals, have also begun to shape the market, recognizing the importance of cycling in sustainable transport ecosystems.

Emerging Trends in the UK E-Bike Market

In the UK, the e-bike market stands as an evolving segment of the transportation and leisure industry. This growth trajectory is bolstered significantly by two distinct groups: newcomers to cycling and existing cyclists switching to electric models. The latte's impact is particularly pronounced. Research indicates that approximately 14% of current cyclists and 5% of all adults in the UK are considering an e-bike purchase within a year, which translates into roughly 2.78 million potential buyers. Despite such prospective interest, the share of e-bikes production remained modest at about 9% of the total bicycle manufacturing output, lagging behind some European counterparts where the proportion hovers around 23%. Comparative analysis with countries like Germany exhibits stark contrasts. In the UK, annual e-bike sales barely reach 165,000 units, a number dwarfed by Germany’s towering 2 million. Notwithstanding, the UK government aspires for a paradigm shift, setting ambitious targets for half of all short commutes to be undertaken via cycling or walking by the end of this decade.

However, this initiative is somewhat undermined by the limited infrastructure support for electric bicycles—evidently in the glaring discrepancy between e-car charging points, numbering over 30,000, and e-bike charging points, which are just a mere 16. The e-bike demand is notably influenced by the demographics and behaviors of UK residents. Only 2% of all trips were made by bicycles, and the predominant usage was among the younger population, with a slight resurgence observed in the 40 to 60 age group—a critical target for the e-bike industry due to their preference for less physically demanding transportation options. In terms of sales, the numbers are on a downturn. A focal point for e-bikes, sales of bicycles priced over 500 pounds have witnessed a decline. Factors impacting the market composition involve geographical variabilities, where England emerges as the sole territory with a substantial level of bicycle usage for transportation. In contrast, other regions maintain a strong preference for cars, and hence, the demand for e-bikes could mirror that of standard bicycles. Concurrent trends shaping the market landscape include the growing quest for exercise alternatives and heightened awareness of mental health benefits offered by cycling.

Key Players Shaping the UK E-Bike Market Landscape

The UK electric bike market, while still burgeoning compared to other European nations, is peppered with a diverse range of players, from small homegrown companies to international powerhouses. Here we explore the pivotal entities that are forging the path and influencing the dynamics of the UK e-bike industry.

UK's Homegrown E-Bike Innovators: Volt Bikes and Emu Electric Bikes :

• Starting on the domestic front, Volt Bikes Ltd stands out as one of the notable homegrown manufacturers. Though modest in revenue, this company has been making waves in the local market with its specialized designs and customer-focused offerings. Their range of e-bikes is tailored for the UK's unique road conditions and commuter preferences, emphasizing reliability and ease of use.
• Similarly, Emu Electric Bikes Ltd, another UK-based company, brings to the market a suite of electric bikes that cater to the country's evolving mobility needs. Despite being a smaller operation, Emu has carved out a niche for itself with its distinctive electric bikes that couple aesthetic appeal with functionality.

The Global Titans: BMW, Mahindra & Mahindra, and Yamaha :

• On the global stage, BMW is a name synonymous with performance and luxury. Known extensively for their feats in automobile engineering, BMW's venture into electric bikes presents an aura of sophistication and cutting-edge technology. Their entry into the e-bike sector infuses it with a pedigree of automotive excellence, offering consumers performance-oriented electric bikes with a stamp of German engineering.
• Mahindra & Mahindra Limited, with its roots in India, is another multinational behemoth extending its reach into electric mobility. Its strides in the e-bike domain reflect the company's deep-seated commitment to sustainability and innovative transportation solutions. With a broad portfolio that seeks to meet varying consumer needs, Mahindra & Mahindra is a strong contender on the international front. Japanese powerhouse Yamaha brings a storied history in motorbike manufacturing to the e-bike table.
• Known for their precision engineering and durability, Yamaha's e-bikes are a testament to the brand's reputation for quality. With their entrance into the UK market, Yamaha offers a blend of reliability and performance, appealing to both e-bike enthusiasts and newcomers alike.

An Emerging Electric Vision: Hero Electric :

• Lastly, Hero Electric exemplifies the growth of more specialized entities within the e-bike market. As a segment of the largest two-wheeler manufacturer in India, Hero Electric's focus on affordable and accessible electric.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 09/02/2023

Summary and extracts

List of charts presented in this market study

• Number of e-bikes
• Previsioni sulla produzione di biciclette elettriche
• Cost of manufacturing one E-bike