E-Bike Tire Market - Growth, Trends, and Forecasts (2023 - 2028)

The e-bike tire market is expected to reach USD 2,351.93 million, registering a CAGR of 16.28% over the next five years.

The COVID-19 pandemic had a mixed impact on the market, as initial lockdowns and shutdowns of manufacturing units resulted in a slump in demand across the globe. However, as restrictions eased, demand for e-bike tires increased as various dealers witnessed an increase in their sales year over year across the world. ​E-bike tire demand will rise in tandem with the growing popularity of e-bikes. To meet the rising demand, several e-bike manufacturers are expanding their operations across the world. For instance, Pirelli began producing cycling tires at the Bollate factory near Milan in March 2022. To accommodate the production of Pirelli Cycling's top-of-the-line lines, the facility has undergone a period of modernization and overhaul.

Over the long term, the demand for sports e-bikes is expected to rise in the coming years due to the increased use of bicycles in trekking and leisure activities, and an increase in the number of cycling events. The number of biking expeditions to difficult terrains, such as steep mountain ranges, has increased in recent years. The growing popularity of such expeditions is expected to drive demand for bicycles, which will benefit sales of e-bike tires. With the growing sales of e-bikes, the demand for tires may rise. Several e-bike manufacturers are expanding their facilities to cater to the rising demand. For instance, in February 2021, Vittoria invested EUR 10 million (around USD 12 million) to extend its European operation in Northern Italy. The company will double its European warehouse capacity to support growth in the coming years as part of investments aimed at increasing output.

Tire prices, like any other commodity, are influenced by two major factors such as disruptions in the supply chain and demand for raw materials. There is also volatility in crude oil prices worldwide. Volatility in the prices of crude oil worldwide creates huge fluctuations in the market, influencing the end cost of tires as the production of synthetic rubber and carbon black depends heavily on crude oil.​ This may hamper the market growth in the upcoming year.

The European market is one of the fastest-growing segments of the e-bike tire market during the forecast period. Germany led the European market, accounting for approximately 40% of the market in the previous year. It was followed by the Netherlands and France, each of which captured more than 11% of the overall market share. The European Commission's anti-dumping and anti-subsidy sanctions against Chinese e-bikes have contributed significantly to the market's growth since 2018. Additionally, the United Kingdom government has started taking steps to enhance the adoption of e-bikes and motorcycles in the country. To promote the use of e-bikes, the government has introduced national incentives and plans to increase financial subsidies. The government announced the decision to set a 2035 target for the phasing out of all new motorcycles equipped with an internal combustion engine (ICE).

Key Market Trends

Rapid Adoption of E-Bike will Positively Impact the Target Market Growth During the Forecast Period

Rising government spending on bike-sharing programs, bike lanes, and more pedestrian-friendly streets as part of major initiatives to increase transportation options, improve road safety, and improve the environment are expected to increase consumer interest in e-bikes in the coming years. Growing concern about greenhouse gas emissions and meeting the demands of an increasing number of consumers are pressuring the industry to meet government and market demands for more sustainable products such as fat and large e-bike tires. Companies have been working with them every step of the way to help make those e-bike tires more efficient. As a result, tire manufacturers are developing fatter and larger tires. The most significant benefit of large-tire bikes is that they can be ridden in all weather conditions, and the bike will not slip on water or sink in snow or mud.

E-bikes stay in perfect balance with fat bike tires, requiring no extra effort when riding. So, the next time rider is stuck inside on a snowy day, make the most of it by taking a ride through their winter wonderland. A large tire bike is a cruiser that can take users through almost anything due to its adaptability to whatever situations they are in. Large tires were originally designed to ride over snow, but over time, they have evolved into heavy-duty tires capable of competing with mountain bikes. Across the country, major cities focus on building a safer bike infrastructure.

For instance, the Chicago Department of Transportation (CDOT) announced bike lane expansion throughout the city in September 2021. The department has spent approximately USD 17 million to install 100 miles of new and improved bike lanes. ​The Denver Department of Transportation planned to build 16 miles of protected and 19 miles of regular lanes by 2021. Riders benefit from safer and smarter connectivity owing to protected lanes. ​

NORTH AMERICA IS EXPECTED TO WITNESS A CONSIDERABLE SHARE IN TARGET MARKET

In North America, electric bikes are a versatile and eco-friendly way to get around. They are flexible and can be used in a variety of ways, making them a popular choice for people who want an environmentally friendly way to get around. Consumers look up to them as an alternative mode of transportation, such as scooters, cars, and public transportation. E-bikes are effective at tackling traffic congestion because they are smaller than traditional bikes and can go faster with less effort. They also have health benefits when you pedal. The aforementioned factors contribute to the increasing demand for electric bike tires.

One of the major concerns for governments and environmentalists in recent decades has been the increase in global carbon emissions from fuel combustion. This has the effect of increasing demand for electric vehicles in United States and Canada, helping to bolster the growth of the market. Some e-bike manufacturers have introduced new models and expanded their manufacturing facilities throughout the country.

For instance, HOVSCO announced the release of five new electric bikes on the US market in May 2022, including three fat tire e-bikes (HovAlpha, HovAlpha Step-Through, and HovBeta), an electric commuter bike (HovRanger), an electric commuter bike (HovRanger). All new models include a Samsung/LG 48V/20Ah (or 15Ah) battery, a 48V 3A fast charger, and a 750W motor. ​In March 2022, Yamaha Motor Corp. USA introduced two all-new, class 3 power assist bicycles, the Wabash RT and the CrossCore RC. These e-bikes are designed from the ground up with a new Yamaha PWSeries ST drive unit, frame, and batteries internally integrated.

Electric bikes are becoming more popular in United States and Canada due to the increase in fuel costs, pollution levels, and traffic congestion in urban areas. Several companies are partnering with organizations to make e-bikes more affordable by implementing programs. For instance, CalBike (California Bicycle Coalition) won the first round. CalBike is now collaborating with the California Air Resources Board to launch a program to assist California residents in purchasing e-bikes.

Competitive Landscape

The market is moderately fragmented, with several Chinese and Japanese players. The e-bike tire industry is adopting various industries, including new product development and expansion throughout the globe. OEM companies install the latest features and technologies to meet growing customer demands. They make tires suitable for the present needs of customers. For instance,

• In March 2022, Pirelli expanded manufacturing capacity at its Bollate, Italy plant, with an annual capacity of 1.5 million tires. The updated plant will manufacture high-end P Zero Race road and mountain bike tires for e-bikes. The plant expansion is expected to be completed in early 2023.
• In January 2022: Three new Michelin Group bike tires were unveiled, covering every type of biking, from dry hardpack to winter.

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