PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1461242
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1461242
Global e-bike battery market is projected to witness a CAGR of 14.21% during the forecast period 2024-2031, growing from USD 10.1 billion in 2023 to USD 29.24 billion in 2031. The convenient, environmentally beneficial, and recreational benefits of e-bikes have increased their popularity. E-bikes consist of an electric motor, enabling a greater number of individuals to cycle, including those who might find it difficult to ride conventional bikes. E-bikes are popular due to their convenience, environmental benefits, and social and recreational advantages. The increased riding range, government initiative to support EVs, and constantly evolving battery technology are expected to fuel the market growth.
New companies launching e-bikes with lightweight solid-state battery packs are also transforming the market dynamics. The increased population of health-conscious people is leading to higher sales of e-bikes. Their features, such as better space utilization and enhanced weight distribution, are projected to fuel market growth.
For instance, in February 2022, Priority Bicycles introduced a range extender for their Current line of e-bikes. The bike's usual range would be doubled to 64 kilometers with the range extender or 80 kilometers with reduced power. The range is extended with the usage of a new 500 kWh battery.
Integrated Lithium Batteries and Easy Installation to Fuel Market Expansion
Plastic and aluminum are lightweight materials used to make the battery. The slender frame and small, streamlined design decrease its overall weight. By utilizing cutting-edge technology, the battery outperforms conventional bike batteries in terms of performance and weight. Modern batteries are lighter and are easy to install and remove. It does not require any tool or specialized equipment, which has made it easier for end-users through faster installation. Adopting advanced technology such as thermal resistance is impacting the market growth.
For instance, in March 2024, Rad Power BikesTM announced the release of four adaptable e-bikes and the newly designed heat-resistant Safe ShieldTM Battery. Available as an external or semi-integrated 15Ah battery pack, the new Safe Shield Battery with temperature-resistant technology was created from the bottom up to improve the safety of e-bike batteries. The new battery packs meet UL 2271 certification requirements.
Improved Weight Distribution and Theft Deterrence to Thrive Market Growth
Integrating the battery into the frame significantly reduces the e-bike's center of gravity. Even in difficult riding situations, this reduces the chance of toppling, ensuring improved stability and control. The battery is positioned inside the frame to maximize weight distribution. This balance makes riding more cohesive and comfortable by reducing the tendency for the front or rear to feel heavy and facilitating smoother handling.
Potential thieves are less drawn to e-bikes with built-in batteries. Due to the battery being tucked away within the frame, the bike is less noticeable and, hence, less of an attractive target for theft. The removal and access of integrated battery systems present a challenge for thieves. In contrast to external batteries that are easily removed, the integrated design necessitates specialized skills and expertise, hence discouraging unauthorized removal. The upcoming e-bikes will come with advanced technology.
For instance, in March 2024, MOD BIKES introduced its new 2024 e-bikes with torque sensors and helmet turn signals. Many of MOD BIKES' current models, including its cargo e-bike, folding city e-bike, and commuter-ready Berlin e-bike, have been updated for the 2024 portfolio. New models, such as a full-suspension MOD Black adventure e-bike for off-road trips, are also included.
Government's Support of EV Battery Technology to Fuel Market Growth
The government promotes electric technology through incentives, tax cuts, and subsidies. Government authorities play a vital role in developing e-bike batteries, from providing subsidies to end-users to incentivizing production-linked schemes. Hence, the government's plan to promote sustainability, health, and electric vehicles will likely fuel the market growth. in February 2022, the House of Representatives approved the law for a 30% tax credit to purchase new electric bicycles in the United States. Except for bikes with motors larger than 750W, all three categories of electric bicycles are qualified for the tax credit under the proposed proposal. Companies renting out bikes are working with manufacturers of batteries to exchange defective and depleted batteries at special kiosks. Infrastructure for charging is being reinforced with investments, artificial intelligence, and other technologies to estimate demand more accurately.
Longer Lifespan and Faster Charging to Fuel Hydraulic Segmental Growth
Based on battery, lithium-ion batteries hold a significant share in the market. Numerous advantages come with lithium-ion batteries, including longer life cycles, low self-discharge rate, and high energy density. They are lightweight and a popular option for both manufacturers and customers. Consequently, this is propelling the expansion of the lithium-ion battery sector within the e-bike battery pack market. In addition, the market is projected to develop because of the increased energy density, longer lifespan, quicker charging, maintenance-free operation, and impending cost reduction.
For instance, in March 2023, Decathlon expanded its electric two-wheeler product portfolio by launching the Rockrider E-ST100 bicycle. With its detachable 380 Wh Samsung lithium-ion cell battery pack, this e-bike can provide pedal assistance for up to 100 km in mode 1 on level terrain and can be fully charged in six hours.
Europe Leads in the Global E-bike Battery Market
The European region holds a decent share of the global e-bike battery market. The increased adventure sports, mountaineering activities, and health awareness in the region are expected to fuel the market growth. E-bikes have become increasingly popular in Europe in recent years. Fuel prices, traffic congestion during peak times, and exercise-related benefits are some of the driving factors of the market growth in many European countries, including the United Kingdom, Italy, Spain, and Germany.
For instance, in August 2023, according to a policy brief released by the European Cyclists' Federation (ECF) the European Union announced that it will invest around USD 3.46 billion in cycling projects between 2021 and 2027. By 2023, cycling will become a strategic priority in Europe, predicts the ECF. Businesses such as the German multinational Bosch have been instrumental in creating better e-bike motors and battery systems. The success of European e-bike enterprises has been largely dependent on the integration of high-quality and efficient battery packs.
Future Market Scenario (2024-2031F)
The advanced battery packs with higher range, lighter weight, and limited pricing are expected to fuel the market growth during the forecast period.
New technologies including battery management and monitoring systems are expected to increase the battery shelf life in the future.
Government efforts and the adoption of e-bike fleets are anticipated to fuel the market growth.
Key Players Landscape and Outlook
The e-bike battery market comprises major battery manufacturers. These companies expand their manufacturing line to serve the increasing demand. The market players also collaborate, acquire, and partner to enhance the supply chain and distribution channel. Competitors focus on adopting the latest battery technology to increase sales.
For instance, in December 2023, Yamaha Motor Co., Ltd. announced the formation of ENYRING GmbH, a new business that is going to offer subscription-based services for swappable batteries for small urban electric cars. ENYRING would be able to establish a complete loop in which recycled materials are used as resources to create new products by providing such services and reusing and recycling batteries in collaboration with European circularity leaders.
In January 2024, Varta AG expanded its research and development capabilities for next-generation batteries in its Australian facility. According to VARTA, the research center is also going to prioritize energy efficiency, sustainability, and the utilization of recycled materials in manufacturing processes.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.