The Future of E-Bikes: Understanding the Evolving Landscape

Mapping Out the E-Bike Industry

E-bikes aren’t a new concept — the very first patent dates back to the late 1800s. However, its sudden surge in popularity makes for an interesting examination of the e-bike market, its origins, types of bikes, and market fluctuations.

A Brief History of E-Bikes

The very first e-bike patent was registered in 1895 by American inventor Ogden Bolton Jr., but this form of transportation didn’t fully take off until technological improvements in the late ‘90s, which propelled them into commercial success. Tech giants like Yamaha and Panasonic began to mass-produce them, making them even more accessible and fit for everyday use.

Alongside e-bikes, electric skateboards, golf carts, mopeds, and other forms of last-mile ‘neighborhood electric vehicles’ or NEVs started gaining ground to supply people’s short-distance journeys, marking the beginning of the Micromobility industry.

At some point in the early aughts, the Segway, referred to as “the self-balancing human transporter,” could’ve been the micromobility leader by a stretch. This two-wheeled electric vehicle was expected to become the first great invention of the new millennium. However, a steep price tag and technical issues made it inaccessible and ultimately a commercial flop.

In retrospect, the Segway was the advent of a thriving micromobility landscape, allowing e-bikes and other vehicles to become increasingly affordable and practical with smaller, lighter, more powerful batteries, and better energy efficiency. As a result, more and more people are taking to the streets atop sleek and fast e-bikes.

E-Bike Classification and Types

In the US, 36 states currently recognize a standard classification system of e-bikes with 750 Watts of power, ranging from Class 1 to 3. What differs between them is speed and throttle features, shaping their respective regulations and restrictions.

• Class 1: These bikes go up to 20 miles per hour (mph) and use a pedal assist system (PAS).
• Class 2: While also cutting its motor speed at 20 mph, these bikes also have a throttle in addition to PAS.
• Class 3: These bikes come with PAS and no throttle, but can go up to 28 mph.

The most salient regulations for these classifications involve their speed: Class 1 and 2 bikes are allowed to go anywhere a regular bike can, but Class 3 may require a minimum age, helmet use, and road restrictions to bike lanes and motorways.

Elsewhere, the EU classifies e-bikes with motors of no more than 250 Watts and a maximum assisted speed of 15.5 mph as bicycles. However, rules vary per country, with places like Finland requiring insurance coverage to use e-bikes, and Belgium having a similar classification system of the US.

Moreover, there’s a wide range of e-bike types for all kinds of needs. The most popular one is the urban or cruiser e-bike, which has limited motor power and is ideal for comfortable rides on paved roads. Hybrids feature multi-use tires that can withstand both urban settings and some trail conditions. On the other hand, mountain biking e-bikes allow for riding on rugged trails with a forward position and wider tires made from lightweight materials .

Lastly, the folding e-bike is much like a cruiser for those with less storage space, and the cargo type can take heavier loads to transport objects.

Market Overview

Globally, the e-bike industry was worth $45.1 billion in 2024 and is set to surge at nearly 10% annually to reach $113.3 billion in 2034. Leaders include Aventon, Trek, Lectric, Gazelle, and Specialized.

In the US alone, 1.7 million e-bikes were estimated to be imported in 2024 from 900 different brands, signaling a 72% year-over-year increase. Around 90% come from China, while the rest originate from South Korea, Germany, Vietnam, and other countries. Women also lead e-bike usage over men, and there has been a spike in adoption among people aged 18 to 24 (this younger group will make up 30% of e-bike usage by 2028).

E-Bikes Outpacing EVs

Last year, e-bike company Lectric made headlines as it became the second-best-selling electric vehicle brand in the US, just behind Tesla. Are general preferences changing to favor e-bikes over EVs?

Comparison of E-Bike and EV Adoption

2023 was undoubtedly the year things started to shift for e-bikes. While EVs sold 14 million units, e-bikes boasted an estimated 40 million units sold that year. This is a global trend in the last couple of years, with China, India, France, Germany, and Italy among the countries with soaring e-bike sales.

But this is nothing new in the US. While still a growing market, e-bike sales overtook EVs by 42% as early as 2020, with 15% of Americans owning one as opposed to 4% who own EVs. Whether in cities or suburbs, this e-bike trend is evident as a more sustainable and practical transportation method for people making short trips.

Benefits of Electric Bikes

The truth is e-bike growth can be highly attributed to environmental preferences — when replacing car trips, they can reduce CO2 emissions by 225 kilograms each year. And, while charging their batteries isn’t totally exempt from creating emissions, its average value is 3.28 grams per mile, considerably lower than the 240 grams per mile emissions of a small car.

What’s more, they’re a great option to avoid traffic-dense areas in the city, allowing users to populate boardwalks or bike lanes depending on their e-bike type. And all of that physical activity can even reap cardiovascular and overall fitness benefits for users.

Additionally, bikers won’t need to worry about fuel prices or parking tickets, as there are many affordable charging stations around cities, and parking is usually free or cheaper than car parking.

Commercial E-Bike Adoption

E-bikes didn’t just make their way into users’ hearts only, they’ve also captivated the commercial sector into becoming more sustainable, efficient, and cost-effective, helping to reduce their carbon footprints .

Delivery and Logistics

Food, post, logistics, and other delivery companies have started adopting e-bike fleets to reduce their environmental impact and transportation costs. For instance, DHL spent 63% of its decarbonization budget on electrification.

As a result, the company reduced its carbon emissions by 1 million metric tons of CO2 in 2022, thanks in part to electrifying its delivery fleets. To put the brand’s impact into perspective, this contribution is the equivalent of taking 223,000 cars off the road for a year.

These incontrovertible numbers are leading many more companies to go down the same path, committing themselves to producing fewer emissions.

Shared Mobility

E-bikes have also been at the center of bike-sharing programs, where users can rent them per trip and dock them in designated areas once they’re done. The city of Mississauga has been a great example of how beneficial and popular these programs can be.

Through a partnership with Lime Technology, the city launched its bike-sharing program in June 2024 and reported over 112,000 trips with a combined distance of 360,000 kilometres by December, all with 300 e-bikes and 900 e-scooters.

Sam Rogers, the city’s Acting Commissioner of Transportation and Works, said the initiative aimed to provide an additional mode of transportation for residents that’s sustainable, convenient, and accessible.

Along this same vein, e-bike subscription services are gaining popularity for users interested in longer-term rentals without having to worry about parking the bike at home or repairing it out of pocket. In Seattle, Wombi began offering this option in August 2024, with options starting at $115 per month.

Tourism and Recreation

E-bikes have also become a staple in tourist destinations as an alternative to car rentals and constant cab trips. This is where the cost-effective and sustainable benefits shine through, helping reduce extra car emissions from tourists, especially in eco-conscious locations.

Guided e-bike tours have also become popular as a fun way to explore cities at a faster yet enjoyable pace with an experienced tour guide, like Alberta’s gourmet e-bike tours.

Commercial Risks and Insurance Considerations

All of this biking around also entails the potential for accidents, which companies and users must be ready to mitigate and face. To start, there are the inherent liability risks of a person riding a bike next to cars, trucks, and pedestrians, and on sometimes unreliable sidewalks and roads, whether they’re an employee or an everyday user.

For logistics and delivery companies, managing and insuring an entire fleet of e-bikes can prove challenging — counting on a team of experts in the area to undertake this new endeavor is crucial to succeed.

But, as the e-bike industry grows, so do the insurance coverage options to keep it safe and sound. Specialized micromobility packages are a comprehensive solution to protect equipment, executives, and employees if the going ever gets tough.

What’s Ahead for E-Bikes?

E-bikes have proven their prowess not just for commuting from home to work, but also for commercial use. They’re the sustainable and more affordable mobility option that companies and people have been looking for. So, where are they headed next?

Technological Advancements

Behind an affordable and lighter e-bike are numerous tech advancements that have helped the industry progress to build a better product.

Battery technology is arguably at the forefront of these shifts. High-capacity lithium-ion batteries take faster charging and last for longer, plus, other systems have been put in place for better battery life optimization and the reduction of overcharging and overheating units.

E-bikes are also becoming safer and smarter with integrated GPS tracking devices, anti-theft systems, and connectivity that keeps them reachable in case of incidents and more useful when exploring cities.

AI is also making its way into the e-bike world, with AI-powered bikes acting in real-time to analyze user weight, inclination, terrain, and more using machine learning to optimize performance, maintenance, and battery life.

Regulatory Developments

New regulations are also on the industry’s horizon. Increased e-bike adoption means more standardization and frameworks to keep everyone safe on the road.

For instance, EU regulators might be considering changing the definition of an e-bike, which currently equals a regular bike, to enhance safety on the road and classify bigger cargo e-bikes differently.

And, as more e-bikes join the road, regional legislators might begin including them in traffic laws more actively, ensuring successful safeguards for bikers, pedestrians, and other drivers.

Likewise, governments are realizing the potential of e-bikes to provide a more active lifestyle and reduce emissions and traffic congestion, which is why many are enhancing transportation infrastructure and incentivizing citizens to adopt them. For example, California already has an e-bike incentive project funded by the California Air Resources Board (CARB) to financially help residents purchase one.

Market Trends

The industry is set to continue growing and branching to impact many other sectors. One of its most significant impacts will still be urban mobility, which e-bikes have greatly shifted to get people off cars to pedal ahead instead, signaling a bright future for this mode of transport. The UN has highlighted their seminal role in building greener cities, with cities like London and Bengaluru setting the example.

Users have also begun to voice their preferences and concerns with e-bikes, such as theft and financial implications. A recent study shows that bikers demand better regulations, the possibility for sponsored or leased e-bikes by employers, and an improved secondhand market.

What’s sure is that e-bikes are here to stay. Whether for personal or commercial use, their versatility, sustainability, and increasing tech features are turning e-bikes into many people’s preferred mode of transit. And, while the industry is walking on steady ground, it’s likely that many shifts stemming from regulations and evolving user demands are soon approaching, so companies must stay at the vanguard and prepare to change with the tide.

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