E-City/Urban Bike Market Analysis

Based on battery type, the market is divided into SLA, Li-ion and NiMH. The Li-ion segment dominated around USD 14 billion in 2023 and is set to reach USD 22 billion by 2032, majorly led by advantages like high energy density, longevity, and relatively low weight. Lithium-ion batteries are increasingly preferred as they are more environmentally friendly compared to other battery chemistries, such as lead-acid batteries, as they contain fewer toxic materials and are easier to recycle. Growing suitability for commuters and riders who need to travel longer distances without worrying about running out of battery power will also favor the product demand.

Based on motor, the market is categorized into hub motor and mid motor. The hub motor segment held over 60% of the e-city/urban bike market share in 2023, due to their simplicity and reliability offered to consumers seeking low-maintenance transportation solutions as opposed to mid-drive systems. Given their affordability, hub motor-based e-bikes are more accessible to a broader range of consumers.

Surging strides in hub motor technology for improved performance of torque, efficiency, and power output along with ease of accessibility in variety of designs will also open new product innovation opportunities. To cite an instance, in November 2023, Whyte bikes released its new range of RHeO urban e-bike by deploying the KMC Kynamic hub motor system.

Asia Pacific e-city/urban bike market accounted for 60% of the revenue share in 2023. The surging urbanization, mainly in China, Japan, and South Korea along with the increasing environmental concerns is driving the need for sustainable transportation solutions. In addition to growing government support for the adoption of e-bikes, there are continuous improvements in battery technology, motor efficiency, and integration of smart features across the region.

To illustrate, in December 2023, two graduates of IIT Delhi in India launched Creatara, an innovative EV for the urban mobility space. The new e-bike helps revolutionize urban commuting by offering a unique blend of customization, safety, and state-of-the-art technology. The strong focus on safety regulations and standards is another major trend benefiting the regional product acceptance.