Electric bikes market zooming to become a $27 billion industry by 2027

Increasing active lifestyles and concern for the environment among consumers are pushing demand for electric bikes.

The global electric bikes market is poised to become a $27 billion industry within the next decade fuelled by rising health and environmental awareness among consumers, a recent report by business intelligence firm Future Market Insights revealed.

Growth is particularly strong in the pedelecs or electric bicycles segment, which leads all categories and is set to reach $14 billion in 2027, posting a CAGR of 3.2 percent during the forecast from 2017 to 2027. This line is followed by electric scooters with electric motorcycles bringing up the rear.

According to report, the popularity of pedelecs can be mainly attributed to the health benefits the segment offers as it contributes to having an active lifestyle, resulting in lowered risk of metabolic and heart-related illnesses. The Asia-Pacific region, excluding Japan, is the largest market for electric bicycles, accounting for about 80 percent of the overall share.

In the North America, preference for emission-free vehicles is spurring the growth of electric bikes. It helped that governments in the region are increasing subsidies and incentives on the purchase of electric bikes, thereby attracting more customers. The situation is the same in Japan.

Consumers in these markets also find electric vehicles as a favorable alternative to conventional gas-powered due to the continuing rise of fuel price and the looming threat of the world's oil reserves drying up in the next decades due to overconsumption.