Future of Transportation: Governments to Promote the E-bike Market

People these days are increasingly opting for environment-friendly alternatives, therefore gaining prominence in various parts of the world. Though these bikes are not a new invention, they have garnered attention only in recent years. There is a growing public interest in electric bikes, and their market is expected to flourish in the coming years, providing stiff competition to other modes of transport. Apart from this, electric bikes or e-bikes are also economical and space-saving. They are also a preferred option for the health-conscious, and thus, have become a major hit with the consumers.

This industry provides lucrative avenues for growth, and market players are revving up their game, by expanding their product portfolios and focusing on R&D. For instance, in November 2020, the Japanese e-bike manufacturer, Shimano, introduced new firmware to its E5000 model, to further support e-bike usage. This new upgrade comes with a sportive mode to offer more power for everyday riding.

With a view to reducing their carbon footprints, governments of various countries are now promoting the use of electric vehicles and bikes. Bicycle-friendly streets are being planned across various nations, encouraging people to opt for these vehicles as a key mode of commute. Furthermore, numerous governments are offering benefits like reduced registration tax and subsidies. The establishment of guarded bicycle parking facilities and battery charging stations in many countries are further helping the cause, which is propelling the growth of the e-bike market.

The adoption of e-bikes in Europe and North America is strikingly high. The Netherlands, France, Canada, and Germany are some of the most high-profile markets, globally. Interestingly, there are more bikes in the Netherlands than people! Developed nations have a solid infrastructure, favoring the use of electric bikes. Besides, the citizens of these nations are offered incentives to purchase these vehicles. People also consider these bikes to be a trendy innovation, and are increasingly inclined towards it. In countries like the United States, where using public transport is not a very feasible option, e-bikes have come as a huge relief.

On the contrary, the concept of micro-mobility is yet to take off in developing economies like Africa and Asia. Poor awareness among people, along with the lack of proper infrastructure, has made the adoption of electric bikes difficult. However, these mopeds are particularly popular in China. E-bikes are an ideal option for transport in developing nations, given the high population, narrow streets, and growing traffic woes. The emerging economies, therefore, remain an untapped market, and venturing into these may prove beneficial for industry players.

Despite the growing popularity of e-bikes, the regulatory framework in several nations is not fully-fledged. Many governments have thus begun formulating regulatory schemes to ensure user safety, curb the growing traffic burden, and prevent illegal bike modification. There has been a growing influx of companies rushing to launch their ride-share systems within cities. This sudden proliferation may bring chaos to the streets, and result in collisions with pedestrians and unauthorized occupancy of pavements, among other problems. Several regulatory authorities are thus banning these companies from operating, citing public safety.

The regulations, if implemented efficiently, will encourage the development of the market in various countries, turning these vehicles into a vital, environment-friendly mode of transport. On the flip side, burdensome regulations – such as limitations on when and where they can be used – may impact their appeal, deterring consumers from purchasing them. However, since many governments want to encourage the use of e-bikes, they are likely to implement favorable regulations to support the market, rather than restrain its growth.

What the Future Holds

As with any emerging industry, players in the studied market have a bumpy road ahead. While some companies may not be able to sail through the challenges, those that do, are likely to flourish in this multi-billion-dollar industry. This is because, an e-bike is an exemplary product, providing users with a viable solution to their transportation woes. Besides, it is also an eco-friendly alternative to cars. In fact, the market for electric bikes has been among those industries to be positively affected by COVID-19. This is attributable to the growing preference for single-rider, open-air transportation options. Of course, a lot is dependent on demographics and geography, but with the increasing number of investments pouring in, this market is expected to pick rapid pace as the world moves forward.