Electric bicycles or E-bicycles are a type of vehicle deployed with electric motors & added battery facilities to assist the rider while peddling. These electric bicycles are an efficient means of traveling as they are cost-efficient, do not require fuel, and are a sustainable means of transportation.
Market Insights & Projections: Latin America Electric Bicycle Market (2023-28):
The Latin America Electric Bicycle Market is projected to grow at a CAGR of around 7.2% during the forecast period, i.e., 2023-28. The major factors attributing to its growth are rapid urbanization & the movement of individuals towards urban cities in search of better economic opportunities, improved living standards, and higher education.
In recent years, the urban population in the country has grown considerably. This population segment is the prime user of electric bicycles as they use them for traveling to offices & educational institutions daily. Traffic congestion & road blockages are some of the major issues in cities such as Sao Paulo & Rio de Janeiro in Brazil, Mexico City, and Cancun in Mexico, and many others. Due to this, daily commuters are gradually switching towards e-bicycles for city travel, thus enhancing the E-bicycle Market size.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||Mexico, Brazil, Argentina, Columbia, Rest of Latin America|
|Key Companies Profiled||E Mov Inc., Trek Bike Corporation, Brazil Electric Bikes, Merida Bikes, Caloi, Ridley Bikes, Haibike, Lev Bicycle, Vela Bikes, E-Moving, and Others|
|Unit Denominations||USD Million|
Further, fuel prices have also been on the rise in the region, which has increased the running cost of the vehicles. For instance, in Brazil, in 2022, the price of fuel grew by more than 33% in comparison to 2021 price levels, stated the government of Brazil. This compelled the riders to switch to more cost-effective means of transportation, such as e-bicycles, which are low maintenance & do not require high-priced fuel to run.
Along with it, the COVID-19 pandemic has bought a behavioral change in consumers, wherein they have become more health-conscious. This has made the individuals in the region switch to electric bicycles as it allows them to burn calories while riding. Further, the battery used in the electric bicycles also provides an increase while going uphill or against a strong headwind. Hence, these factors have resulted in supplementing the adoption of electric bicycles, thereby positively impacting the Latin America Electric Bicycle Market growth during the years ahead.
Latin America Electric Bicycle Market Drivers:
Gradual Shift Among the Individuals Towards Eco-friendly Mobility – Countries such as Brazil, Mexico, and others have been recording poor air quality & high rates of pollution. This is mainly due to the extensive usage of internal combustion-based vehicles & the heavy traffic congestion rate. According to the Brazil Air Quality Index in 2022, nearly 47% of the country’s energy-related carbon dioxide emissions are released by the transportation sector.
The release of harmful gases & particulate matter, in turn, resulted in severe respiratory diseases among the individuals. Therefore, leading to a behavioral change, where individuals in the region are gradually moving towards cleaner modes of transportation, such as electric bicycles, further augmenting the market growth. Daily urban commuters like working professionals & students have been transitioning to e-bicycles to reduce the overall carbon emissions from the transportation sector.
Bicycles are highly cost-effective in comparison to cars & motorbikes, can easily bypass highly congested city lanes, and do not require any additional parking space. Thus, owing to such environmental & economic factors, the adoption of electric bicycles has been growing, especially among the young population residing in the urban parts of the region.
In addition, the government across the region has set a target to substantially reduce carbon emissions by 2030 & achieve net neutrality by the year 2050. This, in turn, is fuelling the adoption of electric bicycles among the residents as well as mobility service providers across the region, thereby driving the Latin America Electric Bicycle Market.
Latin America Electric Bicycle Market Opportunities:
Mounting Popularity of Electric Bicycle-sharing Services to Result in the Growth – The transition towards sustainable mobility & the high fuel prices have resulted in people switching to shared electric bicycle services in the region. The daily commuters find it very convenient to rent electric bicycles from their nearby station & travel to their desired destination.
For convenience, shared e-bicycles are cost-effective as no maintenance is needed. Due to this, the popularity of electric bicycles is growing among the population in Latin America. Considering this pattern, the existing shared mobility service providers are introducing their dedicated electric bicycle fleet to grab the emerging revenue opportunity. For instance:
Furthermore, in the coming years, more shared mobility services providers are expected to increase their electric bicycle fleet size to offer services due to the rising tourism industry & surging focus of the regional governments to provide sustainable mobility. This emerges as an opportunity for electric bicycle manufacturers, thus creating a conducive environment for the growth of the Latin America Electric Bicycle market during 2023-28.
Latin America Electric Bicycle Market Challenges:
Wide Scale Availability of Substitutes to Hamper the Growth of the Electric Bicycle Market – For electric bicycles, a wide-scale variety of substitutes is present, including traditional bicycles, electric scooters & electric bikes with low power range, and electric mopeds. These substitutes are ideal to perform & offer the benefits that an e-bicycle has, such as lost efficiency, low maintenance, the ability to bypass traffic congestion, and many others. Due to this, the buyers of electric bikes in the Latin American region can easily switch to other alternatives while buying electric bicycles, thereby hampering the Latin America Electric Bicycle Market growth.
Latin America Electric Bicycle Market Trends:
Rising Adoption of Smart Electric Bicycles Among the Youngsters – The advancements in technology have enabled the integration of artificial intelligence & the Internet of things in electric bicycles, especially for mountaineering & cargo. This allows the users access to information such as display & navigation functions, information relating to the terrain of the surface, automatic locking facilities, over-the-air updates, foldability to conveniently carry the bicycles & many others. Hence, these added features are attracting a wider number population of the region, which, in turn, is leading to the growth of the Electric Bicycle Market.
Latin America Electric Bicycle Market (2023-28): Segmentation Analysis
The Latin America Electric Bicycle Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–28 at the regional & national levels. Based on the analysis, the market has been further classified as:
Based on Propulsion Type:
Pedal-assisted electric bicycle holds a significant share as almost every electric bicycle comes in the pedal-assisted format to allow the rider full control over the vehicle. Further, health-conscious customers also have a preference to buy pedal-assisted e-bicycles as it allows them to burn more calories & stay fit.
These pedal-based electric bicycles also come with a battery assist mode, which allows riders to travel extra distances without experiencing fatigue, due to which peddle-assisted e-bicycles are considered ideal for recreational activities. The battery assist mode allows the users to trek & mount on hills, making pedal mode an ideal choice for cargo & mountaineering electric cycles. Thus, these factors have led to the increasing demand for pedal-assisted electric bikes resulting in the overall growth of the Latin America Electric Bicycles Market.
Based on Application Type:
Urban Commute accounts for a notable share of the Latin America Electric Bicycle Market, as urban commute e-bicycles serve multiple purposes, including daily commuting, bike riding for health benefits, and many others. Further, e-bicycles are also used by residents as well as visitors in the region for leisure & recreational activities while touring.
Riders can easily ride for longer distances & over rough terrains without experiencing fatigue. Due to these factors, the demand for e-bicycle for urban commutes is higher, which, in turn, is leading to the growth of the Latin America E-bicycle Market.
Latin America Electric Bicycle Market (2023-28): Regional Analysis
Geographically, the Latin America Electric Bicycle Market expands across:
Brazil holds a substantial share of the Latin America Electric Bicycle Market. Factors such as rising urbanization, increasing traffic congestion, and growing focus & awareness among the residents as well as the government to opt for sustainable mobility are augmenting the sales of electric bicycles in the country.
In addition, urbanization in the country has also led to increasing instances of lifestyle-related issues such as obesity, diabetes, hypertension, etc. This has also resulted in the higher adoption of electric bicycles among such individuals to keep their body fit.
The growing adoption of electric bicycles among the e-commerce & food delivery service providers in the country, such as iFood, Deliver Much, etc., due to its cost-effectiveness is positively impacting the market growth. For instance,
Further, this population base is expected to switch to electric bicycles for daily commuting & fitness purposes due to their cost-effectiveness. Therefore, creating a conducive environment for the growth of the Latin America Electric Bicycles Market during 2023-28.
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Frequently Asked Questions
A. The Latin America Electric Bicycle Market is expected to grow at a CAGR of around 7.2% during 2023-28.
A. The rapid urbanization & growing number of professionals & students who are daily commuters would drive the Latin America Electric Bicycle Market during 2023-28.
A. The top players in the Latin America Electric Bicycle Market are, E Mov Inc., Trek Bike Corporation, Brazil Electric Bikes, Merida Bikes, Caloi, Ridley Bikes, Haibike, Lev Bicycle, Vela Bikes, E-Moving, and Others.
A. Urban Commute application holds the dominant share in the Latin America Electric Bicycle Market during 2023-28.
A. The rising adoption of smart electric bicycles is the key trend shaping the growth of the Latin America Electric Bicycle Market during 2023-28.
A. The growing use of electric bicycles to provide shared services is driving the Latin America Electric Bicycle Market through 2028.
A. Wide-scale availability of substitutes is the key restraint affecting the growth of the Latin America Electric Bicycle Market during 2023-28.
Latin America Electric Bicycle Market Research Report (2023-2028) - Table of Contents