Cargo Bike Market

Cargo Bike Market: Overview

• The global cargo bike market is anticipated to expand at a CAGR of ~15% during the forecast period, owing to increase in consumer trend toward online shopping across the globe. Rise in the number of delivery vehicles, such as vans or trucks, is further adding to traffic congestion. For instance, statistics by the U.K. Government state that vans accounted for 15% of the total traffic across England in 2019. Traffic congestion causes road accidents and wastage of time and fuel.
• Urbanization is rising across various regions globally. In May 2018, the United Nations stated in a press release that 55% of the global population resides in urban areas, which is anticipated to reach 68% by 2050. This increase in urbanization has boosted the number of vehicles on streets and construction activities, which has led to congestion and traffic jams.

Drivers of Cargo Bike Market

• Rise in transport emissions is a major concern across the globe. Increase in the number of cargo delivery trips is further contributing to emissions levels. For instance, the European Union states that delivery trips account for almost 15% of all urban trips in countries across Europe, which results in high amount of fuel consumption and emissions.
• Several government disaster relief agencies including Arlington Office of Emergency Management are using cargo bikes to transport goods where other transport vehicles are unable to ride during hazards. Moreover, European Cyclists' Federation promotes use of cargo bikes during emergency or natural catastrophes. Thus, increasing non-conventional applications are fuelling the demand for cargo bikes globally.
• Governments across the globe are initiating programs to reduce the negative impact of growing urbanization and the number of vehicles on the environment. Governments are encouraging people to adopt these solutions as an alternative to traditional delivery trucks, owing to the advantages offered by cargo bikes such as reduction in traffic congestion and tail pipe emissions.

Challenges for Cargo Bike Market

• The COVID-19 pandemic has caused a majority of businesses across the globe to crumble, owing to the forced shutdown of production and manufacturing activities. This has led the global economy to contract to its lowest growth rate. Majority of businesses in every industry is codependent and are a part of major supply chain in the market. Disruption in supply chain attributing to stoppage of transportation and shipping services and reduced demand for vehicles across the globe is likely to cause the global automotive industry to contract in Q1 and Q2 of 2020.
• Technological limitations of cargo bikes hamper their performance, thus hindering their adoption for heavy and long-distance freights. Electric cargo bikes have smaller batteries, which limits their range and requires frequent charging. The underdeveloped infrastructure for electric vehicle charging makes electric cargo bikes unusable for long-distance transportation. This creates a demand for advanced battery technology, which is likely to extend the range of cargo bikes.

Cargo Bike Market Segmentation

• The global cargo bike market has been segmented based on number of wheels, application, propulsion, ownership, and region
• Based on number of wheels, the three wheeled segment dominated the global cargo bike market. Three wheeled cargo bikes offer a highly stable ride, as compared to that offered by two wheeled cargo bikes. Additionally, the balance provided by three wheels enables minors to drive the cargo bike as well. Followed to three wheeled, the two wheeled segment is also estimated to hold a major share, in terms of revenue, during the forecast period.
• Based on application, the courier & parcel service segment held a major share of the global cargo bike market. Increase in preference for eCommerce shopping is a key factor boosting the courier and parcel service segment. Customers can have their online purchases delivered via cargo bicycle or rent cargo bicycles; therefore, several online retail stores and companies are focusing on business expansion in various regions to boost their global business reach.

Cargo Bike Market: Regional Analysis

1. Based on region, the global cargo bike market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
2. North America and Europe are projected to be highly lucrative markets during the forecast period. The U.K. Government invested in multiple ways to support the distribution of cargo bikes. Moreover, the demand for cargo bikes is increasing in France, Spain, and the Netherlands, which is likely to propel the market. Rise in awareness about cargo bikes across North America is projected to fuel the cargo bike market in the region.

Cargo Bike Market: Competition Landscape

• Key players operating in the global cargo bike market include
  • BMW Group
  • Butchers & Bicycles
  • Cezeta, Douze Factory SAS
  • Energica Motor Company, Govecs Group
  • Harley Davidson
  • Hero Electric
  • Johammer E-Mobility GmbH
  • KTM AG
  • Mahindra & Mahindra Ltd.
  • NIU International
  • Rad Power Bikes LLC
  • Riese & Müller GmbH
  • Vmoto Limited
  • Yadea Group Holding Ltd.
  • Yuba Electric Cargo Bikes
• Key players operating at the global level are expanding their footprint by engaging in mergers and acquisitions with several players in the industry. In September 2019, Mahindra & Mahindra opened a new plant in Washington D.C., U.S., to strengthen its presence across the U.S., and the company invested about US$1 Bn for expansion of its production facility in the U.S. Niu International generates majority of revenues from sales of e-scooters to distributor’s offline or directly to individual consumers online. The company adopts an omni-channel retail model, integrating the offline and online channels, to sell e-scooters.