Three-Wheeled Electric Cargo Bike Market: Introduction
- Rise in industrialization worldwide has fueled transportation activities. B2B and B2C businesses are expanding due to a boom in the e-commerce industry. Consequently, demand for transportation to deliver goods is increasing worldwide. Electric cargo bikes, which are efficient, compact, and a rapid mode of transport vehicles, help to navigate around cities with ease. Therefore, a boom in the e-commerce industry is likely to boost the global three-wheeled electric cargo bike market.
Key Drivers of Three-Wheeled Electric Cargo Bike Market
- Urbanization is increasing across various regions globally. In May 2018, The United Nations in a press release stated 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. Rise in 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.
- These ill-effects of growing urbanization are prompting people to adopt compact and highly maneuverable transportation means. Cargo bikes being compact and light in weight can easily navigate through dense road networks of cities and need less parking space, thus more efficiently utilizing the urban space. Adoption of cargo bikes in urban areas eliminates the need for heavy transport vehicles and frees up considerable space. This reduces the probability of road accidents and makes transportation safer.
- Demand for cargo bikes is increasing across the globe, as cargo bikes tackle issues associated with growing urbanization. Several cities across Europe, including Paris, are redesigning their infrastructure under 15 minute city programs, which is anticipated to create favorable driving conditions for cargo bikes and consequently, propel their market in the near future.
- The accessibility of cargo bikes in congested and hazard affected areas has opened new non-conventional applications for cargo bikes. Areas hit with natural, technological, or sociological hazards need emergency relief in the form of food and medicines. Heavy transport vehicles are incapable in delivering these emergency supplies to the affected people as accessibility to the region gets hampered and streets become unusable. For instance, during the recent outbreak of COVID-19 pandemic, Pedal Me used a fleet of electric cargo bikes to deliver essential supplies of food and medicine to the people in city of London. 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. The findings of a research study conducted by the European Union stated that 25% of all goods and 50% of all light deliveries in cities across Europe can be performed by cargo bikes. Multiple city authorities are providing financial assistance for adoption of electric cargo bikes. For instance, the city of Vienna, Austria, provides financial support of US$ 1,186 on purchase of new cargo bike. Likewise, in October 2019, the city of Hamburg, Germany announced a 33% funding for purchase of cargo bikes. This financial assistance provided by government agencies has boosted the sales of cargo bikes.
Three-Wheeled Electric Cargo Bike Market: Restraint
- 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. Such technological limitations of cargo bikes hamper their performance, thus hindering their adoption for heavy and long distance freights.
- An enclosed space is attached to the cargo bike in order to protect the cargo from the environment; however, it increases the weight. This increased weight hampers the mileage of electric cargo bikes. There is increasing demand for advanced light weight protective materials for electric cargo bikes; however, the current underdeveloped technology is hampering the adoption of cargo bikes for long distance cargo transport and is restraining the market.
Three-Wheeled Electric Cargo Bike Market: COVID-19 Impact
- 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 are 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 cargo vehicles across the globe is likely to shrink the sales volume of three-wheeled electric cargo bikes in 2020.
- However, various countries have announced several aggressive monetary policies starting from year 2021 in order to recover from economic losses caused by the corona pandemic. The global economy is expected to start to recover in 2021.
Europe and North America cumulatively to hold significant share of global three-wheeled electric cargo bike market
- In terms of region, the global three-wheeled electric cargo bike market can be segmented into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa
- Governments across Europe and North America have initiated numerous projects, such as CityChangerCargoBike, Transportrad Initiative of Sustainable Municipalities (TINK), Commercial Cargo Bike Program, to encourage adoption of electric cargo bikes. Financial assistance in the form of subsidies and grants, dedicated infrastructure, and well-established regulatory framework are major drivers of the three-wheeled electric cargo bike market in these regions.
- Likewise, growing awareness about vehicle emissions is boosting the adoption environment-friendly cargo bikes. Cities such as Paris, New York, and London have partnered with courier and parcel delivery service providers, including DHL International GmbH and FedEx Corporation, to use three-wheeled electric cargo bikes for short distance urban trips, which reduces the number of heavy vehicles on roads and decreases pollution levels in cities.
- Significant presence of electric cargo bike manufacturers, such as Xtracycle Inc., Rad Power Bikes LLC, and Johammer E-Mobility GmbH, in Europe and North America provides customers with a wide array of options. All the factors mentioned above enable North America and Europe to hold major share of the global three-wheeled electric cargo bike market.
Key Players Operating in Three-Wheeled Electric Cargo Bike Market
The global three-wheeled electric cargo bike market is concentrated owing to the presence of top manufacturers. A few key players operating in the global three-wheeled electric cargo bike market are:
- BMW Group
- Butchers & Bicycles
- 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
Global Three-Wheeled Electric Cargo Bike Market: Research Scope
Global Three-Wheeled Electric Cargo Bike Market, by Battery Type
- Sealed Lead Acid
- Lithium- Ion
Global Three-Wheeled Electric Cargo Bike Market, by Ownership
- Personal Use
- Commercial Use
Global Three-Wheeled Electric Cargo Bike Market, by Application
- Courier & Parcel Service Provider
- Large Retail Supplier
- Personal Transportation
- Waste, Municipal Services
Global Three-Wheeled Electric Cargo Bike Market, by Region
- North America
- Nordic Countries
- Russia & CIS
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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