Market Trends of europe e-cargo bike Industry
Increasing Demand for Eco-Friendly Transportation
- Mobility plays a vital role in the current society. With the increasing concern for preserving and sustaining the environment for future generations, protecting it poses a great challenge for both society and governments worldwide, especially due to the increasing scarcity of natural resources and environmental concerns. As a result, to overcome the above-mentioned issues to some extent, increased adoption of e-cargo bikes is taking place and is expected to continue in the future.
- With the continually growing health concerns due to the increasing emission levels, governments and international organizations worldwide are enacting stringent emission norms to reduce pollution levels.
- For instance, in August 2022, the French government doubled the financial incentive available to individuals who trade in their gasoline-powered automobiles for electric bikes, offering up to EUR 4,000 (USD 4270) per person. This monetary incentive is designed to encourage people to make the switch from polluting forms of transportation to cleaner and more ecologically friendly alternatives.
- Additionally, the depletion of fossil fuel levels at an alarming rate has been creating concerns for sustainability for future generations. This factor is posing a huge challenge for governments and society. Further, benefits offered by an e-cargo bike include noiseless propulsion, space-saving, and an economic mode of transportation that ensures at least a degree of physical activity for the user, which can be viewed as a health benefit.
- Several cities, like Mannheim, Heidelberg, Regensburg, Stuttgart, and others, promote e-bikes with different subsidies. For instance, in Stuttgart, the owner can swap a two-stroke motorcycle for an e-bike, for which the user is qualified for EUR 600 (USD 708) subsidy.
- Moreover, they are also a great mode of transportation, especially for food delivery activities, as they offer a convenient mode of transportation combined with the suitability of an automobile. Moreover, these bikes allow consumers to navigate through rough terrains, which are otherwise difficult to navigate without an electric motor. These factors are making e-bikes popular globally.
- Thus, the aforementioned factors are expected to help the market for e-cargo bikes grow in the European region.
Understand The Key Trends Shaping This Market
Download Sample
United Kingdom is the largest segment by Country
- Over the past decade, the problem of daytime traffic congestion has grown in Europe due to an increase in delivery vehicles used by large companies that require supplies and an increase in online shopping. Thus, due to the problem of congestion, restaurants and retail chains are turning toward e-bikes and e-cargo bikes for their operations, mainly due to their increased average speed.
- During the forecast period, the UK is expected to see significant growth in the e-cargo bike market. The e-bike sales in the United Kingdom rose sharply due to the COVID-19 pandemic, and new government rules to make electric bikes affordable added attractiveness to the e-cargo bike market as well. Many cycle businesses have dedicated a major portion of their inventory to e-bikes. Therefore, major e-commerce companies are also investing in e-cargo bikes for delivery purposes.
- For instance, in July 2022, Amazon introduced a fleet of e-cargo bikes and a team of on-foot delivery personnel to replace thousands of van deliveries on London's roads. These e-cargo bikes, resembling regular pedal bikes but equipped with a large box, platform, or basket built into the frame for transporting goods, are now actively operating. This move is seen as a positive step for the environment and congestion on the city's roads.
- Urban freight transport accounts for approximately 10 to 15% of all miles traveled in cities and is frequently the most expensive and polluting segment of the logistics chain, having traditionally been carried out by vans and trucks powered by fossil fuels, even when the goods carried are light and small. In England, around 6.5 million people cycled for sport, leisure, or transportation in 2021.
- Some major factors driving the market's growth are the increasing awareness of environment-friendly transportation options, such as e-bikes schemes (with schemes offering limits above the established GBP 1000 cap) and the EUR 2 million (USD 2.36 million )commitment from the government for cargo bike subsidies. Moreover, the UK government has also taken steps to enhance the adoption of e-bikes in the country. The country started providing national incentives and is also planning to increase the financial subsidies on e-bikes to promote their usage. The government announced the decision to set a 2035 target for the phasing out of all new motorcycles equipped with an internal combustion engine (ICE).
- The OurBikescheme is a partnership between several London councils, bike operator Peddle My Wheels, and local businesses. The project allows residents and businesses to rent cargo bikes for up to two hours per day for free, with additional trips charged at 5 pounds per hour.
- All the above-mentioned factors are aiding the e-cargo bike market in the United Kingdom in the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
