Latin America E-Bike Market Outlook, 2027

Traffic is one of the major problems of South American cities, and according to the 2018 INRIX Global Traffic Scorecard, Colombia’s capital city of Bogotá is the 3rd most congested city in the world, followed by Mexico City (4th) and São Paulo (5th). The study also calculated that an average driver in Bogotá spends about 272 hours in traffic every year. Technological advancement and lightweight materials are helping the e-bike market to grow at a rapid pace. Growing awareness among people for environmental concerns, e-bikes along with the benefits of a bicycle coupled with the advantage of extended range through battery especially for recreational activities, as they offer the fun of cycling, combined with the suitability of an automobile. Furthermore, these bikes also allow consumers to navigate through rough terrains, which are otherwise difficult to navigate without an electric motor.

According to the report, “South America Electric Bicycle (E-Bikes) Market Outlook, 2027”, published by Bonafide Research, the market stood at around USD 0.3 Billion in 2021 which is anticipated to rise with more than 8.5% CAGR during the forecast period. The idea of bike/e-bike leasing is becoming increasingly popular in South America. Also, various local startups and companies from other countries are expanding their market presence in South America. For instance, Yellow offers both conventional and e-bike-sharing options through its platform, as its conventional bikes operate 24 hours, the e-bikes operate for limited hours of 8 am to 9 pm due to maintenance, recharging, and cleaning.

Whereas in 2018, A Brazilian Company named EDG Advanced Mechatronics launched a new EDG Niobium e-Bike, the battery technology in the bicycle provides it a 100 kilometers range, and for1 hour charge it is capable of providing 25 km of range. In addition to that, the e-Bike has regenerative braking by which its braking energy returns to the battery. The growing rapid need for environment-friendly modes of transportation in various regions is a prominent factor in the growth of the e-bike market.
In March 2020, Bafang Electric (Suzhou) Co., Ltd. announced the launch of M200 mid-drive system. The new product is designed for its suitability in e-City and e-Touring segments and offered smooth and silent functioning with the motor weight of 3.2 kg. The new product increased the product portfolio of the company. Further, in July 2020, Robert Bosch GmbH announced their new e-bike design concept which marks a decade of e-bike systems. The concept has been based on the idea of easily fusing components for offering a simplistic design. This has enabled the company to improve its offering and offer a completely new design which has attracted a lot of customers as well as increased its retention rate.

Globally, South America is the lowest contributing region, which in 2021 accounted for less than 2% in terms of value share. Many tax measures taken by various national governments are an important support in the market which is to fuel the demand in the coming period. In the type of propulsion, the market is dominated by pedal-assist bikes, which in 2021 held a share of more than 70% by volume. Cities like Bogota, Lima, Quito, and Buenos Aires have already started promoting cycling as an effort to reduce overcrowding in public transport during the post-pandemic. Recently, electric bicycles have gained much attraction with the features like convenience, low noise & long battery life. The market in terms of battery type is led by lithium-ion battery-powered electric bikes, which by 2027 is to hold a market share of more than 80%.

With the added advantage of an extended battery that supports recreational activities like trekking, more and more people are now choosing e-bikes. Even though the use of electric bicycles is high within the city/urban mobility, the use in the cargo sector is expected to be inclining in the coming years. With the growing environmental awareness among the people, it is no surprise that the region will be quick in adopting this sustainable mobility alternative.
In recent years, electric bicycles have gained wide attention because of their characteristics of convenience, low noise, and less pollution. However, the low performance of electric vehicles as compared to their traditional counterparts is a major challenge faced by the region's electric bicycle market. The reason for the low performance of electric bikes can be attributed to the batteries used in them. The regional market is highly competitive with the presence of a number of startups and companies, such as Giant Bicycles, EDG, Trek Bicycle Corporation, and others, whereas major e-bike rental companies are adding more e-bikes to their fleet. Colombia and Costa Rica have comprehensive electric mobility laws in force and there are several others with initiatives underway for the formulation of similar legal instruments.

Although Brazilian consumers are interested in autonomous drive technology for road safety improvement, the country is poorly prepared for the same. Following electric bikes from Canada, China, India, Spain, and Italy, Brazilian brand Voltz Motors introduced an electric street motorcycle, the Voltz EVS, which has gathered 1200+ bookings since its launch in September 2020. Brazil’s first ‘smart’ electric bike is more capable than the Revolt RV400, which is the best electric bike in India right now.

The region is now witnessing an incline in the presence of a number of international companies and various local startups, bringing in more technologically advanced electric bicycles. Due to economic constraints, many e-bike rental companies are also tapping the market by expanding their coverage area and adding more models to their fleets. This region has now become one of the major attractions with the number of legal frameworks and public policies that have been brought in to stimulate electric mobility. Many countries also offer fiscal and/or non-fiscal incentives towards the purchase of electric bicycles/ e-bikes, which is to aid the market growth directly. On the other hand, the high costs of e-bikes over conventional bicycles are expected to hinder market growth, particularly in the countries of South America.

Covid-19 Impacts:
South America has become the new epicenter of coronavirus and passed Europe and the United States in daily infections. Even though many countries in the region have taken tough measures of mitigating the spread of viruses such as border closures, school closings, and other social distancing measures. Due to that, the region faced disruption in supply chains, a decline in commodity prices, and a reduction in tourism. But the local governments in the cities such as Bogota, Lima, Quito, and Buenos Aires have promoted cycling by expanding bike lanes, and closing roads for cars, in an effort to reduce crowding on public transport to curb the spread of COVID-19. Bogota which already had a 550-kilometer network of bicycle lanes added 80 km of temporary bike lanes, which are set to become permanent. Similarly, the Lima government has announced an addition of 300 km of temporary bike lanes in the city. Whereas in March 2020, medical workers in Bogota received electric bicycles from MUVO to complete their mobility needs so that they can provide life-saving services. The company also gets the support from city government, local non-governmental organizations, NUMO, and the New Urban Mobility alliance for funding operations, and logistical support.

Major companies present in the market
Accell Group, Giant Manufacturing Co. Limited, Merida Industry Co. Limited, Pedego Electric Bikes, PON Bikes, Riese & Müller GmbH, Specialized Bicycle Components, Inc., Trek Bicycle, Yadea Group Holdings Ltd

Considered in this report
• Geography: South America
• Historic year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• South America Electric Bicycle (E-Bikes) market with its value and forecast along with its segments
• Country-wise toy market analysis
• Various drivers and challenges
• Ongoing trends and developments
• Five force models
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Brazil
• Argentina
• Colombia

The segment covered in the report

By Propulsion Type
•Pedal Assist
• Throttle

By Class Type
•Class 1: Pedal Assist
•Class 2: Throttle On Demand
•Class 3: Speed Pedelec

By Battery Type
•Lithium-Ion Battery
•Lead-Acid Battery
•Others

By Application
•City/Urban
•Trekking (E-mountain Bikes/e-MTB)
•Cargo
•Others (Speed e-bikes, Foldable, Fat Bicycle)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we have to verify the details obtained from secondary sources.

Intended audience
This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to the electric bicycle products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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