Name: the electric bicycle market
Brand: Businesscoot
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1.1 Presentation

According to the highway code, the electric bicycle or electrically assisted bicycle (VAE) is defined as " Cycle equipped with an auxiliary electric motor with a maximum continuous rated power of 0.25 kilowattsthe power supply is progressively reduced and finally interrupted when the vehicle reaches a speed of 25 km/h, or earlier if the cyclist stops pedaling " (Article R311-1 of the Highway Code part 6.11).

In France, the electric bicycle market is very successful. It is driving the bicycle market, with rapid growth and several million bicycles sold every year. Thus, if sales of EABs represented 10% of the bicycle market in France in 2016, they will represent about 55% in 2020.

The electric bicycle market is attracting many companies. Some are launching themselves by specializing in the EAB and others are diversifying their activity, as is the case with Smart or IKEA.

If it is true that the electric bike seduced in priority the seniors, more and more forty-year-olds let themselves be convinced by the EAB which offers them an alternative to go to work. Many companies are therefore putting more and more emphasis on design and lightness.

It is also important to note the sensitivity of a part of the clientele to questions of origin and quality of finished products. Many brands choose to localize or relocate their production in France

1.2 A highly concentrated and rapidly growing European market

The graph below shows the evolution of electric bicycle sales in the European Union (***) ** from **** to ****, in thousands .

Number of electrically assisted bicycles sold European Union, ****-****, thousands of units Source: ****

Sales increased during this period to nearly *.*** million units sold in **** and it is estimated that more than *.* million units ...

1.3 Exponential market growth

**** was an important year for the French bicycle market (***), as its sales exceeded* billion, a new record for the market, up **% compared to ****, while stores were closed for almost two months and experienced stock-outs.

In ****, the market for EVs was estimated at *,*** million euros, up +**%, for about ***,*** units sold over the ...

1.4 The impact of the Covid-19 crisis

The impact of the Covid-** crisis on the electric bicycle sector is twofold. On the one hand, the companies in the sector have obviously suffered a lot from the confinement and have recorded strong losses in turnover. Thus, according to figures from the Union Sport et Cycle, sports goods retailers (***) have ...

1.5 Interview with Adrien Lelièvre, journalist at Les Echos

Marine: Welcome to the Niche, the podcast that analyzes the niche market with the entrepreneurs who are moving the lines. I'm Marine and I work at Businesscoot, the startup that dusts off market research. Before we get started, subscribe to our podcast on Spotify and Apple Podcast. And now, let's get ...

2.1 The public sector plays a key role in the development of this market

The incentive role through the purchase price

Faced with the increasing difficulties related to car traffic, some municipalities have decided to act at the local level.

Here are some examples of what is being done in cities to help people buy an EV, taken from aidesociale.frin all cases, it is ...

2.2 Demand for VAE by age

VAE ownership by age France, ****, in % Source: ****

Eurovélo's figures indicate that age is a real factor influencing the demand for electrically assisted bicycles. Indeed, the older the individuals are, the more they seem to be interested in this type of bikes, one of the reasons could be the will to ...

2.3 Geographic disparities in bicycle use

In ****, the bicycle is used daily by *% and at least once a month by **% of French people. If the bicycle is above all a source of leisure, used for sports or strolls, it is also used as a means of transportation to get to work. According to the IFOP, **% of French ...

3.1 Competition from alternative modes of transport

What do you think is the main benefit of new electric travel vehicles? France, ****, in % Source: ****

The chart above shows the benefits of new individual electric vehicles according to the French in **** Electric modes of transportation meet a real consumer need and have many advantages. However, other modes of transportation have ...

3.2 Distribution centered on retailers and multi-sport chains

Retailers and multisport chains dominate distribution in the bicycle market. In terms of value, retailers represent **% of the market, ahead of multisport chains (***). In terms of volume, multi-sport retailers dominate the market, with **% of volumes. As far as ECVs are concerned, retailers are the leaders, with **% in value and **% in volume. ...

3.3 A market dominated by city bikes

In ****, the French market for electric bicycles is dominated by city bicycles, which represent **% of the market volume (***).

The "Sport" category, made up of electric mountain bikes and road bikes, was one of the most dynamic sectors, with growth of ***% in ****, followed by the riding bikes with +**%.

Breakdown of EAB sales ...

3.4 Overview of market players

The French champion: Moustache

Considered the national leader in the EV market, the Moustache Bikes brand currently has an annual turnover of ** million euros. Their distribution strategy relies mainly on independent retailers (***).[***]

Angell's competition

Designed to be to the EV market what the iPhone was to the smartphone market, the Angell ...

4.1 Comparatively higher prices

Average sales price and variation over the year **** by type of bicycle France, ****, in euros Source: ****

This statistic represents the distribution of the average price of bicycles in France in ****, by type of bicycle. Lhe average sales price of bicycles was €*** per unit in **** (***) compared to €**** for electrically assisted bicycles. The ...

4.2 The type of battery largely influences the final price

The four most common categories of batteries for electrically assisted bicycles are as follows, according to avem.fr:

" Lead batteries or lead gel batteries (***) and a lifespan of about *** cycles of charges and discharges Nickel-metal hydride (***) and a lifespan of around *** charge and discharge cycles. Lithium ion batteries (***) cost between ...

4.3 Ongoing product innovation in the sector is driving the emergence of new players

In a sector that is experiencing such strong growth, many players are trying to enter this segment and stand out through innovation.

Two English startups, Rubee and Revos, have developed their kits, both small and removable, which allow users to convert their "classic" bikes into EABs, but also to remove the ...

4.4 The explosion of the electric cargo bike

The cargo bike, also called freight bike, is a two or three-wheeled vehicle, sometimes electric, designed to carry heavier loads than a conventional bike. The cargo bike is used for different reasons, the most common reasons are:

Cargo bikes for urban cleaning; Food bike (***); Goods transport/delivery bikes.

The electric cargo ...

5.1 Current regulations

If the electric bike must respect the legislation of each country, it is very different even within the European Union, especially in terms of motor power and maximum speed allowed with assistance .

We talked about this in our previous article on the benefits of electric bicycles, to be approved and considered ...