U.S. e-bike sales should top 1 million in 2021, 3 million in coming years

The United States tends to make changes slowly until a tipping point is reached. And then, change can be startlingly fast.

That tipping point has occurred with electric bikes in the last two years. We are on our way to becoming the most profitable and largest western market for electric bikes.

For nearly 23 years, the U.S. electric bike market was tiny compared to the Asian and even the European electric bike market. For each of those years, I would assure my clients, readers, and peers that the U.S. will — eventually — be one of the largest markets for e-bikes and pedelecs.

Growth was slow, partly because the bicycle industry of the U.S. is focused on sport, fitness and recreation, and for years the electric bike has been regarded as primarily a transportation tool. Two wheelers as transportation has been a very small business.

But now… the limit on the U.S. market is the performance of the supply chain. U.S. brands will take almost any electric bike they can get and sell it almost as soon as it is received. Unfortunate lead times — as much as two years — are the problem.

What changed?

• The products have become much more reliable and stable. Today’s electric bikes, even the inexpensive ones, work quite well. The best ones are a delight.
• The legal status of electric bikes has become much more clear, allowing consumers, government, brands and suppliers to understand better what to make and how to use it.
• eMTBs fit nicely into the American ideas of bicycles as sport, fitness, and recreation. And they extend the off road access to many, especially older, riders.
• Some brands have focused on market segments that are uniquely suitable for electric bikes. Examples are Pedego’s focus on aging baby boomers, and eCells focus on two wheel drive off road bikes, or QuietKat’s focus on hunting.
• Bicycle retailers have learned that e-bikes make money for them and can be sold easily, with minimal service problems.
• Almost every traditional bicycle brand now offers electric bikes, making them accessible to dealers via their credit line.
• The non-traditional electric bike companies that sell direct to consumers have become both expert at this, and very successful. The largest unit brands are direct-to-consumer.
• Simpler, more reliable service issues combined with training from the makers of bikes, the makers of propulsion systems and the Technician Training Program offered by the Light Electric Vehicle Association have made service support more available.
• Propulsion system suppliers have developed products specific to the higher power allowed in the U.S.
• Electric bikes do provide an exercise benefit, allowing the rider to stay in motion longer and to ride in more interesting places.
• Personal transportation in the U.S. has been cars for a long time. But now we have cities with no room for parking, people who prefer to not own a car due to cost or personal commitment to environmental issues.
• In dense cities, where transport has been the metro, the bus or train, COVID-19 has pushed consumers to look for personal transportation that avoids crowds.
• COVID has also pushed the people of the U.S. to rethink many things; to look for alternatives and consider new ideas.

The most important change, however, is this: There is wide understanding by U.S. consumers of the reasons that electric bikes can be fun and improve their lives. And this understanding is across a much broader group than the traditional buyers of quality bicycles. Motors are well regarded by U.S. culture, despite the prejudice of cyclists.

Jul 09, 2021, By: Michael Clark 

ORIGINALLY POSTED By Carey on his TN Electric Bike Forum

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Guest post by: Ed Benjamin, chairman of the Light Electric Vehicle Association This post was previously published on LEVA’s website and is being reposted here for our audience.

 

https://electricbikereport.com/e-bike-sales-to-top-1-million/