The Latin America e-bike market is poised to register a CAGR of over 7% during the forecast period (2020 - 2025).
- Growing awareness among peoples 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.
- Traffic is one of the major problems of the Latin American cities, and according to the 2018 INRIX Global Traffic Scorecard, Colombia’s capital city of Bogotá as 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.
- Although, technological advancement and lightweight materials are helping the e-bike market to grow at a rapid pace. On the other hand, high costs of e-bikes over conventional bicycles are expected to hinder the market growth particularly in the countries of Latin America.
- The idea of bike/e-bike leasing is becoming increasingly popular in Latin America. Due to the traffic and cost-effectiveness more and more people are opting for the bike/e-bike for their daily commute.
Key Market Trends
E-Bike Sharing will Provide the boost in the market
The idea of bike leasing is becoming increasingly popular in Latin America. Also, various local startups and companies from other countries are expanding their market presence in Latin 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.
COVID-19 will halt the Growth of the Latin America E-Bike Market
Latin 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, the decline in commodity prices, and the reduction in tourism.
But the local governments in the cities such as Bogota, Lima, Quito, and Buenos Aires have promoted cycling by expanded bike lanes, 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 to add 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 organization, and NUMO, the New Urban Mobility alliance for funding operations, and logistical support.
The Latin America E-Bike market is fragmented 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 expanding their market reach and adding more e-bikes in their fleet. For instance,
· In 2018, Yellow a brazil based bike-sharing startup has raised around USD 9 million in a seed round funding. The company will initially start with 100,000 bikes in São Paulo. And for next year the company has plans to introduce dockless electric bikes.
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