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Cargo Bike Market Size By Type (Two-wheeled, Three-wheeled, Four-wheeled), By Sales channel (Online, Offline), By Drivetrain (Electric, Non-electric), By Application (Courier & Parcel Delivery, Food Delivery, Others), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI5388
  • Published Date: Oct 2022
  • Report Format: PDF

Industry Statistics

Cargo Bike Market size valued at USD 1 billion in 2022 and is projected to expand at more than 10% CAGR from 2023 to 2032. Growing use of cargo bikes for last-mile delivery will boost the industry demand.
 

Cargo bikes are a class of vehicles featuring a carrier compartment that allows riders to transport food, cargo, and other packages. These bicycles are widely used by retail giants such as Amazon and the United Parcel Service in last-mile delivery applications. Companies worldwide are rethinking urban freight and replacing cargo vans with cargo bikes as they can get through traffic faster.
 

For instance, in April 2022, United Parcel Service (UPS) started testing out a four-wheeled eQuad electric cargo bike to speed up deliveries in densely packed urban areas. The company announced that it is trialing nearly 100 of these e-bikes in seven European markets and plans to launch in Asia and the U.S. Shift towards sustainable freight options will create lucrative scope for cargo bikes manufacturers.
 

Cargo Bike Market Overview

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High costs associated with electric cargo bikes could restrain the cargo bike market growth. Despite the increasing popularity of electric mobility, components used in an electric cargo bike such as batteries, motors, and controllers are expensive. Many of these mobility solutions have different motors that ensure larger capacities, which makes the bike more expensive. For example, on average, motors with a capacity of 48-72V are one of the most expensive components of a cargo bike. However, increasing efforts to design advanced battery technologies will help manufacturers to foster the performance of these bikes and overcome some of the challenges associated with overall costs.
 

Need for cost-effective mobility to drive demand for two-wheeled cargo bikes

The two-wheeled cargo bike market is predicted to attain nearly 9% growth rate between 2023 and 2032. Two-wheeled cargo bikes provide an ergonomic means to maneuver efficiently in traffic-congested areas and are widely used in recreational activities. Using two-wheeled bikes for deliveries helps cut down 90% of the costs associated with using a van or lorry. It prevents congestion charges, fuel costs, parking costs, vehicle taxes, ultra-low emission zone charges, and substantial insurance fees.
 

Favorable government initiatives to encourage the deployment of electric cargo fleets

Cargo Bike Market Size

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The cargo bike market from electric drivetrain segment is anticipated to surpass USD 670 million by 2032. Electrically charged cargo bikes ensure fuel efficiency and reduce environmental impact. Multiple governments worldwide are raising awareness regarding the benefits of using cargo bikes for daily commutes. Last-mile delivery giants are replacing vans with advanced cargo bikes. For instance, in July 2022, Amazon announced plans to launch a fleet of e-cargo bikes to replace thousands of van deliveries in London. Public efforts to address climate change will also accelerate the use of electric cargo bicycles.
 

Courier companies shifting to e-cargo bikes for faster delivery services

Cargo bike market value from the courier & parcel delivery application is poised to reach over USD 1 million by 2032. Rapid urbanization has increased traffic-related challenges such as on-time delivery of goods and parcels by vans and trucks. Companies are therefore shifting from conventional delivery vans to cargo bikes for their ability to deliver faster by taking shorter urban routes. In April 2022, UPS became the new courier, express, and parcel (CEP) service provider to join the extensive customer base of ONOMOTION. The company aims to expand its fleet of cargo bikes and ensure sustainable parcel delivery in Cologne and Hamburg.
 

Increasing production capacity to augment industry expansion in Europe

Europe Cargo Bike Market

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Europe cargo bike market size is estimated to record more than 9.5% gains through 2032. The presence of key component suppliers and technological advancements in battery technologies & electric vehicles (EVs) will favor market growth in the region. Carqon, Giant Bicycles, and Electric Assisted Vehicles are some of the key manufacturers of cargo bikes that are exporting their products to international markets. Acceptance of electric mobility across different European countries due to stringent fuel emission norms will encourage the development of e-cargo bikes for last-mile deliveries.
 

Launch of new brands to enhance industry development

Top participants operating in the cargo bike market include AIMA Technology Co., Accell Group, Rad Power Bikes, Trek Bicycles, Pedego Electric Bikes, Specialized Bicycle Components, and Electric Bike Technologies, Inc. These leaders are focusing on launching innovative brands with advanced product offerings.
 

For instance, in June 2022, Giant Bicycles unveiled its new sub-brand for bicycles called ‘Momentum’ in the UK. The innovative brand taps into the rapidly expanding space of utility-focused bicycles and will be available across stores and on the Momentum website.
 

Impact of COVID-19 pandemic on cargo bike market trends

Cargo bikes gained popularity in the wake of the COVID-19 pandemic. Continuous lockdown impositions, social distancing, and supply chain disruptions created new challenges for domestic and international businesses to procure and deliver products. Multiple governments started innovative programs to support local ventures with cargo bikes for delivery. For instance, in 2020, the Interreg South Baltic program unveiled the Cargo Bikes in Urban Mobility (CoBiUM) project to help local restaurants to deliver fresh meals to customers. The project catered to local entrepreneurs in Poland, Denmark, Sweden, and Germany that were affected by the pandemic. 
 

The cargo bike market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

Market Insights, By Type

  • Two-wheeled
  • Three-wheeled
  • Four-wheeled

Market Insights, By Sales Channel

  • Online
  • Offline

Market Insights, By Drivetrain

  • Electric
  • Non-electric

Market Insights, By Application

  • Courier & Parcel Delivery
  • Food Delivery
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Southeast Asia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • South Africa

 

Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The market size of cargo bike crossed USD 1 billion in 2021 and is projected to exhibit 10% CAGR between 2023 and 2032.

The electric drivetrain segment is poised to reach over USD 670 million by 2032 on account of increasing focus on lowering carbon emissions and climate change impact.

The Europe market size is anticipated to expand at over 9.5% gains through 2032 driven by the solid footprint of key industry players.

AIMA Technology Co., Accell Group, Rad Power Bikes, Trek Bicycles, and Pedego Electric Bikes are some of the leading companies in the global market.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 17
  • Tables & Figures: 492
  • Countries covered: 17
  • Pages: 220

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