Cargo Bike Market size is set to surpass USD 2 billion by 2032, according to a new research report by Global Market Insights Inc.
Substantial growth in the global population along with rapid urbanization worldwide has increased traffic congestion in cities and urban areas. Cargo bikes have emerged as a potential alternative to conventional delivery vans and trucks that mostly face challenges associated with offering faster deliveries in densely populated landscapes. These bikes are compact in size and can enable on-time deliveries. Growing concerns associated with the environmental impact of fuel emissions and volatile oil and gas prices will raise customer interest in cargo bikes in the years to come.
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High waste generation rates to fuel demand for three-wheeled cargo bikes
The three-wheeled segment held over 20% share of the cargo bike industry in 2022. Three-wheeled cargo bikes are extensively used to collect waste and deliver food. These bikes can carry large cargo loads at a time. As a result, waste regulatory authorities are seeking to amplify the deployment of three-wheeled cargo bikes across urban areas. High generation of waste will positively affect the business dynamics. According to the National Environment Agency (NEA) of Singapore, solid waste generation reached 6.94 million tonnes in 2021, with a significant rise in both domestic and non-domestic waste.
Growing focus on physical fitness to sustain potential for non-electric cargo bikes
The non-electric drivetrain segment is projected to exhibit more than 8.4% CAGR between 2023 and 2032. The increasing demand for non-electric cargo bikes can be attributed to a wide range of fundamental challenges such as pollution, fuel costs, traffic congestion, health hazard, and densely populated urban spaces. Apart from use for food and parcel delivery, consumers are steadily shifting to using these bikes for making daily commutes as well as for getting their daily exercise done. A high preference for cargo bicycles among individuals for short-distance chores will foster product demand.
Browse key industry insights spread across 220 pages with 456 market data tables & 36 figures & charts from the report, “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”, in detail along with the table of contents:
Rising interest in cargo bikes for recreational use to accelerate online sales
The online sales channel segment is anticipated to reach nearly USD 780 million by 2032. Cargo bike manufacturers are embracing online and e-commerce platforms to boost their sales. Online distribution helps expand the business scope and reach new customers without additional expenses associated with distribution. The digital shopping experience is more convenient and provides access to a larger range of bike models. The growing interest in cargo bikes for recreational use will further drive online purchases.
Steady shift from delivery vans to e-bikes will influence industry dynamics across U.S.
North America cargo bike market accounted for USD 110 million in 2022. The region has a vast footprint of cargo bike manufacturers that are ramping up efforts to launch new products. Favorable product acceptance by the public and growing demand for cost-effective & low-emission mobility will complement the regional industry outlook.
Governments as well as private sector businesses in U.S. and Canada are deploying electric cargo bikes to curb emissions. For instance, in December 2021, the City of Toronto joined the 5-year Ontario pilot program to deploy larger cargo e-bikes. Canada aims at reducing greenhouse gas emissions and speeding up local deliveries.
Strategic collaborations to strengthen market forecast
Top players operating in the cargo bike industry are Giant Bicycles, 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 strategic collaboration to bolster their business presence in domestic as well as international markets.