Electric bikes are winning over the consumer wallet

Business / Fitness & Health
electric bikes

Since independent bike shops often are moving the most electric bikes, it’s a welcome business opportunity for shops on tight budgets.

Electric bikes are becoming even more popular in the United States, with 95 percent year-over-year growth from summer 2016 to July 2017, according to The NPD Group.

The fastest-growing price point for e-bikes at the moment is $2,000-$2,499 — a significant investment that some may assume would lead to a difficult sales cycle. However, sales have almost tripled in the past three years and currently comprise a $64.9 million vertical. Ideally, the electric battery range will increase while the overall weight of the bike drops, which can entice more consumer interest.

Trek leads the electric bike market ahead of Electra, Specialized, Raleigh, and Giant – with 42 percent of sales focused on transit/fitness, ahead of lifestyle designs at 25 percent. Since independent bike shops often are moving the most electric bikes, it’s a welcome business opportunity for shops on tight budgets.

As noted by Matt Powell, VP and sports industry analyst, for The NPD Group:

“Electric bikes are exploding right now because they have no age associations, offer an authentic riding experience, and appeal to the two strongest purchasing generations in the U.S. – Boomers and Millennials. Being experimental yet non-arduous they draw Boomers, while Millennials enjoy that they are technological, experiential, and offer a more economical way of getting around.”

Even though electric bike growth has steadily climbed in Europe, convincing Americans to purchase the bikes is a tad bit more difficult. In addition to consumers, it seems there are some opportunities for B2B companies willing to think outside the box — UPS is testing electric bikes with riders that will be used to deliver packages year-round. It’s a unique way to cut down on costs, and could simplify urban delivery routes.

While electric bike growth is predicted to continue growing worldwide, it’s possible that it one day evolves into a $27 billion market by 2027, according to ReportLinker.

Would you ride an electric bike? Do you already own one? Let us know in the comments below or on Google+, Twitter, or Facebook.

  Source: NPD
Comments
To Top