In the border region between San Diego and Tijuana, a fresh scene is playing out: US agents responsible for search-and-rescue operations now ride electric bikes across valleys, patrolling the border and occasionally rescuing stranded migrants in critical moments.
The San Diego border patrols first received these e-bikes four years ago, though it was not initially apparent how effectively they could be utilized for patrols.
Meanwhile, as early as two years ago, staff at Mozambique’s national wildlife parks discovered the value of e-bikes for patrolling. These bikes, which are lightweight, quiet, and inconspicuous, allow park rangers to approach poachers without alarming wildlife. Additionally, their versatility across varied terrains and zero-emission nature significantly reduce environmental impact.
The utility of e-bikes overseas continues to expand. While e-bikes remain lesser-known in China, they have long been popular in global markets. In Japan, the birthplace of e-bikes, their penetration rate has reached a staggering 45%.
Although the US was late to adopt e-bikes, its high consumer spending power suggests great market potential. According to Circana’s retail tracking service, e-bike sales in the US peaked at USD 903 million in 2022. While sales dipped the following year, a 4% rebound was noted in early 2024.
In Europe, e-bikes thrive thanks to the region’s strong cycling culture. Countries like the Netherlands and Belgium have incorporated cycling lanes into urban planning, creating a robust foundation for e-bike popularity.
Governments in Europe and North America are pushing to reform transportation and ease urban traffic congestion. The US, UK, France, Sweden, and Canada offer subsidy programs for e-bikes. Positioned as a more affordable and lightweight alternative to electric vehicles, e-bikes have become a favorite among young people in these regions.
E-bikes’ global popularity and potential have attracted numerous companies and top investment firms.
Taking the US as an example, data provided by Sevens, an overseas brand operator, shows that there are only about 100 e-bike brands in the US market in 2021, doubling to around 200 in 2022. At the beginning of 2024, most of these brands were Chinese manufacturers, and many were produced by cross-border e-commerce practitioners in Bantian, Shenzhen.
This has also led to a serious backlog of e-bike inventory in the past two years, and a large number of lower-end e-bike products have competed, and the industry has experienced a wave of reshuffles. While the track has returned to rationality, the overseas market of e-bike still has extraordinary charm.
Policy support drives adoption
According to foreign media reports, the California Air Resources Board has launched an e-bike incentive program, offering vouchers worth up to USD 2,000 to encourage low-income residents to purchase e-bikes.
Kendra Ramsey, executive director of the California Bicycle Coalition (CalBike), said in a media interview that many low-income individuals depend on older, high-emission vehicles, while others lack access to cars entirely. E-bikes offer an accessible and sustainable alternative.
In California, e-bikes are ubiquitous and increasingly embraced as a sustainable mode of urban transportation.
Beyond California, other US states with environmental awareness have introduced similar subsidies. Colorado and Hawaii offer financial assistance to eligible residents, while e-bike rebate programs in Denver and Connecticut are so popular that funds are often exhausted within days.
Subsidies are a key driver of e-bike adoption in the US. A study by researchers at the University of California, Davis, published in 2024, found that people who used state and local rebate programs to purchase e-bikes significantly increased their cycling frequency. Nearly 40% of respondents reported replacing at least one car trip per week with an e-bike ride—a shift that could substantially reduce carbon emissions.
The trend isn’t limited to the US. In the UK, Shrewsbury recently introduced an e-bike subscription plan, allowing local residents to test electric bicycles for a year at less than GBP 3 (USD 3.7) per week. The subscription includes a helmet, bike lock, and optional accessories such as panniers and child seats. The initiative aims to promote more eco-friendly transportation.
Europe’s well-established cycling culture and robust infrastructure support widespread adoption of e-bikes. The region’s numerous mountainous and steep terrains further drive strong market demand.
Since a decade ago, European countries have steadily increased funding for e-bike development, leading to a dramatic rise in market penetration. According to data from Sequoia Capital, e-bike sales in Europe reached 4.537 million units in 2020, growing by over 30%. By 2025, penetration rates are expected to climb to 42.6%.
Most of these e-bikes originate from China.
A gold rush in the e-bike market
China holds unparalleled advantages in the e-bike supply chain. As the world’s largest bicycle manufacturer and exporter, it accounts for 60% of global production, with annual output nearing 100 million bicycles. The country’s traditional bicycle supply chain is highly developed and mature.
However, the heart of an e-bike lies in its electric drive system, which defines ride quality through metrics such as motor efficiency, torque, transmission ratios, and precision in control feedback. These systems alone constitute 25–30% of an e-bike’s production cost, making them a crucial differentiator in the market.
For years, the electric drive system market has been dominated by established global players. Bosch leads the industry, while Shimano secures a strong position with its integrated solutions for gears, brakes, and assist systems.
Chinese e-bike manufacturers, by contrast, have traditionally focused on production without developing their own electric drive systems. This reliance on off-the-shelf components and established brands like Bosch has lowered entry barriers, making the industry accessible to new players. As some investors describe it, e-bikes are often seen as a combination of generic parts powered by Bosch motors.
Despite seeing rapid growth, the global e-bike market remains fragmented. On Amazon Germany, for example, the leading e-bike brand holds just 10% of the market, with the top five brands collectively accounting for less than 50% of sales. A similar trend exists in the US, where the leading brand, Heybike, captures only 15–20% of the market, with no other brand exceeding 10%. This decentralization highlights the industry’s nascency and potential for consolidation.
Amid intense competition in the low- to mid-end segments, many Chinese companies are pivoting toward proprietary technologies and custom designs tailored to specific use cases. For instance, Tezeus has developed its own mid-drive motors and systems to meet demands for minimalist, lightweight, and integrated designs. Similarly, DJI entered the e-bike drive system market in July 2024 with its Avinox product, targeting high-end e-bike brands.
In terms of outlook, the global e-bike market is projected to grow from USD 35 billion in 2024 to USD 62.25 billion by 2030, with a compound annual growth rate just below 10%, according to data from 10100.com.
From border patrols to anti-poaching operations, e-bikes are carving out niches in Europe, North America, and beyond. With the market now valued in the hundreds of billions, its potential is only beginning to unfold.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Leslie Zhang for 36Kr.