The ever-expanding cargo bike market is set to hit a valuation of 2 billion USD by 2032 says a new report by Global Market Insights Inc.
Due to the growth of personal mobility choices, with more innovative, futuristic, and affordable vehicles on the market, consumer preferences have steadily been easing towards these micro-mobile options. Daily commuters have generated a new market for cargo bike manufacturers to target.
With rising traditional costs out of consumers hands, regarding the increased costs of taxis and fuel, and the lingering problem of city congestion, the demand for electric cargo bikes is being propelled higher and higher. The implementation of automated technologies, and removable and chargeable battery packs, has given manufacturers the opportunity to produce mobile vehicles with even more portability and slimline features.
Three-wheeled cargo bikes marked more than 22% of the entire cargo bike market’s sales in 2022. The wide range of applications these three-wheelers can be used for ranges from recreational use, to urban logistics when dropping off small or medium-sized deliveries, to even more daily tasks such as waste collection and disposal.
Investments in large warehouse facilities and manufacturing hubs suggest that three-wheeled cargo bikes will be used for even further applications moving forwards such as in the use of the transportation of raw materials and equipment over short distances.
In terms of the food delivery sector of the cargo bike market, the share is expected to grow around 8.9% CAGR between 2023 and 2032. Restaurants and vendors have been using online delivery services for a while now, and with the introduction of ‘cloud kitchens’, restaurants with no sit-in customers, they are all sure to want a bigger piece of the action now that the utilisation of cargo bikes is a vastly improved delivery method.
Cargo bikes, used safely, of course, can bypass city traffic and get through smaller spaces and avoid congestion much easier, quicker, and lawfully than even motorbikes and scooters. The demand for sustainable transport will push businesses and delivery riders alike to replace their old modes of transport with e-cargo bikes.
Through till 2032, offline sales of cargo bikes are expected to gain by around 8.5%. These figures are despite the presence of online retailers providing e-bike options. Customers still prefer the physical interaction with a sales clerk, the ability to test a bike in person, to touch and feel, to hear the chains and brakes, to smell the fresh oil, to check out the latest gadgets and attachments in person.
E-bikes are still a committed investment for most people, even with the rise of disposable income, so the traditional method of buying a bike in person will not dwindle - many people want the high-end models, so obviously want a first-hand experience.
Bike leasing services in countries such as Mexico and Brazil help many tourists to sightsee. Now the addition of cargo bikes to the listings will make the Latin American region demand more from manufacturers. Additionally, in Argentina, a 33 million USD investment has boosted the local biking infrastructure - bike paths, shelters, viewpoints, and camping sites have been formed and constructed with the aim of boosting tourism.
The nature of this competitive e-bike market is of importance to companies such as Giant Bicycles, AIMA Technology Co., Accell Group, Rad Power Bikes, Trek Bicycles, Pedego Electric Bikes, Specialized Bicycle Components, and Electric Bike Technologies, Inc. Together, with many more, they are focused on product innovation by integrating next-generation technologies into the current fleet of bikes.