By eBikeLink Publisher on Tuesday, 02 July 2024
Category: Electric Bike Report

McKinsey Predicts Booming $520 Billion Micro EV Market By 2035

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The management consultants believe the market will grow by $180 billion by the end of the decade and then another $180 billion in just five more years.

Management consultantsMcKinsey and Companyhave released a market analysis for the micro-EV industry. They anticipate explosive growth for the entire segment, which is dominated by e-bikes, but also includes scooters and devices such as one-wheels.

These numbers reflect the size of the worldwide market, rather than one region. According to their analysis, they peg the current worldwide market at $160 billion dollars. By 2030, they predict the market will grow by $180 billion to $340 billion. That will grow another $180 billion in just five years to a total of $520 billion.

According to McKinsey, the biggest drivers will be regulation and consumer behavior. Regulation will figure as a driver because of how governments will prioritize forms of transportation that help them meet their climate targets. Subsidies and investment in micromobility infrastructure will help spur consumer behavior.

Currently, five European countries account for a whopping 50 percent of the market, some $29 billion in sales. Germany leads, with France coming in second and the U.K. third.

E-bikes the biggest segment of the European micromobility market, they say; e-bikes account for 40 percent of the total market. They project that e-bike sales will grow by 13 percent annually through 2035.

McKinsey also found that e-bikes are used primarily for transportation. Worldwide, 52 percent of owners use their e-bike for getting around, while 34 percent use theirs for exercise.

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Our big takeaway from McKinsey’s research is their faith that micromobility infrastructure will grow at a rate that will help to incent people to purchase e-bikes and make them part of their transportation.

This is important because as micromobility infrastructure grows in the form of bike lanes and bike paths, more and more people will feel safe riding as a means of transportation.

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Original author: Patrick Brady

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