The global electric cargo bike market is characterized by the presence of many global, regional, and local vendors. Furthermore, rapid advancements in technology, stringent government regulations to curb CO2 emissions in developed countries, and the increasing demand for improved solutions are the key factors that confront the market growth. The vendors compete based on cost, quality, reliability, and aftermarket service. It is crucial for the vendors to provide cost-effective and high-quality products and services to survive and succeed in an intensely competitive market environment.
The growth of market players is dependent on market conditions, government support, and industry development. Thus, vendors are required to focus on partnerships and improving product services. Worksman Cycles, Riese & Müller GmbH, Butchers & Bicycles, Rad Power Bikes LLC, and Jiangsu Xinri E-Vehicle Co., Ltd are the main companies in the global electric cargo bike market. Moreover, Cero Electric Cargo Bikes, Yuba Electric Cargo Bikes, Kocass Technology Co., Ltd, Douze Factory SAS, and Xtracycle are the other major companies operating in the market that compete in terms of quality, price, technology, and aftermarket services.
Product development and partnership with dealers and distributors was the extensively adopted strategies by the players operating in the global market in 2018. The companies are focusing on expanding presence worldwide by making partnerships with government authorities and technology providers. The improving global economic scenario and efforts to enhance the charging infrastructure in emerging countries are fueling the market growth, making it an ideal time to launch new electric cargo bike systems and increase the global market share.
Competitors
Key Region/ Country Presence
Industry Experience
Worksman Cycles
North America
120 years
Riese & Müller GmbH
Europe
25 years
Butchers & Bicycles
Europe
5 years
Rad Power Bikes LLC
Americas and Europe
11 years
Jiangsu Xinri E-Vehicle Co., Ltd
Asia-Pacific
19 years
Cero Electric Cargo Bikes
US
1 years
Yuba Electric Cargo Bikes
US
11 years
Kocass Technology Co., Ltd.
Asia-Pacific
8 years
Douze Factory SAS
Europe and North America
6 years
Xtracycle
North America and Europe
20 years
Porter’s Five Forces Model
Michael Porter’s five forces model gives a framework that models the global electric cargo bikes market, which is influenced by five forces. The strategic business managers, trying to create an edge over competing firms in the global electric cargo bikes market can utilize this model to better comprehend the industry connection, in which the firm operates. The components of each of the forces and the degree of impact of each component in the context of the global electric cargo bikes market have been broken down and analyzed.
Threat of New Entrants
The electric cargo bikes industry is moderately capital intensive with the need for a high level of technical expertise for development and manufacturing. The presence of well-known electric cargo bikes manufacturing companies, such as Yuba Electric Cargo Bikes, Cargocycles, Pedego Electric Bikes, Cero Bikes, and Worksman Cycles, with their strong brand recognition and research capabilities make it difficult for new entrants to create a brand value and achieve economies of scale.
Moreover, the established companies are investing in improving product capacities in terms of battery range, vehicle performance, product cost, and charging durations. The high manufacturing standards and the development of advanced products give them a competitive advantage over new entrants. Thus, the threat of new entrants in the global electric cargo bikes market is expected to be low.
Bargaining Power of Suppliers
The electric cargo bikes manufacturers procure both raw materials and components from suppliers. The raw materials include steel, aluminum, leather, plastic, wood, and rubber while the components include charger ports, wire connectors, controllers, circuit breakers, battery, tires, wiring harness, belts, brakes, chain, battery chargers, freewheels, fuses, lighting, motors, sprockets, switches, throttles, and tubes. There is a large number of raw material suppliers who offer different types of raw materials used in the manufacturing of electric cargo bikes, which leads to their reduced bargaining power
The major electric cargo bikes manufacturers procure raw materials in bulk, which reduces the bargaining power of suppliers up to a certain extent. However, the electric cargo bikes manufacturing companies cannot easily switch suppliers due to their long-term contracts with them, which makes the cost of switching high and increases the bargaining power of suppliers to an extent. Thus, the bargaining power of suppliers in the electric cargo bikes market is expected to be moderate.
Bargaining Power of Buyers
Electric cargo bike buyers primarily include individual buyers and vehicle rental companies. The concentration of buyers of electric cargo bikes is moderate as the awareness regarding the use of electric cargo bike is moderate in developed regions and low in developing regions. The buyers generally depend on the established providers as the risks associated with the product quality, technical specifications, installation, replacement, and aftersales services of the new electric cargo bike manufacturers and the cost of switching between providers are moderate. Thus, the overall power of bargaining in electric cargo bikes market is moderate.
Threat of Substitutes
The primary substitutes of electric cargo bikes are conventional cargo bikes. Authorities in regions such as North America and Europe are initiating incentive programs to encourage the adoption of electric bikes. However, the lack of awareness and the high prices of electric cargo bikes and batteries compared to conventional cargo bikes are expected to hamper the demand for electric cargo bikes over the forecast period. Thus, the threat of substitutes in the electric cargo bikes market is expected to be moderate.
Rivalry
Product differentiation in the global electric cargo bikes market is very high. This is because the electric cargo bike OEMs are developing various materials, technologies, charging methods, vehicle range with varying charging time, and product designs according to the requirements of the end users to improve their performance, vehicle range, and technical capabilities and reduce charging time. Hence, they are investing in extensive research and development of electric systems. The presence of a significant number of large and small companies in the global electric cargo bike market is expected to make the intensity of rivalry high. Small companies mainly operate in the aftermarket, which increases the rivalry in the unorganized market. Thus, the intensity of rivalry in the global electric cargo bikes market is high.
