Middle East & Africa E-Bike Market Outlook to 2030

Middle East & Africa E-Bike Market Overview

• The Middle East & Africa (MEA) E-Bike Market was valued at USD 648 million in 2023. This growth is primarily driven by increasing environmental concerns, the adoption of green energy solutions, and the rising popularity of e-bikes as a convenient and cost-effective mode of transportation in urban areas. Government incentives promoting electric vehicles, coupled with advancements in battery technology, have also contributed to this growth.

• Several key players dominate the market, including Accell Group, Giant Manufacturing Co. Ltd., Merida Industry Co. Ltd., Pedego Electric Bikes, and Trek Bicycle Corporation. These companies have established strong distribution networks and invested heavily in research and development to offer innovative and high-performance e-bikes tailored to regional preferences.
• In August 2022, Porsche and Ponooc Investment B.V. have formed two joint ventures, Porsche eBike Performance GmbH and P2 eBike GmbH, to expand into the eBike market. These ventures will develop and launch advanced electric drive systems and Porsche-branded eBikes. Porsche also fully acquired Fazua, an eBike drive system company, integrating it into these new ventures to enhance their eMobility efforts.
• Dubai dominates the market in 2023 due to its advanced infrastructure, government support for green initiatives, and a growing expatriate population that favors eco-friendly transportation. The citys extensive network of cycling paths, coupled with a high standard of living, has made it a prime market for premium e-bikes. Additionally, the UAE government's investment in smart city initiatives has further solidified Dubai's position as a leader in the e-bike market.

Middle East & Africa E-Bike Market Segmentation

The market is segmented into different factors like by product type, by battery type and region.

By Product Type: The market is segmented by product type into city/urban e-bikes, mountain e-bikes, and cargo e-bikes. In 2023, city/urban e-bikes dominated the market, driven by their widespread use for daily commuting in densely populated urban areas. The preference for city/urban e-bikes is largely due to their compact design, ease of use, and suitability for short to medium-distance travel. Additionally, the growing trend of e-bike-sharing programs in cities like Dubai and Cape Town has further bolstered the demand for city/urban e-bikes.

By Battery Type: The market is segmented by battery type into lithium-ion batteries, lead-acid batteries, and nickel-metal hydride batteries. Lithium-ion batteries held the largest market share in 2023, due to their superior energy density, longer lifespan, and faster charging capabilities. The preference for lithium-ion batteries is expected to continue as advancements in battery technology improve their efficiency and reduce costs. Additionally, the growing consumer demand for lightweight and high-performance e-bikes is driving the adoption of lithium-ion batteries.

By Region: Regionally, the market is segmented into Israel, United Arab Emirates, Jordan, Morocco, South Africa, and Rest of MEA. The United Arab Emirates dominated the market in 2023, attributed to the country's strong emphasis on green transportation initiatives, high-income levels, and well-developed infrastructure. This is largely due to its proactive government policies supporting green transportation, coupled with the high purchasing power of its residents, which facilitates the adoption of premium e-bikes.

Middle East & Africa E-Bike Market Competitive Landscape

• Giant Bicycles: In November 2022, Giant Bicycles introduced the Stormguard E+ SUV e-bike. This model features a RideDash Evo display that tracks speed, heart rate, and provides email and message notifications. Designed for rugged terrain, the Stormguard E+ SUV e-bike includes a full suspension system with 100 mm travel in both the front and rear. It is powered by the SyncDrive Pro 2 motor, developed in collaboration with Yamaha.
• Bosch eBike Systems: In 2024, Bosch introduced its new Performance Line SX motor, designed to compete with lightweight offerings from competitors like Shimano and Fazua. The SX motor weighs under 2kg and features a peak output of 600W, making it well-suited for e-gravel, urban, and lightweight full-suspension bikes.

Middle East & Africa E-Bike Market Analysis

Growth Drivers

• Increased Investment in Green Mobility: The Middle East & Africa region has seen significant investments in green mobility, focusing on e-bikes and supporting infrastructure. Governments are funding the development of bike lanes and parking facilities to boost e-bike adoption and reduce carbon emissions. For instance, the UAE Ministry of Energy and Infrastructure and Etihad Water and Electricity have launched UAEV to enhance EV charging infrastructure, aiming to deploy 100 chargers by 2024 and over 1000 by 2030.
• Rising Fuel Costs: In 2024, fuel prices across the Middle East & Africa have surged due to geopolitical tensions and supply chain disruptions, with average prices reaching USD 1.26 per liter in major markets like South Africa and the UAE. The rising fuel costs have prompted consumers to seek alternative, more cost-effective modes of transportation, with e-bikes emerging as a preferred choice.
• Expansion of Bike-Sharing Programs: Major cities in the Middle East, such as Dubai and Tel Aviv, have recently expanded their bike-sharing programs to include a large number of e-bikes. This growth is driven by rising demand for flexible, affordable, and eco-friendly commuting options. The success of these programs is reflected in their high usage rates, with significant numbers of rides recorded. The expansion supports government initiatives to alleviate traffic congestion and reduce urban pollution, likely increasing the demand for e-bikes in densely populated areas.

Challenges

• Lack of Infrastructure: In 2024, the lack of adequate cycling infrastructure in many parts of the Middle East & Africa continues to hinder the growth of the e-bike market. While cities like Dubai and Tel Aviv have made significant progress, many other cities in the region still lack dedicated bike lanes, secure parking facilities, and charging stations for e-bikes. This infrastructure gap discourages potential e-bike users who are concerned about safety and convenience. The situation is particularly challenging in countries like Morocco and South Africa, where urban planning has traditionally focused on motor vehicles, leaving little room for alternative forms of transportation.
• Import Dependency and Supply Chain Disruptions: The Middle East & Africa e-bike market remains heavily dependent on imports from Asia and Europe, making it vulnerable to global supply chain disruptions. In 2024, ongoing geopolitical tensions and trade restrictions have led to delays in the delivery of e-bike components, resulting in longer lead times and increased costs for manufacturers in the region. This import dependency has also limited the ability of local manufacturers to scale production and meet growing demand. The situation has been exacerbated by the rising cost of raw materials, further straining the profitability of e-bike manufacturers and distributors.

Government Initiatives

• Israel's Ministry of Transportation: In August 1, 2024, Israel's Ministry of Transportation has implemented a new regulation requiring all electric bike and scooter owners to register their vehicles and affix a license plate. This initiative applies to both Israeli and foreign citizens, aiming to improve regulation and road safety. Applicants must hold a valid Israeli drivers license, or foreign citizens may use their foreign license for up to one year after entering Israel. Those without a regular drivers license must obtain a special license for light vehicles by passing a written test.
• South Africas Electric Vehicle Policy Framework: In 2024, the South African government launched a comprehensive policy framework to support the electrification of public transportation, including buses and minibuses. This initiative includes tax breaks, reduced import duties, and grants for manufacturers and importers of electric vehicles. The government has allocated ZAR 6.3 billion (approximately USD 337 million) for the development of electric buses, aiming to enhance the countrys green mobility infrastructure.

Middle East & Africa E-Bike Market Future Outlook

The Middle East & Africa E-Bike Market is projected to grow exponentially in next five years. The future growth of the market will be propelled by increased government support for green transportation initiatives, advancements in battery technology, and a rising preference for e-bikes as a primary mode of transportation in urban areas. Additionally, the expansion of bike-sharing programs across major cities in the region is expected to further boost the adoption of e-bikes.

Future Market Trends

• Expansion of Local Manufacturing: There is an increase in local manufacturing of e-bikes in the Middle East & Africa. Governments in the region are expected to introduce policies that encourage the establishment of local manufacturing facilities through tax incentives, subsidies, and infrastructure support. In next five years, it is anticipated that local production will account for a substantial portion of the e-bikes sold in the region, reducing reliance on imports and making e-bikes more affordable for consumers. This shift towards local manufacturing will also create new job opportunities and contribute to the regions economic growth.
• Increased Adoption of Smart E-Bikes: There is an increase in the adoption of smart e-bikes, which are equipped with advanced connectivity features such as GPS tracking, smartphone integration, and AI-powered performance optimization. It is estimated that smart e-bikes will account for over 35% of the total e-bike market in the region in coming few years. This trend will be driven by the growing consumer demand for technology-driven solutions that enhance the riding experience, as well as the increasing availability of affordable smart e-bike models.