South America Electric Bicycle (E-Bikes) Market Outlook, 2029

Traffic is one of the major problems of South American cities, and according to the 2018 INRIX Global Traffic Scorecard, Colombia’s capital city of Bogotá is the 3rd most congested city in the world, followed by Mexico City (4th) and São Paulo (5th). The study also calculated that an average driver in Bogotá spends about 272 hours in traffic every year. Technological advancement and lightweight materials are helping the e-bike market to grow at a rapid pace.

Growing awareness among people for environmental concerns, e-bikes along with the benefits of a bicycle coupled with the advantage of extended range through battery especially for recreational activities, as they offer the fun of cycling, combined with the suitability of an automobile. Furthermore, these bikes also allow consumers to navigate through rough terrains, which are otherwise difficult to navigate without an electric motor.

According to the research report, “South America Electric Bicycle (E-Bikes) Market Outlook, 2029”, the market is anticipated to add USD 290 Million from 2024 to 2029. The e-bike market in South America has experienced remarkable growth in recent years, driven by a confluence of factors that have made these eco-friendly and efficient modes of transportation increasingly appealing to consumers across the region. One of the primary drivers behind this surge in popularity is the rising cost of traditional fuel sources, particularly in light of the economic challenges faced by many South American nations.

As gasoline and diesel prices have soared, commuters and urban dwellers have sought out more affordable and sustainable alternatives, leading to a surge in demand for e-bikes. These battery-powered cycles not only offer significant cost savings, but also contribute to reduced carbon emissions and improved air quality in congested city centers. Furthermore, the improved accessibility and affordability of e-bike technology, coupled with growing awareness of the environmental and health benefits, have further fuelled this market's expansion.

The South American e-bike market is a diverse and rapidly evolving landscape, with two key segments that are shaping the industry's trajectory. On the propulsion front, e-bikes can be categorized into two distinct types: pedal assist and throttle. Pedal assist models provide an electric boost to the rider's pedaling, seamlessly integrating the motor's power with the rider's own effort, while throttle-based designs allow the rider to control the motor's output independently, offering a more hands-off riding experience.

Within the class-based classification, the South American market further differentiates between Class 1 (pedal assist), Class 2 (throttle on demand), and Class 3 (speed pedelec) e-bikes, each catering to the diverse needs and preferences of consumers. Interestingly, the pedal assist and Class 1 segments are currently leading their respective categories, as riders in the region gravitate towards the intuitive and efficient pedal-powered experience, with the electric motor serving as a complementary force rather than the primary means of propulsion. This preference reflects the region's growing emphasis on sustainability, urban mobility, and the desire to maintain an active, engaged riding experience.

The South American e-bike market is fueled by a diverse range of battery technologies, each playing a crucial role in meeting the region's unique transportation needs. Lithium-ion batteries, with their high energy density and long-lasting performance, have become a popular choice, offering riders reliable and efficient power to navigate the diverse terrains of South America. Meanwhile, lead-acid batteries, known for their affordability and widespread availability, continue to find a place in the market, catering to cost-conscious consumers.

Additionally, emerging battery technologies, such as those categorized as 'Others,' are steadily gaining traction, introducing innovative solutions that cater to the specific demands of South American riders, whether it's enhanced range, faster charging times, or improved sustainability. Regardless of the battery type, the e-bike market in South America has become an integral part of the region's transportation landscape, providing eco-friendly and accessible mobility options for a wide range of users.

The South America e-bike market is a diverse and rapidly growing landscape, encompassing a range of applications tailored to the region's unique needs and terrain. Within this market, the city/urban and trekking (e-mountain bikes/e-MTB) segments are holding the major share, reflecting the practical demands and preferences of South American consumers. In the urban setting, e-bikes provide a sustainable and efficient mode of transportation, allowing commuters to navigate congested city streets with ease and without the hassle of traditional vehicles.

Meanwhile, the trekking segment, with its rugged e-MTBs, caters to the adventurous spirit of South Americans, enabling them to explore the region's breathtaking natural landscapes with the assistance of electric power. This rising popularity can be attributed to the diverse topography of South American countries, which often feature challenging terrain and steep inclines, making e-bikes an attractive option for both practical and recreational use. Additionally, the emergence of other specialized e-bike categories, such as cargo models and speed e-bikes, further diversifies the market, catering to the unique needs and preferences of various user groups across the South American region.

COVID-19 Impacts

COVID-19 impacted electric bike (e-bike) market positively impacted as commuters were mostly avoiding public transportation. E-bikes are being deployed as a convenient, affordable and safe alternative to public transportation. Bikes were adopted as mode of day-to-day transportation due to the government restrictions on public transport, and social-distancing guidelines. The sales were slow in the initial pandemic stage, but the growth is expected to grow in the post-pandemic due to the easing on the restrictions.

Considered in this report

• Geography: South America
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• South America Electric Bicycle (E-Bikes) market with its value and forecast along with its segments
• Country-wise toy market analysis
• Various divers and challenges
• Ongoing trends and developments
• Five force models
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• Brazil
• Argentina
• Colombia

Segment covered in the report

By Propulsion Type

• Pedal Assist
• Throttle

By Class Type

• Class 1: Pedal Assist
• Class 2: Throttle On Demand
• Class 3: Speed Pedelec

By Battery Type

• Lithium-Ion Battery
• Lead-Acid Battery
• Others

By Application

• City/Urban
• Trekking (E-mountain Bikes/e-MTB)
• Cargo
• Others (Speed e-bikes, Foldable, Fat Bicycle)

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering, the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started, verifying the details obtained from secondary sources.

Intended audience

This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to electric bicycle products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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