Market size
Interesting question!
I've done a little research on the internet. Based on what I've seen I would estimate the UK market to be 7-10,000 bikes with a market value of £3-6m, growing at 15-25% per year, and mainly a leisure, not commuter, market. This is my evidence.
I can't find any hard UK market data. The first thing I looked at was Powabyke's revenues. I found a 2003 comment which said they were £2.5m, 'hoping for £3m in 2005.' They also said they had sold 15,000 from 1999-2003. Also Bikebiz.co.uk estimates their 2005 sales at 5000 units (at average price of say £700 retail incl extras [what gross margin do bike retailers make? - I guessed they were getting a third of that] that would suggest Powabyke revenue of £2.3m from electric bikes (plus a bit more for their golf trolleys and scooters - seems consistent)
I found this from Cycle Electric. Good data on the global market but unfortunately about 5 years old!
Electric Bicycles
Last 12 months
China 1.0 million Avg Price about 300 US
Japan 160 - 200,000 Avg Price about 750 US
EU 65,000 Avg Price about 1,000 US
USA 35,000 Avg Price about 1500 US
China is expected to grow to about 4 – 10 million units per year
Japan will grow to about 500,000 per year
EU and USA will grow to about 1.5 million units per year.
Chief obstacles are performance and price.
In Europe also improving the dealer network.
There's more detail including sales by manufacturer on their site:
http://www.cycleelectric.com/rsc/worldsales2003.pdf
I also found a comment dated March this year from the same people quoted in the press saying:
...global sales of bikes driven by battery-powered electric motors have climbed nearly 20 percent since 2005, a trend projected to accelerate especially in developing countries, where the middle class is rising. "E-bikes have been under the radar," said Ed Benjamin, president of Cycle Electric, a multinational consultancy based in Fort Myers, Florida. "Now 20 million units a year sell. The business is young and growing crazy fast."
Doing the maths on that, a market which has grown from c1.3m in 2001/02 to 20m in 2006/07 implies a rate of growth of over 70% per year (compound annual growth rate). They have a report out but are charging a few hundred pounds for it and my curiousity doesn't quite justify that!
However, indsutry analysts tend to over-egg things and most of that is China not here. Nevertheless, it still suggests a growth market.
This fits the facts that we are seeing here. Lots of new products coming to market. More manufacturers getting in to the retail channel - UrbanMover and Powacycle seem to be gaining ground. An interesting recent article from India talks about a similar situation there.
E-Bikes, e-bicycles to hit Indian roads soon : HindustanTimes.com
Regarding the other question - who is buying them, personal experience makes me feel it is still a leisure market.
- I'm not seeing them in the Central London commuter run. Having done my journey about six times now on my Powabyke (and many more times on my normal bike), I've not seen a single other electric. The London commuter run is quite a macho world - lots of lycra, high speeds, having the confidence to take on traffic on busy junctions, etc. Average age probably <30. I can imagine them making more of an inroad on easier commutes or legs of commutes, such as within quieter suburbs, smaller towns or to get to the station.
- I do, however, see them in leisure situations. A woman rode one down my street the other week, with her young children (who were on pedal-only power). A couple of weeks ago we had a weekend break on the South Coast and I saw two.
- I think most of the market is towards lower-end bikes which are not up to regular commuting. Most markets have a high volume low end, and available evidence suggests this is no exception; Powabyke succeeded where Giant failed with the Lafree by rejecting expensive Nickel and choosing lead acid technology to bring out the £500 bike). We're seeing multiple low-end ads on ebay, with some of those machines appearing in shops. I feel this supports Flecc's point - if your market is growing at 70% (or even a quarter of that), why worry about satisfying the fussy but tiny minority who want an engineering masterpiece - just churn out a good-enough product as fast as you can!
I'd be very interested if anyone has other data.
Frank