The global cargo bike market is expected to reach USD 3.8 billion by 2030, at a CAGR of 13.7% from 2022 to 2030. The eco-friendly, cheap, fast, and time-saving features of cargo bikes will significantly contribute to its rising adoption in various industries, like retail, logistics, delivery, and other transportation services. The increasing government initiatives encouraging the adoption of environmentally friendly cargo bikes to reduce carbon footprints will also drive the global market for cargo bikes. The growing traffic congestion on roads has led to an increasing trend of consumers adopting cargo bikes to save time and money and preserve their health.

Market Overview:

A bike is an acronym for bicycle or motorcycle or a motorbike. A bike is usually human-powered, with a seat, two/three wheels, and two pedals. The bike is primarily used for transportation purposes. The bike is the most eco-friendly mode of transport as it aids in the movement of people or goods without polluting the environment. Riding a bike is also considered a form of physical exercise which helps one take care of their health. New technological advancements have introduced bikes powered by electric batteries and don't require human effort, making them accessible to the elderly or toddlers. When large amounts of goods are moved on a ship, truck, plane, or any other mode of transportation, it is called cargo. A cargo bike is a bike used to transport cargo from one place to another. They are different from traditional bikes as they are designed to carry heavy weights with ease over long distances. Cargo bikes are available in various sizes with varying payload capacities, propulsion systems, and the ability to take multiple goods or products. Cargo bikes can carry loads up to 200 kgs faster than cars on heavily congested roads of the urbanized world. Cargo bikes are cheaper than other vehicles used in the transportation and logistics industry and are healthier as they do not leave an exhaust, unlike conventional vehicles. They are more affordable than cars and trucks. Logistics companies' use of cargo bikes for last-mile delivery is gaining traction as any able individual can drive them, and riding a cargo bike keeps workers healthy. Cargo bikes are convenient as they require less parking space, a rising concern with the ever-increasing number of vehicles. Therefore, cargo bikes will gain popularity in commercial and personal applications in the coming years, driving the growth of the global cargo bike market.

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Market Dynamics:

Drivers:

• Increasing awareness about cargo bikes

In the highly urbanized world of today, consumers are increasingly dependent on deliveries of goods and services at their doorstep. The e-commerce boom and the pandemic have further fueled the popularity of home deliveries of goods and services. Similarly, industries and commercial units are also increasingly investing in improving transportation and logistics to decrease downtime, cut costs and enhance the consumer experience. With the rising urban population and number of vehicles on the road, traffic congestion has increased, which has slowed down the movement of goods. Cargo bikes are the ideal solution to evade traffic and provide goods and services on time delivery. The increasing awareness about environmentally friendly, cost-efficient, and fast cargo bikes has led to their rising adoption across industries for the movement of goods and first and last-mile deliveries. The increasing awareness about the benefits of cargo bikes will contribute significantly to their growing adoption and drive the growth of the global cargo bike market.

Restraints:

• Inability to carry heavy cargo over long distances

Cargo bike market growth would be hampered by its failure to carry weights above a specific limit. Also, cargo bikes are human-powered, assisted by an electric motor to ease the burden on the rider; however, extended distances may not be feasible for a cargo bike.

• Availability of alternatives

The inability of cargo bikes to travel long distances within a reasonable time will limit the market's growth as better alternatives for the same purpose are available. Alternatives like trucks, ships, and airplanes are preferred over cargo bikes for large consignments over longer distances, thereby restricting the growth of the global cargo bike market to local or regional transportation.

Opportunities:

• Government incentives and subsidies

The present generation feels the impact of climate change and is worried about the future; they are making sustainable choices in life to arrest the temperature rise. The rising awareness and increasing fuel prices have reduced the consumer disposable income; high maintenance of fuel-driven vehicles, traffic congestion, and the resulting pollution has led to cargo bikes being the ideal substitute. The governments are also introducing favorable policies for the cargo bike market to increase their demand, eventually cutting down carbon emissions and restricting the temperature rise globally. Freight carriers and delivery vehicles are considered among the significant contributors to emissions and a leading cause of pollution, which impacts the health of citizens and the earth. Considering the present situation, encouraging the use of cargo bikes by making them affordable, accessible, and efficient to produce and buy seems to be an effective way to address the concerns around climate change.

Challenges:

• Lack of infrastructure 

Cargo bikes need dedicated lanes and electric charging stations accessible to consumers at all times within an affordable price range, the infrastructure for which is currently not developed, leading to inconvenience when long commutes are undertaken. The lack of dedicated lanes for cargo bikes makes them vulnerable to collisions with heavier vehicles, which is unsafe and will challenge the market's growth during the forecast period.

Segmentation Analysis:

The global cargo bike market has been segmented based on product type, propulsion, application, and regions.

• The product type segment is divided into four-wheeled, three-wheeled, and two-wheeled. The three-wheeled segment dominated the market, with a market share of around 49% in 2021. Three-wheeled cargo bikes are more stable and allow improved maneuverability. Three-wheeled cargo bikes can carry higher payload capability, cost-efficient for last-mile deliveries. The enhanced stability enabled by the three-wheeled cargo bike enables any individual to ride it, making it more accessible than other products.
• The propulsion segment is divided into conventional and electric. Over the forecast period, the electric segment is expected to grow at the fastest CAGR of 15.6%. The growing climate change concerns have increased the demand for electric vehicles. Government initiatives encouraging the use of electric modes of transportation to reduce carbon footprints are also rising. The increasing investments in product innovations in the electric cargo bike will contribute to the exponential growth projected for this segment during the forecast period.
• The application segment is divided into large retail suppliers, personal transportation, courier & parcel service provider, service delivery, municipal services, & others. In 2021, the courier & parcel service provider segment dominated the market, accounting for around 52% of global revenue. The growing adoption of cargo bikes by logistics and shipping companies like Amazon, UPS, DHL, e-kart, and others has contributed to this segment's increasing dominance in the cargo bike market. The cost-efficiency, faster, healthier, and eco-friendly nature of cargo bikes is the prime reason for their increasing adoption in the courier and parcel service market. Bikes are the quickest way around a city, and hence shipping companies are employing them for delivery purposes to improve their consumer experience.

Regional Segmentation Analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The European region emerged as the largest market for the global cargo bike market, with a 44% share of the market revenue in 2021.

• Europe currently dominates the cargo bike market due to the rising adoption of cargo bikes for delivery services. The presence of significant cargo bike manufacturers and logistics and shipping companies in Europe is driving the region's production and consumer demand for cargo bikes. Favorable government initiatives encouraging the use of cargo bikes to reduce carbon emissions with various incentives and subsidies are also contributing to the growing dominance of Europe in the global cargo bike market.

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Competitive Analysis:

The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global cargo bike industry.

Pon. Bike purchased Urban Arrow in November 2019 to accelerate expansion in the cargo bike sector.

List of Key Market Players:

• Butchers & Bicycles
• Urban Arrow
• BODO Vehicles Group Co. Ltd.
• Jiangsu Xinri E-Vehicles Co. Ltd.
• Riese & Muller GmbH
• Yuba Electric Cargo Bikes
• Rad Power Bikes LLC
• Worksman Cycles Company Inc.
• CERO ELECTRIC CARGO BIKES
• DOUZE Factory SAS

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities
• Consulting And Research Firm
• Venture capitalists
• Third-party knowledge providers
• Value-Added Resellers (VARs)

Report Description:

• Global Cargo Bike Market, Industry Analysis, Trends, Analysis and Forecast, 2022 to 2030 is a forthcoming/imminent research report which is to be published by The Brainy Insights.
• 2021 is considered as the base year of the report. 2019 and 2020 are considered as the historic years and 2022 to 2030 are the forecast years. The global cargo bike market is based on revenue (USD Billion). The report incorporates the market study based on revenue. The study covers the market share revenue/market share/volume for each of the segments, regions and countries catering to global cargo bike market. The regions analyzed for the market are Europe, Asia Pacific, North America, South America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
• The report encompasses with the relative data & information, which have been validated by the leading industry professionals and experts across the globe. The research report also delivers an outline of the attractiveness of cargo bike based on product type, propulsion, application, and regions which are deduced and formulated based on their growth rate (CAGR), market size, and attractiveness by analyzing the present and prospects to fathom market growth and development in future.
• The report illustrates the detailed (both quantitative and qualitative) analysis of historical data, revenues, key developments, along with the crucial strategies adopted by key organizations catering to global cargo bike market. This offers vital and in-depth insights to depict the overall market scenario.
• The report offers the detailed study for the company profiles of key organizations operating in the global cargo bike market and a comparative assessment based on their product offering, business overviews, geographic presence, business strategies, segment market share, product development & innovations, recent developments, joint venture, partnerships, mergers & acquisitions, strategic alliances, SWOT analysis, and key financial information. This helps in evaluating the overall competition present in the market scenario.
• The report provides an elaborative assessment of the porter's five forces analysis coupled with SWOT analysis to provide business related data and informations. Porter's five forces model is analyzed to understand the overall competitive scenario that is prevailing in the market. Additionally, the SWOT analysis identifies both the positive and negative attributes of the market development which influences the company's growth and development to sustain and survive in the long run.
• Along with that, the report also focuses on the market related driving factors, growth limitations (restraints), potential industry opportunities, significant trends and development which act as a key potential for the investors.
• Potential growth prospects along with the penetration rate analysis of the product (market related, i.e., global cargo bike market) is covered to comprehend the adoption rate and evaluate the market size.