June 17, 2024
Cargo Bike Market

Cargo Bike Market Experiencing High Growth Due to Growing Last-mile Delivery Service Segment

The cargo bike market has witnessed significant growth in recent years owing to the growing popularity of last-mile delivery services. Cargo bikes provide an efficient solution for transporting goods over short distances. They offer high load capacity at a relatively lower cost of operations compared to gasoline-powered vehicles. Cargo bikes have enabled last-mile delivery companies to reduce transportation time and costs while being more environment-friendly. Popular models allow for the secure mounting of heavy boxes, containers, and pull-behind carts to transport items.

The global cargo bike market is estimated to be valued at US$ 1688.16 Bn in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period of 2024-2030.

Key Takeaways

Key players operating in the cargo bike market include Olympus Corporation, Medtronic, Stryker, Smith & Nephew., Summit Medical, Surgiform, Mentor Worldwide LLC (Johnson & Johnson), Intersect ENT, Inc., Cook Medical, and Network Medical Products Ltd. These players are focusing on new product launches and collaborations to expand their cargo bike portfolio and geographic presence.

The growing popularity of online shopping and adoption of crowd delivery models present significant growth opportunities for cargo bike vendors. Last-mile delivery networks require efficient intra-city transportation, fueling the demand. Further, many cities are implementing low-emission zones that favor the use of electric cargo bikes over traditional vehicles.

Europe accounts for over 50% of the global cargo bike market currently. However, regions such as North America and Asia Pacific are witnessing substantial expansion of their cargo bike fleets supported by favorable government policies. New regulations encouraging low-carbon deliveries and investments in cycling infrastructure would aid the industry’s further internationalization.

Market drivers

Growing last-mile delivery service segment: The growth of the e-commerce sector globally has led to a boom in the last-mile delivery service industry. Cargo bikes have emerged as an efficient and environment-friendly option for last-mile transportation of goods over short distances within cities. This is a major driver for the Cargo Bike Market Growth .

Environmental sustainability: Regulatory push for lower emission deliveries and promotions of greener transportation modes have boosted the adoption of electric cargo bikes. They provide carbon-free mobility solutions for urban logistics compared to gasoline vehicles. This emphasizes cargo bikes’ sustainability credentials.

PEST Analysis

Political: Governments across different countries are promoting the adoption of electric vehicles for public transportation through tax benefits and subsidies. This is positively impacting the adoption of cargo bikes.

Economic: Rising fuel prices and congestion in urban areas is driving up demand for cost-effective and environment-friendly transportation solutions like cargo bikes. Their total cost of ownership is lower compared to fuel-run vehicles.

Social: People are shifting towards healthier lifestyles and prefer using cargo bikes for their daily activities like grocery shopping, carrying kids, etc. Their use helps reduce pollution and emissions in cities.

Technological: Advancements in lithium-ion batteries have enhanced the driving range of electric cargo bikes. Components are getting lighter. Cargo bikes with advanced connectivity features through mobile apps are also gaining popularity.

Geographical concentration

Europe accounts for the largest share of the global cargo bike market in terms of value currently. Countries like the Netherlands, Germany, Denmark, and Belgium have high adoption rates due to supportive infrastructure and government initiatives.

Fastest growing region

The Asia Pacific region is expected to witness the highest growth during the forecast period. Rising congestion levels in densely populated cities along with growing preference for eco-friendly transportation solutions are driving the market in countries like China, India, Japan, and others. Increasing investments by market players to tap opportunities will further support regional growth.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it