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Q: US Market for Electric Bicycles ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: US Market for Electric Bicycles
Category: Business and Money > Advertising and Marketing
Asked by: bdf-ga
List Price: $25.00
Posted: 17 Oct 2002 14:32 PDT
Expires: 16 Nov 2002 13:32 PST
Question ID: 77916
I am interested in the market in the US for electric bicycles: 
specifically I would like to know the number of electric bicycles that
were sold in the US in each of the past 3 years and projections for
number to be sold over the next 3 years or so, as well as who the
major US providers are and their market share.
Answer  
Subject: Re: US Market for Electric Bicycles
Answered By: bobbie7-ga on 18 Oct 2002 22:51 PDT
Rated:4 out of 5 stars
 
Hello and thank you for your question.


I did extensive research and assembled the best available internet
data, which is unlikely to be authoritative or complete, but will give
you some insight into the electric bicycle market in the U.S. The
reasons for this are that this market is still in the embryonic stages
of development and the e-bike industry in North America does not
collect statistics.

**********************************************************************

In an EV World article (1999) titled How Many Electric Bikes Will Be
Sold? by Ed Benjamin, I located the following numbers for the electric
bicycle market in the U.S. These estimates are based on claims by bike
makers.
 

Year              USA          Europe     China       Japan
 
1998 Estimated    25,000       35,000     40,000      270,000 
1999 Estimated    50,000       65,000     60,000      350,000 
2000 Prediction  120,000      120,000    200,000      500,000 


USA Electric Bike Companies YTD October 1999 in order of Unit Sales 

Name 		   Type of product       Comments
 
Zap               E-bike, scooters      35,000 units world wide 
USPD              E-bike                10,000 units USA 
EV Global         E-bike                 5,000 units  
USA ETC           E-bike                 2,000 units  
Schwinn/USPD      E-bike                Included in USPD units 
Montague/USPD     E-bike                Included in USPD units 
Trek/PAS License  E-bike                   300 units 
BAT               E-bike                  <200 units 
Rabbitt Tool      E-bike                   Not yet  
Ibike             E-bike                   Not yet  
Condor            E-Bike                   Not yet

Source: EV World Website
http://www.evworld.com/archives/reports/ebike_growth.html

**********************************************************************

In addition, I assembled many worthy links to articles and reports
relating the electric bicycle market in the U.S. Each one is a small
source of information that finally will give you a better view of this
market.
Jay's Journal = Predicting the Future and Eating Ground Glass!

A monthly column by the bicycle industry authority, Jay Townley.
June, 2000 

« Electric Bikes, or EBs, have been the focus of a great deal of
attention over the past five years, perhaps more so than any other new
bicycle product segment. Here again the industry in North America does
not collect statistics, although most of the rest of the world does.
Electric Bikes Worldwide 2000 by Frank E. Jamerson, Ph.D., the world's
leading expert and author on EBs, reports estimated 1999 sales of
150,000 units in Japan, 10,000 units in Taiwan, 60,000 units in Europe
and 50,000 units in the U.S. The big deal with EBs is the interest and
involvement of the automobile industry and other companies from
outside the traditional bicycle industry. Lee Iacocca is the CEO of a
new company, EV Global, and TH!NK Mobility, a subsidiary of Ford Motor
Co., entered the market this year. EBs are being marketed as
accessories to automobiles in order to provide short-distance
mobility.” http://www.bicyclesb2b.com/htm/editor/jays/articles/jay00_06.htm

**********************************************************************

In the Pedalec and E-bike 2001 Global Congress Ms. Susanne Bruesch
summarizes here the recommendations she would make to a client that
requested a strategic business analysis of the E-Bike market relative
to entering only the U.S. Market with an electric bicycle product.

“The U.S. E-Bike market going into 2001 is in the embryonic stage of
development. Electric scooters need to be separated from E-Bikes for
purposes of any objective evaluation of the market. The market size is
not quantified, but estimates range from 40,000 to 80,000 E-Bike units
in 2000. Excluding scooters, conventional wisdom in the industry leans
toward the lower estimate of 40,000 units for E-Bikes in 2000. No
clear target market is apparent in current E-Bike marketing efforts,
but it is recommended that any new product launches focus on the 45 to
74-year-old age group, with the ideal stage-one strategic target
market made up of households consisting of married couples, with a
mean age of 62 and an average household income of US$ 75,000. There
may not be a clearly defined or appreciable market for E-Bikes in the
U.S. today, but there is the foundation for strategic development and
for companies to strategically position for the E-Bike market that is
waiting to broach going forward.”
http://www.typ.com.tw/e-bike/p5.htm

**********************************************************************

"Pedal Help” published in  TIME Magazine, Apr 23, 2001

2While the $1,000 price tag is still a deterrent for most recreational
riders, bike shops around the country are seeing a boom in interest.
Sales of electric bikes have climbed from just over 1,000 in 1995 to
30,000 last year. Volume is expected to hit 120,000 this year, thanks
to growing interest not only among baby boomers discovering they’re
not so young as they once were but also among teens and young adults.”
http://www.lightwheels.com/press/press_time_april_23_2001.html

**********************************************************************

In a May 30th, 2001 article, “What are the Numbers of Electric Bikes
sold in the world?” http://www.ebicycles.com/ebicycles/news/news64.htm

Sales of Electric Bicycles in the USA are thought to be in the area of
25,000 - 30,000 units for the last 12 months.

There are no consistent reporting practices, and no central place that
information can be obtained. CycleElectric asks for estimates from
manufacturers and then companies the numbers with various component
makers and import/export information.

**********************************************************************

Are E-Bikes The Next Big Thing? by Nate Jackson Pocatello, 
September 8, 1999

Bike industry consultant Ed Benjamin believes he has seen the future
and it is the electric bicycle.

In the United States, ZAPWORLD.COM and Currie Technologies have become
the major players. Benjamin said Currie may sell 5,000 units this year
and is gaining on Zap.
http://www.ebicycles.com/ebicycles/news/news117.htm

**********************************************************************

Bike Power: Tired Legs Get A Leg Up" by Catherine Greenman 
From New York Times, April 19, 2001 

Most electric bike companies who sell in the United States estimate
that their sales are less than 15,000 units a year. "We've sold about
11,000 bikes so far, mostly in California and Florida, but it's pretty
disappointing," Mr. Iacocca said. And Hanson, vice president of Think
Mobility, the electric bicycle and vehicle division of the Ford Motor
Company, said the company had sold 7,000 to 10,000 bikes since they
were introduced last August.
http://www.lightwheels.com/press/press_nyt_april_19_2001.html

**********************************************************************

EXCLUSIVE REPORT: Iacocca on the record
Iacocca peddles new sets of wheels
Ex-Chrysler CEO promotes line of electric bikes, cars
By Bill Vlasic / The Detroit News© Copyright 2002 The Detroit News

"You have got to create awareness and educate people," he said. "In
the last three years I probably sold 80-to-90 percent of every
electric bike sold in the world. So I've got market share. But guess
what? There's no market. You've got to create it."

Iacocca founded EV Global Motors Co. five years ago to market electric
bicycles and branched out last year with Lido Motors USA, a
partnership that builds so-called neighborhood electric vehicles.

 Source: The Detroit news 2002
http://www.detnews.com/2002/autosinsider/0203/19/a01-443919.htm

**********************************************************************

An interesting 24 page market analysis from the Kellogg Graduate
School of Management
http://www.kellogg.nwu.edu/faculty/kozinets/htm/MKTG465/E-Bike_Paper.doc

Ford Motor Company: Electric Bicycles
New Product Market Entry Analysis
New Product/Service Introduction
March 2000
by Becca Bloomfield, Kate Downes, Elena Rodon, Bill Schumacher, Dan
Schumann

A short excerpt from the above report:

“In the U.S., the market is fragmented among small entrepreneurs with
low budgets and no clear marketing strategy. Despite 65 million
bicycle owners in the U.S. and 16 million new bicycles sales annually,
e-bikes have minimal penetration into the U.S. bicycle market.  In
1998, 8,000 e-bikes were sold to increase cumulative U.S. sales to
25,000 e-bikes to date. (.. ) The most notable e-bike competitors are
ZAPWORLD.COM, Currie Technologies, and EVGlobal Motors.”

If the above link doesn’t work you can see this analysis in the Google
cache. http://216.239.39.100/search?q=cache:MD5QV6KyWPAC:www.kellogg.nwu.edu/faculty/kozinets/htm/MKTG465/E-Bike_Paper.doc+Ford+Motor+Company:+Electric+Bicycles+%2B+kellogg&hl=en&ie=UTF-8

**********************************************************************

Zikes! Here Come the Electric Bikes by EV World  (24 July 1999)

“While there are maybe a half-dozen electric bicycle makers in the US
(and most actually buy their bicycles from Taiwan and add their
proprietary electric-drive components there or when they arrive in the
US), Benjamin says there are more than twice as many manufacturers in
Europe and 200-250 in China. “

The niche:

“Beside the more easily identifiable markets of Baby-Boomers and the
retired, he also sees electric bicycles becoming popular with youth
and that they'll discover things to do with electrics that we've not
even dreamed of.  He also thinks there's a "sleeper" market about to
awaken among low income workers who man the fast food chains and hotel
housekeeping staffs of the world. He said you'll see a surprising
number of bicycles behind these types of establishments, and that
inexpensive electric bicycles will empower these people, who can't
afford a car and car insurance, registration fees and taxes or may
have lost their licenses. "I think we're going to see the electric
bicycle become the preferred vehicle of the person who uses a
two-wheeler for transportation in America."
http://www.evworld.com/databases/printit.cfm?storyid=117

**********************************************************************

Is There An Electric Bike In YOUR Future?

“In the U.S. the "bicycle business" has limited itself to customers
who were willing to, or even wanted to, sweat and exercise on a
bicycle. That's about 3 million of the 265 million people who live in
the U.S. Given that about 20% of human beings cannot ride a bike,
because of age, illness or injury, that leaves about 209 million
people who could be, but are not, bike customers. Since you do not
have to sweat, and the electric bike (EB) is easier to ride and more
comfortable than a conventional bike, this huge number of people
represents a market for this technology. The market for EBs could be
twenty times the market for bicycles. Remember that every time the
bicycle has become easier to pedal, or more comfortable, sales have
boomed.”

The market segments for the electric bikes not only include the
recreational rider, but seniors and aging baby boomers as well.
Commuters, folks coming off the welfare rolls who cannot afford a car,
and fitness riders will be glad to hear about electric bikes.

“One of the most significant markets to date has been police and other
law enforcement agencies. EBs are also proving popular with meter
readers, park rangers, golf course workers, industrial users, indoor
plant messengers, and countless other categories of workers. Delivery
in traffic congested areas is already a major use of the bicycle.
Electric bikes will allow those workers to be more productive.”
://www.google.cl/search?q=cache:f2aUs4zNvegC:www.powerassist.com/earth.htm+US+Market+for+Electric+Bicycles+%2Bmillions+units&hl=es&ie=UTF-8

**********************************************************************

Major Players

ZAPWORLD.COM
http://www.zapworld.com/ 
ZAP, the most polished of the presenters, is the industry leader in
electric bikes and scooters, with 30,000 sold so far. In the
police-bike arena, ZAP said more than 200 U.S. law-enforcement
agencies are using its electric bikes.
Incorporated in 1994, ZAPWORLD.COM is America's largest manufacturer
of electric bicycles and power-assist kits. ZAP, which stands for Zero
Air Pollution, provides affordable electric vehicles for everyday use.
They offer both the most versatile power-assist system available and
the broadest product line. Their products, already sold by over 100
retailers across the country, are also offered through franchise
outlets.
http://www.electric-bikes.com/zap.htm

Currie Technologies
Currie is the leader in electric bikes and scooters. Their system is
also used on Schwinn Sierra Electro Drive bikes. The company is based
on technology, quality, and service offering "Affordable
transportation that's environmentally friendly." The combination of a
solid product, established and growing company, and large number of
current users ensures your investment will pay off for years to come.
In short, Currie products offer exceptional "bang for the buck".
http://www.currietech.com/home.html

EV Global Motors Co. 
The new Light Electric Vehicle (LEV), offers a line of e-bikes that
use state-of-the-art electric hub motors from Heinzmann.
“Created by product visionary Lee Iacocca, E-Bike represents just the
beginning of an electric transportation system that will make our
planet a better place to live. With all the benefits of clean, quiet,
electric power, plus world-class design and engineering; the E-Bike is
the world's most advanced new breed of vehicle.”
http://www.evglobal.com/
 
Giant Bicycle Co. 
“Lafree is the first bicycle to incorporate the patented Variable
Power Control (VPC) feature, giving the rider freedom to apply power
to the pedals when and where desired. With a simple twist of the wrist
to Lafree's handlebar throttle, the bicycle instantly delivers
increased force to the pedals, easily conquering steep hills and
strong head-winds.”
http://www.giant-bicycles.com/ 

Electric Transportation Co. 
http://www.etcbikes.com/

Elebike Co. Ltd. / Electric Bike Systems, Inc. 
http://www.electricbikessys.com/

TH!NK (An Enterprise of Ford Motor Company) recently restructured and
dropped the electric bikes.

Sources: http://www.electric-bikes.com/others.htm#BEST%20BETS

http://www.calstart.org/panda/homepage_news/991119_ebikeshoot.html

**********************************************************************

An Ebicycle publication dated March 21, 2001:

In the USA, Zap was the first, shipping in 1994, followed by EBC
(Electric Bicycle Company) the makers of the EV Warrior. The Charger,
Trek Electrek, and USPD bikes followed the EV Warrior in 1995-97.

This industry has been so volatile that the only survivors of the
earliest models are the Zap and USPD units. The Giant LaFree entered
the USA in 1997. EVGlobal started shipping in 1998.
http://www.ebicycles.com/ebicycles/news/news61.htm

**********************************************************************

“Electric bicycle, moped, scooter and motorcycle producers seem to
appear and disappear more frequently than the producers of larger
vehicles, probably because start-up costs are relatively low, but
market penetration is difficult, especially in North America for such
vehicles.”
Last updated 2002.10.01
http://www.econogics.com/ev/evbikes.htm

**********************************************************************

According to Batteries International April 2000 by the end of 2003
there will be 400,000 units of electric bicycles in the U.S.
Source:Batteries International (See chart on  page 2)
http://www.batteriesinternational.com/Issue%2043%20pdf's/43bat13.pdf

**********************************************************************
Iacocca Affirms Market for Electric Bikes ZAP Sells 20,000th Unit
1999
“The Time article, which cites ZAP as "a U.S. market leader," predicts
the U.S. market for electric bikes will double this year to a total of
30,000 units, and that the world market already exceeds 300,000 units
per year. ZAP has delivered over 20,000 units of its electric bikes,
kits and scooters since 1994.”
http://www.mhtx.com/media_center/leeiacocca.htm  

*********************************************

The following are publications, books, reports and articles that
address the electric bicycle market. They are available for purchase
at the Cycle Electric website:
http://www.cycleelectric.com/en/publications.html

Electric Vehicles are Profitable, Where, Why, What Next? by Peter and
Graham Harrop. USD 2000

Electric Vehicle Markets, Players, Forecasts, by Peter Harrop. USD 800

Over 600 Electric Vehicle Manufacturers and Their Future, by Peter
Harrop. USD 800

Electric Bicycles Worldwide by Frank Jamerson, 2000. USD 450
This 120 page report includes:
- Electric Bikes/Scooters Technology Update
- Market Assessment
- All Electric" Bike Shops
- New Batteries Extend Range
- New Motor Technologies Improve Electric Bike Performance
- Market Predictions for 2005, 2013 and Beyond
http://www.cycleelectric.com/en/publications.html

*********************************************

Search Criteria:

U.S. market for electric bikes units forecast
electric bicycles sold in the U.S. 2001 2002
US market for electric bicycles +units
U.S. market “electric bikes” units
U.S. electric bike market forecast
currie Global Motors  market share electric bike market
total e-bikes sold  "market share" +units
EB major players U.S.
ZAP electric bikes


I hope the information and resources I compiled provide you with a
better understanding of the electric bicycle market in the U.S.

Best Regards,
Bobbie7-ga

Clarification of Answer by bobbie7-ga on 18 Oct 2002 23:11 PDT
Perhaps this report may interest you:

TITLE: 2002 Electric Bikes Worldwide 
AUTHOR: Frank E. Jamerson, PhD
CONTRIBUTORS: Malcolm Currie, Ed Benjamin,Susan Bruesch,Hannes
Neupert,Guo Zigiang,Philip Leavitt,Heather O'Donnell,Milnor
Senior,Annick Roetynck,Steve Hansen
EDITION 6th (Color) 
COPYRIGHT 2002
PRICE: $495.00

You may order this report online from here:
http://evworld.com/eshop/orderform.cfm?prodid=7&otype=1

Clarification of Answer by bobbie7-ga on 19 Oct 2002 09:07 PDT
Hello again,

I have now located this very informational, free downloadable 103 page
publication from the Institute of Transportation Studies, (University
of California, Davis) Year 2000.
 
Study of the Secondary Benefits of the ZEV Mandate
by Andrew Burke Ken Kurani

Unversity of California, Davis Website
http://www.its.ucdavis.edu/publications/2000/RR-00-07.pdf

Jamerson’s estimates of sales of electric bikes and scooters by
country or region are
shown in  FIGURE 3.6-2: Estimated Electric Bicycle and Scooter Sales
(see page 70)

Another electric bicycle industry analyst, Edward Benjamin, is cited
in a Los Angeles Times article from February 23, 2000 as saying there
were 1,500 electric bicycles sold nationwide in the U.S. in 1995 and
30,000 in 1999. His estimate for the year 2000 was 120,000 electric
bicycles. (Page 71)

Market Segments

“The 80 million members of the baby boom generation are being counted
by purveyors of low speed modes, from riding scooters, to electric
bicycles, to LSVs, as their first market. As this generation ages they
will represent a large cohort of people who on average have higher
incomes, better health, and longer life expectancies than any prior
generation.” (page 71)

ZAPWORLD.COM is the clear U.S. market leader. 

“Through product development and corporate acquisition, they have
positioned themselves to offer low speed electric vehicles ranging
from standing scooters, to electric bicycles, mopeds, motorcycles, and
low speed vehicles—everything but City EVs. Various sources, including
Jamerson (2000) and the ZAPWORLD.COM web site claim they have sold
30,000 units in the US since 1994. A breakdown of this by vehicle type
and year is not available.” (page 66)

EV Global Motors Co.

Former Chrysler Corp. Chairman Lee Iacocca said “I've spent 50 years
in the auto industry, putting one and sometimes two cars in a lot of
garages. Now we need to replace one of those cars with an electric
car. It may take a while to get the right battery, but I believe it
will happen. In the meantime, we'll start with bicycles and scooters
to lead the electric revolution.” He said there are already 100
million bikes in the U.S.; 10 million new ones are sold annually. Ten
percent of these could be electric bikes, he said. (page 67)

This report confirms that ZAPWORLD.COM and Currie Technologies EV
Global Motors Co., Inc. are the major players in this very new market.
(page 72)
The list of companies with California addresses that market, or plan
to market, electric bikes or electric motor kits for bicycles
includes: Chronos, Currie Technologies, Electric Bike Systems Inc.,
Electric Motorbike Inc., Electric Transportation Company, Electro
Bike, EV Global Motors Company, i- Bike Corporation, TH!NK,
ZAPWORLD.COM, and ZVO Inc. However, virtually all their products—bikes
and kits—are manufactured in Asia. (page69)

The Electric Battery Bicycle Company produces an annual report on the
electric bicycles and scooters; (Jamerson, 2000) on which the above
information is based. (I previously included the purchasing
information for this study).

Sincerely,
Bobbie7-ga
bdf-ga rated this answer:4 out of 5 stars
Good summary of Internet data and identification of additional sources

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