Electric bikes are making a significant contribution to Europe's and the world's growing economies. In 2019, about 3 million electric bikes were sold, a 23 percent increase over the previous year. This trend has been growing since 2019, with 6.5 million e-bikes predicted to be sold by 2025. Despite the continuing epidemic, the New York Times reported that by 2020, electric bike sales would have increased by 85 percent.
The electric vehicle market is split into two categories: propulsion type (pedal-assisted e-bikes), which dominates the worldwide market, and application type, which dominates the urban market. In addition, the e-bike market is divided into drive mechanisms (mid-drive, hub motor, etc. ), battery types (Li-ion, lead-acid, etc. ), product types (scooter, motorcycle, throttle on demand, and others), and geographic regions (LAMEA, Europe, North America, and Asia-Pacific).
According to a survey, e-bikes are in great demand in Europe, Spain, France, Germany, Italy, China, India, and the Netherlands. Harley-Davidson Inc (NYSE: HOG), Ford Motor Company (NYSE: F), Giant Bicycles (TPE: 9921), BMW (ETR: BMW), Merida (TPE: 9914), Bosch (NSE: BOSCHLTD), and Yamaha all benefit from the growing demand for e-bikes and their applications (TYO: 7272).
With innovative navigation systems, anti-theft systems, automated emergency calls, remote diagnostics, social media connection, lock-premium feature, and a smart system for estimating cyclist energy, major firms like Bosch are enticing purchasers.
The e-bike business is not only reinventing transportation with stunning designs and enhanced technology, but it is also contributing significantly to the reduction of environmental warming. Zero-emission cars decrease air pollution by removing carbon footprints, placing the least amount of strain on power systems via off-peak charging, using sustainable energy, and delivering long-lasting batteries. According to Research and Markets, the worldwide e-bike industry is thriving, increasing, and prospering at a 6.21 percent annual growth rate between 2020 and 2025.
Bicycle manufacturing stocks, part of the economy's industrial sector, are tough to invest indirectly. Many bike firms are divisions of bigger corporations, transportation component suppliers, car manufacturers, and the like. However, a few more focused companies on biking may provide a chance to gamble on the industry's future development.
Shimano
Shimano is a well-known manufacturer of outdoor gear from Japan. Its bicycle components may be found on various bicycle models, from entry-level to high-end road cycles. Shimano manufactures everything from brakes to cranksets for the cycling industry.
Shimano's sales have accelerated in the last two years, despite its history as a slow-moving manufacturing company. Expect modest double-digit percentage gains, but if you're searching for a strategy to benefit from the increasing interest in bicycles, electric bikes (e-bikes), and associated outdoor equipment, this company should rank among the finest options.
Interactive Peloton
The Peloton was undoubtedly the biggest fitness and gym firm to benefit from the epidemic. In 2020, the at-home high-end fitness equipment firm attracted millions of consumers. However, in 2021, momentum slowed considerably as individuals returned to work, and competition for linked fitness equipment surged. Peloton's stock has dropped over 90% from its all-time highs.
Peloton isn't your typical bicycle business, to be sure. The company's flagship Bike+ product is stationary, depending on a huge tablet and entertaining material to keep riders peddling furiously.
Regardless, a bicycle is a bicycle. Millions more individuals might buy a Peloton cycle product in the coming years, as stay-at-home workouts seem to be a permanent fixture in many households.
Just keep in mind that Peloton's revenue growth will likely drop from triple digits in 2020, resulting in very erratic share price movement.
Outdoor View
If you're a serious outdoor fan, chances are you have some Vista Outdoor gear. CamelBak, Bushnell, Camp Chef, and Remington are among the company's subsidiaries. Vista Outdoor also owns the QuietKat e-bike brand, a popular option for people searching for a greener commute and a more efficient ride.
Vista Outdoor, like Shimano, has a long and storied history. In reality, in the years preceding up to the epidemic, sales struggled to get off the ground. However, since 2020, the demand for outdoor equipment and bicycles has dramatically changed this modest company's fortunes. Vista Outdoor and its stockholders may benefit if the demand for bicycles stays robust.
Group Accell
This is a tiny Dutch multinational corporation with many bike-making subsidiaries. It's also the biggest e-bike company in Europe. Haibike, Ghost, Raleigh, Sparta, and components manufacturer XLC are among the brands represented. A consortium headed by private equity firm KKR (NYSE: KKR) is purchasing Accell Group via a tender offer to shareholders. By holding KKR stock, shareholders may still obtain some exposure to Accell.
While conventional bike sales declined in 2020 throughout the Accell Group's portfolio, e-bikes were a highlight, helping to boost profitability. In 2021, growth began to decline again. On the other hand, Accell Group might be a long-term winner if trends like short-distance commuting, bike-sharing systems, and a purposeful attempt to make transportation greener gain traction in Europe and other countries.
Merida Industry Co., Ltd. (TPE: 9914)
Merida Industry is a Taiwanese e-bike manufacturer with operations in China and Germany. It was established in 1972, and the firm's models and designs are in direct rivalry with European models. It exports about 2 million e-bikes per year to over 77 countries worldwide.
Limited by Bosch (NSE: BOSCHLTD)
Bosch was formed in 1886 and is based in Gerlingen, Germany. The firm manufactures electric bike motors, batteries, displays, and other technologies and systems. Over 50 top-ranked and renowned e-bike companies throughout Europe currently utilize the company's technologies.
Companies including Harley-Davidson Inc (NYSE: HOG), Ford Motor Company (NYSE: F), Giant Bicycles (TPE: 9921), BMW (ETR: BMW), Merida (TPE: 9914), Bosch (NSE: BOSCHLTD), and Yamaha are benefiting from the desire for outdoor activities like solo riding (TYO: 7272).
Bicycles for Giants (TPE: 9921)
The Giant bicycle firm is a Taiwanese e-bike manufacturer regarded as the world's biggest. Giant produces gravel, road, mountain, cyclocross, urban, and e-bikes that are inexpensive and high-performing. The majority of the company's electric motorcycles are exported to Europe, the United States, and Japan. By 2017, the firm had sold 6.6 million bicycles and generated US$1.9 billion in revenue.
The worldwide outbreak of the coronavirus triggered a surge in demand for Giant bikes. Companies including Harley-Davidson Inc (NYSE: HOG), Ford Motor Company (NYSE: F), Giant Bicycles (TPE: 9921), BMW (ETR: BMW), Merida (TPE: 9914), Bosch (NSE: BOSCHLTD), and Yamaha are benefiting from the desire for outdoor activities like solo riding (TYO: 7272).
Yamaha Motor Corporation (Yamaha) (TYO: 7272)
Yamaha is ranked seventh among the top 11 electric bike manufacturers globally. The company's initial e-bike was a huge smash in 1993, and they've since expanded to include everything from e-bikes to Jet Skis. According to research, Yamaha produces 300,000 e-bikes each year and has 2.7 million motorcycles operating on its system worldwide.
Group Halfords
The Halfords Group (including its Tredz subsidiary) is the UK's largest automotive and cycling shop. Halfords Group, like the other corporations on this list, was not a growing company in the years running up to 2020. The firm saw a rise in activity as a result of the epidemic. In 2021, it announced record revenues and a significant increase in profitability.
In 2018, Halfords Group made a determined attempt to boost online sales and concentrate on core goods. So far, the plan has worked. As it retools its services for a new generation of cycling and driving fans, the business also established its e-scooter and e-bike brand, Carrera, in early 2021.
Expect this to be a slow-growing business. However, if the popularity of bicycles continues to grow, Halfords Group may be a long-term winner in the market.
Uber (NYSE: UBER)
Uber is well recognized for practically inventing the ridesharing industry. It's one of the few corporations whose name has become a verb. Uber's primary business, on the other hand, is startlingly unprofitable. In 2019, it announced a staggering $8.51 billion loss. Uber has been forced to look for new income streams due to fierce competition and political opposition. Is UberEats delivery service has been a success so far. Uber may now be considering growing its bike business as well.
Because it currently rents electric bikes, Uber qualifies as an electric bike stock. It had formerly owned Jump Bikes. It has now acquired a 31 percent interest in Lime, though. It intends to transfer its bike division to Lime shortly. The two firms will then work together to connect their applications. In the future, Uber may purchase Lime outright between 2022 and 2024.
Due to the high cost of electric bikes, many buyers may choose to rent them. This is particularly true for those who live in cities. Why haul an electric bike up an apartment complex when a Lime Bike can be rented for an hour?
So far, in 2021, this electric bike supply is down 20%, and it has also dropped 1% in the last five years.
Lyft (Nasdaq: LYFT)
Uber has Lyft beat when it comes to ridesharing. Lyft, on the other hand, could be the better electric bike stock. Lyft's bike-sharing service is still new, but it's growing quickly. Lyft bikes are now available in the By working with existing bike-sharing firms, Lyft has swiftly expanded its service. Citi Bike, Ford GoBike, Divvy, and Bluebikes are just a handful of its partners. Lyft has taken its electric bike business to the next level in San Francisco. It debuted its brand of electric bikes in June 2021, which works with the city's Clipper public transit card. This implies that residents of San Francisco may use the same metro card to ride the trains, buses, and (now) Lyft bikes.
Ridesharing businesses have a history of clashing with the authorities, and Uber and Lyft have a history of acting first and asking questions afterward. This bravado often causes friction between businesses, local governments, and residents. This new relationship, on the other hand, shows Lyft's maturity. If it succeeds, Lyft will gain a reputation and be able to establish similar schemes in other locations.
Lyft's stock dropped 14% in 2021, and it has also dropped by 48 percent in the last five years.
Bird (BRDS: NYSE)
In late 2021, this electric bike stock became public for the first time. Bird is now a publicly listed corporation, something many people may be unaware of. Bird is most recognized for its electric scooter ridesharing service if you're unfamiliar. Bird is also credited with coining the term "micro-mobility." Its goal is to promote environmentally friendly, car-free transport options. It does this by operating electric scooter fleets in 350 cities worldwide. It is now aiming to grow its company even further.
The Bird may be classified as an electric bike stock for two reasons. For starters, it sells an electric bike on its website. The BirdBike costs $2,299 to purchase. It also provides Bird Bikeshare. This is Bird's fresh new electric bike-sharing service, which looks much like Uber and Lyft. There is very little information regarding this service since it is so new. Remember, though, that Bird was one of the first startups to attain a value of $2 billion. Its management team has a track record of making timely decisions. If you're searching for an electric bike stock, the Bird might be a good company to purchase in 2022.
Since coming public in late 2021, Bird's stock has dropped 8%.
Nasdaq-listed NIU Technologies (NIU) NIU Technologies is a Chinese electric vehicle manufacturer that offers motorbikes, bikes, and scooters. Lithium-ion batteries are used in NIU products, which capitalize on micromobility and environmental tendencies. Though China was the first to adopt e-mobility, the rest of the globe is catching up.
NIU, which was founded in 2014, offers its goods via a network of 2,686 retail locations in China alone and through partners. Although most sales are still made in China, the brand is fast growing internationally, with showrooms opening in cities such as New York. In 2020, NIU sold 600,000 units, with over one million sold in 2021. NIU increased its yearly manufacturing capacity from 1 million to 2 million units in 2021.
Volcon Inc. (VLCN)
Volcom is an electric motorbike manufacturer based in the United States. In October 2020, the business started constructing prototypes for off-road bikes — the Grunt and the smaller Runt – and is already taking orders. In September 2021, the Grunt began shipping.
Volcom plans to introduce the Volcom Stag, a utility terrain vehicle, in 2022, with the Volcom Beast following in 2023. All bikes are built in the United States, in Round Rock, Texas, and Volcom intends to expand its operations near Austin.
Volcom went public on the Nasdaq in October 2021 and had a market valuation of $115 million. However, being an early-stage firm with no revenue, its stock is highly speculative and volatile.
Harley-Davidson Motorcycles (NYSE: HOG)
This last electric bike supply might be a pleasant surprise, and this is because Harley Davidson is one of the most well-known manufacturers of gasoline-powered motorbikes. On the other hand, this motorbike firm has just released the LiveWire, an all-electric motorcycle, and Harley Davidson is now classified as an electric motorcycle stock.
Please note that Harley-Davidson intends to split out LiveWire as a separate entity. LiveWire will become the first publicly listed electric motorbike firm in the United States as a result of this. LiveWires are still available for purchase on Harley Davison's website. Keep an eye out for additional information regarding LiveWire being spun off if you want to invest.
LiveWire was spun out by Harley-Davidson primarily because the company's core business is undergoing a substantial transformation. The extra stress of introducing a new product line may be too much to bear, and LiveWire will have the opportunity to expand by becoming its firm.
Currently, Harley-Davidson expects to sell over 100,000 electrified motorcycles. In 2026, this should earn $1.77 billion in income. It intends to sell roughly 190,000 electric vehicles by 2030, which is expected to bring in $3 billion in income.
Always Keep an Eye Out for Cult Brands
There is one reason why Harley-Davidson might become one of the best electric bike stocks to invest in. Because of the company's strong brand, this is the case. This firm has a cult following and has been operating for almost 100 years. It is regarded as one of the best motorcycle manufacturers in the world. It's also one of the few companies you'll see tattooed on people's bodies daily. However, it has had some difficulties in recent years.
Harley-Davidson is a well-known manufacturer of gas-guzzling motorbikes. This classic type has failed to attract younger, more environmentally conscious purchasers, and sales have stagnated as the company's main population continues to age. A switch to electric bikes may be what the industry needs to attract younger riders. If LiveWire succeeds, don't be shocked if Harley Davidson returns to prominence.
The shares of Harley-Davidson have down 2% in 2021, and it has also dropped over 40% in the last five years.
Bikes play an important role in the transportation business, whether as a method to enjoy the outdoors, attend a sports event, or travel small distances. This style of human travel has become a likely growing topic in the years ahead due to the epidemic.
Keep in mind that the surge in sales that occurred at the start of the epidemic is unlikely to persist. Bike stocks may see some volatility as a result of the downturn. Nonetheless, a prognosis for average annual growth in the upper single digits over the next decade is nothing to scoff at. Investing in bicycles might be a profitable trend to follow.
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