Growth in the electric bike (e-bike) market is often sidelined with the focus being on the electric vehicle market. However, the e-bike market has been growing rapidly.
With respect to battery consumption, in May this year the market is estimated at 38 million cells, which is expected to nearly double to 67 million cells by the end of the year. In 2015 it was estimated that 14% of these cells were based on lithium ion technology, compared to 5% in 2012. Going forward, the lithium ion battery market for e-bikes is expected to grow at a rate of 20% CAGR over the next four years.
The main reason for the expected growth in Li-ion market share is that Samsung SDI currently supplies around 27% of all e-bike batteries. The company has indicated that it is able to replace the current lead-acid batteries with a Li-ion battery which is not only half the size and much lighter, but promises a much longer lifespan.