You could well be one of the growing numbers of Australians embracing electric bikes, as stubbornly expensive petrol and the high cost of insuring and maintaining cars forced families to seek models that come with child seats. The Australian Automobile Association’s research found that transport costs for car owners increased by 8.8% in capital city households and 10.1% in regional areas in the most recent financial year.
Electric bikes have emerged as an affordable substitute for cars, and the owners, at least, are relatively insulated from the soaring cost of petrol. In 2017, 9,000 e-bikes were sold in Australia under uniform e-bike laws. Since then, sales have multiplied year after year, with more than 100,000 sold in 2022 and considerably more expected.
There is a considerable demand for e-bikes in suburbs 5 to 15 km from CBDs, especially if the running cost is about 15 cents per charge. Although a few incidents took place due to defective charging devices, electric bikes are far ahead of the market. It is beneficial to the elderly and physically impaired individuals, promotes health, saves money, and is environmentally friendly. Long-term leasing is an option for those who prefer not to buy. The e-bike market in Australia will develop at a CAGR of 6.7% by 2026, owing to rising fuel costs and environmental concerns.
Local Trends
The two trends dominating the market are the widespread adoption of emerging technologies and smartphone integration. The manufacturers have invested deeply in designing electric bikes in Australia to make them more useful, innovative and stylish. Some of the categories electric bikes are now classified into are standard electric bicycles, hybrid e-bikes, cargo bikes and mountain e-bikes. For those interested in buying an electric bike in Sydney, more options are available.
The Risk
The maximum speed limit for electric bicycles in Australia is only 25 km per hour, which is less than our neighbours, New Zealand and the USA. The required speed limit may be a source of frustration for people who would want to ride their electric bike to work or college.
Unless the authority reconsiders and raises the speed limit, the electric bicycle market in Australia will never fulfil its potential. Not only would office professionals and college students be restricted from using e-bikes. Courier and food delivery businesses will suffer as well if speed capabilities are constrained. It will soon push both consumers and delivery partners to use unsustainable modes of transportation. In the worst-case scenario, people may illegally modify their e-bikes in order to survive this fast-paced world.
The Opportunity
A whitepaper recently published by the local authority has proposed changes to take the electric vehicle revolution to the next level. The changes that would benefit this industry are as follows:
- Less traffic on Australian roads
- Equal rights for all users of the roads.
- Innovation in the EV industry.
- Modernisation of the delivery system.
- Increase in dedicated electric bike routes.
Growth Prospect
Electric bikes in particular have immense potential. We have so far seen a rise in demand for electric vehicles in the United States, New Zealand and European countries. However, we are also expecting the same boom in Australia.
Benefits of an Electric Bike
Electric bikes come with a number of benefits other than saving money:
- In Australia, electric bikes reach a faster speed of 15.5 mph. They help burn calories without fatigue and an expensive gym membership.
- According to the 2015-16 Household Expenditure Survey, Australians spend roughly $2,300 per year on fuel and turning to e-bikes would be economical with lower maintenance costs.
- They can be easily stocked in an apartment or garage since most e-bikes are foldable.
- Electric bikes save around 146 kg of CO2 per bike compared to other means of transportation every year.
- They don’t contribute to noise pollution, which makes them ideal to ride in residential areas.
- It is cheaper to refuel e-bikes than to refuel cars. The Australian Taxation Office considers e-bike commutes to work provided by companies to be tax-free and exempt from registration and insurance.
- Free bicycle parking is available for the rider; however, driving cars incurs charges for parking.
Is an Electric Bike Worth it?
Yes, but under some conditions. In cities with bike routes and short distances, an e-bike could replace a car. They are simple to ride, charge and even carry things with additional storage. However, they are often used to supplement rather than replace other modes of transportation, particularly in heavy rain, long distances or while travelling with children.
When cost is taken into account, a $2,000 e-bike easily pays for itself in over a year, whereas weekly public transportation costs between $30 and $40.
A Global Movement
“Basically, e-bikes are growing exponentially, which is the most exciting thing since sliced bread,” says Jake Southall, proprietor of Sydney Electric Bikes. “Once you have gone electric, you never go back.“
However, let us be clear: e-bikes will not save the world from climate change. There is a long history of industry-funded “deflection” campaigns that distract attention away from major polluters and put the responsibility on individuals to use so-called “environmentally friendly” items. This will not work. We need quick decarbonisation, an end to fossil fuel exploitation and the removal of the undue influence of oil and gas companies on global political choices.
Above all, they will be the future of transportation. We recommend investing in electric bikes to stay up with changing times and needs. Little but meaningful improvements in your personal life can help you feel less overwhelmed by the growing disaster that is the climate issue. This means that electric bike benefits go beyond personal benefits and include communal and green advantages as well.
