Explaining the growth in light electric vehicles in city logistics
Publication - November 2022
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Research finds that the global market value of cargo bikes will hit 2.4 billion euros by 2031. Analysts with Future Market Insights, assessing the growth of cargo bikes, have placed the parcel courier industry as a key buyer of electric cargo bikes, forecasting that 43 per cent of sales could go to this industry. This growth is driven by city logistics trends, particularly as studies show the high efficiency and cost savings of the cargo bike versus the delivery van.
Policy and Technology as Key Drivers
It will not solely be direct incentives that drive uptake, however. Policies restricting motoring and emissions are expected to be key drivers for businesses seeking profitability. Three-wheeled electric cargo bikes are projected to make up nearly half the market. The advance of e-bike technology has led to a strong rise in market share for assisted cargo bikes, now accounting for 73 per cent of the market.
Legislative Challenges
Potentially limiting this growth is the legislation governing the output and range of electric cargo bikes (FMI, 2021). To address issues of faster delivery, clean delivery (low/zero emission), and less space in dense cities, the light electric freight vehicle (LEFV) is increasingly being used as an innovative solution.
The Challenge of Urban Logistics
The way logistics in urban areas is organized is being challenged as the global growth of cities leads to more jobs, businesses, and residents. As a result, companies, workers, residents, and visitors demand more goods and produce more waste. The demand for more space for logistics activities in and around cities conflicts with the growing need for accommodation for people living and working in cities.
Authors
- Ron van Duin
- Walther Ploos van Amstel
- Hans Quak
City Logistics research group
Clean and sustainable cities are attractive places in which to live, work and invest. At the Amsterdam University of Applied Sciences, the City Logistics research group is conducting practice-oriented research into opportunities for smart and clean city logistics.