Looking back on the pandemic we have just gone through, the bicycle industry is one of the few that experienced growth, in contrast to the decline of most other business sectors. This performance highlights the fact that bicycles meet basic human needs. Unlike many traditional industries which are in their “sunset” periods, the bicycle industry is still flourishing. In particular, at a time when we are striving for net-zero carbon emissions, bicycles, which produce little in the way of pollution and carbon emissions, will play an increasingly important role in transportation in the future.

The “last mile” of green transit

In 2022 the output value of the bicycle industry in Taiwan, which has long been known internationally as a “bicycle kingdom,” surpassed NT$200 billion, the second highest of any country in the world. Although one could say that because of its hot, humid, and rainy climate Taiwan has not developed a bicycle commuting culture similar to those in Europe and Japan, with support from its powerful bike industry Taiwan has made impressive achievements in the realm of public bicycle sharing.

For example, Velo-city Global is a cycle planning conference that is seen as a major event for the bicycle industry and is always hosted by a high-profile city that shows leadership in cycling and sustainable transport policies. The 2016 conference was held in Taipei, the first time the event took place in Asia. This suggests that Taiwan’s YouBike bikeshare network, launched in Taipei in 2009, was already attracting international attention.

As we move towards a future of low-carbon lifestyles, bicycles are seen as a solution to the “last mile” problem for green transportation, by carrying people between their homes and mass transit systems. “Trains and mass rapid transit systems can be seen as the main arteries, buses as the small arteries, and public bicycles as the capillaries.” This remark by Frank Su, director of the YouBike bikeshare service, clearly defines the roles played by various modes of transportation.

In Taiwan the name YouBike is virtually synonymous with public bike sharing. YouBike’s parent company is the Giant Group, the leading firm in Taiwan’s bike industry. Such backing has made it possible for YouBike to become one of the few bikeshare services that operate with a unified system bringing together design, development, manufacturing, and operations.

Frank Su emphasizes that the initial motivation behind YouBike was to promote cycling culture and allow ordinary people to enjoy the pleasure of short cycling trips while also ensuring their safety. From design to materials, it can be said that no expense has been spared with YouBike. A great deal of thought has been put into everything from the countoured handlebar grips that fit comfortably into the palm of one’s hand, the intuitive rotary-action bell and the three-speed gears to the highly reliable roller brakes and the sturdy center stand.

As for the bikes’ main components, there is no shortage of well-known Taiwanese companies producing high-quality products. For example, the chains, which cost several times as much as ordinary chains, are made by KMC, the world’s largest maker of this product. Velo, which makes seats for Tesla automobiles, exclusively manufactures the saddles, which emphasize ergonomic design and ventilation. Meanwhile, the tires, made by the major tire manufacturer Kenda, are produced with a customized rubber formula and manufacturing process and come with an added reflective strip on the sidewalls.

The production cost of each YouBike 2.0 bicycle, combining the work of major players in Taiwan’s bicycle industry, is considerable. It would be no exaggeration to call it the Rolls Royce of the bikeshare world.
 

The rise of the e-bike market

Technology pushes industry forward. The rise of electrically assisted bicycles, also known as e-bikes, which get added motive power from electricity, has created a new situation for the industry.

Since 2022, the value of e-bike sales in the global cycle market has surpassed that of traditional bikes. They account for more than 70% of Taiwan’s bicycle export market. The IEK Industrial Intelligence Network (IEKNet), an industrial intelligence platform operated by the Industrial Technology Research Institute, estimates that in 2025 the number of e-bikes exported from Taiwan will also surpass traditional bikes, showing that the e-bike industry is coming on strong. “These days if a bike doesn’t have electric power, it can hardly be called a bike,” says Michael Lin, president of Pacific Cycles.

Pacific was founded in 1980 by Lin’s father. Lin offers his long-term perspective on the market: “For the last half century, the main target market for bicycles has been the postwar baby-boom generation, who were in the habit of riding bikes. But today this population cohort is getting older.” E-bikes, which can provide an appropriate level of assistance to riders and are suitable for both recreation and exercise, are the top choice for elderly people in the long run, despite being priced higher than traditional bikes.

In Taiwan, cycling is seen as a recreational activity. Thompson Su, secretary-general of the Taiwan Smart Electric Bicycle Association, notes that while veteran cyclists do not necessarily make electrically assisted bikes their first choice, in recent years many have been buying e-bikes for their wives and children. “Finally they can see their dreams of family cycling trips come true.”

The key word is “assistive”

Nonetheless, while traditional bicycles are a purely mechanical product, the process of making e-bikes also involves the fields of electrical engineering and electronics, including electronic controls, battery and motor manu­facturing, and programming.

In fact, the principles behind powering e-bikes are not that difficult. The challenges lie in determining when to provide assistive power and how much to provide. This is the biggest difference between e-bikes and electric motor scooters. “Although both products are driven by electrical power, the operating logic is completely different,” says Michael Lin.

It is relatively simple to ride an electric motorcycle: The rider simply has to turn the throttle handle to control the speed of the vehicle. But e-bikes are based on the idea that the main motive power comes from the feet pressing down on the pedals, while the power provided by the smart electric assistive system is supplementary only.

The key to the operation of an e-bike is in that word “assistive.” “No matter when the rider accelerates, the addition of assistive power must be done in such a way that the rider’s experience is smooth, without any feeling of suddenly lurching forward,” says Thompson Su, describing his definition of “a good e-bike.”

But without human controls, how can this be achieved? Michael Lin explains the basic principle under­lying assistive power output: “An e-bike requires at least three parameters—speed, torque, and number of revolutions per minute.”

To a computer, each of these parameters has a different meaning. When riding, if torque suddenly increases and speed decreases, this means that the rider is pressing harder on the pedals, yet the bike is slowing down. The reason may be that the person is growing tired, or that they are climbing a slope, but in either case more assistive power can be provided. On the other hand, if the torque abruptly decreases while speed increases, the e-bike may be going downhill, and which point the amount of assistive electric power is reduced to ensure safety.

This kind of “human factors engineering” involves computer interpretations of human behavior, and is critical know-how for everyone in the bike business.
 

An intelligent future

Besides reducing the burden on riders, bicycles that incorporate artificial intelligence (AI) can be said to create new scope for reimagining bicycles. For example, high-grade e-bikes can be operated in different modes such as “power-saving,” “normal,” and “high-speed,” with riders able to choose the setting based on their needs. For example, they can select power-saving mode to get a more strenuous workout. Or, taking account of the battery capacity, they can make adjustments as they go, first using power-saving mode to ensure that their batteries don’t run out in the later stages of their journey.

“An e-bike will only help you when you need it. It is this understanding of human factors that marks the biggest difference between e-bikes and e-motorcycles,” says Michael Lin.

Moreover, “AI applies not only to the bikes themselves, but can also be extended to include the backend management system,” says Frank Su, looking from the perspective of bicycle sharing. The management of a public bikeshare service combines the Internet of Things, the deployment of the bicycle fleet, and the relocation of bikes to where they are needed, and in all aspects current systems are smarter and more efficient than those used in the past. For example, using the tablet computers that all the relocation trucks are equipped with, relocation teams can access the backend management system to do everything from determining the number of additional bikes that need to be brought to each station and planning their routes for doing so, to keeping track of e-bikes to facilitate timely battery changes. Moreover, thanks to the accumulation of big data, relocators can bring bicycles to specific stations ahead of time to cope with peak usage periods.

Not to mention that in the future will people have to be meticulous about carbon emissions. In that case, how much can be saved in emissions per kilometer of bike travel? This can only be calculated based on the routes, distances, and times recorded by each e-bike.

The future of the bicycle industry looks as bright as ever. “Did you know that bicycles don’t even need to be advertised?” says Michael Lin straightforwardly and optimistically. The market potential of this old but essential evergreen product is unfathomable.

Undoubtedly, the next wave will be the flourishing of the smart e-bike market. Although the changes in the market are unpredictable, we can be sure of one thing: Taiwan, with its competitive advantage in industries such as bicycles and electronics, will surely be a significant player.

For more pictures, please click 《Cycling for Sustainability: The Growing Market for Smart e-Bikes》