Ebike core components brand "Okawa" recently completed RMB 121 million Series A financing, led by Xianghe Capital, followed by RuRi Ventures, Decent Capital, Glacier Capital China, WanWu for Ventures, Tsinghua Capital, etc. Glacier Capital China is also the exclusive long-term strategic financial advisor. This round of financing will be used for new product development, brand marketing and after-sales service network development.
Established in 2020, Okawa is an electrically assisted bicycle core component supplier focused on the research, design, production, and sales of mid-drive motor systems specifically for electrically assisted bicycles. Its main business includes the "three-electric" system for Ebikes (motor, controller, and battery). The company has independently developed core technologies for mid-drive motors, such as torque sensors and controllers, which are already in mass production operation.
Okawa's founders, Lei Du and Bo Ben, both graduated from Tsinghua University, specializing in the mechanical-electrical coupling high-frequency dynamic characteristics and optimization control of hybrid power systems for vehicles. Their entry into the Ebike industry was also based on their academic background. During his doctoral studies, Du first encountered Ebike products that overturned the traditional cycling experience while traveling in Europe. At that time, the industry was just beginning to grow, with shipments in Europe totaling only hundreds of thousands of units. In China, the field was still largely unexplored. The core innovation point of Du's doctoral thesis, "high-precision and high-frequency torque sensors," happened to be the industry's technological high ground, inspiring him to venture into the Ebike industry.
In Du's view, the replacement of traditional bicycles by Ebikes is an irreversible process. "The electric bike (Ebike) market is a high-growth sector that is expected to continue growing strongly in the coming years. According to market research company data, the global Ebike market is expected to grow from USD 5.2 billion in 2019 to USD 9.4 billion in 2025, with a compound annual growth rate of 9.7%."
According to Statista, the total size of the Ebike market is expected to grow at a compound annual growth rate of nearly 10.0% from 2022 to 2027, reaching nearly USD 80.6 billion by 2030, with the market size reaching USD 49.7 billion in 2022.
China has always been the largest sales market and production base for Ebikes, accounting for more than 90% of the global market share. In addition to China, Europe, North America, and the Asia-Pacific region are also important consumer markets for Ebikes. Among them, the European market has become one of the world's largest Ebike markets due to its developed urban cycling culture and policy support. The North American market has also received increasing attention in recent years and is expected to continue to grow in the coming years.
Europe, America, and the Asia-Pacific region are recognized as the main sales areas for Ebikes worldwide, with the Asia-Pacific region accounting for more than 80% of the market share. India, Japan, and South Korea are all highly potential development markets, and the market penetration rate of Ebikes in Japan has even reached a high point of 50.0%.
Currently, the competition in the global Ebike market is extremely fierce, with major manufacturers including Bosch, Yamaha, Panasonic, Brose, etc., which are industry leaders in motor technology, product quality, reliability, and other aspects. In addition, some innovative companies such as VanMoof, Cowboy, Lime, etc., are rapidly rising, and they have certain market advantages over traditional manufacturers through digital technology and intelligent, lightweight product design.
However, with the intensification of competition in the Ebike market and the strengthening of policy support, more emerging brands and innovative companies will emerge in the future market. At the same time, further upgrading of battery technology and motor technology will also become key competitive factors in the market.
At this critical stage, the ESG2023 "the US Sub-Forum" will be held in Shenzhen on June 2, 2023. EqualOcean will invite the representatives of academic institutions and investment institutions, as well as company leaders, from the International Studies Institute of Fudan University, Sun Yat-sen University, Jinan University School of International Relations, Gaorong Capital, Vision Plus Capital, FreeS Fund, ZWC Partners, Source Code Capital, Niu Technologies, TikTok, SHEIN, NEIWAI, miHoYo, Tuya, MINISO, Dreame, Ecovacs, WYBOTICS, Lifen, and UniUni.EqualOcean analysts will also release the US Report 2023 at the US Sub-Forum, summarizing business opportunities and best practices for expanding into the US market in the new stage. Click the link to apply and scan the QR code below to learn more about ESG2023.
