Bosch, the German engineering and technology giant, is best known for its automotive components and household appliances. But it also has a thriving e-bike business that recently achieved an incredible milestone. The company’s e-bike division has risen from a rounding error on income statements to $1 billion in annual revenue and the global market share leader.

Bosch eBike Systems, a subsidiary of Bosch, provides electric motors, batteries, displays, and software for over 70 bike brands worldwide, including Trek, Cannondale, Specialized, and Giant. The company claims to be the market leader in Europe and North America, where it has seen a surge in demand for its products amid the pandemic.

According to Bosch, its e-bike unit sold more than 1.5 million drive systems in 2020, a 30% increase from the previous year. Its sales revenue also grew by 27% to 1.1 billion euros ($1.3 billion), making it one of the fastest-growing segments of the Bosch Group.

Why is this such a big deal? Because e-bikes are not just a niche product for enthusiasts or commuters. They are a key part of the future of mobility, especially in urban areas where congestion, pollution, and lack of space are major challenges.

E-bikes offer many benefits over conventional bikes, such as increased range, speed, comfort and fun. They also enable more people to cycle, regardless of their age, fitness level or terrain. And they can help reduce greenhouse gas emissions, noise and traffic by replacing car trips.

Bosch is well aware of these advantages and has been investing heavily in e-bike innovation and expansion. The company has been developing e-bike systems since 2009 and launched its first product in 2011. Since then, it has introduced several generations of drive units, batteries and displays, as well as new features such as anti-lock braking, automatic shifting and smart connectivity.

Bosch also has a long history of bicycle innovation that dates back to its founder Robert Bosch, who used a modern “low bicycle” to visit his customers in Stuttgart in the late 19th century. The company also pioneered technologies such as ball bearings, spoked wheels and pneumatic tires that were originally designed for bicycles but later adopted by cars.

Today, Bosch is not only a leading supplier of e-bike components but also a promoter of e-bike culture and advocacy. The company sponsors events, campaigns, and initiatives that aim to raise awareness, educate and inspire people to ride e-bikes. For example, Bosch supports the “National Bike Challenge” in the US, the “European Mobility Week” in Europe, and the “Bosch eMTB Challenge” in various countries.

Bosch’s success in the e-bike market shows that the company is not resting on its laurels but rather adapting to the changing needs and preferences of consumers and society. As more people embrace e-bikes as a viable and enjoyable mode of transport, Bosch is well-positioned to benefit from this trend and contribute to a more sustainable and livable future.

Electrified Mag’s Take: The future of e-mobility will be based on the old-school bicycle industry, i.e., OEMs will essentially be final assembly for an array of components sourced from around the world.

Without getting too far ahead of ourselves here, VW’s recent investment in Chinese automakers Xpeng and SAIC (to secure their EV tech) and GM sharing its Ultium platform with Honda are recent examples of how the bicycle industry manufacturing template will soon become commonplace among automakers. This news is also important as it shows a there is a pathway for legacy parts suppliers to reinvent themselves for a new era of propulsion.