According to the expectation of iSuppli, in 2008 the output of electric bicycles in Chinese market will be lower than the volume in 2007, and form distinct comparation with the volume in 2005 which increased 80 percent and in the past 10 years which had 94 per cent the compound annual growth rate. In 2008, the output of China electric bicycles will reach 21.1 million, and the operating income will be 2.9 billion U.S. dollars. Comparing with the 21.3 million output in 2007, it has less than 1 per cent decline in volume. This means that most of China electric bicycle manufacturers will face losses.

China electric bicycle manufacturers are facing more indefinitive consumers and more stringent government regulations. After 10 years' rapid growth, China electric bicycle industry is being mature, and facing such new products, the consumers have already had no initial impulse.

The semiconductor market will be impacted. The semiconductor market turnover of China electric vehicles is expected to reach 294 million U.S. dollars, comparing with the volume of 2007 edged up 0.5 percent. However, due to the current stocks of distributors is higher than the demand by 32 to 34 percent, and the semiconductor unit shipments in 2008 will have significant drop. STMicroelectronics, and Cypress Semiconductor were the leading semiconductor suppliers of electric bicycles in 2007, but they focus on different products. STMicroelectronics controled the MOSFET market, occupying 34.2 percent of the share. And Cypress occupied 25.1 market share in control solutions area.

However, the new battery technology may boost the volume of electric bicycles shipment rebound. In 2007, 83 percent of the electric bicycles adopted simple lead-acid batteries, and only 14 percent adopted the more advanced lithium batteries. Along with the increasing of plumbum price and the control of government to the pollution of lead-acid batteries, lithium batteries will be more popular by electric bicycles in the next three years.