Micromobility Market - Forecast(2023 - 2028)

Micromobility Market Overview

The Micromobility market size is estimated to reach $54.1 Billion by 2027, growing at a CAGR of 13.5% during the forecast period 2022-2027, attributed to increased urban traffic congestion as well as lack of parking spaces, rising fuel prices and sustainability concerns, increasing shift towards electric scooters and electric skateboards and so on. Growing trend towards smart cities and development of advanced vehicle infrastructure has created an ideal opportunity environment for the adoption of Micro mobility vehicles. Micro mobility vehicles are being widely adopted by the residents of densely populated areas than vehicles powered by internal combustion engines. Moreover, corporate initiatives to promote shared mobility coupled with government mandate towards reducing air pollution & fuel consumption are some of the major factors set to transform the Micromobility industry outlook in the coming time. 

Micromobility Report Coverage

The “Micromobility Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Micromobility Market.

Key Takeaways

• Electric bicycle segment dominated the global Micromobility market in 2021, owing to the increasing use of electric bicycles for personal transportation & workout, technological advancements in the development of bicycle components and so on.
• Personal/Private segment in Micromobility market is analyzed to grow with the highest CAGR during 2022-2027, owing to increasing use of electric bikes to reduce cardiac exertion in patients with coronary problems, growing utilization of E-Mopeds & electric bicycles to reduce obesity and so on.
• APAC dominated the global Micromobility market in 2021, attributed to government initiatives coupled with the development of cycling infrastructure to encourage the adoption of e-bicycles, rising traffic & congested roads in metropolitan cities and so on.
• Government mandates for vehicular emission & fuel quality specifications and rising integration of advanced technologies like artificial intelligence & IoT in smart bikes & scooters are analyzed to significantly drive the market growth of Micromobility market during the forecast period 2022-2027.

Global Micromobility Market Value Share, by Region, 2021 (%)

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Micromobility Market Segment Analysis - by Vehicle Type

The electric bicycle segment dominated the global Micromobility market with a share of 42% in 2021 and is analyzed to witness significant growth during the forecast period 2022-2027. Factors such as the increasing use of electric bicycles for transportation, workout and recreational activities, technological advancements in the development of bicycle components like rechargeable batteries, lightweight motors and so on. In May 2022, the Delhi government launched a Rs 5,500 subsidy for the first 10,000 e-bikes sold in the city. Under the Delhi Electric Vehicle Policy, the first 1,000 buyers of passenger e-cycles will receive a Rs 2,000 subsidy. Governmental initiatives like offering subsidies on the purchase of e-bicycles along with the increasing need to avoid using public transportation during pandemics resulted in the widespread adoption of electric bicycles. According to LEVA data, the United States had imported nearly 790,000 electric bicycles in 2021, a 70% increase as compared to 463,000 imports in 2020. Additionally, the growing trend for cycling in order to reduce carbon emissions and the integration of features like artificial intelligence & IoT to ensure pedestrian safety, including a built-in touch screen for streaming workouts or connecting with mobile apps are some of the factors boosting the growth of electric bicycles segment within Micromobility industry over time.

Micromobility Market Segment Analysis - by Industry Vertical

The personal/private segment in Micromobility market is analyzed to grow with the highest CAGR of 14.2% during 2022-2027, owing to the increasing use of electric bikes to reduce cardiac exertion in patients with coronary problems, growing utilization of E-Mopeds & electric bicycles to reduce obesity and so on. Furthermore, increasing demand for electric skateboards in the sports and entertainment industries, increased use of Micro mobility vehicles for short journeys and government initiatives to develop bicycle-friendly roadways for encouraging the adoption of bicycles to reduce air pollution. These factors are accelerating the demand for micro-mobility vehicles for personal use. In August 2020, Veo launched Astro Go Personal e-Scooters with Turn Signals. This development was done to offer more security, strength and better riding experience, equipped with a larger ride deck & wider wheel while ensuring a safe ride over potholes or related road conditions. Such developments are encouraging the adoption of micromobility vehicles for personal use. According to a study conducted by the University of Oxford in 2021, the transition from car to bicycle can reduce carbon emissions by 67%. In accordance with the study, if the same percentage of the population chooses to replace one car trip with public transportation, emissions caused by internal combustion engines will be reduced by 19%. Such factors are analyzed to accelerate the growth of the Personal/Private Micromobility industry in the coming time.

Micromobility Market Segment Analysis - by Geography

APAC dominated the global Micromobility market with a share of 38% in 2021, attributed to government initiatives coupled with the development of cycling infrastructure to encourage the adoption of bicycles, rising traffic & congested roads in metropolitans, stringent pollution laws for gasoline vehicles and so on. In August 2021, Montra, the high-end performance bike brand of TI Cycles of India, launched its first electric bike, aimed at making short-distance transportation more comfortable and convenient. It eliminated the need for parking space while providing a comfortable & convenient ride to the destination. Such developments are accelerating the adoption of e-bikes within the region. Furthermore, increasing preferences for luxury folding e-bikes & high-tech electric bicycles with smartphone integration features, the rising trend toward shared mobility as well as the presence of major market players namely Xiaomi, JIANGSU XINRI E-VEHICLE CO., LTD can also cater to its market growth. These factors are set to transform the Micromobility industry outlook in APAC markets. 

Micromobility Market Drivers

Government Mandates for Vehicular Emission & Fuel Quality Specifications are Boosting the Demand for Micromobility Vehicles:

Government initiatives to reduce vehicle emissions and improve fuel quality act as a major drivers boosting the market growth towards micromobility vehicles. Electric vehicles are widely available, but their adoption rate is adversely affected due to their high cost. Furthermore, due to a lack of suitable infrastructure, many cities are yet to implement electric buses and public transportation systems. Micro-mobility vehicles are getting widely adopted by city dwellers, due to being inexpensive, convenient and capable of reducing carbon emissions. These vehicles do not emit carbon dioxide or other harmful gases resulting in the reduction of atmospheric air pollution. In April 2020, the Indian central government launched Bharat stage six emission standards to control harmful emissions from internal combustion engines and motor vehicles. Such initiatives are being undertaken by the government in order to reduce urban pollution and the overall carbon footprint of the economy. According to a report published by Environmental Protection Agency in 2021, passenger vehicles emit approximately 4.6 metric tonnes of CO2 per year resulting in greenhouse effects & climate change. According to a study conducted by Lime in 2021, e-scooters reduce carbon emissions by 330 tonnes per year, resulting in less air pollution in the atmosphere. These factors will eventually help in expanding the Micromobility market size in the long run.

Rising Integration of Advanced Technologies like Artificial Intelligence and Internet of Things in Smart Bikes & Scooters is Accelerating the Growth of Micromobility Industry:

The increasing integration of advanced technologies like artificial intelligence and the Internet of things in smart bikes and scooters is accelerating the growth of the Micromobility industry. Smartphones and small high-performance computers with significant computing power are being integrated into e-bikes & scooters. The increasing use of sensors, GPS tracking devices and microchips are used in micro-mobility vehicles to ensure pedestrian safety & for tracking the vehicle. Additionally, the e-scooters have the capabilities to detect lane changes and parking spaces. In June 2021, Huawei launched a self-driving bicycle that can function even when it is unmanned. It can stand on its own even on the slimmest surfaces and incorporates a number of impressive features like high-precision sensors, image recognition cameras and AI technology to enable autonomous driving. Integration of the Internet of Things (IoT) and artificial intelligence technologies help in expanding possibilities for connecting objects over long distances using current radio standards. According to the Connected Micromobility study co-conducted by Ericsson, mobile operator Arkessa and micromobility operator Voi in 2021, micromobility companies can benefit from cellular Internet of Things (IoT) by addressing safety challenges & enhanced efficiency. Cellular IoT can help micro-mobility operators to extend the life of their fleet, accurately implement dynamic pricing with asset tracking and aid in cost-effective service diagnostics. According to the study, such benefits can generate an annual value of up to USD 460,000 for an e-scooter operator in a single city with a population of one million people. These factors are set to elevate the growth of Micromobility market size in the coming time. 

Micromobility Market Challenges

Lack of Suitable infrastructure coupled with the Safety Concerns Associated with the Use of Micromobility Vehicles are Restricting the growth of Micromobility Market:

The lack of suitable infrastructure combined with safety concerns associated with utilization of Micromobility vehicles is limiting its market growth. Lack of infrastructure facilities for micromobility transportation like adequate sidewalks or dedicated bicycle lanes, resulting in the increased urban traffic and accidents. Two-wheelers have become the most dangerous mode of transportation due to increased traffic congestion in cities and lack of public awareness about road safety, prompting bans on the operation of E-scooters/bikes in several regions. Additionally, governments and local authorities are yet to establish effective safety regulations for these vehicles. According to a report released by the Department for Transport in 2022, approximately 882 e-scooter accidents were recorded in the UK between June 2020 and June 2021, resulting in the death of three riders and serious injuries to many others. The number of e-scooter accidents had significantly increased in recent years. These factors are impeding the growth of the Micromobility industry during the forecast period.

Micromobility Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Micromobility Market. The top 10 companies in the Micromobility market are:

1. Yadea Technology Group Co., Ltd.
2. Bird Rides, Inc.
3. Helviz Inc.
4. SEGWAY INC.
5. Swagtron
6. EMotorad (EM)
7. Yulu Bikes
8. YAMAHA MOTOR CO., LTD.
9. Merida Industry Co. Ltd
10. NAVEE Tech

Recent Developments

• In July 2022, NAVEE Tech launched the NAVEE N40 E-scooter, a low-cost & high-value electric scooter designed to encourage the adoption of two wheels. They offer a comfortable journey attributed to their high-capacity batteries which allow them to travel a long distance on a single charge. They ensure a smooth ride even on bumpy terrain or rough surfaces due to their 10-inch pneumatic tires with superior shock absorption features.
• In June 2022, Segway launched S90L, an artificial intelligence-powered e-scooter. The e-scooter included a variety of AI technologies that have been designed to work in a shared environment. It enhances safety and sustainability by using smart sensors and algorithms developed through the Segway Pilot platform.
• In April 2022, EMotorad launched Lil E & T-Rex+ electric kick-scooter and mountain bikes. The T-Rex+ electric mountain bike was designed to improve balance and comfort for the riders. The bike can handle mountain trails, single treks and rough terrain, resulting in the widespread adoption of electric kick-scooters among travelers.

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