The micro mobility market is set to experience remarkable growth, reaching an estimated $32.4 billion by 2031. This impressive expansion, at a CAGR of 12.4% from 2024 to 2031, is driven by several critical factors, including the growing demand for sustainable transportation, the increasing need for first- and last-mile solutions, the rising use of smartphones, the cost-effectiveness of micro mobility vehicles, the surge in venture capital investment, and the growing urban challenges associated with car-centric mobility.
Despite its promising growth, the market faces challenges such as the lack of a regulatory and legal framework, theft, and vandalism. However, the integration of IoT and the adoption of micro mobility fleets by governments present significant opportunities for stakeholders.
Micro Mobility Market Growth Drivers
Growing Demand for Sustainable Transportation Boosting Market Growth
The push towards sustainable transportation is a significant driver for the micro mobility market. As urbanization increases and concerns over climate change intensify, cities worldwide are looking for eco-friendly transportation solutions. Micro mobility, encompassing e-scooters, e-bikes, and shared bicycles, offers an effective means to reduce traffic congestion, greenhouse gas emissions, and noise pollution.
For instance, the city of Paris has seen a substantial reduction in traffic congestion and pollution levels through the extensive use of micro mobility options. As more cities adopt similar measures, the demand for sustainable transportation solutions like micro mobility is expected to rise, further propelling market growth.
Increasing Use of Smartphones Driving the Micro Mobility Market
Smartphones have revolutionized the micro mobility sector by providing seamless access to transportation options. The proliferation of smartphones, coupled with advancements in GPS tracking, connectivity, and mobile payments, has made it easier for users to access micro mobility vehicles through apps.
Residents in urban areas can now unlock and pay for rides with just a few taps on their smartphones, making micro mobility a convenient and attractive option. This trend is expected to continue, driving further growth in the market.
Micro Mobility Market Trends
Integration of IoT & IoT SIM Cards in Micro Mobility
The integration of IoT technology is transforming the micro mobility landscape. IoT enables real-time monitoring and control of vehicles, enhancing their functionality, safety, and efficiency. For example, Beam Mobility Holdings Pte. Ltd. recently launched the Apollo Lite e-bike in Wellington, New Zealand, featuring advanced IoT technology for improved safety and performance.
IoT SIM cards, with their small form factor and resilience, are increasingly being used in micro mobility vehicles to provide continuous data transfer on usage statistics, battery levels, and vehicle positions. This integration helps operators optimize fleet management, making urban mobility smarter and more user-centric.
Use of Micro Mobility Services in Smart Cities
As cities evolve into smart cities, micro mobility solutions play a crucial role in enhancing urban transportation. These solutions help reduce pollution, connect people to public transport, and address first- and last-mile challenges. Smart cities prioritize efficient, high-speed public transit systems, and micro mobility complements these systems by offering practical alternatives for short-distance travel.
For instance, Singapore has implemented a robust micro mobility framework that integrates seamlessly with its public transportation network, providing residents with efficient and eco-friendly commute options.
Micro Mobility Market Opportunity
Growing Adoption of Micro Mobility Fleets by Governments
Governments worldwide are recognizing the benefits of micro mobility in reducing traffic congestion, emissions, and noise pollution. Municipalities and transport authorities see micro mobility as a solution to first- and last-mile transportation problems. For example, the Municipality of Arezzo in Italy has partnered with TIER Mobility SE to introduce e-scooters, promoting sustainable transportation within the city.
Such initiatives by governments to integrate micro mobility into urban transport strategies are expected to create significant growth opportunities for market players.
Micro Mobility Market Analysis: Key Findings
By Mobility Type: Manual Mobility Segment to Dominate in 2024
The global micro mobility market is segmented into manual mobility and electric mobility. In 2024, the manual mobility segment is expected to account for the larger share of the market. This dominance is attributed to changing customer preferences towards sustainable transportation, the need for first- and last-mile solutions, and increased investments in micro mobility infrastructure.
However, the electric mobility segment is anticipated to record the highest CAGR during the forecast period due to the growing adoption of electric bikes and scooters for longer distances and the development of innovative e-scooters by key players.
By Speed: Up to 25 km/h Segment to Lead in 2024
Based on speed, the market is segmented into up to 25 km/h and 25 km/h to 50 km/h. The up to 25 km/h segment is expected to dominate the market in 2024, driven by the deployment of micro mobility vehicles and the demand for compact, stable vehicles.
The 25 km/h to 50 km/h segment is projected to record the highest CAGR due to the increasing demand for powerful micro mobility vehicles and the focus on developing high-speed e-bikes and scooters.
By Sharing Type: Docked Segment to Dominate in 2024
The global micro mobility market is segmented into docked and docked-less sharing types. The docked segment is expected to hold the largest share in 2024, owing to the benefits of docking systems in protecting vehicles from theft and vandalism, and the adoption of shared mobility in urban areas.
The docked segment is also expected to record the highest CAGR during the forecast period, driven by government and municipal efforts to promote micro mobility and the use of vehicles in commercial sectors for commuting.
By End User: Commercial Segment to Lead in 2024
The market is segmented into private and commercial end users. The commercial segment is expected to dominate in 2024, with a large share attributed to the adoption of micro mobility vehicles by businesses for sustainable transportation solutions.
Key players are focusing on partnerships to promote micro mobility, and the growing use of these vehicles in universities, healthcare centres, and corporate campuses is expected to drive the segment's growth.
Based on geography, the micro mobility market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of above 37.0% of the global micro mobility market. The large market share of this region is attributed to the increased adoption of e-bikes and e-scooters for micro mobility, the increased focus of cities to use micro mobility to reduce car usage, traffic, and carbon emissions, and the growing focus of foreign players on expanding sustainable transportation across the region. For instance, in July 2023, Bird Global, Inc. (U.S.) announced the expansion and renewal of its operations across Italy, France and Spain. These extensions mark a significant milestone for Bird as it continues to strengthen its commitment to sustainable transportation and urban mobility in Europe.
However, Asia-Pacific is projected to register the highest CAGR of 14.0% during the forecast period. The region's growth is attributed to growing urbanization fuelling the need for sustainable and urban transportation, rising demand for shared micro mobility, and the growing focus of cities on adopting micro mobility. For instance, in November 2023, Beam Mobility Holdings Pte. Ltd. (Singapore) introduced seated e-scooters to Auckland, New Zealand, with 300 shared seated e-scooters available for hire across the city.
Key Players:
Some of the key players operating in the micro mobility market are Bird Global, Inc. (U.S.), Lyft, Inc. (U.S.), Neutron Holdings, Inc. (Lime) (U.S.), Dott (Netherlands), Helbiz Italia S.r.l. (Italy), Bolt Operations OÜ (Estonia), Voi Technology AB (Sweden), Superpedestrian, Inc. (U.S.), Beam Mobility Holdings Pte. Ltd. (Singapore), Hello Inc. (China), Niu Technologies (China), VeoRide, Inc. (U.S.), felyx sharing B.V. (Netherlands), Boaz Bikes (U.S.), and CycleHop LLC dba HOPR (U.S.).
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Key questions answered in the report-
· Which are the high-growth market segments based on mobility type, speed, sharing type, and end user?
· What was the historical market for micro mobility?
· What are the market forecasts and estimates for the period 2024–2031?
· What are the major drivers, restraints, and opportunities in the micro mobility market?
· Who are the major players, and what shares do they hold in the micro mobility market?
· What is the competitive landscape like in the micro mobility market?
· What are the recent developments in the micro mobility market?
· What are the different strategies adopted by the major players in the micro mobility market?
· What are the key geographic trends, and which are the high-growth countries?
· Who are the local emerging players in the global micro mobility market, and how do they compete with the other players?
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