Micromobility set for 12.7% CAGR

  • June 24, 2024
  • Steve Rogerson

The micromobility market is set to see a CAGR of 12.73% between 2022 and 2029 to reach $63.35bn, according to Knowledge Sourcing Intelligence.

Micromobility generally refers to a class of transit involving small, lightweight vehicles that are commonly operated for short distances, mostly less than 16km. This includes bicycles, e-bikes, electric scooters or any other electric vehicle with small wheels that make them easy to park anywhere as well as enhance smooth flow along busy streets since they consume less space.

Its niche market is found in towns where few parking slots exist making it hard to drive due to jams in some areas. This has already become a viable mass transportation option, addressing the issue of the last kilometre on individual’s journey from transportation hubs to final destination.

The market is rapidly expanding as a result of alterations to habits of commuting, technological advances and increasing demand for ecologically compatible transport. This, in turn, leads to effects on traffic management, city and town structure arrangements, and the transportation industry as a whole.

The increasing investments in clean energy and government initiatives to reduce CO2 emissions are expected to lead to an increased demand for electric kick scooters, electric skateboards and electric bicycles.

Further, for the deployment of micromobility, numerous governments are establishing rules, goals and policies to entice OEMs and other participants to engage in the sector. For instance, electric kickback scooters are allowed in Canada. These do not need insurance, a driving licence or number plates in most cases in Canada. They are also legal on American roads that do not have separate bike lanes, as long as their maximum speed is not over 40kmph.

A major driver is the rate at which cities are growing and the subsequent rise in traffic jams.

To reduce the congestion in public transport, various countries have resorted to legislation and subsidies that would see an increase in the number of electric bicycles being used. Individuals likewise demand e-bikes worldwide because they are cheaper and easier to charge, and they require less investment into infrastructure than buses or taxis.

The commercial sector’s segmentation of the micromobility market is anticipated to grow significantly due to the rise of various industries, the dependability of vehicles for short-distance travel and cost-effectiveness. The main cause of this is smart cities, which have features such as bike lanes, more open space, streets that only allow electric or slow-moving cars, and lanes designated for micromobility devices.

The electrically powered segment will have a significant market share as a result of a number of factors including cost-effectiveness, ease of use and environmental friendliness compared with traditional modes of transportation. Furthermore, technological advances such as longer-range batteries and better charging infrastructure increase the availability to the public of electrically powered micromobility vehicles, particularly in cities for commuters.

Due to the rapidly increasing need for effective micromobility in the USA and Canada, where traffic conditions are getting worse and these e-bikes or e-scooters can avoid that traffic, the North American region is predicted to show significant growth.

Key players include Micro Mobility Systems, Beam Mobility, Bird, JoyRide, NIU, Brightway, Bikeep, Micromobility.com and Honda Global.

For a sample report or to view details, go to www.knowledge-sourcing.com/report/micro-mobility-market.