The Global Micro Mobility Market was valued at USD 41.6 billion in 2020 and is expected to reach USD 188.2 billion by 2027, growing at a CAGR of 16.6% during the forecast period.
Market Definition:
Micro mobility is a mode of transport by lightweight vehicles, operating at a speed of not more than 25 km per hour, and generally considered best to cover short distances. Micro mobility is emerging as a new trend in transportation as it helps in reducing traffic congestion, pollution problem, etc. Micro mobility includes the usage of various vehicles such as e-bikes, bicycles, electric scooters, shared vehicles, electric skateboards, and pedal-assisted bicycles. Micro mobility vehicles use clean energy such as rechargeable batteries which in turn fight climate change and provide an efficient means of transport. There are several other advantages associated with micro mobility vehicles such as cheap and easy options to commute, environment friendly, and useful for last-mile delivery services.
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Market Dynamics:
The market is anticipated to develop significantly in the forecast period. Vehicular pollution is increasing at an alarming rate owing to rapid urbanization across the globe. An article published by the International Council on Clean Transportation, in 2019, stated that the health risks of air pollution are extremely serious and passenger vehicles along with heavy-duty trucks are a major source of vehicular pollution. United Nations Environmental Protection Agency suggests that using a bike or sharing a bike reduces pollution significantly. Owing to the rise in vehicular pollution, many countries are opting for alternate means of travel. For instance, Docked, a bike-sharing program among others were launched in various cities in China in 2008, to ease mobility issues.
Another factor driving the micro mobility growth is the rise in the prices of fuel. For instance, as per the Ministry of Petroleum and Natural Gas, India, Central taxes on petrol increased from about Rs 9.45/liter in 2014 to Rs. 33/ per liter in 2020, which was a mighty 250% increase. Thus, micro-mobility is an alternate means of transport as they use less fuel than cars, trucks, and heavy vehicles according to the article in Daily Sabah, January 2021. Another major factor driving the growth of the market is the increase in traffic congestion in cities due to the increase in urbanization and the growing population. As the population is increasing and cities are becoming more developed and wider, commuting is becoming a problem. Hence, micro mobility vehicles are gaining more popularity. Smaller vehicles can pass quickly through heavy traffic-congested streets as compared to heavy vehicles.
According to a report by CNN, the commuters in the US spend 54 hours in traffic annually. The University of Florida Transportation Institute has developed a program called micro mobility as a solution to reduce traffic congestion to encourage using micro mobility as compared to automobiles. Thus, all these factors will help the growth of the micro mobility market during the forecast period.
Lack of infrastructure for two-wheelers and cycles in cities will be seen as a drawback in the micro mobility market. Electric bikes require enough charging points for efficient run, however, there are only a few countries in the world that are bike or two-wheeler friendly. However, investment towards infrastructure for two-wheelers and bikes, etc. is a modern and intelligent approach. Hence, many countries and government agencies are adopting measures to build infrastructure for two-wheelers such as one-way lanes dedicated only for two-wheelers, bikes, cycles, etc.
There is a notion that two-wheelers are less safe than four-wheelers and thus the general population is keener on investing in four-wheelers than two-wheelers. This aspect serves as a drawback in the growth of the market. Road fatalities in two-wheelers were recorded as 20 times higher as compared to car drivers in India in 2019.
The Global Micro Mobility Market Segmentation:
By Type
By Application
By Vehicle Type
By Region
The unique insight provided by this report also includes the following:
Based on type, the electric segment is expected to hold the largest share during the period
Based on type, the electric segment is expected to grow at the fastest during the forecast period. Concerns regarding climate change and environmental pollution are the main reasons fuelling the growth of the electric segment in the micro mobility market. Electric two-wheelers in China have exhibited the lowest emission rate per kilometer as compared to any other automobile type. In 2019 July, government advisory body NITI Aayog, India, proposed that all two-wheelers under 150cc should be fully-electric from the year 2025. New policy adoptions which favor electric two-wheelers and investment towards electric two-wheelers is expected to propel the growth of the market.
Based on application, the commercial segment is projected to grow the fastest during the forecast period
Based on application, the commercial segment is projected to grow the fastest during the forecast period. Public transport has declined due to social distancing norms across the globe and thus micro mobility has considered as an emerging trend in recent years. As people step out less and prefer home deliveries, micro mobility is recommended for shorter distances and fewer people. For instance, IKEA started rental services with e-cargo bikes to deliver furniture to customers in Germany. Many people choose electric bikes for deliveries as it is faster. Therefore, all these factors will create a boost in the commercial segment in the micro mobility market.
Based on region, Asia Pacific registered a CAGR of 20% during the base year and is expected to hold the largest share during the forecast period
Geographically, Asia Pacific has shown remarkable growth in recent years. Post covid-19, the micro mobility market has sprung. India, China, and Vietnam are the major key players in the Asia Pacific region of the micro mobility market. According to Financial Express, the average growth rate of the two-wheeler population in India is 11. The two-wheeler industry has grown by 12 percent India in the year 2020. Apart from India, China is the epicenter for the micro mobility market in Asia. According to Ministry of Industry and Information Technology, the market value of electric bicycles in China has reached around USD 25.4 million in the year 2020. Indonesia’s biggest telecom network, Telkomsel invested USD 155 million in the moped start-up Gojek, as a part of their strategic collaboration, the collaboration is aimed at business expansion for both the companies. Thus, the micro mobility market has a strong future in the Asia Pacific region.
The report also provides an in-depth analysis of micro mobility market dynamics such as drivers, restraints, opportunities, and challenges
Drivers
Restraints
Opportunities
Note: Challenges along with an in-depth market dynamics analysis is mentioned in the report.
COVID-19 Impact on the Market
The impact of COVID-19 has greatly affected the market of micro mobility market. The impact of covid-19 witnessed a major downfall of the worldwide economy. The micro mobility market was affected as people were restricted from moving and ordered to remain indoors. There was limited use of vehicles and thus, the market witnessed a setback. According to the New York Times, the micro mobility market plunged 100%. However, the market is set to make a steady rise again as people are avoiding crowded public transportation to maintain social distancing. Thus, the demand for two-wheeler bicycles and bikes is witnessing a rise. Lime company reported an increase of cycling population up by 15% post the pandemic. Therefore, the growth of the micro mobility market is positive despite the covid-19 pandemic.
The report also provides in-depth analysis of key trends in micro mobility market
The rising safety concerns among the public with regards to two wheelers is expected to hamper the market growth
The report also provides in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the micro mobility market are:
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