The global micromobility industry size garnered USD 21.43 billion in 2021 with an expected CAGR of 13.9% during the forecast period 2023-2030, according to the “Micro Mobility Industry Data Book, 2022-2030,” published by Grand View Research. A concerted effort to minimize congestion and emissions has spurred the demand for micromobility, including electric bikes and electric kick scooters. In the wake of surging demand for bicycling facilities, stakeholders seek opportunities in micromobility as an alternative mode for active transportation and short trips.
The global push to combat climate change has fostered the demand for micromobility, which has emerged as an innovative urban mobility solution. Besides, an exponential rise in fuel prices and the desire to contribute towards sustainability have encouraged using environmentally friendly solutions. End-users are expected to seek the vehicle for commuting, leisure activities, and errand running. Potential opportunities to save traveling time and boost flexibility have prompted the demand for micromobility solutions, including two- and three-wheelers.
E-Bicycles Shape Future Mobility
The rising footprint of e-scooters, electric-assisted bicycles, and electric- or human-powered transportation devices has augured growth. Prominently, electric bicycles have received an impetus to create an accessible, convenient, and diverse transportation network. It can offer more transportation options, enhance the quality of life, and minimize congestion. Global push to reduce emissions and pollution will gain traction from the product demand. The electric bicycles market size amassed USD 17.83 billion in 2021 and it could depict approximately 14.5% CAGR between 2022 and 2030.
Potentials of E-Kick Scooters
Electric kick scooters have gained steam with the growing trend for shared scooters across emerging and advanced economies. The demand for increased safety, durability, and environmentally friendly solutions to car congestion has investors and other stakeholders banking on micromobility offerings. For instance, in October 2022, NIU announced the rollout of a kick scooter to offer urban commuters sustainable mobility solutions. It will enable riders to customize their speed and check riding statistics.
In the wake of the prevailing trends, the electric kick scooters market size reached USD 2.61 billion in 2021 and will observe around 11.5% CAGR during the assessment period. The growth is mainly attributed to surging demand for lightweight vehicles and robust expansion initiatives. For instance, in November 2022, Pure Electric secured roughly £2.3 million (around USD 2.7 million) to boost expansion plans for electric scooters in regions, including the European and the U.S. markets.
Opportunities & Challenges Surrounding Electric Skateboards
Electric skateboards have come on the horizon as a compelling solution amidst soaring traffic congestion and rising fuel prices. An increasing number of workers are likely to gravitate towards e-skateboards, partly due to the legalization of the micro-mobility solution. For instance, the legalization of e-skateboards in European countries, such as Belgium, Denmark, Finland, France, Spain, and Sweden, has added a fillip to the growth prospect. Notably, the global electric skateboard market size, pegged at USD 980.3 million in 2021, will observe a CAGR of 7.8% through 2030.
While the trend for energy-efficient vehicles will accentuate the demand for e-skateboards, reported cases of deaths and injuries pose concerns for skateboard suppliers. CNN reported on October 1, 2023, that the U.S. Consumer Product Safety Commission cautioned people to stop using the recalled Onewheel electric skateboards that can stop balancing the rider, provided the boards' limits are exceeded.
In the midst of challenges, the creation of safe mobility corridors, micro-mobility preferences, and installation of parking, riding, and charging infrastructure will bode well for suppliers, customers, and other stakeholders.
Some dynamics, which are expected to have an overarching influence on the global landscape, are elucidated below:
- Lithium-powered electric micromobility vehicles are expected to gain traction in the ensuing period, leading to the penetration of cost-effective and lightweight modes of transportation.
- Demand for cleaner transportation will augur innovation and growth. The environmental upsides will remain invaluable in minimizing city emissions and traffic congestion.
- Asia Pacific is poised to witness investment galore following the 5.9 million-ton lithium reserve found in Jammu and Kashmir, India, in February 2023. On the back of massive energy storage capacity and low weight, the discovery of the metal could prove to be a game changer for the Asia Pacific market.
U.S. Emerges as a Happy Hunting Ground
The North American micromobility industry forecast will be strong in the wake of bullish government policies and expanding footfall of the transportation option. For instance, the U.S. Federal Highway Administration noted that there were over 260 shared micromobility systems as of August 2020 in the U.S. Notably, the deployment of shared fleets will open avenues of growth for short trips. These devices may offer a convenient, diverse, and accessible transportation network to bolster sustainability. Furthermore, urban communities envisage micromobility as a quieter, lower-carbon, and cheaper means of transportation. Communities are emphasizing safety through rider training and micromobility ambassador programs to foster transportation during festivals and events.
Evolving Frontier for Stakeholders
Organic and inorganic growth strategies will be pronounced as micro mobility operators are expected to inject funds into technology advancements, mergers & acquisitions, product rollouts, R&D activities, and collaborations. To illustrate, in September 2022, Magna announced pouring USD 77 million into Yulu, India's EV startup, to foray into the micro-mobility market. Meanwhile, in March 2021, Lime contemplated infusing USD 50 million into e-bikes to expand its footfall in the U.S. and the global market.
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