In a world grappling with urban congestion, pollution, and a growing demand for sustainable transportation, the micro-mobility market is emerging as a transformative force, poised to reach a staggering $6.1 billion by 2027, according to demand forecasts. This burgeoning industry, driven by innovative solutions and propelled by evolving consumer preferences, is experiencing a robust Compound Annual Growth Rate (CAGR) of 12.5% over the forecast period from 2022 to 2027.
Human-Powered Micro-Mobility Leading the Charge
The human-powered micro-mobility segment currently commands the largest market share, a testament to the challenges faced by electrically powered vehicles, such as a lack of charging infrastructure and limited battery capacities. The pedal-assist bicycles, in particular, are gaining traction globally. In North America alone, pedal-assist bicycles accounted for a significant portion of the 128 million trips conducted by micro-mobility vehicles in 2021, signaling a preference for health-conscious, cost-effective, and readily available options.
Asia Pacific: The Epicenter of Micro-Mobility Growth
The Asia Pacific region is poised to become the largest micro-mobility market during the forecast period. Factors such as a rising population, improving 4G/5G infrastructure, and widespread smartphone penetration are driving the surge in demand for micro-mobility services. With lower per capita income compared to Western countries, micro-mobility provides a cost-effective alternative, offering users the experience of owning a vehicle without the hefty price tag.
Strategic investments are further fueling the growth of micro-mobility in the Asia Pacific. In a notable move, Magna invested $82 million in the Indian-based mobility startup Yulu bikes, leading to the creation of Yulu Energy. This new entity is dedicated to developing battery swapping and charging network infrastructure, with plans to establish over 500 charging stations by December 2023. Similarly, Singapore-based startup Beam Mobility secured $93 million in funding to expand its presence in key Asian markets, including Japan, Indonesia, the Philippines, Vietnam, and Turkey.
The Docked Revolution: Securing Micro-Mobility’s Future
Within the micro-mobility landscape, the docked sharing type is emerging as the frontrunner. The preference for docked systems is driven by users’ inclination to scan and unlock the system, coupled with the industry’s commitment to reducing theft and vandalism. The docked segment is predicted to dominate the market in 2027, with North America leading the station-based (docked) segment.
According to data from the North American Bike Share Association (NABSA), among the 128 million micro-mobility trips in 2021, 57.7 million were carried out by docked bikes. The region witnessed a total deployment of around 232 thousand micro-mobility vehicles, with 78 thousand being station-based bikes. Notable companies such as Swiftmile and Charge are actively involved in the US market, contributing to the growth of docked micro-mobility vehicles.
Americas: At the Helm of Micro-Mobility Innovation
The Americas are estimated to have the largest micro-mobility market share in 2027, with the US, Canada, Mexico, and Brazil leading the charge. The region’s increasing concern over traffic congestion, air pollution, and greenhouse gas emissions has driven the demand for micro-mobility solutions. Investments from major players and a surge in micro-mobility service providers, coupled with growing internet penetration, are propelling the market forward.
Recent investments from various stakeholders in micro-mobility startups are further solidifying the industry’s growth in the Americas. Companies such as Bird Global, Inc., Lyft, Inc., Lime, and Helbiz Inc. are at the forefront, promising a future where micro-mobility plays a pivotal role in addressing the evolving needs of urban transportation.
Conclusion: Micro-Mobility Reshaping Urban Commutes
As the micro-mobility market continues its upward trajectory, it is evident that this innovative and sustainable mode of transportation is reshaping urban commutes globally. The convergence of technological advancements, strategic investments, and changing consumer preferences is paving the way for a future where micro-mobility becomes an integral part of the urban landscape, offering not just a means of transportation but a transformative solution to some of the pressing challenges faced by modern cities. With the Asia Pacific leading the way, the micro-mobility revolution is set to redefine the way we move, fostering a more sustainable and accessible future for urban transportation.
FAQs
Q1: What is the current size of the micro-mobility market, and what is the projected growth?
Answer: As of 2022, the micro-mobility market is valued at USD 3.4 billion and is estimated to reach an impressive USD 6.1 billion by 2027, with a Compound Annual Growth Rate (CAGR) of 12.5% over the forecast period.
Q2: What types of vehicles dominate the micro-mobility market?
Answer: Human-powered micro-mobility, particularly pedal-assist bicycles, currently holds the largest market share. The challenges associated with electric vehicles, such as charging infrastructure and limited battery capacities, contribute to the dominance of human-powered options.
Q3: Why is the Asia Pacific expected to be the fastest-growing market for micro-mobility?
Answer: The Asia Pacific is poised for rapid growth due to factors such as a rising population, improving 4G/5G infrastructure, widespread smartphone penetration, and the cost-effectiveness of micro-mobility services compared to other ride-sharing options. Strategic investments and a focus on smart transportation infrastructure further contribute to the region’s potential.
Q4: What role do docked systems play in the micro-mobility market?
Answer: Docked sharing types, where users scan and unlock systems, are emerging as the dominant segment. This preference is driven by the industry’s commitment to reduce theft and vandalism, making docked systems the frontrunner in securing the future of micro-mobility.
Q5: Why is North America leading in the adoption of station-based (docked) micro-mobility?
Answer: According to data from the North American Bike Share Association (NABSA), North America witnessed 57.7 million trips on docked bikes out of a total of 128 million micro-mobility trips in 2021. The region’s total deployment of 232 thousand micro-mobility vehicles, with 78 thousand being station-based bikes, reflects a high demand for this type of system.
Q6: Which regions are considered leaders in the micro-mobility market?
Answer: The Americas, including the US, Canada, Mexico, and Brazil, are estimated to have the largest market share in 2027. Rising concerns over traffic congestion, pollution, and greenhouse gas emissions, coupled with increasing investments and a growing number of micro-mobility service providers, contribute to the region’s leadership.
Q7: How are strategic investments influencing the micro-mobility market in the Asia Pacific?
Answer: Strategic investments, such as Magna’s $82 million investment in Indian-based startup Yulu bikes, are shaping the micro-mobility landscape in the Asia Pacific. These investments contribute to the development of battery swapping and charging network infrastructure, addressing key challenges in the region.
Q8: Which companies are actively contributing to the growth of docked micro-mobility vehicles in the US?
Answer: Companies such as Swiftmile, Charge, and others are actively involved in the US market. Charge, in particular, is working on installing stations on private land and carparks, with recent deals such as the one with LAZ for 250 stations in Atlanta.
Q9: How is micro-mobility addressing concerns over traffic congestion and pollution in the Americas?
Answer: The micro-mobility market in the Americas is witnessing rapid growth due to rising concerns over traffic congestion, air pollution, and greenhouse gas emissions. Investments from major players, increasing internet penetration, and a growing preference for short-mile commutes are driving the adoption of micro-mobility solutions.
Q10: What role do leading companies like Bird Global, Lyft, Lime, and Helbiz Inc. play in the micro-mobility market?
Answer: These companies are at the forefront of the micro-mobility revolution, actively contributing to the growth of the industry. Their presence and investments promise a future where micro-mobility becomes an integral part of urban transportation, offering sustainable and accessible solutions to modern cities.
