Demand for Micromobility Market to Experience a Significant Dip in 2025, Influenced by COVID-19 Pandemic
Micromobility is rapidly becoming one of the most viable options for people who need to cover short distances, five miles or less, quickly. The utilization of light duty vehicles, such as kick scooters, scooters (electric and conventional scooters), and bikes (electric and pedal bikes), come under this mode of transportation. The rapidly surging road congestion is one of the prime factors which are resulting in the growing demand for micromobility across the world. Urbanization, rising middle-class population, and growing affordability have led to an increased number of vehicles on the road. It is in order to take care of these problems that several countries are looking for alternative ways of traveling.
Attributed to all these factors, the global micromobility market is expected to reach $9.8 billion in 2025, from $3.0 billion in 2018, advancing at a 19.9% CAGR during the forecast period (2019–2025), as per a research conducted by P&S Intelligence. Kick scooter sharing, bike sharing, and scooter sharing are the three service types provided by micromobility. Out of these, the largest demand is projected to be created for bike sharing during the forecast period because of the extensive usage of these services in the Asia-Pacific (APAC) region, particularly in China. The fastest growth in demand is predicted to be registered by kick scooter sharing in the coming years.
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One of the key factors which is leading to the rising requirement for bike sharing services is that it is an economical mobility option. The commuting cost associated with bike sharing services is quite low, with an initial fixed fee for unlocking the bike and $0.15 per 30 minutes of travel on an average, which is much less than that of other public shared mobility services. While e-bike sharing costs more than pedal bike sharing, shared e-bikes are more economical than other modes of shared transport services. Due to these factors, various companies have started providing subscription-based bike sharing services on monthly, weekly, or daily basis, which is expected to make commuting more economical for regular users.
Furthermore, the demand for kick scooter sharing services is growing due to the rising popularity of kick scooters as a fun and recreational traveling option. The primary consumer base for kick scooter sharing services has been observed to be the millennial group (average age between 20 and 35 years). These users consider kick scooter sharing as an enjoyable and fun option for commuting. In addition to this, a significant number of solo travelers find these services useful for sightseeing and exploring new places. It is due to these factors that the popularity of kick scooter sharing is gaining traction.
Out of all the regions, namely Europe, Latin America, Middle East and Africa (LAMEA), North America, and APAC, the APAC region is projected to account for the major share of the micromobility market in the coming years. The primary reason for this is the presence of major players in region, such as Ofo, Mobike, and Hellobike. Furthermore, these services are cheaper than all the other shared mobility services that make them an attractive option for people who need economical services. During the forecast period, the fastest growth in demand for micromobility is projected to be witnessed by the LAMEA region.