Micro-Mobility Market

The micro-mobility market is projected to reach a value of USD 69.32 billion by 2030, with a compound annual growth rate (CAGR) of 13.7% during the forecast period. Micro-mobility refers to the use of lightweight electric vehicles such as electric kick scooters, electric skateboards, and electric bicycles for transportation. Factors such as increasing traffic congestion, rising fuel prices, ease of parking, and saturation in the automotive sector are expected to drive market growth. Additionally, the growth of electric bicycle and electric kick scooter rental and sharing services worldwide presents new opportunities for micro-mobility in the coming years.

The market experienced a negative impact in 2020 due to the COVID-19 pandemic. Lockdown measures and restrictions hindered the retail business of micro-mobility vehicles globally. However, some customers turned to purchasing micro-mobility devices as an alternative to public transportation during this period. The post-COVID environment is expected to accelerate the shift towards sustainable mobility.

The need to reduce greenhouse gas emissions has led to initiatives promoting electric vehicles as a climate-friendly transportation option. Governments have implemented action plans for climate change and are investing in clean energy to reduce CO2 emissions. This has created a demand for electric kick scooters, electric skateboards, and electric bicycles.

Governments are also enacting regulations and policies to promote micro-mobility. For example, electric kick scooters are legal in Canada and the U.S., with specific requirements and speed limits. The sleek design and ease of use of micro-mobility vehicles make them cost-effective and convenient for urban commuters, helping reduce traffic congestion and carbon emissions. These factors drive the adoption of micro-mobility vehicles.

Micro-mobility Market Trends

The expansion of ride-sharing and ride-hailing services, offered by companies like Ola and Uber, has contributed to the growth of micro-mobility. Customers are attracted to the convenience of selecting pick-up and drop-off locations. The availability of various ride-sharing and ride-hailing services, including auto-sharing and bike-sharing, for short-distance travel has also fueled the growth of the micro-mobility industry.

The demand for micro-mobility systems is driven by economic and geopolitical concerns, leading to an increase in gas and oil prices. These eco-friendly and affordable vehicles provide a low-cost, clean alternative to traditional fuel-powered vehicles. Furthermore, the use of micro-mobility vehicles saves time and money, particularly in urban areas, which further boosts market growth.

However, challenges such as low internet penetration in developing countries and issues like bike theft or damage hinder the global micro-mobility market's growth. Additionally, concerns about privacy and security in ridesharing services impact customer confidence. Some countries have even banned ridesharing services due to resistance from local taxi businesses. On the other hand, advanced transportation systems and government initiatives to create bike-sharing infrastructure present opportunities for market growth throughout the forecast period.

Vehicle Type Insights

The market is segmented into electric kick scooters, electric skateboards, and electric bicycles based on vehicle type. Electric bicycles dominated the market in 2020, accounting for over 85% of global revenue. They are projected to have a CAGR of over 14.3% during the forecast period, being the most affordable and convenient alternative to public transportation. Many countries are implementing regulatory changes and subsidies to promote the use of electric bicycles and relieve the burden on public transportation systems. Compared to buses and taxis, electric bicycles are easy to charge, cost-effective, and require minimal investment in supporting infrastructure. As a result, the demand for electric bicycles is increasing worldwide.

The electric kick scooters segment is expected to have the second-highest CAGR of 10.3% during the forecast period. The demand for electric scooters has risen since 2017 due to significant investments in the electric scooter-sharing market, which is currently undergoing a transformative phase. Global players like Uber Technologies, Inc., Bird, Inc., Lyft, and Lime have entered the on-demand transportation industry, contributing to the growth of the scooter-sharing market.

Battery Insights

The market is segmented into sealed lead-acid batteries, Nickel-Metal Hydride (NiMH) batteries, and Lithium-ion (Li-ion) batteries based on battery type. Sealed lead-acid batteries dominated the market in 2020, accounting for over 55% of global revenue. They are projected to have a CAGR of over 12.6% during the forecast period, primarily due to their cost-effectiveness. These batteries are favored by manufacturers for their low self-discharge rate and ease of production. However, the use of toxic substances in the manufacturing process releases a significant amount of lead into the environment, leading to environmental concerns. This has prompted manufacturers to explore alternative battery options, resulting in slower growth of the sealed lead-acid battery segment.

Voltage Insights

The market is divided into below 24V, 36V, 48V, and greater than 48V segments based on voltage. The below 24V segment dominated the market in 2020, accounting for over 75.0% of global revenue. It is expected to maintain its dominance throughout the forecast period. Micro-mobility vehicles like skateboards, scooters, and bicycles typically utilize batteries below 24V, such as 12V or 18V rechargeable batteries, which provide sufficient power for their motors and offer a shorter range compared to other vehicle types. Electric vehicle manufacturers use sets of 12V or 18V lithium-ion batteries instead of sealed lead-acid batteries to reduce vehicle weight and enhance overall efficiency.

The 36V segment is projected to have the highest CAGR of 14.0% during the forecast period. The integration of 36V systems in electric vehicles not only extends the driving range but also improves vehicle performance. NiMH and Li-ion batteries are mainly used for 36V applications due to their compact size, faster charging time, and absence of harmful chemicals compared to sealed lead-acid batteries.

Regional Insights

The Asia Pacific region dominated the market in 2020, accounting for over 45.0% of the global revenue. Most micro-mobility vehicle manufacturers operate in Asia Pacific, Europe, and North America, generating revenue through international sales via distribution channels or OEM partnerships. Governments in economies like India, China, and Japan are establishing standards and regulations for vehicle charging infrastructure, which is expected to positively impact regional market growth. Moreover, Asia Pacific is anticipated to be the fastest-growing regional market during the forecast period.

Consumer demographics vary across different regions. Electric kick scooter users in North America and Europe tend to perceive electric kick scooters as a life choice, while those in Latin America, the Middle East and Africa, and the Asia Pacific view them as practical transportation options. Vendor success in retaining or attracting customers depends on factors such as performance, maintenance costs, and durability. However, during vehicle launches, vendors primarily focus on design/ and specifications to attract consumers.

Key Companies & Market Share Insights

Prominent market players such as Yadea Technology Group Co., Ltd., JIANGSU XINRI E-VEHICLE CO., LTD., Xiaomi, SEGWAY INC., SWAGTRON, Boosted USA, Airwheel Holding Limited, YAMAHA MOTOR CO., LTD., Accell Group, and Derby Cycle continuously pursue strategic partnerships, mergers and acquisitions, and new product launches. These companies possess expertise in the micro-mobility industry and have established footprints across various parts of the world, enabling them to defend their market position successfully. Meanwhile, smaller and niche vendors are introducing micro-mobility vehicles with extended ranges, intensifying the competition. As a result, market players are increasingly adopting initiatives such as strategic partnerships, mergers and acquisitions, and new product launches to solidify their positions in the market.

The market has witnessed several notable product launches in recent years. For example, in July 2020, Xiaomi introduced the Ninebot C30 electric scooter in China. This compact scooter has a range of up to 35 km and a top speed of 25 km/h. Similarly, in April 2020, Xiaomi launched the Mi Electric Scooter 1S, which was made available on China's e-commerce platforms and offered international shipping. With a range of 30 km on a full charge and a maximum speed of 25 km/h, this scooter gained attention in the market.

The demand for Li-ion batteries has increased due to their superior performance and eco-friendliness compared to sealed lead-acid and NiMH batteries. While Li-ion batteries are initially more expensive, advancements in technology and growing demand have led to a reduction in their price. The cost of Li-ion batteries is expected to decrease by 6.5% annually over the next decade, directly impacting the price of electric vehicles. Consequently, the Li-ion battery segment is expected to grow rapidly during the forecast period.

Recent Developments

• In June 2022, Porsche expanded its presence in the electric bike market by acquiring new models from a German electric bicycle manufacturer. This joint venture aims to develop, produce, and distribute a new generation of high-quality Porsche e-bikes.
• In May 2022, Nashville addressed its transportation gaps by integrating public transportation with micro-mobility options. As a mobility coordinator, the company explored collaborations with micro-mobility providers like Bird to expand its role beyond being a mere transit provider and become a comprehensive mobility coordinator.

Some of the notable players operating in the global micro-mobility market include:

• Yadea Technology Group Co., Ltd.
• JIANGSU XINRI E-VEHICLE CO., LTD.
• Xiaomi
• SEGWAY INC.
• SWAGTRON
• Boosted USA
• Airwheel Holding Limited
• YAMAHA MOTOR CO., LTD.
• Accell Group
• Derby Cycle

Global Micro-mobility Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global micro-mobility market report based on vehicle type, battery, voltage, and region:

Vehicle Type Outlook (Revenue, USD Million, 2018 - 2028)

• Electric Kick Scooters
• Electric Skateboards
• Electric Bicycles

Battery Outlook (Revenue, USD Million, 2018 - 2028)

• Sealed Lead Acid
• NiMH
• Li-ion

Voltage Outlook (Revenue, USD Million, 2018 - 2028)

• Below 24V
• 36V
• 48V
• Greater than 48V

Regional Outlook (Revenue, USD Million, 2018 - 2028)

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa