What Role Does IT Play in Micromobility Industry?

 The entire concept of micromobility is enabled by IT technologies, including mobile phones, mobile and desktop apps, digital payment platforms and telematics solutions. Micromobility involves sharing two-wheelers (gasoline/petrol and electric) for short-distance transportation, with the bookings and payments being almost exclusively facilitated by mobile apps and websites of the service provider.

How IT Facilitates Micromobility Ride Booking?

To book a ride, the user needs to either download the service provider’s mobile app or visit its website. There, you enter all the trip details, including the destination and origin, the vehicle type (bicycles, kick scooters, and scooters) and preferred journey time and then, make the payment. Following this, you get the pickup spot on the mobile app or your account on the service provider’s website for both station-based and dockless micromobility systems and a code to unlock the vehicle. Then, you reach the spot, put in the code into the vehicle’s dial pad, and you are ready to ride!

What Benefits IT Provides to Micromobility Service Providers?

While IT technologies allow people to book and pay for the rides, they enable a whole lot more for the service providers. When it comes to micromobility companies, the digital technologies available to them are grouped under ‘telematics’. By studying the data fed to the central company system from the small computer onboard the vehicle, service providers can take a stock of their fleet utilization, including the number of vehicles in use at a time, the most-popular routes and journey times, and average kilometers/miles ridden per day, week, or month.

Such a usage analysis further allows companies to know the best times for the utilization of their services, so that trip fares can be elevated or reduced accordingly. During periods of low utilization, companies may want to substantially reduce the fares or provide an offer to lure customers. Similarly, during times when the demand for the services is high, companies could employ dynamic pricing (the higher the demand, the higher the rates).

The telematics solutions also pair users’ smartphone app with the onboard computer, ensuring that only the particular vehicle the user has received the unlock code for can be unlocked using it. Moreover, companies can see the charge remaining in the battery or fuel in the tank, to know when it is time to recharge or take the vehicle to a petrol pump (gas station). Similarly, the health of onboard systems, such as the motor or engine, tire pressure, the computer, GPS/telecommunications module, ADAS, headlights and taillights, battery management system, and AC–DC/DC–DC converter can be monitored, thus allowing for predictive maintenance.

Moreover, the GPS allows companies to track the location of the two-wheeler in case it goes missing or breaks down or if the user presses the panic button, thus prompting a search & rescue operation by the service provider or the authorities. Advanced telematics systems might also offer vehicle-to-pedestrian, vehicle-to-vehicle and vehicle-to-infrastructure connectivity, thus making the journey more enjoyable for the rider and fleet management easier for the service provider.

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New Zealand Micromobility Market To Grow by 64.3% by 2030

The major factors driving the New Zealand micromobility market are the convenience and cost-effectiveness of these services, rising need to make the earth greener, and supportive government regulations for these transport solutions. As a result, the cumulative revenue garnered by the providers of these services in this island country will increase to $2,395.1 million by 2030 from $9.5 million in 2020, at a 64.3% CAGR during 2021–2030 (forecast period). These services are essentially provided on two-wheelers, mostly electric, which commuters drive themselves.

New Zealand Micromobility Market - P&S Intelligence 

E-scooters, e-mopeds, e-bikes, e-pods, scooters, and bikes are the categories of the type segment. Among these, the e-scooters category held the largest share in the New Zealand micromobility market in 2020 as these vehicles are immensely popular here. Compared to pedal-assist bikes, e-scooters are faster and more convenient as they save riders’ effort in propelling them forward. Due to the same reason, the scooters category will likely witness the fastest growth during the forecast period.

The biggest trend in the New Zealand micromobility market is investment in start-ups. Seeing the burgeoning demand for smoother connectivity within cities, many new companies are entering the country’s micromobility landscape. To establish their operations, they are raising significant investments from major capital firms, wooing them with their innovative business models. Moreover, even automakers and providers of conventional mobility services are funding these start-ups, in order to expand their own areas of operations.

As a result of the rising demand for these services, New Zealand micromobility market players are expanding their fleets and service areas. For instance, Neuron Mobility Pte. Ltd. added 880 N3 e-scooters in Auckland in January 2020, as part of its expansion drive in the Asia-Pacific (APAC) region. Designed to allow people to traverse the city’s hilly terrain, they are provided with safety helmets. In the same vein, in June 2019, 400 e-scooters were deployed in Wellington by Flamingo Technologies Limited, as part of the state’s micromobility trial.

Hence, with government support and the rising need for low-cost transportation, the market will continue to boom.

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Philippines Micromobility Market to Generate $13,899.7 Million Revenue by 2030

A number of factors such as the rising need to curtail transportation costs and mitigate air pollution, plunging cost of batteries, and burgeoning demand for efficient transportation services to bridge the gap between first- and last-mile connectivity are expected to propel the Philippines micromobility market at an exceptional CAGR of 158.6% during the forecast period (2021–2030). According to P&S Intelligence, the market revenue will surge from $1.9 million in 2020 to $13,899.7 million by 2030. 

Philippines Micromobility Market - P&S Intelligence 

The surging public and government focus on reducing air pollution, traffic congestion, and transportation costs is expected to drive the demand for micromobility services in the Philippines. For instance, in 2020, the Philippines had an average US air quality index (USAQI) reading of 52 ³. Additionally, the abundant availability of micromobility services and their ability to provide greater convenience than conventional transportation systems are also driving their popularity in the country.  

Moreover, the plunging battery cost is also a key contributor to the Philippines micromobility market growth. The reduction in battery price causes the upfront cost of electric personal mobility devices (PMDs) to fall, which, in turn, accelerates the inclusion rate of such automobiles in micromobility fleets. Nowadays, market players are opting for lithium-ion (Li-ion) batteries, as they offer increased running economy and reduced charging time than lead-acid batteries. Additionally, the availability of government incentives and tax credits on the usage of Li-ion batteries also fuels the adoption of Li-ion-powered electric vehicles (EVs) in vehicle sharing fleets.  

Presently, the players in the Philippines micromobility market are engaging in service expansions to gain a competitive edge. For instance, in December 2020, Moovr PH introduced its e-scooter and bike sharing services in Bonifacio Global City (BGC), the Philippines, with a fleet of 20 Segway Ninebot Pro Max e-scooters and 200 single-speed bikes and 14 hubs. Companies such as Segway Inc., StreetWheels Philippines, Grab Holdings Inc., Ningbo Kaabo Technology Co. Ltd., Niu Technologies, Kwang Yang Motor Co. Ltd., Merida & Centurion Germany GmbH, and Vmoto Limited are also expanding their services in the country to consolidate their position.

Thus, the escalating need to curtail air pollution levels and declining battery costs will augment the demand for micromobility services in the Philippines.  

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South Korean Micromobility Market Revenue To Surpass $11,000.0 Million by 2030

The South Korean micromobility market reached a value of $120.3 million in 2020, and it will generate $11,178.5 million revenue by 2030, as per the estimates of P&S Intelligence, a market research firm based in India. The market is being driven by the rising focus on mitigating traffic congestion in cities, burgeoning requirement for reducing air pollution and traveling expenditure, and soaring need for better first- and last-mile connectivity across the country. 

South Korea Micromobility Market - P&S Intelligence 

Due to their low cost, abundant availability, and ability to provide greater convenience than conventional transportation systems, the popularity of micromobility services is growing rapidly in South Korea. Moreover, the increasing concerns being raised over the escalating pollution and deteriorating air quality levels are also driving the requirement for micromobility services in the country. According to a study conducted in February 2017, South Korea recorded the second-worst air quality level out of all developed countries that are members of the Organisation for Economic Co-operation and Development (OECD).

As the adoption of micromobility services reduces the requirement for personal vehicle ownership, the soaring popularity of these services is predicted to solve the issue of road congestion, which will, in turn, mitigate the air pollution levels in the country. Besides this factor, the surging demand for better first- and last-mile connectivity is also expected to propel the growth rate of the South Korean micromobility market in the coming years. Depending on vehicle type, the market is classified into e-mopeds, bikes, scooters, e-bikes, e-pods, and e-scooters. 

The players operating in the South Korean micromobility market are actively focusing on partnerships in order to expand their operations and bolster their position in the industry. For example, KT Corporation announced in March 2021 that it has entered into a partnership with Omni System Co. Ltd. and the city authorities of Goyang for deploying 400 Tazo bikes near subway stations and other populated areas in the city. The organization also announced that it would start charging a fixed fee of $0.4 (KRW 500) for every 20 minutes from April 12, 2021.

Hence, it can be safely said that the market will register substantial growth in the coming years, mainly because of the rising requirement for better first- and last-mile connectivity and increasing road congestion in the country. 

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How Is COVID-19 Impacting Vietnam Micromobility Market?

The major drivers for the Vietnamese micromobility market are the worsening issues of traffic congestion and urban parking and favorable economics of these commuting services. Boosted by these factors, the providers of such services in the country can hope to make a combined $10,227.2 million in 2030, compared to $89.9 million in 2020. This increase in the market revenue will likely be at a CAGR of 66.0% between 2021 and 2030 (forecast period). Micromobility exclusively involves two-wheelers, mostly those driven by electricity.

Vietnam Micromobility Market - P&S Intelligence 

The vehicle type segment of the Vietnamese micromobility market is categorized into e-scooters, e-mopeds, e-bikes, e-pods, scooters, and bikes. Among these, the e-mopeds category is predicted to generate the highest revenue for the industry players all through the forecast period. This would be on account of the large tech-savvy and young population of the country, which finds this means of commute extremely fun. Further, the growing tourist inflow to Vietnam, driven by its French heritage, UNESCO-listed Ha Long Bay, and delicious seafood, is propelling the usage of e-mopeds.

A key driver for the Vietnamese micromobility market is the growing problem of traffic congestion, especially in the major cities, including Hanoi and Ho Chi Minh City. The cities’ roads already have more vehicles than they can handle, and with people continuing to pour in from rural pockets, the problem is worsening. Micromobility could help alleviate this issue to a great extent as it involves only two-wheelers, which require less space on the roads and for parking.

The COVID-19 pandemic has further boosted the demand for such transport services. While the service demand was relatively low during the lockdown, it is now picking up. The fear of infection and need to maintain social distancing have made many people shun conventional means of public transit, such as buses, especially for short distances. In micromobility, commuters drive the automobile themselves, therefore face a relatively lower risk of infection. Thus, since the lifting of the lockdown, the market has been witnessing robust growth in the country.

However, the biggest reason for the advance of the Vietnamese micromobility market is the economical nature of these services. Compared to traditional shared mobility, such as carsharing and ride hailing, micromobility is cheaper. To rent an associated two-wheeler, people need to pay merely $0.86 on average for an hour of commute, after an initial fee. Moreover, such services help people travel the first and last miles, which is essentially the distance between the home, office or college and the metro station or bus stop.

Therefore, as these services are eco-friendly, cheap, and convenient for commuters, their popularity will grow in Vietnam in the coming years.

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Surging Road Congestion Driving Indonesian Micromobility Market

The Indonesian micromobility market revenue stood at $1.1 million in 2020, and it is expected to rise to $19,888.5 million by 2030. Furthermore, the market will register an explosive CAGR of 116.1% from 2021 to 2030 (forecast period), as per the estimates of the market research company, P&S Intelligence. The market is being driven by the burgeoning requirement for mitigating urban road traffic congestion, growing need for first- and last-mile connectivity, and the convenience and low cost of micromobility services. 

Indonesia Micromobility Market - P&S Intelligence 

With the mushrooming population, the number of vehicles running on Indonesia’s roads is surging, which is leading to road congestion, especially in urban areas. This is subsequently pushing up the demand for mobility solutions that reduce road congestion. As the vehicles included under micromobility are compact, need less space on roads, and can be parked easily, their demand is surging, on account of the rising road congestion in urban areas. Besides, micromobility is also providing a convenient and cost-effective method of traveling. 

The players operating in the Indonesian micromobility market are focusing on facility expansions to expand their customer pool and strengthen their position in the industry. For example, PT. Surya Teknologi Perkasa, which is a subsidiary of the digital distribution firm, PT M Cash Integrasi Tbk, announced the expansion of its e-bike and bike sharing services, namely, GOWES, in January 2020. The company deploys its fleet at seven parking points all over the BINUS campus in Indonesia. 

Hence, it can be safely said that the market will grow substantially in the coming years, primarily because of the rising requirement for better first- and last-mile connectivity and the surging road congestion in urban areas in the country. 

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How Is Efficient Transportation Demand Strengthening Thailand Micromobility Market?

Factors such as the burgeoning demand for efficient transportation systems and increasing availability of cost-effective micromobility services are expected to drive the Thailand micromobility market at a robust CAGR, of 98.7%, during the forecast period (2021–2030). According to P&S Intelligence, the market was valued at $11.8 million in 2020 and it is expected to generate $15,102.1 million revenue by 2030. Moreover, the soaring air pollution levels and rising traffic congestion will also augment the demand for micromobility services in the country.

At present, the demand for micromobility services in Thailand is driven by the escalating demand for efficient transportation systems to bridge the first- and last-mile connectivity. First- and last-mile refers to the distance that commuters have to cover between a transportation hub to their point of origin or destination. Over the years, this distance has been covered by personal vehicles or walking because shared or public transport are incapable of bridging this gap. Thus, to meet the booming demand for a reliable last-mile connectivity system, the people of Thailand are opting for micromobility services.

In recent years, the mounting investments being made in micromobility service providing companies has become a major trend in the Thailand micromobility market. Several market players are focusing on procuring funds from prominent venture investors, automotive original equipment manufacturers (OEMs), and investors, owing to which the competition has intensified among them. Leading service providing startups, such as Neuron Mobility Pte. Ltd., Ofo Inc., and Grab Holdings Inc., have raised heavy funding to introduce new services and products to meet the last-mile connectivity needs.

At present, the Thailand micromobility market is fragmented due to the presence of numerous players, such as Grab Holdings Inc., Haupcar Company Limited, Ofo Inc., E-Revolution Co. Ltd., Falcon Go, Mobike, Anywheel Pte. Ltd., Innotra Co. Ltd., Neuron Mobility Pte. Ltd., and Go Scoot Bangkok. Currently, the market players are engaging in service expansion to gain a competitive edge. For example, in January 2018, Mobike started its operations in Chiang Mai, Thailand, with the support of the national government agencies, such as the Tourism Authority of Thailand (TAT) and the municipal council of the city, and local universities, businesses, and other community groups.

Thus, the mounting demand for efficient transportation systems and low-cost associated with micromobility services are the key contributors to the market growth.  

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Micromobility Market Predicted to Generate $9.8 Billion in 2025

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.  

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