The micro-mobility market is expected to register 31.9 million vehicles by the end of 2025, finds Frost & Sullivan
SANTA CLARA, Calif., July 1, 2021 /PRNewswire/ -- Frost & Sullivan's recent analysis on the micro-mobility industry finds that, globally, it is set to become one of the most attractive forms of sustainable mobility thanks to its convenience, affordability and safety. Comprising bike-sharing, kick scooter sharing, and scooter sharing, the global micro-mobility market is estimated to register 31.9 million vehicles by 2025, up from 20.5 million in 2020 at a compound annual growth rate (CAGR) of 9.2%. Bike-sharing currently accounts for almost 98% of the micro-mobility market's fleet size but kick scooter sharing and scooter sharing are gaining traction in several countries around the world. Despite COVID-19 significantly affecting the market, the easing of lockdowns and post-pandemic shift in commuting habits have increased demand for micro-mobility options.
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"One of the key disruptive trends in the growth of micro-mobility services can be attributed to technology advancements," said Chanchal Jetha, Mobility Research Analyst at Frost & Sullivan. "Technology providers will offer a host of solutions for fleet operations and management, including infrastructure solutions such as smart docking stations and solar-powered charging stations and hardware solutions including smart locks and sensors. Advanced technologies like artificial intelligence (AI), intelligent fleet management systems and navigational systems will drive growth for the micromobility market."
Jetha added: "On a macro level, a trend which is already happening is the integration of micro-mobility with mobility-as-a-service (MaaS) platforms. This convergence will enable first- and last-mile connectivity for better journeys as well as managing and catering to evolving demand-and-supply requirements more effectively."
To tap into the lucrative growth prospects created by the rising demand for micro-mobility, market participants should focus on the following:
- Sustainability: With increased support from governments and city authorities to promote sustainable mobility, OEMs and other allied manufacturing industries should consider designing vehicles that seamlessly transport people and focus on sustainability.
- Explore Business Model Diversification: The COVID-19 pandemic has highlighted the importance of service diversification for micro-mobility providers. Operators should move toward models that provide all types of micro-mobility options under one app, thus serving customers' multimodal needs.
- Leverage Technology Innovation: In addition to solving key challenges such as vandalism and vehicle range, participants can explore new areas with high potential, such as self-cleaning handlebars, children's bikes, and cargo bikes.
- Develop Industry Partnerships: Public-private partnerships between technology companies, manufacturers, and public agencies will result in the joint development of strategies for developing and deploying autonomous mobility services.
Micro-mobility Sharing Underpinning City Mobility Networks is the latest addition to Frost & Sullivan's Mobility research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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SOURCE Frost & Sullivan