Global Micro Mobility Market Outlook to 2030

Global Micro Mobility Market Overview

• In 2023, the Global Micro Mobility Market was estimated at USD 68 billion, demonstrating substantial growth during the historical period of 2018-2023. This surge is primarily driven by the rising popularity of sustainable and efficient transportation options, urban congestion, and technological advancements in the industry.
• Key players in the global micro-mobility market include Bird Rides Inc., Lime, Spin, Tier Mobility, and Voi Technology. These companies are leading the way by providing innovative, eco-friendly, and affordable transportation solutions, revolutionizing urban commuting.
• Major regions contributing to the market include North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. These regions benefit from supportive government policies, urbanization, and a growing preference for alternative modes of transport.
• In April 2023, Lime expanded its operations to several new cities in the Asia-Pacific region, emphasizing the growing demand for micro-mobility solutions in densely populated urban centers. This move highlights the rapid adoption of electric scooters and bikes as viable transport alternatives.

Global Micro Mobility Market Segmentation

The Global Micro Mobility Market can be segmented based on type, vehicle type, propulsion type, sharing model, and region:

• By Type: The market is segmented into docked and dockless systems. In 2023, dockless systems hold a dominant market share due to their flexibility and convenience. Dockless systems allow users to pick up and drop off vehicles anywhere within a designated area, making them highly accessible. This convenience has driven their popularity, particularly in urban areas where space constraints make it challenging to establish docking stations.

• By Vehicle Type: The market is further segmented into e-scooters, e-bikes, skateboards, and others. E-scooters led the market in 2023, supported by their widespread adoption in urban areas for short-distance travel. Their lightweight design, ease of use, and affordability make e-scooters a preferred choice for short-distance travel. Cities with dense populations and heavy traffic have seen a noteworthy uptake in e-scooter usage.

• By Region: The global market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Europe dominated the market with a substantial share in 2023, owing to favorable government policies promoting sustainable urban mobility and the high adoption rate of micro-mobility solutions. The region has well-developed infrastructure, including dedicated bike lanes and charging stations, which facilitate the widespread use of electric scooters and bikes.

Global Micro Mobility Market Competitive Landscape

• Voi Technology: In 2023, Voi Technology launched AI-powered e-scooters equipped with the PathPilot application, developed in partnership with Drover AI. These scooters utilize advanced computer vision to detect prohibited riding areas, automatically slowing down to enhance rider safety and compliance with local regulations. This initiative aims to improve urban mobility and reduce pavement riding incidents.
• Tier Mobility: In 2023, Bird Rides Inc. launched an e-scooter program in Perth, marking its first major operation in Australia, and received permits for additional cities. The company also expanded in the Middle East, notably in Abu Dhabi, after a successful launch in Doha during the World Cup, where it recorded over 119,000 rides. Regulatory changes in Japan will further enhance Bird's market potential by allowing scooter operations without a drivers license.

Global Micro Mobility Industry Analysis

Growth Drivers:

• Rising Demand for Sustainable Urban Transportation: The market is witnessing substantial growth driven by the increasing demand for sustainable urban transportation solutions. In 2023, more cities around the world adopted micro-mobility services as part of their efforts to reduce carbon emissions and alleviate traffic congestion. This trend is particularly prominent in Europe and North America, where environmental concerns and stringent regulations are encouraging the use of eco-friendly transportation options.
• Increased Investments in Urban Mobility Solutions: The market is experiencing a surge in investments aimed at developing urban mobility solution ns. In 2022, electric micromobility startups focusing on two- and three-wheelers received nearly USD 66 million in early-stage venture capital funding worldwide. Over the period between 2010 and 2022, the sector received a total value of USD 419 million in early-stage investments. These investments are primarily directed towards enhancing vehicle safety features, expanding charging infrastructure, and improving fleet management technologies.
• Rising Demand for Last-Mile Connectivity: The demand for last-mile connectivity solutions has driven the growth of the micro-mobility market. In 2023, one-third of urban commuters in cities like New York, London, and Tokyo used micro-mobility options, such as e-scooters and e-bikes, for their daily commutes. This trend is supported by data from urban transportation agencies that show substantial increase in the use of micro-mobility vehicles for trips shorter than 5 kilometers. The convenience and cost-effectiveness of these options are making them increasingly popular, especially in areas with limited public transportation coverage.

Challenges:

• Regulatory Hurdles and Infrastructure Limitations: The market faces momentous challenges due to varying regulatory frameworks and inadequate infrastructure in different regions. In 2024, several cities in North America imposed stricter regulations on scooter-sharing services, requiring more stringent safety measures and operational guidelines. These regulatory challenges increase operational costs and limit market expansion opportunities.
• High Incidence of Vandalism and Theft: Vandalism and theft pose substantial challenges to the market, affecting the profitability and sustainability of service providers. The need to constantly replace or repair stolen and vandalized vehicles increases operational costs and impacts financial performance. To mitigate these issues, companies are investing in advanced tracking technologies, anti-theft systems, and improved vehicle designs to enhance security.

Global Micro Mobility Market Government Initiatives

• Europe's Support for Sustainable Urban Mobility: In 2023, the European Union launched the Green Urban Mobility Initiative, allocating substantial funds to support the development of micro-mobility infrastructure and services. The European Union's strategy aims for a 90% reduction in greenhouse gas emissions from transport by 2050, with cities adopting sustainable urban mobility plans (SUMPs) to guide their initiatives. This initiative aims to promote sustainable urban transportation options, including e-scooters and e-bikes, to reduce the environmental impact of urban commuting.
• US Federal Investments in Micro-Mobility: In 2024, the US government announced a new funding program to support the expansion of micro-mobility services in major cities, focusing on enhancing urban mobility and reducing traffic congestion. The program provides grants for developing dedicated bike lanes, charging stations, and integrating micro-mobility solutions into public transport systems.

Global Micro Mobility Market Future Outlook to 2028

The global micro-mobility market is expected to witness robust growth during the forecast period of 2023-2028, driven by technological innovations, supportive government policies, and increasing urbanization.

Future Market Trends:

• Integration of Micro-Mobility with Public Transportation: By 2028, the market will likely see widespread adoption of AI and machine learning technologies to optimize operations and improve vehicle safety. Companies are expected to invest in AI-powered systems to enhance fleet management, optimize route planning, and predict maintenance needs.
• Expansion of Micro-Mobility in Emerging Markets: The market is poised for remarkable growth in emerging markets over the next five years. With rapid urbanization and increasing demand for affordable transportation options, regions such as Africa, South America, and Southeast Asia are expected to become key growth areas. Companies will focus on developing localized solutions and forming strategic partnerships with local governments to navigate regulatory environments and infrastructure challenges.