Micromobility Telematics Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Micromobility Telematics Market Size & Share Analysis

The micromobility telematics market generated revenue of USD 1,924.9 million in 2023, which is expected to witness a CAGR of 26.9% during 2024–2030, to reach USD 10,177.4 million by 2030. This can be ascribed to the vast adoption of micromobility on the global level. With the rapid integration of GPS, network services, locking mechanisms, smartphone connectivity, and fleet optimization into such services, the market is expected to advance rapidly.

The growth of the overall micromobility market can be attributed to the increasing demand for kick scooter sharing services to solve first- and last-mile commuting problems across the world. Moreover, the heavy investments in micromobility companies are another factor driving the growth of the market.

For instance, in 2023, EMotorad raised USD 20 million in a Series B round, aiming to disrupt China’s dominance on the global e-bike industry. The company has raised total funding of more than USD 22.5 million from Panthera Growth Partners, xto10x Technologies, Alteria Capital, and Green Frontier Capital. In this regard, the expansion of electric bike sharing services has acts as one of the strongest factors driving the growth of the micromobility telematics market.

Bike sharing has emerged as one of the most-popular shared mobility services in developed countries, such as the U.S., Germany, France, and the U.K. Moreover, the usage of dock-less bike sharing systems by many startups has led to the boom of the micromobility telematics market, by making these services popular.

E-scooter and e-bike sharing allows more people to move in less space. Further, the emergence of many shared transportation services has created numerous issues in cities, including riding in unauthorized areas, including pedestrian-only zones and sidewalks, and inappropriate parking. Precise location data gathering and sharing can help solve some of these challenges. Irish telematics startup Luna’s telematics device helps solve these problems for e-scooters.

Micromobility Telematics Market Trends & Growth Drivers

Fund Raising by Telematics Solution Providers Is Key Trend in Market

• The recent trend in the micromobility telematics market has been the inflow of heavy investments. The major players, along with numerous startups, are receiving funds from several venture capitalists.
• For instance, in January 2021, VULOG SA received a funding of USD 31 million from Frog Capital, ETF Partners, European Investment Bank, Ecotechnologies Fund, Inven Capital, and Bpifrance. These funds are being used by the players to expand their presence around the world and upgrade their product and service offerings.

Growing Demand for First- and Last-Mile Transportation also Boosting Market Growth

• The mobility services provided by ride hailing, carsharing, and other similar firms have been unsuccessful in effectively providing first- and last-mile transportation. Micromobility services offer options for shorter distances, of less than 5 km (3.1 miles) per trip.
• Moreover, these services are mostly offered via the dock-less or station-less model, which allows users to drop off the vehicle at any place as per their convenience, which is further assisting in first- and last-mile traveling. Such factors are driving the growth of the micromobility market, thus resulting in a rising demand for telematics solutions for these vehicles and boosting the micromobility telematics market growth.

Vandalism, Thefts, And Improper Parking of Vehicles

• Micromobility companies have been facing issues such as vandalism and the theft of light vehicles, such as electric bikes, scooters, and kick scooters, in numerous cities worldwide. These have become persistent issues for micromobility companies, which is why many of them are pulling out of specific areas.
• Furthermore, since the launch of bike sharing services in Gurugram, India, Mobycy has been facing the issue of theft. Users generally park the bike improperly, which is why they are stolen or damaged frequently.
• Additionally, in many places, kick scooters are considered unsafe and often subject to improper parking, stealing, and other forms of misconduct. This has resulted in bans and their limited use in many places. For instance, San Francisco has limited the number of kick scooters operating in the city. Each service provider in the city is allowed to operate a maximum of 625 of these for six months at a stretch, and once the permit conditions are met, they can extend the number to 2,500. Furthermore, in 2019, Nashville announced a ban on electric kick scooters after a fatal accident involving them.
• Additionally, in France, they are banned on pavements. Further, Chinese cities, such as Beijing and Shanghai, have also prohibited them on roads. Hence, vandalism, thefts, and improper parking are being observed as the major restraints for the growth of the micromobility industry, which is further hampering the advance of the micromobility telematics market.

In-Depth Segmentation Analysis

Bike Sharing Category will Surpass 4.5 Billion Revenue

• The bike sharing category in the service type segment is projected to have the largest share, of around 45%, and generate revenue of more than USD 4.5 billion in 2030. This is due to the growing awareness of the environment. Moreover, the rising demand for first- and last-mile mobility solutions has been driving the popularity of bike sharing services and in turn, the integration of telematics solutions.
• The scooter/motorcycle category will show the fastest growth in the coming years, with a CAGR of 27.3%. Due to their high convenience, scooters/motorcycles, especially the electronic ones, are rapidly emerging as a preferred choice among users for short-distance travel.

During the study, we have analyzed three service types in the report:

• Bike Sharing (Largest Category)
• Kick Scooter Sharing
• Scooter/Motorcycle Sharing (Fastest-Growing Category)

GPS is the Largest Category

• With the rise in the popularity of micromobility, more-intelligent software is being developed by market players. Thus, the software category under the offering segment is expected to witness the fastest growth in the market during the forecast period. Software mainly includes operating systems (OS), device drivers, voice recognition capabilities, and application programming interfaces (API), for providing connectivity, mapping, and safety and security solutions.
• The GPS category held the largest market share, of around 35%, in 2023. Vehicles that have the GPS offer the service provider and users information about their exact location. With most micromobility companies offering dock-less services, GPS has become an important part of the whole ecosystem.

Below are the major offerings that play an important role in enabling micromobility telematics:

• Global Positioning System (GPS) (Largest Offering Category)
• Fleet Optimization
• Software (Fastest-Growing Offering Category)
• Others

Integrated Technology is Fastest Growing Technology

• On the basis of technology, the embedded category held the largest share, of around 50%, in the market in 2023. The embedded technology is preferred among end users as it provides fleet managers with real-time access to a vehicle’s whereabouts and enables better communication with fleet operator systems.
• The integrated technology is expected to witness the highest CAGR, of 27.2%, during the forecast period. With more micromobility companies offering smartphone connectivity with the vehicles and for booking purposes, the usage of the integrated technology is rising.

Below are the major technologies utilized in micromobility telematics:

• Embedded (Largest Technology Category)
• Tethered
• Integrated (Fastest-Growing Technology Category)

Half of the Global Revenue is Generated by APAC

• Geographically, APAC held the largest market share, of around 55%, in 2023 due to the region’s high investments in technology startups. Additionally, players in the micromobility industry are focusing on providing low-cost transportation services in the region, to gain the first-mover advantage.
• The APAC market for micromobility telematic solutions is led by Japan, China, India, and South Korea owing to the emergence of technology startups, which are mostly developing solutions for dock-less bike sharing systems.

• The huge investments in Chinese micromobility companies in recent years have accelerated the growth of the micromobility telematics market in APAC. With such huge investments, companies have started flooding various countries and cities with low-cost vehicle sharing services, to gain the first mover advantage in APAC. Moreover, the changing customer preferences are driving the demand for fleet telematics, connected vehicle technologies, and safety features in vehicles.
• The MEA is expected to be the fastest-growing market, advancing at a CAGR of over 27.4% during 2024–2030. This can be ascribed to the changes in consumer preferences, increase in the adoption of connected technologies, and shift in the government focus toward environment-friendly solutions, which are already driving the demand for new mobility business models in the region. The increasing demand for shared mobility would contribute to a higher vehicle utilization rate, which is expected to boost the market for micromobility telematics solutions during the forecast period.

The regions and countries analyzed for this report include:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain (Largest Country Market)
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA) (Fastest-Growing Regional Market)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

The Market is Highly Fragmented

The market has a high degree of fragmentation, owing to many domestic and international players. The continual appearance of new entrants is impacting the established and new service providers.

Micromobility Telematics Industry News

• In December 2022, McLaren’s Micro Mobility Brand announced the launch of its Series 1 electric scooter, which was created using supercar & global racing engineering excellence. The series 1 scooters feature LAVOIE’s patented one-touch Flowfold system.
• In September 2022, Neuron Mobility announced its extension of an e-scooter and e-bike sharing contract in Vernon, Canada to 2024. Neuron’s micromobility vehicles provide a safe and convenient way for tourists and locals to travel around the city. Neuron Mobility claims that since the inception of the service in 2021, users have ridden on its bike across more than 390,000 km inside Vernon, which reduced GHG emission by 25 tonnes. Moreover, during March–August 2022, over 26,000 people signed up for the company’s services.
• BOND Mobility (Europe) AG, a micromobility operator, has acquired e-motionlabs NV, a micromobility technology company. The acquisition was made by the former in order to strengthen its technological capabilities and engineering capacity. BOND Mobility (Europe) AG integrated e-motionlabs NV’s technology platform and operations to boost its service-oriented, data-driven offerings.
• Neutron Holdings Inc.’s Lime has acquired Uber Technology Inc.’s micromobility subsidiary Jump. The USD 170-million funding was raised by Lime and led by Uber. Several other investors, including Alphabet Inc., Bain Capital Ventures, and GV, also participated in the round. With this strategic move, both the companies aimed at integrating their mobile apps.