The growing focus on reducing traffic congestion in urban areas and increasing need for efficient first- and last-mile connectivity are responsible for the growth of the South Korean micromobility market. Moreover, the rising need for decreasing air pollution and transportation cost is propelling the growth of the market. Because of these factors, the market will generate $11,178.5 million revenue in 2030, advancing at a significant CAGR during the forecast period (2021–2030).
The impact of the COVID-19 pandemic on the South Korean micromobility market has been positive. The need for alternative modes of transport is rising as fewer people prefer congested public transport in the current scenario. In the light of COVID-19, micromobility has emerged as one of the best means of transportation, which a rising number of individuals in the country are using. This is because e-scooters and other light vehicles can serve as an alternative to some public transport vehicles, including buses and metros, in which people are packed inside a closed space, for last-mile traveling.
The market is categorized into e-scooters, e-bikes, e-mopeds, e-pods, bikes, and scooters, based on vehicle type. Among these, e-scooters are expected to continue holding the largest share in the South Korean micromobility market over the forecast period. This will majorly be due to the promising contribution of e-scooter sharing services in solving the problem of last- and first-mile connectivity, as the other predominant public transportation options are not quite economical in this regard.
Moreover, a lot of the shared e-scooters are offered via the dockless model, where the user does not have to worry about parking the vehicle at the dock; rather, they can simply pick up and drop off these e-scooters at any given parking lot, as per their convenience. This further attracts users to adopt e-scooter sharing services, which is promoting the growth of the category.
Docked and dockless are the bifurcations on the basis of sharing system, of which the dockless category had the major share in the market in 2020. The proliferation of e-scooters, together with the favorable government rules for these services, is expected to contribute to the category's growth in the future.
Further, the market is bifurcated into first- and last-mile and multimodal, based on model. Of these, the first- and last-mile bifurcation accounted for the larger share in the micromobility market in 2020. It is also predicted to witness substantial growth during the forecast period owing to the higher preference for these services for first- and last-mile commute. People in all major cities of the country find it difficult to travel to or from the primary and public transit hubs. While city officials place a high priority on enhancing public transportation and boosting its use, traveling the first and final miles to reach a public transit stop or office/home appears to be a major obstacle for individuals. Micromobility solves this problem, which is why this category dominates the market.
Players in the micromobility market of south Korea are strongly focusing on partnerships to enhance their presence. For instance, in March 2021, KT Corporation announced that it has partnered with Omni System Co. Ltd. and authorities of Goyang city to deploy 400 Tazo bikes near subway stations and the populated areas of the city. The company announced that it would charge a fixed fee of $0.4 (KRW 500) per 20 minutes from April 12, 2021.
Similarly, in July 2020, Kakao Mobility Co. Ltd. entered into a partnership with GS Caltex, a Korea-based private oil company, under which GS Caltex would operate charging stations for Kakao’s shared e-bikes at its gas stations. Moreover, GS Caltex would install charging facilities at five of its gas stations in different areas in South Korea, such as the Songpa district, East Seoul, Incheon, Jeonju, and Ulsan.
Some of the major players operating in the South Korean micromobility market are Kakao Mobility Co. Ltd., WIND Mobility Ltd., Dart Sharing Co. Ltd., Dash Company Co. Ltd., Beam Mobility Holdings Pte. Ltd., Neuron Mobility Pte. Ltd., Olulo Co. Ltd., Lime, G Bike Co. Ltd., PUMP Co. Ltd., Gogoro Inc., Niu Technologies, Ningbo MYWAY Intelligent Technology Co. Ltd., Kwang Yang Motor Co. Ltd., and Segway Inc.