Turkey Micromobility Market to Generate $14,711.1 Million Revenue by 2030
- Published: September 2021
The requirement of maintaining green environment, efficient transportation system for short distances, and rising need for reducing traffic congestion are the major factors driving the growth of the micromobility market in Turkey. Due to the aforementioned factors, the industry is projected to generate $14,711.1 million revenue in 2030, advancing at a CAGR of 64.5% during the forecast period (2021–2030).
The COVID-19 outbreak has been affecting a large portion of the world's population, including Turkey people, bankrupting companies, and throwing the global economy into disarray. Although shutdown measures and quarantine orders have been assisting in the containment of the coronavirus, significant financial distress has also been seen. The lockdown has had a massive impact on service providers, workforce in the industry, and the rate at which businesses are being restructured. Turkey is among the first few countries that curtailed the first wave of coronavirus. However, re-spreading of the virus has created opportunity for micromobility service providers, as people are looking for a transport mode that can reduce people interaction and maintain social distancing.
E-Scooters Category To Witness Highest CAGR during Forecast Period
The micromobility market in Turkey is categorized into e-scooters, e-bikes, e-mopeds, e-pods, bikes, and scooters, on the basis of vehicle type. Among these, the e-scooters category is projected to register the highest CAGR during the forecast period. This can be mostly ascribed to the surging fleet size of e-scooters, which leads to their high market availability as compared to other vehicle types.
Moreover, the Turkish micromobility market is classified into first- and last-mile and multimodal, on the basis of model. Out of these, the first- and last-mile category accounted for the larger market share in 2020. This is due to the fact that the country's rising urban congestion is causing a parking difficulty. Further, bikes and e-scooters are solving difficulties, particularly in the first- and last-mile model, because they save consumers time and eradicate the parking problem.
Furthermore, the Turkish micromobility market is bifurcated into docked and dockless, on the basis of sharing system. Of these, dockless system accounted for the larger market share in 2020. This is mainly attributed to a large number of companies operating their fleet through this sharing system. Moreover, it is expected that the category would showcase robust growth rate during the forecast period, owing to the traffic jam and increasing congestion in cities, resulting in high demand for dockless system, as it will remove the parking issue and provide hassle free ride.
Investments and Funding Activities Are Most-Effective Strategic Measures
Key players in the Turkish micromobility industry have been involved in a number of investments and funding activities in order to gain a significant competitive advantage in the market. For instance, in May 2021, Inveo Yatirim Holding A.S. announced its decision to invest 15.5% in Hop Teknoloji A.S. The latter company will receive a total of $2.8 million (TL 24.2 million) in its funding, which is projected to elevate its growth in order to augment its business operations and buy new electric scooters. With this alliance, the company hopes to deliver services in a number of Turkish regions before expanding its operations internationally.
Similarly, in July 2020, Marti technologies Ltd., a Turkish scooter rental company, received an additional $25.0 million in its funding from 212 Venture Capital Fund and Wamda Capital. With this investment, Marti is expected to strengthen the micromobility industry in Turkey, by providing Turkish commuters with convenient and environmentally friendly alternatives.
The major players operating in the micromobility market of Turkey are Marti Technologies Inc., Fenix Technologies Ltd., Hop Teknoloji A.S., Bizero Robotics, Bin Transportation and Smart City Technololgies Inc., Isbike, Nilespit Smart Bicycle Rental Systems, Segway Inc., Niu Technologies, Kwang Yang Motor Co. Ltd., and Bisim Smart Bicycle Rental System.