Vietnam Micromobility Market To Generate Revenue Worth $10,227.2 Million by 2030
- Published: September 2021
The need for reducing traffic congestion and parking issues and the fact that micromobility services are cost-effective are the major factors driving the growth of the micromobility market in Vietnam. Due to the aforementioned factors, the industry is projected to generate $10,227.2 million revenue in 2030, advancing at a CAGR of 66.0% during the forecast period (2021–2030).
The COVID-19 pandemic has put companies in the Vietnamese transportation sector under financial strain owing to labor, liquidity, contract, and other difficulties and resulted in employee wage cuts. The pandemic has put a significant burden on the supply chains, as well as first- and last-mile commute. Despite the fact that COVID-19 had a substantial impact on the market in 2020, it is likely to stabilize in the future years. Furthermore, with adequate control measures relating to COVID-19 impact monitoring, tightening of financial steering, contingency planning, and deeper employee involvement and communication, as well as customer demand generation, the situation is expected to normalize shortly.
E-Mopeds To Dominate Market during Forecast Period
The micromobility market of Vietnam is categorized into e-scooters, e-bikes, e-mopeds, e-pods, bikes, and scooters, on the basis of vehicle type. Among these, e-mopeds are projected to dominate the market during the forecast period. This will be due to the growing usage of e-mopeds in the country in the coming years owing to the economical nature of the rides. Further, they are a convenient transport mode therefore, commuters are rapidly integrating it into their daily commute.
Moreover, the market is categorized 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, and it is expected to witness the faster growth throughout the forecast period. This will be due to the fact that micromobility solutions help fill the gaps in the disparate public transit system, mostly in the first- and last-mile segment, and help achieve efficiency.
Furthermore, the micromobility market is categorized into docked and dockless, on the basis of sharing system. Out of these, dockless systems accounted for the larger share in the market in 2020. This is mainly attributed to the fact that dockless systems offer an improved user experience by allowing them to pick up and drop off the vehicles at any place as per their convenience, coupled with flexible route and destination choices.
Operational Expansions Are Most-Effective Strategic Measures
Players in the market have been involved in operational expansions in order to gain a significant competitive advantage. For instance, in April 2021, bike sharing company Mobike announced that its services will be launched on a pilot basis in District 1 of Ho Chi Minh City from August 1, 2021, for one year. This project will have 388 bikes fitted with solar-powered smart locks at 43 bicycle stations on sidewalks, each of which would house 10–20 bicycles.
The major players operating in the micromobility market of Vietnam are Grab Holdings Inc., Be Group Joint Stock Company, Selex Motors Joint Stock Company, Yadea Technology Group Co. Ltd., Giant Manufacturing Co. Ltd., Mobike, and VinFast Trading and Production LLC.