E-Scooter Sharing Market Rising With Growth In New Technology Trends Research By 2028

Posted by Mrudula Anil Karmarkar on April 11th, 2023

The global e-scooter sharing market size is estimated to reach USD 3.08 billion by 2028 and is expected to expand at a CAGR of 18.8% from 2022 to 2028, according to a new report by Grand View Research, Inc. The market growth is attributed to the rising investments in the sector coupled with growing initiatives to reduce air pollution and greenhouse gas emissions. For instance, electric scooter (e-scooter) sharing firm, VOI, has raised USD 115 million from investors as reported in December 2021. Additionally, Lime announced in November 2021 that it has raised over USD 500 million and plans to go public by 2022.

The penetration of key players in untapped regions is also contributing to the market growth. For instance, as reported in March 2021, Singapore-based Neuron Mobility planned to expand its business in South Korea. Key players are also focusing on growth strategies such as research and development and the launch of new products. Despite the sudden changes post COVID-19, the Indian market is showcasing strong signs of electrification. Companies such as Vogo and Bounce are focused on increasing their electric scooters fleet. For instance, in August 2021, Bounce launched a free-floating e-scooter sharing service in Vijayawada, India.

The increasing road congestions in urban areas are one of the key drivers of market growth. The booming population has led to an increased number of daily commuters, thereby resulting in road congestion. This has prompted many countries to look for new alternatives to reduce roadblocks. Governments as well as scooter-sharing service providers are encouraging travelers to opt for electric scooter-sharing services as they are compact and require lesser space on roads and in parking areas. Such initiatives bode well for market growth.

An e-scooter sharing system is a shared vehicle service where e-scooters are provided for rent. These scooters are dockless, meaning they do not have a fixed location and can be picked up from or dropped off anywhere within the service area. E-scooter sharing system has gained wide popularity in urban areas as it offers a quick and convenient mode of transport for last-mile mobility. In addition, various government policies for promoting electric mobility and increasing monthly installations of e-scooter sharing apps, such as Bird Rides and Lime, by consumers are expected to contribute to market growth across the globe.

On the other hand, the low lifespan of e-scooters is expected to restrain the market growth. In the free-floating system, rough handling of scooters by consumers often leads to damage and a reduced lifespan. Moreover, a lack of availability of e-scooter lanes is also expected to impact consumer usage and inclination. The lack of proper lanes often leads to road accidents, affecting riders as well as pedestrians.

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The COVID-19 outbreak has caused temporary disruptions in the market. Restrictions and lockdowns imposed by governments across the globe led to plummeted ridership along with a halt in numerous e-scooter sharing schemes. E-scooters recorded a decline in demand in 2020 compared to 2022. However, the global market is projected to witness healthy growth over the forecast period owing to an anticipated increase in ridership. Europe dominated the global market in 2021 and recorded around 65% market revenue share. Factors such as high consumer awareness, positive inclination toward shared micro-mobility, and the strong presence of key players have contributed to the high market revenue share. For instance, according to the UNU, a German electric scooter manufacturer, over 80% of e-scooter sharing cities are in Europe with a large portion of the scooter fleet being electric.

E-Scooter Sharing Market Report Highlights

• Asia Pacific is estimated to witness a high CAGR of 22.9% from 2022 to 2028 owing to increasing investments, expansion of key and local players, the positive inclination of consumers, and increasing smartphone usage
• The station-bound segment accounted for a share of over 5.0% in 2021 owing to the limited number of market players offering station-bound services, lower market penetration, and lower consumer preference
• The offline segment is estimated to register a CAGR of 12.5% from 2022 to 2028 owing to the rising inclination of the elderly population toward shared micro-mobility, such as e-scooter sharing, who prefer traditional, offline channels

Road traffic congestion, particularly during peak hours in urban areas, is driving the preference for micro-mobility options and propelling the growth of the market. There were around 66,000 shared e-scooters available globally in 2022. E-scooter sharing, which is available in 88 cities across 21 countries, is gradually emerging as a global trend. Although Europe is dominating the global market, the Indian market has been witnessing a giant, unparalleled push. With around 15,000-20,000 e-scooters, up to 30% of the global fleet is in India at present.

The outbreak of the COVID-19 pandemic took a severe toll on the market. The number of e-scooter sharing schemes being operated in different parts of the world declined during 2022 and 2020 as an immediate effect of the lockdowns and restrictions on the movement of people imposed by various governments as part of the efforts to arrest the spread of coronavirus. Nevertheless, the market is poised for significant growth over the forecast in line with the shift in consumer behavior reflected in the increase in the distance traveled and the duration of the ride.

The global electric scooter sharing market share can be described as a highly consolidated market with the major market players accounting for a significant market share. Key market players are pursuing geographical expansions to tap untapped markets. Key players are also pursuing mergers and acquisitions to augment their market share. For instance, in October 2021, Neuron Mobility of Singapore joined Lime to offer e-bikes and e-scooters in Christchurch, New Zealand. Similarly, Lime acquired Uber’s bike and scooter sharing business Jump in May 2020. Some prominent players in the global e-scooter sharing market include:

• Neutron Holdings, Inc
• Cityscoot
• Cooltra Motosharing, S.L.U
• Bird Global Inc.
• Vogo Automotive Pvt. Ltd.
• GoTo Global Mobility Ltd.
• Lyft Inc.
• VOI Technology