E-Scooter Sharing Market (2022 - 2028)

E-Scooter Sharing Market Summary

Convenience, favorable cost structure, greater flexibility, and user-friendly features are some of the other factors associated with the electric scooter (e-scooter) sharing system, which are expected to contribute to the growth of the market. E-scooter sharing envisages an easy-to-use mode of travel ensuring last-mile mobility. The growing popularity of shared mobility through ride-hailing has helped in paving the way for shared e-scooters. Electric scooters are smaller in size and consume relatively lesser space for parking. Hence, both governments and e-scooter sharing service providers are encouraging daily travelers to opt for e-scooter sharing services as an economical, convenient, and easier way of commutation. Most providers offer dockless, free-floating services that annul the need to pick up and return e-scooters to specific locations.

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 2019. 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.

However, there also exist some counterfactors that are expected to restrain the growth of the market. Complex rules and regulations are particularly restraining the growth of the market. These include the changing regulations about mandatory driver’s licenses and the use of a helmet. A looming lack of dedicated driving lanes for shared e-scooters is also discouraging commuters from opting for shared mobility. On the other hand, market players are confronting challenges in maintaining profitability, especially due to the lower durability and hence the lower lifespan of shared e-scooters.

COVID-19 Insights

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 2019 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.

Type Insights

The free-floating segment accounted for the largest revenue share of around 95% in 2021. The fact that most providers offer dockless, free-floating e-scooter sharing services allowed the segment to dominate the market. This type of sharing does not require riders to pick up and return e-scooters to specific locations. Instead, riders can park e-scooters on the sidewalks or at the spots allowed by civic authorities. Hence, daily commuters find the dockless, free-floating e-scooter sharing systems highly convenient for short transit routes in the most congested areas of metro cities.

The station-bound segment is anticipated to grow at a CAGR of 11.1% from 2022 to 2028. The growth of the segment can be attributed to the continued rollout of station-bound e-scooter sharing services in some Asian and South American countries. Benefits associated with station-bound e-scooter sharing systems include a central charging station, face-to-face assistance from staff, efficient maintenance, and convenient billing. Customers preferring classic systems typically prefer station-bound e-scooter sharing services.

Distribution Channel Insights

The offline segment accounted for a revenue share of around 5% in 2021. The offline channel envisages riders booking an e-scooter sharing ride directly at the station or via telephone call with the local provider. The offline segment is poised for healthy growth, growing at a CAGR of 12.5% over the forecast period. The growing interest in shared micro-mobility, including e-scooter sharing, and the strong preference for the conventional, offline channel, particularly among the elderly commuters, are expected to play a vital role in driving the growth of the segment.

The online segment is projected to grow at the highest CAGR of 19.0% from 2022 to 2028. The growth of the segment can be attributed to the continued rollout of dockless, free-floating e-scooter sharing systems across the world. The proliferation of smartphones and the unabated rollout of high-speed data networks are also expected to contribute to the growth of the segment. A free-floating system envisages booking a ride through a dedicated app installed on smartphones or other handheld devices. The system is usually accessible within the service provider’s area of operation.

Regional Insights

Europe accounted for a revenue share of around 65% in 2021. The high revenue share of the regional market can be attributed largely to the strong presence of key market players and high levels of consumer awareness about e-scooter sharing services. A large proportion of the electric scooter fleet of the e-scooter sharing companies is deployed in European cities, such as Paris, France; Berlin, Germany; and Madrid, Spain. Electric scooter ridership in these cities is also very high. At the same time, several governments across Europe are investing aggressively in rolling out e-scooter sharing services.

Asia Pacific is expected to grow at a CAGR of 22.9% from 2022 to 2028. The growth of the regional market can be attributed to the increasing internet penetration, changing commuter behavior, and the rising awareness about e-scooter sharing services along with the foray of the key market players and the emergence of local market players in the regional market. Governments in Asia Pacific are also increasingly investing in rolling out e-scooter sharing services. For instance, in May 2021, an e-scooter sharing program was launched in Taipei, Taiwan to support and promote green transport.

Key Companies & Market Share Insights

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

E-Scooter Sharing Market