E-Scooter Sharing market to Eyewitness Huge Marginal Growth by 2028

Posted by Mrudula Anil Karmarkar on July 5th, 2022

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.

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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.

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

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.

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