Micromobility Telematics Market

Global Micromobility Telematics Market Size (2024 to 2029)

The size of the global micromobility telematics market is anticipated to be worth USD 5.15 bn by 2029 from USD 1.44 billion in 2024, growing at a CAGR of 28.94% from 2024 to 2029.

Micromobility telematics utilize telecommunications and informatics to track, manage and improve the performance of electric scooters, bikes and skateboards in urban environments. Micromobility telematics meets the rising demand for efficient and sustainable transportation options in crowded cities and addresses key needs such as fleet management, safety enhancement and regulatory compliance. Operators benefit from real-time data on vehicle locations, usage patterns and maintenance requirements, enabling them to optimize operations and ensure regulatory adherence.

The market for micromobility telematics is experiencing rapid growth. The expansion of micromobility services globally, technological advancements in telematics solutions and collaborations between operators, technology providers and local governments have been significantly boosting the demand for micromobility telematics solutions. Ultimately, the continued adoption of micromobility telematics contributes to mitigating traffic congestion, reducing carbon emissions and enhancing urban mobility, which are further making cities more liveable and sustainable.

Global Micromobility Telematics Market Drivers:

The growing need for efficient fleet management is one of the major factors propelling the growth of the micromobility telematics market. As the adoption of micromobility services increases worldwide, operators are faced with the challenge of effectively managing their fleets of electric scooters, bikes and other vehicles. An estimated 59% of micromobility operators consider fleet management optimization as a top priority for their businesses, as found in a survey conducted by Deloitte. Effective fleet management solutions can result in cost savings of up to 30% for micromobility operators through improved asset utilization and reduced maintenance expenses, says McKinsey and Company.  Telematics solutions offer a comprehensive approach to fleet management and provide real-time data on vehicle locations, usage patterns and performance metrics, which enables operators to optimize routes, allocate resources efficiently and ensure timely maintenance that can ultimately enhance the overall operational efficiency of their fleets.

Increasing urbanization and rising demand for sustainable transportation are further propelling the growth of the micromobility telematics market. An increase in the emphasis on adopting eco-friendly transportation options like electric scooters, bikes, and skateboards in recent years due to the growing population in the cities and increasing traffic congestion and pollution and this trend is likely to accelerate in the coming years. According to a report by the International Energy Agency (IEA), urban areas account for approximately 70% of global carbon dioxide (CO2) emissions, this has been telling the urgent need for sustainable transportation solutions in cities. Micromobility solutions offer a convenient and sustainable alternative for short-distance travel within urban areas and match with the goals of reducing carbon emissions and improving air quality. Top of Form

Favorable government policies for micromobility telematics are another key factor contributing to the global market growth. The governments of several countries have been creating an environment conducive to the adoption and expansion of micromobility services. On the other hand, even the operators keenly look at policies or regulations to support micromobility services during the implementation processes. For instance, as per a report of McKinsey & Company, approximately 82% of micromobility operators view regulatory clarity and supportive government policies as essential factors for the successful operation of their businesses. Governments around the world are increasingly recognizing the benefits of micromobility, such as reducing traffic congestion, improving air quality and promoting sustainable transportation options. As a result, they are implementing supportive policies and regulations to incentivize the deployment of micromobility solutions and facilitate their integration into urban transportation systems.

Factors such as safety concerns in urban environments, technological advancements, improvements in GPS accuracy, integration of micromobility telematics in smart city infrastructure, partnerships between operators and technology providers and growing awareness of environmental issues are boosting the growth rate of the global micromobility telematics market.

Global Micromobility Telematics Market Restraints:

Regulatory restrictions on micromobility operations, such as speed limits and parking regulations, Limited infrastructure support and concerns about data privacy and security deter both consumers and operators from fully embracing micromobility telematics solutions are primarily hampering the growth of the global micromobility telematics market. Challenges in obtaining permits and licenses for micromobility fleets, lack of standardized interoperability among telematics systems and high initial investment costs for implementing telematics technology are further impeding the growth of the global micromobility telematics market.

REPORT COVERAGE:

This research report on the global micromobility telematics market has been segmented and sub-segmented based on service type, offering, technology, sharing type and region.

Global Micromobility Telematics Market - By Service Type:

• Bike Sharing
• Kick Scooter Sharing
• Scooter/Motorcycle Sharing

Based on service type, the bike-sharing segment accounted for 51.9% of the global market share in 2023 and is anticipated to grow at a healthy CAGR of 8.22% during the forecast period. The dominance of the bike-sharing segment is majorly attributed to the increasing number of initiatives from the governments of several countries to promote bike-sharing programs for sustainable mobility. For instance, China is one of the countries that stands in front in promoting sustainable mobility and dominates the bike-sharing sector with over 23 million shared bikes in operation. Factors such as the integration of advanced telematics systems and collaborations between bike-sharing companies and city authorities for infrastructure development are further supporting the growth rate of the bike-sharing segment in the global market.

The kick scooter sharing segment is anticipated to register a promising CAGR of 10.14% during the forecast period owing to the rapid adoption of last-mile transportation solutions amidst urban congestion in regions such as Europe and the growing popularity of electric scooters for convenient short trips. The kick scooter-sharing sector is growing significantly in Europe due to major cities such as Paris and Madrid embracing the trend. An increase in the number of investments in infrastructure development supporting scooter-sharing fleets, technological advancements and partnerships between scooter-sharing platforms and ride-hailing companies for service expansion are some of the notable factors contributing to the expansion of the kick scooter-sharing segment.

Global Micromobility Telematics Market - By Offering:

• Global Positioning System (GPS)
• Fleet Optimization and Software

Based on offering, the global positioning system (GPS) segment held 64.9% of the worldwide market share in 2023 and is projected to grow at a CAGR of 7.44% during the forecast period due to the rising demand for real-time location tracking for micromobility vehicles. Factors such as rising emphasis on route optimization and navigation for efficient operations, integration of GPS with micromobility apps for user convenience and safety and regulations from governments mandating GPS tracking for micromobility vehicles are fuelling the growth rate of the GPS segment in the global market.

The fleet operation and software segment is expected to grow at the fastest pace and grow at a CAGR of 10.3% during the forecast period. Achieving operational efficiency is crucial to the micromobility operators and these companies have been increasingly using the fleet operation and software as part of achieving operational efficiency, which is the key factor driving the segmental growth.

Global Micromobility Telematics Market - By Technology:

• Embedded
• Tethered
• Integrated

Based on technology, the embedded segment was the largest segment in the global market in 2023 and captured 55.8% of the global market share. However, the integrated segment is anticipated to witness the fastest CAGR of 9.88% during the forecast period among all the segments in the global market.

Global Micromobility Telematics Market - By Sharing Type:

• Dock-Less
• Station-Based
• Hybrid

Based on sharing type, the dock-less segment dominated the market with 46.7% of the global market share in 2023 and is predicted to grow at the fastest CAGR of 12.44% during the forecast period owing to the growing demand for flexible and convenient last-mile transportation solutions. The expansion of dock-less sharing systems in urban areas to address traffic congestion, technological advancements in GPS tracking and mobile app integration, increasing adoption of electric scooters and bikes for eco-friendly mobility options and partnerships between micromobility providers and city authorities to promote regulatory compliance and safety are further boosting the growth rate of the dock-less segment in the global market.

Global Micromobility Telematics Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Asia-Pacific regional segment dominated the micromobility telematics market in 2023, accounting for 34.5% of the global market share and is predicted to grow at a prominent CAGR during the forecast period. The growing consumer preference for affordable and sustainable transportation options, the increasing number of initiatives from the governments of Asia-Pacific countries to promote electric and shared mobility solutions, rising urbanization and increasing investments in last-mile connectivity solutions are primarily propelling the growth of the micromobility telematics market in APAC. For instance, the growth of e-bike sharing services in Asia Pacific cities has doubled telematics installations in 2020. China stood as the most dominating region within the Asia-Pacific continent and occupied 51% of the APAC market share in 2023.

The Middle East and Africa regional segment is expected to register promising growth during the forecast period. Factors such as the introduction of dockless electric scooter-sharing services in Middle Eastern cities and increasing investments in micromobility infrastructure in African urban centers to address transportation challenges. In the Middle East and Africa, UAE and South Africa lead in telematics adoption.

North America is a notable regional market for micromobility telematics in the global market and is estimated to account for a substantial share of the global market during the forecast period. Collaborations between micromobility providers and governments of North American countries for infrastructure development and the introduction of electric bike-sharing programs in major cities are propelling the growth of the North American market.

Europe is predicted to showcase a healthy CAGR during the forecast period owing to the rapid expansion of electric scooter-sharing services in European cities and the introduction of regulatory frameworks for micromobility safety standards. Germany and France are the leading markets in Europe and contribute nearly 70% of the regional market.

KEY MARKET PLAYERS:

Companies playing a leading role in the global micromobility telematics market include e-motionlabs NV, PBSC Urban Solutions Inc., SharingOS Holdings Limited, Bewegen Technologies Inc., Conneqtech B.V., VULOG SA, INVERS GmbH, Smoove SAS, E-pire Limited and Comodule OÜ.