E-Scooter Sharing Market

Market Overview

The global e-scooter sharing market size was valued at USD 921.34 million in 2021 and is expected to reach USD 4264.45 million in 2030 expanding at a compound annual growth rate (CAGR) of 18.56% from 2022 to 2030.

The expansion of the market is primarily responsible for the ever-increasing demand for shared micro-mobility, as well as its ever-increasing popularity. There are a number of additional aspects connected to the system for sharing electric scooters (also known as e-scooters), all of which are anticipated to contribute to the expansion of the industry. Convenience, more flexibility, an advantageous pricing structure, and features that are easy to use are among these benefits.

A scheme that allows people to share electric scooters makes last-mile transportation convenient and straightforward to use. The rise in popularity of shared mobility has made it possible for ride-hailing services to pave the road for shared electric scooters. Because of their compact size, electric scooters take up significantly less room when parked.

Therefore, governments as well as the companies that provide e-scooter sharing services are pushing people who commute on a regular basis to use these services since they are more cost-effective, handy, and easy to use. The vast majority of service providers provide dockless, water-ready versions of their electric scooters that do not have to be collected from or delivered to a particular area.

Market Dynamics

Market Drivers

Increased traffic congestion to encourage market growth

The rise in the amount of traffic congestion that can be seen in metropolitan areas is one of the primary causes that is driving the expansion of the market for shared electric scooters. Because of the increasing number of people who commute to work each day, major cities are experiencing a considerable increase in the amount of traffic congestion, particularly during the morning and evening rush hours. Countries are looking at several novel approaches in an effort to find ways to mitigate the problem. This is one of the primary forces that is propelling the growth of the E-scooter sharing sector all over the world.

Governments and companies that provide scooter-sharing services actively encourage people who commute on a daily basis to use their services. People are becoming increasingly aware of the green movement, which is motivating people to use electric vehicles because it is a more sustainable mode of transportation.

Scooters are helpful in reducing the amount of time spent sitting in traffic because of their diminutive size and low space needs both on the road and in parking lots. At the same time, these cars do not add to the overall amount of carbon emissions, which means that they are helping to clean up the environment.

Increasing technological development to support market expansion

The development of new and improved electric scooter technologies is another important factor propelling this market. The major businesses are actively attempting to advance their product lines in order to make their wares more useful and efficient. The provision of this kind of micro-mobility service is in great demand, and in order to satisfy that need, specialised cars will need to be built.

In point of fact, shared scooters are ridden more frequently, are better able to deal with a wider variety of road surfaces, and are more resilient to a wider range of weather conditions than privately owned scooters. The Bird Zero, a new type of vehicle designed specifically for the company's E-scooter sharing programme, has been introduced in Europe. It features an extended battery life, improved illumination, higher durability, and more advanced GPS technology.

This was the first of a series of thorough vehicle evolutions that were intended to improve safety, lifespan, and sustainability, and they were successful.

Due to this, more customers will be interested in the items as technology advances. During the time covered by the analysis, the primary focus of the major market participants will be on developing these goods to include cutting-edge technologies like AI and IoT in order to make them more appealing to end consumers.

Market Restraints

The market's expansion will be constrained by stringent restrictions and rising licencing costs

It is anticipated that a number of counterfactors will work to slow down the expansion of the market. The expansion of the market is hampered by the presence of particularly onerous laws and regulations. This includes the standards for driver's licences and helmets, which are always being updated.

Commuters are also dissuaded from utilising shared transportation due to the absence of driving lanes that are specifically designated for shared electric scooters. E-scooter sharing companies in several U.S. cities have ceased expansion and began reducing the number of scooters in their fleet as a result of increased up-front licencing fees per scooter and a reduction in the maximum fleet size that is permitted for each operator.

In the meantime, Lime, the company that dominates the worldwide e-scooter sharing market share, has shrunk its footprint in the United States from 90 cities in December 2019 to 54 cities in March 2020, a reduction that had a place in just three months.

On the other hand, market players are having trouble sustaining their profitability since shared e-scooters have poorer durability and, as a result, a shorter lifespan. This is causing the market to struggle. The market will be subject to significant dangers during the time covered by the prediction because of all of these problems.

Regional Analysis

In 2021, Europe accounted for around 66% of global sales. The regional market has a large revenue share because of the prominence of important market participants and strong levels of consumer awareness about e-scooter sharing services.

In the second half of 2019, the sharing of electric scooters migrated from the United States to Europe. E-scooter sharing services were offered in 112 cities in 2021 as opposed to 32 in 2020. At the global level, the European market has assumed the dominating position, although it is still developing stability. As of March 2021, Spain, Paris, and Berlin are the top 3 cities in Europe in terms of the size and use of their shared electric scooter fleets.

With more than 54 sites around Europe, Tier provides the most comprehensive coverage. 16 more locations were added to Tier's list of operational hubs between December 2019 and March 2020. In the same time frame, Lime stopped operating in 21 European cities and is presently present in 35.

Electric scooters that are owned by e-scooter sharing businesses are mostly found in European cities including Berlin, Germany; Paris, France; and Madrid, Spain. The demand for E-scooter sharing is being favourably impacted by the increasing number of electric scooter users in these cities. At the same time, many governments of Europe are making significant investments in e-scooter sharing businesses.

From 2022 to 2032, the Asia-Pacific area is anticipated to expand at a CAGR of 23%. Changes in commuting behaviour, a rise in internet usage, rising awareness of e-scooter sharing services, the arrival of major market players, and the emergence of local market players are all factors contributing to the regional market's growth.

This region's electric two-wheeler market is anticipated to take over the car industry in the future. Urban landscapes have seen major alterations as a result of micro-mobility. With 60 businesses placing over 17 million scooters on the streets, China has become a leader in the growth of the e-scooter sharing sector. In China, Ofo was the first business to create dockless electric bike sharing.

Another business, Lime, declared an intention to increase the number of electric bikes and scooters in the APAC area in March 2021. The company's successful first-quarter profits in 2020 will be used to fund the $50 million investment in hardware improvements and fleet growth.

The development of e-scooter sharing services is also receiving more funding from the governments of Asia and the Pacific. In Taipei, Taiwan, a sharing scheme for e-scooters was introduced in May 2021 to support and promote green transportation. Given all of these variables moving in the right direction, the APAC E-scooter market is anticipated to have strong demand over the projected period.

Segmental Analysis

The E- Scooter sharing market is segmented into the following categories: Type, Distribution Channel.

By Type Analysis

Based on the type the electric scooter sharing market is divided into Free-Floating and Station-Bound. In 2021, free-floating sectors made up almost 95.5% of total sales. This was caused by the majority of service providers offering dockless, floating e-scooter sharing services.

Riders no longer need to pick up and drop off e-scooters at specified spots thanks to this sharing system. Riders have the option of parking their electric scooters in a designated parking place or on the sidewalk. Users who are more mobile and accessible have reduced churn rates, which boosts use and profits for the business. When and when users need them, cars may be readily transported to and positioned in important areas using a free-floating concept.

Furthermore, recharging is less reliant on the location of the vehicle thanks to swappable batteries. By switching them instead of collecting automobiles to be charged, users may save a lot of time and labour. Dockless, floating e-scooter sharing services are quite practical for everyday travellers in the most crowded parts of metropolises.

A superior user experience, which is ultimately what keeps people coming back, is made possible by all of these factors. During the projected period, this is anticipated to boost this segment's sales on the global market.

By Distribution Channels Analysis

Based on the Distribution channels the electric scooter sharing market is divided into Online and Offline. The offline market had a revenue share of about 4.5% as of 2021. Offline riders can phone the local service provider or schedule an electric scooter trip directly at a station. As a consequence, consumers may wait for less, which is an additional advantage. The offline market is anticipated to expand at a CAGR of 12% during the projected period.

As of August 2021, there were 69 public E-scooter sharing networks in the U.S. that ran 7,469 docking stations. The offline section achieved enormous popularity thanks to the widespread availability of stations. This increased the need for E-scooter sharing services in the area.

These elements are anticipated to play a critical role in propelling the segment's expansion as the proportion of micro-mobility, including sharing e-scooters, develops along with the strong preference for conventional, offline channels, particularly among the elderly.

Recent Developments

On November 5, 2021, Bengaluru-based startup Bounce expects to introduce its first electric scooter. Although Bounce is most known for renting out scooters, the company has aspirations to enter the manufacturing industry this month. Customers will have the option to rent batteries from Bounce rather than purchasing them together with the scooter. The scooters will be less expensive, therefore, but a monthly subscription charge will also be included.

To provide electric scooters and bikes in Christchurch, New Zealand, Neuron Mobility of Singapore entered a cooperation with Lime in October 2021.

Lime launched three new features in April 2021 to enhance the user experience: free 10-minute bookings, changeable display themes, and car suggestions. The business has also created app clips that let customers ride without downloading the official programme.

Uber's Jump bike and scooter rental company was purchased by Lime in May 2020.