IoT Solutions for Micromobility Market Size, Share & Trends Analysis Report By Vehicle Type (E-Bike, E-Scooter, E-Moped, Bike), By End-User (Delivery Services, Shared Services), By Feature (Rider and Operator Application, Dashboard, Telematics, Security, Analytics), By Component (Hardware, Software) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

IoT Solutions for Micromobility Market Size

The global IoT solutions for micromobility market size was valued at USD 5.42 billion in 2024 and is expected to grow from USD 6.36 billion in 2025 to reach USD 22.96 billion by 2033, growing at a CAGR of 17.4% over the forecast period (2025–2033).

IoT solutions for the micromobility is changing the urban transportation scenario. This is mainly due to electric scooters, bikes, and other small vehicles for short-distance travel. IoT technology offers improved connectivity, efficiency in operation, and a better experience for users of these micromobility solutions. In the real-time tracking and management of vehicles, IoT helps. Here, sensors monitor location, speed, battery status, and usage patterns, which are critical for fleet operators.

IoT will be used for optimizing vehicle distribution for fleet management and tracking maintenance needs for efficiency in operation. Managers will have information on the availability of vehicles, manage charging stations, and predict maintenance to minimize downtime and increase service quality. Users can access the vehicles without difficulty by using mobile applications, showing the available vehicles, their condition, and more safety features such as geofencing and anti-theft measures.

Source: Straits Research Analysis

IoT Solutions for Micromobility Market Growth Factors

Growing demand for sustainable urban mobility

The rapid pace of urbanization, coupled with rising pollution and traffic congestion, has led to a heightened demand for sustainable mobility solutions. Micromobility options, such as electric scooters and e-bikes, offer eco-friendly alternatives to conventional transportation methods, helping reduce the environmental impact of urban commuting.

As cities invest in smart transportation networks, IoT-enabled micromobility solutions are becoming a natural fit.

• For example, cities in the U.S. and Europe that have adopted these technologies have seen a reduction in traffic congestion by up to 20%. The integration of IoT systems in fleet management and vehicle tracking is a crucial factor in these cities' efforts to provide sustainable, efficient mobility solutions for their residents.

Rising adoption of electric scooters and e-bikes

The global rise in the adoption of electric scooters and e-bikes is fueling the demand for IoT-based solutions in micromobility. Cities like San Francisco, Paris, and Berlin have seen an increase in the use of these devices, as they offer an alternative to traditional vehicles, especially in densely populated urban areas. Electric mobility (e-mobility), which refers to the use of electric-powered vehicles and related technologies for transportation. IoT technologies play a critical role in managing these electric fleets by enabling real-time tracking, efficient fleet operations, and maintenance monitoring.

• According to a study, global electric scooter fleets expanded by 30% between 2020 and 2023. This surge in popularity has created an increasing demand for IoT solutions, helping providers optimize fleet management, improve user experience, and ensure the devices’ efficient functioning.

Market Restraint

Privacy and Data Security Concerns

The increasing use of IoT solutions in micromobility has raised significant privacy and data security concerns, as these technologies gather vast amounts of sensitive user and vehicle data. Information such as user location, payment details, and usage patterns is critical for fleet management but also presents potential risks in case of data breaches.

• A 2022 survey revealed that 62% of users were concerned about the security of their personal information while using shared micromobility services. As a result, ensuring robust cybersecurity measures is crucial for fostering user trust and complying with evolving data protection regulations.

Addressing these concerns will be essential for the long-term success and adoption of IoT-based micromobility solutions.

Market Opportunity

Government Initiatives and Investments in Micromobility Infrastructure

Governments worldwide are increasingly recognizing the role of micromobility in solving urban mobility and environmental challenges. To support this shift, they are investing in the development of infrastructure that enables seamless micromobility operations. Initiatives include the creation of dedicated bike lanes, charging stations, and the establishment of shared fleet systems, all of which drive the demand for IoT-powered micromobility solutions.

• In 2023, the European Union committed USD 250 million to sustainable urban mobility projects, a significant portion of which is being allocated to IoT-based infrastructure. These investments are expected to accelerate the adoption of smart solutions, enhancing fleet management and boosting the overall growth of the micromobility sector globally.

Regional Analysis

North America: Most dominant market

North America, particularly the U.S. and Canada, stands as the dominant market. The high adoption of electric scooters and bikes in urban areas such as New York, Los Angeles, and San Francisco has driven significant growth in the region. These cities are at the forefront of integrating IoT-powered micromobility systems, leveraging smart transportation solutions to alleviate traffic congestion, improve urban mobility, and enhance sustainability. As demand for eco-friendly transportation alternatives continues to rise, North America's role as a leader in this market is expected to expand further, fueled by ongoing technological innovations and urban development initiatives.

Europe: Innovation and expansion

Europe remains a key player in the IoT-driven micromobility market, with countries like Germany, the UK, and France leading the adoption of smart transportation solutions. Cities such as Berlin and Paris are particularly notable for integrating IoT-powered micromobility systems, enhancing their urban mobility frameworks. The European market is projected to experience significant growth due to increasing government investments to promote sustainable, green urban mobility. As public demand for eco-friendly transportation options rises, IoT adoption in the micromobility sector is poised for accelerated innovation and expansion throughout the continent.

Countries Insights

• United States: The U.S. is a leading market, especially in cities like San Francisco, New York, and Los Angeles, where demand is high. Government initiatives like the "Green Transportation Initiative" have invested USD 100 million in developing micromobility infrastructure. These investments aim to enhance sustainable urban transportation by integrating IoT solutions into city planning, thereby reducing traffic congestion and promoting environmental sustainability.
• China: China leads the Asian market for IoT-enabled micromobility, with key players like Meituan and Lime driving innovation. The country's embrace of electric bikes and scooters has significantly reduced pollution and traffic congestion. Under the "13th Five-Year Plan," China aims to deploy over 10 million electric vehicles by 2025, substantially increasing the demand for IoT solutions in micromobility.
• Germany: Germany is one of the largest European markets, driven by strong environmental commitments. The government has invested $500 million in micromobility infrastructure, enabling cities like Berlin to adopt IoT solutions to reduce traffic congestion and emissions. This investment supports the integration of smart technologies into urban transportation systems.
• France: Paris leads France’s IoT solutions for micromobility market in adopting shared e-scooters and bikes, a significant part of its micromobility landscape. Under the "Green City Mobility" plan, France aims to reduce CO2 emissions by 30% by 2025, encouraging the adoption of IoT-based micromobility solutions. Government support is fostering growth in this sector.
• United Kingdom: The UK is experiencing rapid growth in IoT-based micromobility services, especially in cities like London, Manchester, and Birmingham. A $200 million government investment in smart city infrastructure is boosting the expansion of micromobility fleets, supporting the adoption of IoT solutions for sustainable urban transportation.
• India: India’s booming cities like Bengaluru and Delhi face increasing pollution, driving the need for sustainable transport solutions. The government has incentivized this sector with a USD 1.5 billion investment, accelerating the adoption of electric bikes and scooters. This boost supports the integration of IoT in micromobility to improve urban mobility and reduce pollution.
• Brazil: Brazil sees rising demand for IoT-based solutions for micromobility, especially in São Paulo and Rio de Janeiro. Government proposals for tax benefits on electric vehicles are expected to increase the adoption of IoT systems in the micromobility sector, promoting sustainable urban transportation solutions to alleviate traffic congestion and pollution.
• Australia: In Australia, cities like Sydney and Melbourne are increasingly adopting IoT-powered micromobility solutions. The government is investing AUD 50 million in sustainable urban mobility infrastructure, aiming to expand electric scooter and bike fleets, thus supporting the growth of IoT applications in the micromobility sector.

Segmental Analysis

By Vehicle Type Insights

E-bikes have emerged as the leading segment in the global IoT solutions for micromobility market, driving significant growth. Known for their affordability, ease of use, and eco-friendly nature, e-bikes are increasingly replacing traditional bicycles and small fossil-fuel-powered vehicles like mopeds. This trend is particularly evident in countries like China, where e-bikes are becoming a popular and sustainable transportation option. Their rise is fueled by the growing need for more sustainable, cost-effective, and convenient mobility solutions, making them the dominant player in the IoT-powered micromobility sector.

By End-User Insights

The shared services segment leads the global market, driven by the growing preference for shared transportation over ownership. More consumers are opting to share vehicles like e-scooters and e-bikes for convenience and cost savings. Companies like Yulu, which provide shared micro-mobility services in India, play a significant role in reducing urban pollution and traffic congestion. As more cities embrace shared micromobility solutions, the demand for IoT technologies in fleet management and vehicle tracking continues to surge, further solidifying the dominance of the shared services segment.

By Feature Insights

Telematics solutions dominate the global market due to their critical role in enhancing vehicle connectivity. Onboard telematics enables the efficient management of vehicles, offering direct benefits such as cost control, performance tracking, and real-time vehicle diagnostics. As the demand for efficient first- and last-mile solutions grows, especially with bike-sharing services, telematics has become a key feature. These systems not only improve operational efficiency but also contribute to the overall user experience, helping optimize the micromobility ecosystem for both operators and customers.

By Components Insights

Hardware plays a pivotal role in the global market, as it forms the backbone of connected vehicles. IoT hardware components, including sensors, GPS modules, and communication devices, enable remote monitoring and control of vehicles like e-scooters, e-bikes, and mopeds. These devices allow real-time tracking, error detection, and the implementation of commands remotely, ensuring optimal fleet management. The integration of robust hardware components enhances operational efficiency, vehicle safety, and user experience, contributing significantly to the dominance of the hardware segment in the IoT-powered micromobility market.

Company Market Share

In recent years, major companies in the global IoT solutions for micromobility market have significantly invested in developing smart mobility solutions, such as connected electric scooters, bikes, and advanced fleet management systems. These efforts aim to capitalize on the growing demand for sustainable and efficient transportation options driven by urbanization and the global push for greener mobility solutions.

Google (Alphabet Inc.): Market Leader in Global IoT Solutions for Micromobility Market

Google, through its subsidiary Waymo and its cloud-based IoT services, stands as a leader in the IoT solutions for the micromobility market. The company provides a comprehensive suite of solutions designed to help micromobility operators monitor, manage, and optimize fleets in real-time.

Leveraging Google’s cloud platform, integrated with AI and machine learning, micromobility providers can enhance operational efficiency, reduce costs, and improve the overall user experience. Google’s strategic focus on smart cities and advanced transportation technology has solidified its market position, bolstered by partnerships with various cities and micromobility operators to deploy IoT solutions on a large scale.

Recent Developments

• October 2024 - Emobi Manufacturing Private Limited, based in Bengaluru, has introduced the AKX LS Commuter, a low-speed electric two-wheeler tailored for micro-mobility and rapid commerce deliveries. This vehicle is designed to meet the growing demand for efficient and sustainable urban transportation solutions, particularly in the business-to-business (B2B) sector.