The burgeoning requirement for first- and last-mile transportation is fueling the demand for micromobility telematics solutions across the world. This is because these solutions offer mobility options for short distance commuting, which, in turn, plays a crucial role in bridging the existing gap in first- and last-mile transportation. These services are generally offered via the station-less or dock-less model, that allows users to simply drop off the vehicle anywhere as per their convenience.
Moreover, these services are generally availed for traveling a distance of less than 3.1 miles or 5 km per trip. Many top investors are investing heavily in the micromobility industry, thereby opening up revenue streams for various telematics solutions providing companies. For example, many start-up companies and key players operating in the kick scooter sharing industry are receiving huge investments from various venture capitalists. Kick-scooter sharing services were launched in 2017, and in less than two years, more than $2.2 billion investments have been made in start-ups.
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For example, European investors— Atomico and Index Ventures— massively funded two leading electric kick scooter sharing service providers in the U.S. namely Neutron Holdings Inc. (Lime) and Bird Rides Inc., respectively, in 2018. Index Ventures led Bird Rides’ Series B round with an investment worth $100 million. Besides these factors, the growing requirement for micromobility sharing services is also driving the demand for micromobility telematics solutions all over the world.
This is, in turn, fueling the expansion of the global micromobility telematics market. According to the market research company, P&S Intelligence, the market revenue stood at $957.7 million in 2020, and it is predicted to rise to $13,010.4 million by 2030. Furthermore, the market is predicted to progress at a CAGR of 26.7% between 2021 and 2030. Depending on sharing type, these solutions are classified into station-based, dock-less, and hybrid.
Geographically, the popularity of micromobility telematics solutions was observed to be the highest in the Asia-Pacific (APAC) region during the last few years. This was because of the emergence of several technology start-ups and the hefty investments received by many regional micromobility telematics firms in the region. Furthermore, many industry players focused heavily on providing affordable micromobility services in order to gain an edge over their rivals, thereby contributing toward the industry boom in the region.