Factors such as the burgeoning demand for first- and last-mile connectivity and the surging need for reduced traffic congestion in urban areas are expected to drive the Australian micromobility market at a robust CAGR of 89.5% during the forecast period (2021â€“2030). The market growth will also be steered by the low cost and convenience offered by micromobility solutions. According to P&S Intelligence, the market was valued at $16.9 million in 2020, and it will generate $19,185.6 million revenue by 2030.
The rising need to reduce traffic congestion, which can be credited to the booming population, is augmenting the demand for micromobility services in Australia. As per the World Bank, the population of the country surged from 25,365,745 in 2019 to 25,687,041 in 2020. The surging population is exerting additional burden on transportation systems, owing to which the government and market players are encouraging the use of such solutions. Micromobility offers better connectivity to a public transit hub, aids in reducing the carbon footprint, and helps in lowering the dependence of people on their vehicles.
Currently, the battery swapping technology is becoming a prominent trend in the Australian micromobility market. The advent of this technology has increased the fleet uptime, while reducing operational costs, owing to which market players are registering significant profits. Battery swapping can be done by the rider as well as a micromobility company employee or a freelancer. The rider can swap the discharged battery with a charged one at any swapping center, or a micromobility company employee or contracted person visits the required places to accomplish the task.
The sharing system segment of the Australian micromobility market is divided into dockless and docked. Of these, the dockless category accounted for the larger market share in 2020, and it is also expected to exhibit considerable growth throughout the forecast period. This can be attributed to the lower capital requirement and operating costs of dockless sharing services as compared to docked systems. Cost-effectiveness and convenient features, such as parking flexibility, are attracting more customers toward this system.
Key players in the Australian micromobility market, such as Vmoto Limited, Localift Services Pty. Ltd., Giant Manufacturing Co. Ltd., Lime, Beam Mobility Holdings Pte. Ltd., Neuron Mobility Pte. Ltd., Segway Inc., Flamingo Technologies Limited, Spinway WA, Airbike, and Kwang Yang Motor Co. Ltd., are currently focusing on business and operational expansions to stay ahead in the competition. For example, in July 2019, Beam Mobility Holdings Pte. Ltd., an e-scooter sharing service provider, established its operations in Adelaide, Townsville, Canberra, Brisbane, Sydney, and Melbourne.
Players in the Australian micromobility market have also been raising funding and investment. For instance, in September 2020, Neuron Mobility Pte. Ltd. raised $12.0 million from GSR Ventures and Square Peg Capital Pty. Ltd. in its series A funding, to expand its operations in New Zealand and Australia. Likewise, in June 2020, Beam Mobility Holdings Pte. Ltd. raised $26.0 million to diversify its services in Australia, South Korea, Taiwan, New Zealand, and Malaysia. The company received this funding from Sequoia India and Hana Ventures.
Thus, the escalating need to decrease traffic congestion and the rising popularity of swappable batteries are the key contributors to the market growth.