Market Overview of the Australian Market
The Covid-19 pandemic created unexpected opportunities for the micro-mobility market in Australia as fewer people are choosing the crowded public transit, which is why the demand for an alternate means of transportation has grown.
The popularity of foldable electric scooters for short distances and recreational purposes has boosted the revenue in this category significantly. Precisely because e-scooters are economical and accessible, as well as environment-friendly, because they do not require gasoline or other petroleum-based fuels. These mobile devices are designed to fit in a small space and pass through dense traffic easily. During the forecast period, the increasing number of trips per vehicle and supportive regulations are expected to help the category’s growth.
However, with the preventive measures taken by the government, like complete lockdowns and curfews in hotspot areas, the brisk demand and rising trend for micro-mobility services were halted from March 2020 to June 2020.
Needless to say, micro-mobility has emerged as one of the most efficient forms of transportation, with a growing number of people in the country using it. The concept is being supported by the government laws and organizations that have created and assigned paths and road lanes, and allocated parking slots for these mobile transports, even in congested locations.
In 2020 alone, the Australian micro-mobility market generated $16.9 million in revenue. In 2022, it is projected to show a substantial growth rate during the forecast period (2021–2030).
The key growth factors of the market are the low price and convenience of these micro-mobility solutions, the rising demand for ‘first-and last-mile’ connectivity which top-performing electric scooters provide, and the commuters’ mounting need for helping reduce traffic bottlenecks in overcrowded urban areas.
Opportunities opened whereby micro-mobility in the country has attracted lots of entrepreneurial and consumer interests in 2019.
E-Scooters Held Largest Share due to Their Cost-Effectiveness
Ever since portable electric scooters entered the Australian market, the industry has become popular among commuters not just in the different cities of Australia, but worldwide. For one, compact electric scooters have demonstrated their unique advantages – as an eco-friendly, efficient, and affordable means of transportation for commuters and leisure travelers.
Presently, e-scooters have fortified their enviable position in Australia’s micro-mobility sector and continue to have increased global demand.
So, what else can we expect from electric scooters and the industry? Do naysayers dare foretell electric scooters as just a fad? Mearth Inc. Chief Executive Officer Ming Ye believes that some of the trends that we will see in the industry are “a more sustainable automated manufacturing process, smarter electric scooters, and a more friendly legislation on using e-scooters.”
Undoubtedly, the electric scooter industry is poised to grow exponentially. Here are four electric scooter trends and indicators on how it is influencing, thereby shaping the e-scooter market:
- Increasing Electric Scooter Market Growth
Despite the global pandemic, the electric scooter market is confronted with — and will continue to do so — increasing global demand will continue in the coming years. According to a study by Grand View Research, the e-scooter market is expected to reach nearly $41.98 billion by 2030. As a result, the global scooter market will face a CAGR increase of 8.5 percent.
In another study, the e-scooter revenue is estimated to increase by 21 percent by 2023, as developments and surges happen in Europe, North America, and Latin America alone. The market is also estimated to reach $200-300 billion in the US, $100-150 billion in Europe, and $30-50 billion in China. These numbers prove that there is consistently growing demand and opportunity in these continents and countries.
Meanwhile, the e-scooter sharing market is expected to further its reach and growth in Europe, North America, and Latin America. Other regions will likewise start to adopt ‘shared E-scooter’ schemes, particularly in countries like China and Singapore.
- Leveraging Tech in E-Scooters
Notably, one of the electric scooter market trends that are starting to be available in the market is smart e-scooters. These are e-scooters that leverage tech to make e-scooters safer and more convenient. AI will start to make its way into e-scooter design and technology.
Last year, micro-mobility companies Luna and Voi Technology partnered to develop and test electric scooters that can detect pedestrians while riding. It is just like the sensing abilities of smart cars, where the sensors allow e-scooters to detect and avoid riders. Cameras and sensors are integrated into the e-scooters to create real-time pedestrian detection.
In addition, this tech can be used to self-diagnose an e-scooter. a Cambridge-based startup, Superpedestrian, used Vehicle Intelligence System (VIS) to detect and predict failures in e-scooters. The result is a self-diagnosing e-scooter that can automatically call for help in case of an emergency. Soon, riders will no longer have to worry about safety and inconveniences when AI is incorporated into electric scooters.
- More E-Scooter-related Infrastructure
An increasing electric scooter demand will also result in the need for more and better infrastructure for micro-mobility devices, such as e-scooter/bicycle lanes. Prioritizing and providing safe and convenient infrastructures for e-scooter riders is one of the biggest challenges that must be given attention by local policymakers.
To build suitable infrastructures for e-scooter riders, cities must utilize data to understand the users’ usage patterns and needs. Policymakers need to analyze and understand the infrastructure preferences of e-scooter riders. With diligent efforts, key cities in Australia can do this, because as the need for more e-scooters increases, one can expect that e-scooter-related infrastructures will also increase, and soon, dependence on cars and public transport will significantly reduce.
- Governments more open to Electric Scooters
As a throwback to the early years, electric scooter companies found it difficult to get approval for e-scooters to operate in public. Back in those days, e-scooters were still illegal to ride in public, and even today in some cities in Australia, the rules are stringent. Soon, this may change as legislators are starting to be more open to the idea of e-scooters.
While a few states and cities in the country have allowed e-scooters in public more cities are expressing their interest in having e-scooter trials. Earlier this year, the Victorian government announced that there will be e-scooter trials in two Melbourne metropolitan councils and one regional council. The trials start this year and will run for up to 12 months.
Hobart and Launceston, two of the largest cities in Tasmania, are set to have a 12-month e-scooter trial within 2022, and the trial will operate on an app-based and user-pays basis within certain zones.
It is indeed a milestone for electric scooters where already a few cities have opened their roads to e-scooters. It’s a good start where one fine day, e-scooters will be allowed across the country.
Electric Scooters are here to stay
The fact that electric scooter demand is increasing, e-scooter developers continue to innovate and improve their products, and legislators are becoming more open to e-scooters only means one thing: electric scooters are not a fad. They are here to stay.
The trends mentioned above are proof that electric scooters have more to offer to riders. Commuters and retailers should keep an eye on how the e-scooter industry will develop in the coming years as e-scooters can change the way we move.
To positively contribute to this change, Mearth continues to develop electric scooters that help commuters move better and easier. With a mission to influence and reshape transportation, Mearth always aims to produce the best electric scooters for adults in Australia. Learn more about its products or become a Mearth partner today.
These frequently asked questions were culled from a market research:
→ Where will the Australian micro-mobility market be in 2030?
In the year 2030 value of the micro-mobility market in Australia will be $19,185.6 million.
→ Which category dominates the vehicle type segment of the Australian micro-mobility industry?
Based on vehicle type, the Australian micro-mobility industry is dominated by e-Scooters.
→ What is the biggest trend in the Australian micro-mobility market?
Swappable batteries are the biggest trend in the micro-mobility market of Australia.
→ Why are dockless systems becoming more popular in the Australian micro-mobility industry?
The preference for dockless systems in the Australian micro-mobility industry is owed to their cost-effectiveness for service providers and convenience for commuters.
→ What are Australian micro-mobility market players doing for business growth?
Players in the micro-mobility market of Australia are expanding their fleets and operational areas.