As the landscape of urban mobility rapidly evolves, the rise of micro-mobility solutions like e-scooters and bike-sharing schemes presents both challenges and opportunities for the automotive industry.
👉 What is micro-mobility?
👉 The latest figures on micro-mobility growth
👉 How this could impact the automotive industry
👉 Closing words
👉 Stay on top of industry trends with Marsh Finance
Micro-mobility is the term given to alternative smaller modes of transport like e-scooters, bikes and mopeds. These smaller transport options are becoming more and more popular, with their ability to be greener for the planet. Micro-mobility is not just smaller in size; they’re smaller in price, too. When you bear these factors in mind, it is no surprise that the market is growing and no surprise that the automotive industry is keeping a close eye on it. Micro-mobility was first launched in 2017, with bike-sharing schemes developing into e-scooters and more. Since then, more and more people have taken up the smaller transport option to get from place to place.
In the latest McKinsey ACES Consumer Survey, nearly one-third of respondents stated their intention to increase micro-mobility use. Of this group, nearly half plan to swap out their traditional car for some form of micro-mobility. The report also concluded that the micro-mobility market will be worth $360 billion by 2030. These figures paint a pretty clear picture; the micro-mobility market is here to stay.
The desire of some to swap their cars in for a smaller option is a stark warning to the automotive industry. The ability to navigate a city at ease and park quickly and easily is a massive appeal to city livers, and in this case, it is hard to argue against owning some form of micro-mobility transport. With the growing commitment to greener transport, the choice of micro-mobility and traditional transport is clear to some, and with this, the automotive industry could see a sizeable knock-on effect. For traditional fuel types, the effects of micro-mobility growth could be felt most, with customers looking to offset their fuel use for something more sustainable. The ability to share bikes and scooters with others and the community spirit it creates is another challenge for the auto industry. In the car finance space, in particular, the shifting demand of consumers may lead to finance companies offering tailored finance options for micro-mobility transport like e-scooters.
The ease with which people can travel and park a micro-mobility vehicle is an advantage over cars, and the cheap cost helps too. The automotive industry is likely to face competition from the micro industry, although the long-standing desire for cars is unlikely to change anytime soon. Where the effects may be felt most is in the inner city, where small and efficient transport is the preferred choice. The popularity of micro-mobility vehicles in areas such as Barcelona and Los Angeles shows that this mode of transport is not just here to stay but to take over. As the micro-mobility market continues to expand, the automotive and car finance industries must stay agile and innovative to remain relevant. By embracing these new transport solutions, businesses can not only mitigate risks but also discover new growth opportunities in the evolving landscape.
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