How Are Micromobility Telematics Solutions Facilitating Short Distance Commute?

Published Mar 31, 2022 

Micromobility services play a critical role in bridging the gap between first- and last-mile connectivity as they provide mobility options for traveling distances less than 5 km. These services are offered through the dock-less, station-based, or hybrid models, which enable commuters to drop off the vehicle at any place according to their convenience. These models, therefore, facilitate in bridging the gap between first- and last-mile transportation. Micromobility service providers are offering bike sharing, scooter/motorcycle, and kick scooter sharing services for travelling shorter distances.

Thus, the increasing need to bridge the gap between first-and last-mile connectivity and mounting investments being made in micromobility solutions are opening revenue streams for telematics solution providers, thereby driving the micromobility telematics market growth, with the market expected to advance at 26.7% CAGR during the forecast period (2021–2030). According to P&S Intelligence, the market was valued at $957.7 million in 2020, and it is projected to generate $13,010.4 million revenue by 2030. For instance, in 2018, Index Ventures and Atomico, Europe-based investors, provided massive funding to Neutron Holdings Inc. (Lime) and Bird Rides Inc.

In recent years, telematics solution providers have been pursuing product launches and mergers and acquisitions to offer their solutions to a greater number of customers. For example, in May 2019, INVERS GmbH introduced a modular full-stack solution, an operating system, for micromobility services. This solution allows mobility providing companies to scale up their kick scooter and e-sharing services at a rapid pace. This operating system offers fleet monitoring, device management, and telematics solutions and a white-label booking app to fleet operators and end-users.

Similarly, in October 2019, E-pire Limited introduced a telematics device that uses centimeter-level precision to deliver the geographical positioning required for scooter companies to ensure the safe and secure parking and operation of their scooters. This device is equipped with four internal cameras and artificial intelligence (AI) or machine vision to pinpoint the location of a two-wheeler. In the same vein, Conneqtech B.V., SharingOS Holdings Limited, VULOG SA, Smoove SAS, and Bewegen Technologies Inc. are also focusing on product launches for serving a wide clientele.

The offering segment of the micromobility telematics market is classified into global positioning system (GPS), fleet optimization, software, and others. Among these, the software category is expected to display the fastest growth during the forecast period, due to the soaring popularity of micromobility services, which are highly dependent on advanced technologies that are software oriented. Operating systems (OS), application programming interfaces (API), device drivers, and voice recognition systems use software for offering mapping, connectivity, and safety and security solutions to micromobility service providing companies.

Globally, the Asia-Pacific (APAC) micromobility telematics market generated the highest revenue in 2020, due to the hefty investments received by the regional micromobility telematics companies and the emergence of a large number of technology startups in the region. The market players are currently focusing on the provision of affordable micromobility services to gain the first-mover advantage. Additionally, the evolving customer needs for daily urban commute will also augment the demand for micromobility telematics in the region in the foreseeable future.

Thus, the surging need to diminish the gap between first- and last-mile connectivity and increasing investments being made in telematics solution providing companies will boost the adoption of telematics solutions by micromobility service providing companies in the coming years. 

News Projects