Study: European micromobility market worth $150 billion

Market news |
By Christoph Hammerschmidt

The market is driven both by demand and supply, explains Kersten Heineke, partner in McKinsey’s Frankfurt office and co-author of the study. Users are enthusiastic about this inexpensive, intuitive form of mobility – especially since e-pedal scooters and similar vehicles are often the fastest means of transport in cities with their frequent traffic jams. The market is also attractive from the point of view of the suppliers: With an acquisition cost of around 400 dollars for an e-pedal scooter, one can reach the profit zone after just over three months. So far, investors worldwide have invested $5.7 billion in micromobility start-ups. 85% of these funds have gone to China. Some startups have already achieved a market valuation of more than €1 billion.

“More than a quarter of the world’s population lives in cities with more than one million inhabitants,” says Florian Weig, senior partner from McKinsey’s Munich office and co-author of the study. However, the average speed at which people travel in these cities is no more than 15 kmph. Micromobility can be a solution here. But not everywhere: although 50 to 60% of all trips in cities are shorter than eight kilometres and are therefore suitable for e-scooters, e-bikes or electric kick scooters, weather, product range and customer acceptance play an important role. Against this backgroud, electric micromobility could be an alternative for up to 15% of this potential market.

Heineke suggests that a uniform legal framework for all forms of micromobility should now be created quickly so that the market can take off also in Europe. What’s more, cities and vendors must work hand in hand. So these electric two-wheelers could be the ideal means of transport to bridge the last mile between underground or suburban railway station and the destination.

In addition, suppliers would have to pay more attention to the issue of safety than before – for example, with helmets for drivers or more robustly designed e-scooters, the study says.

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