Indonesia Micromobility Market Analyzed With Trends And Opportunities By 2030

Posted February 16, 2022 by Rahul_Gautam

Surging Road Congestion Driving Indonesian Micromobility Market
The Indonesian micromobility market revenue stood at $1.1 million in 2020, and it is expected to rise to $19,888.5 million by 2030. Furthermore, the market will register an explosive CAGR of 116.1% from 2021 to 2030 (forecast period), as per the estimates of the market research company, P&S Intelligence. The market is being driven by the burgeoning requirement for mitigating urban road traffic congestion, growing need for first- and last-mile connectivity, and the convenience and low cost of micromobility services.

With the mushrooming population, the number of vehicles running on Indonesia’s roads is surging, which is leading to road congestion, especially in urban areas. This is subsequently pushing up the demand for mobility solutions that reduce road congestion. As the vehicles included under micromobility are compact, need less space on roads, and can be parked easily, their demand is surging, on account of the rising road congestion in urban areas. Besides, micromobility is also providing a convenient and cost-effective method of traveling.

Unlike personal vehicles, which require huge investments and incur hefty maintenance charges, micromobility is very affordable and it is therefore, attracting a large number of customers. For example, $0.21 (IDR 3,000.0) per half an hour is charged by PT Migo Anugerah Sinergi for its Migo e-bike sharing services, while Skutis Corporation charges its e-scooter riders $2.8 (IDR 40,000.0) for half an hour. Depending on vehicle type, the Indonesian micromobility market is divided into e-bikes, e-mopeds, bikes, scooters, e-scooters, and e-pods.

Out of these, the e-mopeds category is expected to contribute the highest revenue to the market during the forecast period. Due to their greater eco-friendliness and lower ride cost, e-mopeds are being increasingly preferred over conventional mopeds in the country. The Indonesian micromobility market is also classified, based on model, into multimodal and first- and last-mile. Between these, the first- and last-mile category held the larger share in the market in 2020, and it is predicted to demonstrate higher growth rate in the market during the forecast period.

This will be because of the surging adoption of these services for reaching bus stops, offices, schools, public institutions, and subway entrances. When sharing system is taken into consideration, the Indonesian micromobility market is divided into docked and dockless categories. Of these, the dockless category dominated the market in the years gone by, primarily because of the large-scale use of the dockless bike sharing model by shared mobility service providing companies, owing to its lower capital requirements than the docked system.

The players operating in the Indonesian micromobility market are focusing on facility expansions to expand their customer pool and strengthen their position in the industry. For example, PT. Surya Teknologi Perkasa, which is a subsidiary of the digital distribution firm, PT M Cash Integrasi Tbk, announced the expansion of its e-bike and bike sharing services, namely, GOWES, in January 2020. The company deploys its fleet at seven parking points all over the BINUS campus in Indonesia.

Hence, it can be safely said that the market will grow substantially in the coming years, primarily because of the rising requirement for better first- and last-mile connectivity and the surging road congestion in urban areas in the country.
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Issued By Rahul Gautam
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Categories Automotive , Business , Industry
Tags demand for indonesia micromobility market , indonesia micromobility market , indonesia micromobility market growth , indonesia micromobility market share , indonesia micromobility market size
Last Updated February 16, 2022