Electric Scooter Sharing Service Market Report 2025 (Global Edition)

Market Drivers

Rising environmental consciousness drives the market growth of Electric Scooter Sharing.

In earlier years, personal vehicles powered by internal combustion engines dominated urban transportation, contributing significantly to carbon emissions and urban air pollution. Environmental impact was a secondary concern for many urban commuters and policy-makers alike.

However, the growing global emphasis on sustainability and reducing carbon footprints has shifted consumer preferences and regulatory priorities toward greener transportation options. Electric scooter sharing, with its zero tailpipe emissions and low environmental impact, has emerged as a compelling alternative. It provides an eco-friendly solution for short-distance commuting, effectively reducing congestion and emissions in urban areas.

This shift is reinforced by trends such as the increasing adoption of green mobility policies, government incentives for low-emission transportation, and widespread environmental awareness among Gen Z and Millennials, who are key user demographics of shared micromobility services.

According to the International Energy Agency (IEA), “electric two- and three-wheelers represent the largest group of electric vehicles globally,” and cities around the world are supporting their adoption as part of climate action plans (https://www.iea.org/reports/global-ev-outlook-2024/trends-in-other-light-duty-electric-vehicles). Furthermore, major cities like Paris, Los Angeles, and Singapore have introduced policies that encourage shared e-scooter use as part of broader emissions reduction goals.

Thus, increasing environmental awareness, combined with supportive regulatory frameworks, is a significant force propelling the growth of electric scooter sharing globally.

Advancements in smartphone and IoT technology drive the market growth of Electric Scooter Sharing.

Previously, public and shared transport services were constrained by a lack of real-time tracking, low user convenience, and limited integration with digital platforms. Commuters had to rely on fixed-route schedules or physical rentals, reducing accessibility and flexibility.

The integration of smartphone technology and IoT has revolutionized the user experience in urban mobility. Modern electric scooter sharing systems leverage GPS tracking, app-based unlocking, digital payments, and real-time fleet management, making them far more user-friendly and efficient. This tech-enabled convenience has not only broadened user adoption but has also allowed operators to scale operations more effectively and collect usage data to optimize fleet deployment.

Ongoing trends like the rise in smartphone penetration, 5G connectivity, and AI-powered route optimization continue to support the seamless operation and growth of electric scooter sharing platforms. The convenience of locating, reserving, and paying for a scooter through an app contributes heavily to the popularity and sustained use of these services.

For instance,

• As highlighted in a report by McKinsey, “micromobility services depend heavily on digital integration,” and operators that invest in mobile-first platforms and IoT-enabled scooters have seen improved user retention and profitability (https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive%20and%20Assembly/Our%20Insights/The%20future%20of%20micromobility%20Ridership%20and%20revenue%20after%20a%20crisis/The-future-of-micromobility-Ridership-and-revenue-after-a-crisis-vF.pdf). Additionally, IoT features such as geofencing, battery monitoring, and anti-theft systems have made operations more reliable and secure for both users and providers.

Therefore, the widespread adoption of smart technology is a vital enabler and growth driver for the electric scooter sharing market, ensuring both operational scalability and enhanced user experience.

Restraints

Vandalism and Operational Misuse is a concern for the Electric Scooter Sharing market.

A key challenge faced by the electric scooter sharing industry is the frequent vandalism and misuse of vehicles by users or non-users, leading to increased maintenance costs, reduced vehicle lifespans, and disruption of services. These issues pose serious operational, financial, and reputational risks to providers.

The problem is significant because shared e-scooters are typically left in public spaces and rely on responsible user behavior. However, many scooters are subject to theft, unauthorized modifications, or intentional damage such as being thrown into rivers, broken apart, or set on fire. This not only burdens operators with high repair and replacement costs but also creates public safety concerns and discourages city officials from approving or expanding micro mobility programs.

This restraint exists primarily due to the open-access model of scooter sharing, which lacks sufficient monitoring and enforcement in many cities. In addition, in some regions, unclear local regulations or the absence of strong legal consequences for vandalism contribute to the persistence of the issue.

Companies have begun implementing countermeasures such as geofencing, real-time GPS tracking, and onboard sensors to detect misuse, while city authorities are working to better regulate and designate parking and riding zones. Nonetheless, these improvements are still evolving and have not fully addressed the scale of the problem.

For example,

• In Paris, significant misuse and vandalism led to growing public backlash, which contributed to the city holding a referendum in 2023 that resulted in the banning of shared electric scooters altogether. According to a BBC report, nearly 90% of voters supported the ban, citing concerns over sidewalk clutter, unsafe riding, and frequent vandalism (https://www.france24.com/en/live-news/20230828-paris-bids-adieu-to-love-or-hate-electric-scooters).

Thus, while electric scooter sharing has high growth potential, the widespread issues of vandalism and misuse are substantial restraints that threaten long-term sustainability and public trust in these services.

Opportunity

Integration with Public Transportation Systems presents a significant growth opportunity for the Electric Scooter Sharing market.

Currently, the electric scooter sharing market is gaining traction as a last-mile mobility solution in urban areas. However, a key limitation remains in its fragmentation from broader urban transport networks. Most scooter rides begin or end near public transit hubs, yet limited integration with city transport systems can deter wider adoption and long-term user engagement.

This creates a strong opportunity for e-scooter sharing services to partner with city transit authorities and mobility platforms to offer integrated, multimodal travel experiences. With the rise of Mobility-as-a-Service (MaaS) platforms, consumers increasingly prefer seamless transport options that combine buses, trains, and micro mobility into a single digital interface and payment system. This trend is supported by growing urbanization, the need for efficient congestion solutions, and rising smartphone usage.

Businesses and municipalities are beginning to act on this opportunity. By integrating e-scooters into public transportation apps and allowing users to plan, reserve, and pay for multimodal journeys through one platform, cities can boost convenience and adoption. This not only increases ridership for e-scooters but also alleviates congestion and reduces reliance on cars.

What makes this a viable and sustainable growth path is the mutual benefit: cities gain cleaner, more efficient transport networks, while micromobility operators see increased utilization and customer retention. It also aligns with global goals around smart cities, emissions reduction, and digital urban planning.

For example,

• In Berlin, the BVG (Berliner Verkehrsbetriebe) public transport company has integrated Tier Mobility’s e-scooters into its Jelbi app, allowing users to plan trips that include e-scooters, trams, buses, and trains in a unified digital platform. This partnership demonstrates how collaboration between scooter-sharing services and city transport networks can elevate micromobility to a mainstream urban transport mode (https://www.bvg.de/en/subscriptions-and-tickets/all-apps).

In conclusion, expanding integration with public transportation offers electric scooter sharing services a transformative and sustainable avenue for growth, aligning with future urban mobility needs and consumer expectations.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Electric Scooter Sharing Service Market is witnessing significant growth in the near future.

In 2023, the Dockless segment accounted for noticeable share of global Electric Scooter Sharing Service Market and is projected to experience significant growth in the near future.

The Age 18 24 segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Lime, Skip Scooters and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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