Malaysia Micromobility Market: What are the Key Growth Factors?

The Malaysian micromobility market revenue stood at $2.4 million in 2020, and it is predicted to rise to $4,549.8 million by 2030. Furthermore, the market will demonstrate a CAGR of 99.9% from 2021 to 2030 (forecast period), as per the estimates of the market research company, P&S Intelligence. The major market growth drivers are the surging requirement for micromobility services for first- and last-mile commute and convenient and cost-effective mobility options and the burgeoning demand for mitigating road congestion in urban areas. 

Micromobility services are being increasingly adopted in Malaysia for first- and last-mile commute, owing to their affordable rates and ability to provide greater convenience than conventional mobility services. These services are generally provided via the station-less or dock-less model, which enables customers to drop off their vehicles at any location as per their convenience. For instance, the popularity of bike sharing services has grown considerably in the country in recent years, owing to their ability to provide low-cost transportation. 

Additionally, micromobility services are highly affordable, unlike personal vehicle ownership, which usually requires huge investments, owing to fuel costs, maintenance charges, insurance costs, and parking expenses. When availing micromobility services, users can make payments, simply on the basis of their usage, while the mobility service providers manage additional expenses, such as fuel costs, insurance charges, parking costs, and maintenance charges. Thus, the cost-effectiveness and convenience of shared micromobility services are driving the expansion of the Malaysian micromobility market. 

When sharing system is taken into consideration, the Malaysian micromobility market is classified into dockless and docked. Between the two, the dockless category contributed higher revenue to the market during the last few years. This was because of the greater convenience and requirement for less efforts for renting micromobility vehicles under this sharing system in comparison to the docked sharing system. In addition, this sharing system provides greater flexibility in parking, which is further propelling the advancement of the category in the market. 

Hence, it is safe to say that the market will demonstrate rapid expansion in the coming years, mainly because of the rising requirement for cheaper and convenient mobility options and surging road congestion in urban areas in the country.