Electric bikes and e-scooters could be $12 billion IoT prospect by 2027

The report, titled Connected Micromobility, suggests that the IoT/Smart Cities sector could become a $12 billion global market by 2027.

Without the threat of legislation noted in the report, electric bikes and e-scooters could create a profitable service market for mobile operators.

The study, conducted in collaboration between Ericsson, Arthur D. Little, mobile operator Arkessa and micro-mobility operator Voi, discovers how micro-mobility companies will need cellular IoT to address safety changes and optimise operations.

Ericsson states that if cellular IoT is used correctly, it will enable micro-mobility operators to extend the life span of their fleet, precisely implement dynamic pricing with asset tracking and run cost-efficient service diagnostics and logistics.

For an e-scooter operator in a city with a population of one million, a fleet of 3500 e-scooters could potentially bring $400,000 a year – providing asset management is tight. However, it is dependent on reliable security, location-aware connected units, and the enforcement of safety zones with low speeds and a high recovery rate of abandoned scooters.

The International Transport Forum backs the use of micro-mobility for its sustainability benefits.

By swapping car rides with electric scooters, CO2 emissions could potentially fall by 61%. Therefore, with the ability to increase the longevity of electricity scooters, CO2 could be reduced by 33% and, by reducing congestion in cities, this could fall further CO2 (according to the Micromobility Value Calculator).

“Cellular IoT is not only a stepping-stone for micro-mobility companies to improve and optimise their offerings,” said Ericsson IoT general manager Kyle Okamoto. “It helps micro-mobility providers interact more with smart city infrastructure and this is exciting.”