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E-Scooter-sharing - Nigeria

Nigeria

According to market projections, the E-Scooter-sharing market in Nigeria is expected to generate a revenue of US$929.50k by the year 2024.
Furthermore, it is anticipated that the revenue will grow at an annual rate of 20.46% from 2024 through 2028, resulting in a market volume of US$1,957.00k by the end of 2028.
The number of users in this market is also expected to increase significantly, reaching 218.60k users by 2028.
As for user penetration, it is expected to grow from 0.1% in 2024 to 0.1% in 2028.
The average revenue per user (ARPU) is expected to be US$7.64.
In terms of revenue generation, it is anticipated that 100% of the total revenue will be generated through online sales by 2028.
It is also noteworthy that compared to other countries, United States is expected to generate the most revenue in this market, with a projected revenue of US$768,400k in 2024.
E-Scooter-sharing is a nascent market in Nigeria, with a few startups attempting to gain a foothold in the densely populated and traffic-congested cities of Lagos and Abuja.

Key regions: India, Thailand, Malaysia, China, South America

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Analyst Opinion

The E-Scooter-sharing market in Nigeria is experiencing significant growth and development.

Customer preferences: Customers in Nigeria are increasingly opting for E-Scooter-sharing services due to their convenience and affordability. E-Scooters provide a cost-effective mode of transportation, especially for short distances, which is highly appealing to the price-sensitive Nigerian market. Additionally, the ease of access to E-Scooters through mobile applications and the flexibility to pick up and drop off scooters at various locations make them a popular choice among customers.

Trends in the market: One of the key trends in the E-Scooter-sharing market in Nigeria is the increasing adoption of electric mobility solutions. As the country strives to reduce its carbon footprint and promote sustainable transportation options, E-Scooters offer a greener alternative to traditional gasoline-powered vehicles. This trend is further supported by the government's efforts to incentivize the use of electric vehicles through tax breaks and subsidies. Another trend in the market is the emergence of local startups and companies offering E-Scooter-sharing services. These companies are leveraging the growing demand for affordable and convenient transportation options and are capitalizing on the untapped market potential in Nigeria. This competition in the market is driving innovation and improving the overall quality of E-Scooter-sharing services.

Local special circumstances: Nigeria's rapidly growing urban population and increasing traffic congestion are contributing to the rise in demand for E-Scooter-sharing services. As cities become more crowded, traditional modes of transportation become less efficient and time-consuming. E-Scooters offer a solution to this problem by providing a quick and convenient way to navigate through traffic and reach destinations faster. Furthermore, Nigeria's youthful population is also a significant factor in the growth of the E-Scooter-sharing market. With a large percentage of the population falling within the younger age bracket, there is a higher propensity to adopt new technologies and embrace innovative transportation solutions. This demographic trend is driving the demand for E-Scooter-sharing services and fueling the market's expansion.

Underlying macroeconomic factors: The Nigerian government's focus on improving infrastructure and transportation systems is a key macroeconomic factor driving the growth of the E-Scooter-sharing market. Investments in road networks, bike lanes, and charging infrastructure for electric vehicles are creating an enabling environment for the expansion of E-Scooter-sharing services. Additionally, the increasing internet penetration and smartphone usage in Nigeria are facilitating the adoption of E-Scooter-sharing services. With more people having access to mobile applications and online platforms, the ease of booking and using E-Scooters is enhanced, further driving the market's growth. In conclusion, the E-Scooter-sharing market in Nigeria is experiencing significant growth due to customer preferences for convenience and affordability, the adoption of electric mobility solutions, the emergence of local startups, urbanization, a youthful population, government investments in infrastructure, and increasing internet penetration. These factors are shaping the market's development and creating opportunities for further expansion in the future.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings and revenues of e-scooter-sharing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.