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Shared Mobility Market Size, Share & Industry Analysis, By Type (E-hailing, Micromobility, Ride Pooling, and Car Sharing), By Payment (Cash and Non-cash), By Location (Airport and Non-airport), By Vehicle (Passenger Vehicles and Scooters & Bikes), and Regional Forecast, 2024-2032
Report Format: PDF | Latest Update: Nov, 2024 | Published Date: Oct, 2024 | Report ID: FBI108416 | Status : PublishedThe global shared mobility market size was valued at USD 71.22 billion in 2023. The market is projected to grow from USD 77.42 billion in 2024 to USD 274.99 billion by 2032, exhibiting a CAGR of 17.2% during the forecast period.
Shared mobility is a modern approach to transportation that involves the shared use of vehicles as required. This concept encompasses various services such as car sharing, ride-hailing services, carpooling, bike-sharing, and others. By leveraging technology such as mobile apps and digital platforms, the approach aims to reduce private vehicle ownership and usage while increasing the efficiency and accessibility of transportation.
Shared mobility provides numerous benefits, including traffic congestion, lower emissions, increased transportation options, and potential cost savings for users. It can also be integrated with public transit systems to provide comprehensive transportation solutions. As cities continue to grow, the approach is playing a key role in transforming the future of urban shared transportation.
During initial stages of the COVID-19 pandemic, the industry experienced a sharp decline as lockdowns were implemented and people feared virus transmission through shared surfaces and close contact. This led to a shift in consumer behavior, with many opting for private transportation or micro-mobility options such as bicycles or e-scooters. The long-term impacts on the market dynamics include an increased emphasis on hygiene, contactless operations, and better integration with other modes of transportation, reflecting a lasting change in consumer behavior and industry practices.
Shared Mobility Market Trends
Favorable Trends Associated with Autonomous Vehicles to Drive Market Growth
Autonomous vehicles represent a significant trend in the market, with the potential to revolutionize transportation. Companies such as Waymo, Cruise, and Uber are spearheading efforts to integrate self-driving cars into ride-hailing transport services. Currently, this technology is in an extensive testing phase, operating in controlled environments or specific geographic areas. Autonomous vehicles are likely to reduce operational costs for service providers by eliminating the need for human drivers.
Safety improvements associated with autonomous vehicles may increase consumer trust in shared mobility services. This could encourage more people to shift away from private car ownership, further boosting the market. Additionally, autonomous vehicles could enable new service models, such as dynamic ride-sharing with more efficient route optimization.
However, the integration of autonomous vehicles into mobility services presents challenges. These include regulatory hurdles, the need for significant infrastructure investments, and potential job displacement in the transportation sector. The timeline for widespread autonomous vehicle adoption remains uncertain, which could affect the pace of change in the market.
Shared Mobility Market Growth Factors
Benefit of Cost Savings to Drive the Growth of the Market
Cost savings is a significant driving factor in the shared mobility market. For many individuals, especially those living in urban areas, these services offer a more economical alternative to private vehicle ownership. The expenses associated with owning a car – including purchase costs, insurance, fuel, maintenance, and parking – can be substantial. In contrast, shared mobility allows users to access transportation as required, paying only for their actual usage. This pay-per-use model eliminates the need for large upfront investments and ongoing fixed costs.
Shared mobility users can avoid unexpected expenses such as repairs or depreciation. For occasional drivers or those who primarily need transportation for short trips, shared services can result in significant savings compared to the total cost of ownership. This economic advantage is particularly appealing to budget-conscious consumers, young professionals, and urban dwellers who have access to multiple transportation options. As awareness of these cost benefits grows, more people are likely to consider the shared approach as a viable and financially prudent transportation solution.
RESTRAINING FACTORS
Regulatory Challenges to Affect Market Expansion
Regulatory challenges pose a significant hurdle for the shared mobility market share expansion. The regulatory landscape for these services is often complex, inconsistent, and rapidly evolving, creating hurdles for companies operating in this space. Different cities, states, and countries may have varying rules and requirements regarding licensing, insurance, driver background checks, vehicle safety standards, and operational practices. This regulatory patchwork makes it difficult for companies to scale their operations across multiple jurisdictions, as they must navigate and comply with a diverse set of regulations.
In some cases, existing transportation laws may not adequately address new shared mobility models, leading to legal gray areas or outright bans. Additionally, regulatory bodies may struggle to keep pace with technological innovations, resulting in outdated or inappropriate regulations. The process of working with local authorities to develop suitable regulations can be time-consuming and resource-intensive for mobility companies. Furthermore, sudden regulatory changes or stricter enforcement can disrupt established services or business models, creating uncertainty for both providers and users. This regulatory complexity increases operational costs and can slow down market entry and innovation, potentially restraining the growth of the market.
Shared Mobility Market Segmentation Analysis
By Type Analysis
Convenience and Accessibility to Propel Demand for E-hailing Services
By type, the market is segmented into e-hailing, micromobility, ride pooling, and car sharing.
The demand for e-hailing services has been on a significant upward trajectory in recent years and is expected to dominate the market over the next few years. E-hailing apps provide users with the ability to request rides at any time and from any location, simply using their smartphones. This ease of use has made transportation more accessible, especially in areas underserved by traditional taxi services or public transit. The reliability and transparency offered by e-hailing platforms have also contributed to their growing popularity. Features such as real-time tracking, estimated arrival times, and upfront pricing give users a sense of control and predictability that traditional taxi services often lack.
Competitive pricing strategies employed by car sharing companies have made their services an attractive alternative. Dynamic pricing models, while sometimes controversial, have helped balance supply and demand. The integration of multiple transportation options within a single app has further enhanced the appeal of car sharing platforms, making them central to many users’ urban mobility strategies.
By Payment Analysis
Safety and Security Measures of Online Payments to Drive Non-cash Segment Growth
Based on payment, the market is split into cash and non-cash.
Non-cash segment will grow at a highest CAGR within the forecast period. With the ongoing concerns about physical cash handling, digital payment methods offer strong security features, such as encryption and fraud protection, which are appealing to users. Many mobility services are integrating advanced technologies, such as mobile apps and contactless payment systems, which streamline the user experience and encourage more people to utilize these services. The availability of multiple payment methods (credit/debit cards, digital wallets, cryptocurrencies, and others) caters to a broader audience, enhancing user satisfaction and encouraging use. These trends will accelerate the growth of the non-cash segment in the future.
The cash segment will witness slower growth during the forecast period. While cash payments were once a staple in the market, their prevalence has significantly declined in recent years. The industry has undergone a transformation driven by factors such as technological advancements, changing consumer preferences, and regulatory shifts. Cash handling is time-consuming for both riders and operators, leading to wait times and operational bottlenecks longer.
By Location Analysis
Diverse Range of Customer Needs to Propel Adoption of Shared Mobility in Non-airport Locations
Based on location, the market is segmented into airport and non-airport.
The non-airport segment will grow at a rapid pace during the forecast period. The market has expanded rapidly beyond airport terminals, catering to a diverse range of user needs and preferences across various urban and suburban locations. These include bustling business districts, residential neighborhoods, educational institutions, healthcare facilities, public transportation hubs, shopping centers, and industrial parks. While these locations offer significant growth opportunities, operators must navigate challenges such as fluctuating demand, infrastructure limitations, and complex regulations.
Airport segment will capture considerably lesser market share than non-airport segment and will grow at a steady pace within the forecast period. Airports have been a cornerstone of the shared mobility market growth. Their high foot traffic concentration of travelers with transportation options creates a prime environment for shared services. These services, such as ride-hailing, car-sharing, and bike-sharing, provide convenient and efficient transportation solutions for airport passengers, reducing reliance on traditional taxis and shuttles.
By Vehicle Analysis
Increasing Demand of Micromobility Services to Drive Demand of Scooters & Bikes
Based on vehicle, the market is divided into passenger vehicles and scooters & bikes.
The scooters & bikes segment is expected to attain rapid growth over the forecast period. Compact size, environmental friendliness, and affordability have made them attractive options for short-distance travel, especially in urban areas. As cities grapple with traffic congestion, these micromobility solutions offer a viable alternative to personal vehicles. This growing demand has led to the proliferation of bike and scooter-sharing services, transforming the urban transportation landscape.
The passenger vehicles segment will capture a significant market share during the forecast period. The demand for cars within the shared mobility market is steadily increasing. While micromobility options such as electric scooters and bikes have gained significant traction, there remains a substantial need for larger vehicles to accommodate longer distances, group travel, and the transportation of goods. Car-sharing platforms and ride-hailing services are expanding their fleets to meet this growing demand, offering users convenient and flexible transportation alternatives to personal car ownership.
REGIONAL INSIGHTS
Geographically, the market is segmented into North America, Asia Pacific, Europe, and the rest of the world.
Asia Pacific is projected to hold a major share during the forecast period. Factors such as rapid urbanization, increasing traffic congestion, rising fuel costs, and a growing young, tech-savvy population are driving this growth. China and India, with their large populations and developing infrastructure, have become the hotspots for shared transportation platforms. This trend is expected to continue as more cities in the region adopt suitable transportation solutions and individuals opt for convenient and cost-effective mobility solutions.
North America will account for a considerable share over the forecast period. A rising awareness of climate change and air pollution is driving a shift toward sustainable transportation options. Shared mobility services often have a smaller environmental footprint compared to personal car ownership. Furthermore, shared transportation can reduce traffic congestion by encouraging carpooling and reducing the number of vehicles on the road.
Many European cities have well-developed public transportation systems, making shared mobility a complementary mode of transport for first and last-mile connections. Compact city layouts, pedestrian-friendly zones, and cycling infrastructure create a favorable environment for shared services. Owning a car can be expensive in many European cities, making shared approach an attractive alternative for cost-conscious consumers.
The market in the rest of the world including Latin America and the Middle East & Africa will grow at the highest CAGR during the forecast period. Ongoing investments in transportation infrastructure, such as roads and public transportation, are creating a more favorable environment for shared mobility services. Large-scale events and conferences often generate significant demand for transportation, creating opportunities for service providers.
KEY INDUSTRY PLAYERS
Strategic Partnerships and Collaborations to Help Industry Players Gain Competitive Advantages
Leading players in the market are adopting various strategies such as mergers & acquisitions, expansion of sales and distribution networks, and collaborations to gain a strong foothold in the market. For instance, in May 2023, Uber Technologies Inc. entered into a partnership with Waymo to integrate Waymo’s autonomous driving technology with Uber’s ridesharing network.
List of Top Shared Mobility Companies:
- Uber Technologies Inc. (U.S.)
- Lyft (U.S.)
- Didi Chuxing Technology Company (China)
- Grab Holdings Inc. (Singapore)
- Cabify (Spain)
- Ola Cabs (India)
- Car2go NA, LLC (U.S.)
- Deutsche Bahn Connect GmbH (Germany)
- Bolt (Estonia)
- Gojek (Indonesia)
KEY INDUSTRY DEVELOPMENTS:
- June 2023 – Lyft entered into an agreement with Electrify America to provide discounted charging across charging locations across the country.
- March 2023 – Uber Technologies Inc. and bp pulse announced a new mobility agreement to accelerate the company’s plans to become a zero emissions mobility platform across the globe.
- December 2022 – Lyft announced that it is working with partners to add thousands of electric vehicles from Hyundai, Ford, Kia, Polestar, and others to the Express Drive rental program in the future.
- June 2019 – Grab received an investment of USD 300 million from Invesco Ltd. to accelerate Grab’s expansion in Asia.
- June 2019 – Grab announced a partnership with Splyt to provide convenient access to customers for ride-hailing services.
REPORT COVERAGE
The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, end-users, designs, and technologies. Besides this, it offers an in-depth analysis and insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market growth in recent years.
Report Scope & Segmentation
ATTRIBUTE | DETAILS |
Study Period | 2019-2032 |
Base Year | 2023 |
Estimated Year | 2024 |
Forecast Period | 2024-2032 |
Historical Period | 2019-2022 |
Growth Rate | CAGR of 17.2% from 2024-2032 |
Unit | Value (USD Billion) |
Segmentation | By Type
By Payment
By Location
By Vehicle
By Region
|
Frequently Asked Questions
What is the value of the global shared mobility market?
Fortune Business Insights says that the global market size was valued at USD 71.22 billion in 2023 and is projected to reach a valuation of USD 274.99 billion by 2032.
At what CAGR is the shared mobility market anticipated to grow over the forecast period?
The market is expected to record a CAGR of 17.2% during the forecast period of 2024-2032.
What factors are predicted to drive the global market growth?
The benefit of cost savings is anticipated to drive the growth of the market.
Which is the leading region in the global market?
Asia Pacific is projected to hold a dominating market share during the forecast period.
What is shared micromobility?
Shared micromobility includes the use of shared bikes and scooters for individuals seeking first- and last-mile connections to public transportation
- Global
- 2023
- 2019-2022
- 250