Shared Mobility Market – Snapshot

Shared mobility is a type of service in which a vehicle is shared based on the time and distance it is used in return for money. In shared mobility, a vehicle owner or the owner of a large fleet provides the vehicle on a rental basis to consumers and other companies. Shared mobility comprises sharing a car, a ride, a two-wheeler, and sharing trucks and buses. 

Key driver of the global shared mobility market is low per capita income of people in developing nations. Shared mobility services provide short-term ownership to consumers at a significantly lower price, and hence, consumers prefer shared vehicles instead of owning one. A vehicle, if not shared, is only utilized for up to 5% of its total life; it remains parked for 95% of its life. Considering this, several vehicle owners are readily sharing their vehicles. Increase in number of vehicle owners has led to increased traffic congestion and rise in global emission levels. Consequently, governing bodies are promoting alternative fuel powered vehicles and alternative modes of transportation that are capable of limiting the global temperature rise. Shared mobility services are effectively capable of reducing the number of vehicle owners and hence, governing bodies are implementing regulations in favor of shared mobility services. Consumers who do not own a vehicle are preferring a shared vehicle, as a shared vehicle provides vehicle ownership without having to invest in owning one, which is further compounded by the increased interest rates on vehicle loans. Increased tourism, rise in number of family outings, and raised per capita income are fueling the demand for shared mobility services. Increase in number of working class people is prominently fueling the demand for shared mobility services across the globe. Availability of faster internet connectivity, increased mobile ownership, availability of mobility sharing apps, and increased consumer awareness are fueling the global shared mobility market. 

shared mobility market

Incorporation of electric and autonomous vehicles is likely to reduce the cost of shared mobility services. Electric vehicles reduce fuel expenses, which reduces the overall cost of utilizing mobility sharing services, such as ride sharing and ride sourcing. This, in turn, is likely to fuel the demand for such on-demand services across the globe. Autonomous vehicles are expected to eliminate the driver and subsequently, expenses over the driver. Lower number of vehicles per capita across several nations is fueling the demand for shared mobility services, which in turn is likely to offer lucrative opportunities to the global shared mobility market. Forward integration of vehicle manufacturers in the shared mobility market is likely to offer considerable opportunities to the market. 

Taxi fleet operators across several nations are opposing on-demand sharing services, which in turn is restraining the global shared mobility market, especially for ride sharing and ride sourcing services. Several nations, such as Germany and France, have banned peer-to-peer taxi services, which is marginally restraining the global shared mobility market. Several negative incidents, such as murder of a passenger by a driver of DiDi Chuxing and rape of a female passenger by a driver of Uber, are hampering the global shared mobility market. 

A large share of passenger transportation services across the global is accounted by the unorganized sector, which comprises services provided by local taxi fleet operators and non-internet based service providers. Lack of adoption of smartphone-based apps, lack of awareness among consumers, and unavailability of service providing companies across several countries are fueling the demand for unorganized services. However, the economic benefits of organized services are attracting consumers and hence, the unorganized segment of the market is anticipated to contract in the near future. 

The private segment accounts for a major share of the market, in terms of revenue, followed by the vehicle rental or vehicle leasing services. Vehicle leasing services are significantly popular across families and companies willing to provide transportation services to their employees. Long family tours, outings with friends, and increased tourism activities are fueling the demand for vehicle sharing and leasing services. Subscribing vehicle is another term being used in the vehicle rental and leasing industry in which consumers can lease the vehicle for a specific time period, such as one month to a year or may be longer. Demand for ride sharing and ride sourcing services is rising due to the increase in congestion across urban areas. Rapid urbanization, increase in vehicle ownership, and expansion of urban areas are fueling the demand for transportation services within urban areas. Longer routes and longer time of travel for public transportation services, increased crowd in modes of public transportation, lack of proper connectivity, and lack of punctuality of public transportation services are fueling the demand for ride sourcing and ride sharing services. 

The passenger car segment of the market accounts for a major share of the market, in terms of revenue, as passenger cars are being widely preferred for ride sharing, sourcing, and rental services. Cars are preferred for ride sharing and sourcing services due to their easy maneuverability and higher mileage. Light commercial vehicles are extensively preferred across countries in North America and Latin America. Car pool and ride sharing services are prominently provided by vehicle owners; therefore the P2P segment accounts for a prominent share of the market, in terms of revenue. However, vehicles utilized for rental and leasing services are owned by service providing companies, thus the B2C segment accounts for a notable share of the market, in terms of revenue. Shared mobility services are preferred for passenger transportation; however, there are several companies that provide light and heavy trucks for goods transportation. Demand for sharing services and micro mobility, such as scooters, bikes, and other small vehicles, is rising. These are highly popular in crowded tourist places. 

The adoption of electric vehicles is rising at a steady pace, which is primarily attributed to the considerable government support, expansion of the electric vehicle charging infrastructure, extended range of electric vehicles, and decline in prices of the electric vehicle battery. Surge in fuel prices and implementation of stringent emission norms are fueling the demand for electric vehicles across the globe. Shared mobility service providing companies are eagerly adopting electric vehicles in their fleets. Increased preference for environment-friendly transportation and raised awareness about global warming are prompting service providers to adopt electric vehicles. Autonomous vehicles have cleared the testing phase and are likely to be introduced in services in the next couple of years. Several shared mobility service providers have formed alliances with auto manufacturers in order to incorporate autonomous vehicles in their fleets. The vehicles with ADAS systems are highly popular for shared mobility services, which is primarily attributed to the heavy consumer demand for in-vehicle safety and comfort. 

Ride sharing and ride sourcing services are significantly popular across countries in Asia Pacific such as China, India, and ASEAN. DIDI Chuxing, OLA, Uber, and Grab are major mobility sharing service providers operating in Asia Pacific. Rapid rise in urban population, increase in working class population, rise in the number of daily commuters, crowded public transits, lower number of vehicles per 1000 people, and surge in fuel prices are propelling the demand for shared mobility services across Asia Pacific. Large number of population and presence of globally leading mobility sharing service providers led Asia Pacific to hold a major share of the global shared mobility market. 

Key players operating in the global shared mobility market include Uber Technologies Inc., ANI Technologies Pvt. Ltd. (OLA), Lyft, Inc., Grab, Careem, Taxify OÜ, Gett, Beijing Xiaoju Technology Co, Ltd. (Didi Chuxing), BlaBlaCar, Wingz, Inc, Curb Mobility, Cabify, Europcar, The Hertz Corporation, Avis Budget Group, Inc., and Enterprise Holdings, Inc. The global shared mobility market is witnessing an increase in merger and acquisition as well as integration activities. Several auto manufacturers have entered in the shared mobility market. The global shared mobility market is considered as a niche market, despite the high level of competition.

Shared Mobility Market - Overview

This report analyzes and forecasts the market for shared mobility at the global and regional level. The market has been forecasted based on value (US$ Mn) from 2018 to 2026. The study includes drivers and restraints of the global shared mobility market. It also covers the impact of these drivers and restraints on the demand for shared mobility services during the forecast period. The report also highlights opportunities and future scope in the market at the global and regional level.

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global shared mobility market. The Porter’s Five Forces model for the market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein the service is benchmarked based on market size, growth rate, and general market share.

The study provides a decisive view of the global shared mobility market by segmenting it in terms of sector type, type, vehicle type, business model, autonomy level, power source, and region. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for shared mobility service in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers the demand for individual segments in all major countries across all the regions.

The study includes profiles of major companies operating in the global shared mobility market. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, recent developments, key executive bios, and manufacturing footprint.

The global shared mobility market is primarily driven by the fueling demand for internet- and smartphone-based shared mobility services such as ride-sharing and ride sourcing. Lower number of vehicles per 1000 people across several nations, increase in population, rapid rise in urbanization, and rise in number of working class people willing to travel to their workplaces and homes coupled with a lack of proper public transportation facilities are fueling the demand for ride hailing services across the globe, which in turn is fueling the global shared mobility market.

The report provides the estimated market size of shared mobility for 2017 and forecast for the next nine years. The global market size has been provided in terms of revenue. Market numbers have been estimated based on sector type, type, vehicle type, business model, autonomy level, power source, and geography segments. Market size and forecast for each sector type, type, vehicle type, business model, autonomy level, and power source have been provided in terms of global and regional/country markets.

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key player’s product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, American Automobile Association, European Automobile Manufacturers Association, Automotive Research Association of India, Organisation Internationale des Constructeurs d'Automobile (OICA), Consumer Connectivity Association, ACRA, World Bank, Factiva, etc.

Primary research involves e-mail interactions, telephonic interviews, LinkedIn interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help to develop the analysis team’s expertise and market understanding. 

The global shared mobility market has been segmented as follows:

Sector Type

  • Unorganized
  • Organized 

Type

  • Ride-sharing
  • Vehicle Rental/Leasing
  • Ride Sourcing
  • Private 

Vehicle Type

  • Passenger Cars
  • LCVs
  • Buses & Coaches
  • Micro mobility 

Business Model

  • P2P
  • B2B
  • B2C 

Autonomy Level

  • Manual
  • Semi-autonomous
  • Autonomous 

Power Source

  • Fuel Powered
  • HEV (HEV)
  • PHEV (PHEV)
  • BEV (BEV) 

Regional Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America