Car Sharing Market Size By Business Model (Round Trip, One Way), By Application (Business, Private), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Turkey, Russia, China, India, Japan, South Korea, Brazil, Mexico), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024
Published Date: March 2017 | 130 Pages | Report ID: GMI719 Report Format: PDF
Car Sharing Market size was over USD 1.2 billion in 2015 with 34.8% CAGR estimation from 2016 to 2024. The global fleet is forecast to grow at 18% CAGR, and the number of members is projected to exceed 30 million by 2024.
Germany Car Sharing Market Size, By Application, 2013-2024 (USD Million)
Rapid growth and evolution in the sharing economy has led to increase in demand for shared mobility. As the car sharing market continues to grow dramatically, rental car companies and the manufacturers are investing to enhance their business models. In 2016, General Motors invested in a Chinese company, Yi Wei Xing that offers a service to arrange short-term rentals. In addition, General Motors also invested USD 500 million in the U.S. based ride-hailing company Lyft. OEMs are looking at opportunities with providing mobility services and structure new business model such as setting up units to facilitate consumers by providing vehicles suitable to their needs. It substitutes a fee income for sales revenue, hence, expands the business model. In 2015, Ford launched a pilot car-sharing program in London called ‘GoDrive’. It lets customers pay by the minute and access cars via smartphones.
The industry is taking hold in the large urban areas in both developing and developed regions. Moreover, it has grown rapidly in areas that clear certain economic, social, demographic thresholds. For instance, in Germany there are over 125 companies operating in the market and controlling a sharing fleet that has increased from over 900 vehicles in 2000 to 16,000 in 2016.
Increasing number of mobile devices including tablets and smartphones that provide platform for booking vehicles are expected to enhance the car sharing market demand over the future. The technology provides various benefits such as reduced parking space requirements & fuel cost, better air quality and low carbon emission due to reduced traffic fumes. It also leads to shorter journey duration due to fewer vehicles on the road and less congestion further augmenting the carsharing market size.
Car Sharing Market, By Business Model
Round trip car sharing witnessed huge adoption owing to the low-cost requirement for longer trips as charges are based on distance travelled and pay-per-use. The model allows a user to pick and return a shared car at the same station that is supported by mobile apps or a personal access card. Social and economic benefit such as reduction in CO2 emission gas will further increase the implementation rate of round trip car sharing market over the forecast period. Factors such as reducing interest and inconvenience caused in returning the vehicle at the pick and drop station are expected to increase the demand for one way model in the carsharing market.
Carsharing Market, By Application
Business applications are estimated to witness attractive growth prospects over the forecast period. This is due to the rising on-demand mobility among corporates to make positive impact in the society as it prevents emissions and pollution on a large scale. Corporate car sharing enables commercial businesses to minimize or eliminate private vehicle fleets by offering their employees with access to exclusive-use or shared vehicles.
Moreover, operational advantages and flexibility through increased mobility may increase the implementation in the corporate space. Private applications are driven by factors such as reliability, and on-time availability.
Car Sharing Market, By Region
U.S. car sharing market led the global industry owing to the high adoption rate of the technology in the region. The regional industry revenue from cars and two-wheeler sales is shrinking due to the urbanization, environmental regulations and the shifts in the society’s norms that are eroding the value of owning an individual automobile. China car sharing market share is predicted to grow significantly with CAGR of over 40% from 2016 to 2024 owing to the rising demand across corporate & private applications. Moreover, the presence of large players such as Orix Auto and Park24 and emerging numbers of start-ups in the region is expected to fuel the industry growth over the future. Increasing investments from the vendors and automotive manufacturers in the Chinese companies will further propel the regional demand.
Transportation infrastructure in the emerging economies is posing a great challenge to the car sharing market. With the exponential increase in vehicles, several countries have witnessed considerable traffic congestion. Due to the unsuitable public transport and limited road infrastructure, developing countries are more susceptible to congestion.
Competitive Market Share
Industry participants include Uber, Lyft, Car2go, Zipcar, Autolib, DriveNow, Hertz Corporation, GoGet, Getaround, Mobility Carsharing, Orix, RelayRides, WhipCar, and Zoomcar. Due to the fragmented nature of the car sharing market, the companies are focusing on strategies such as price reduction and technological innovation. In February 2016, Uber launched a service, UberCENTRAL which offers businesses to provide rides to their clients and customers. This service is launched to address the issues pertaining to transportation hurdles in the business environment. UberCENTRAL is a dashboard available to participating businesses permitting them to manage, request, and pay for rides on behalf of their customers.
Penetration of advanced technologies including autonomous vehicles is projected to create lucrative opportunities for wide scale adoption. Players are increasing their focus to integrate technologically advanced systems such as reservation systems and vehicle access to increase penetration in the car sharing market. Stringent government emission norms are fueling the demand for electric and hybrid vehicles. For instance, Zipcar is exploring and planning to add electric vehicles to its fleet and Daimler has an all-electric car sharing program in San Diego.
Car Sharing Industry Background
Several participants offer efficient and enhanced services in the car sharing market for delivering superior customer experience. For instance, Autolib introduced compact electric cars in 2013 to the streets of Paris and suburbs. Rising prominence of mobile application will present growth opportunities to the industry.
The industry is driven by technological advancements and innovation. Companies invest enormously in R&D operations to offer differentiated solutions to increase market share. For example, in November 2016, Uber announced that it is working with General Motors to help drivers to get access to the vehicles. GM's Maven unit will let Uber drivers lease cars from GM's fleet in San Francisco. Furthermore, car sharing has the potential to reduce vehicle travel cost to the individual & society. It also leads to reduction in harmful gas emission, thereby improving the overall environmental condition. Companies also focus on expanding their services in new regions and undergoing frequent mergers and acquisitions. For instance, Lyft collaborated with JetBlue, an airline company, to allow users to earn frequent flier miles by taking a Lyft to or from an airport.
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