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Car Sharing Market Size By Model (P2P, Station-based, Free-floating), By Business Model (Round Trip, One Way), By Application (Business, Private), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2021 - 2027

  • Report ID: GMI719
  • Published Date: Jul 2021
  • Report Format: PDF

Industry Trends

Car Sharing Market size surpassed USD 2 billion in 2020 and is anticipated to grow at over 20% CAGR from 2021 to 2027. The implementation of strict government regulations to curb vehicular emissions has led to the adoption of urban mobility solutions is driving the industry growth.

The growing popularity of car-sharing as an affordable & convenient solution to commute over short distances is propelling the market statistics. The service allows passengers to pay according to their usage based on the distance traveled and fuel cost. Car-sharing reduces car ownership, travel cost, and congestion.

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The crowded public transport facilities coupled with growing traffic congestion in urban areas are fueling the car sharing market revenue. The rising popularity of digital car keys is creating opportunities for incumbent market players and new entrants. Digital car keys enable car owners to share access to their cars directly through the car-sharing app. Renters can unlock the doors with their smartphones while picking up the vehicle and can find physical keys inside the glove section.

The unavailability of adequate technologies and transport infrastructure are the major factors challenging the car sharing industry growth. Prominent automobile manufacturers are collaborating with technology providers, such as EasyMile, Apple, and Google, to develop user-friendly applications for vehicle-sharing services. Furthermore, stiff competition from similar business models including ride-hailing and on-demand taxi services is expected to restrain the market growth.

The COVID-19 pandemic has severely impacted the car sharing market owing to social distancing norms and mobility restrictions across the globe to contain the spread of the virus in 2020. Consumers largely prefer personal mobility solutions, such as cars and two-wheelers, for daily commute. With the reopening of economic activities in North America and Europe along with a robust vaccine rollout, the market is likely to witness steady growth. The growing consumer confidence is on account of the safety provided by car-sharing services due to the compliance of stringent safety protocols and guidelines.

Easy accessibility of private car rentals for short-distance commute is spurring the market growth

The P2P model accounted for around 25% of the car sharing market share in 2020 led by easy access to private car rentals. The P2P business model is a collaboration between car owners and car renters. This model enables private car owners to rent their cars that are not in regular use to prospective renters who search for cars on online platforms and rent the one that fits their requirements.

Car owners charge a rental fee and provide additional services including car maintenance and insurance. The users can rent cars for short-distance commutes through smartphone apps or websites that connect them to vehicle owners. The P2P model is gaining high popularity as a way for car owners to earn extra income. The emergence of online P2P sharing platforms, such as Getaround and Turo, will support the growing market size through 2027.

Rising popularity of the one-way business model propelled by improved flexibility and customer convenience

The one-way business model segment is projected to grow at nearly 15% CAGR through 2027, with over 10 million members registered. Increased flexibility and customer convenience are the major factors augmenting the car sharing market growth. This business model enables users to rent a car for their commute and park it anywhere within an operational area. One-way car-sharing aids in intercity travel, reducing the level of congestion on roads. This also helps in reducing the number of private cars on road and mitigates the growing pollution levels.

To cater to the industry trend, companies are emphasizing on offering an enhanced driving experience to their customers. For instance, in November 2019, Tesloop, a startup company by Tesla, announced its one-way car-sharing service between the Las Vegas and Los Angeles route. Tesloop offers three Tesla models including Model X, Model S, and Model 3 on rent with an autopilot feature and advanced entertainment system to fuel the driving experience.

Increasing use of rental services by organizations to provide pick-up and drop facilities to their employees

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The business application captured a car sharing market share of over 80% in 2020 impelled by the increasing adoption of rental cars by several businesses. Companies use these car-sharing services to provide pick-up and drop facilities to their employees. Business organizations are taking several initiatives to provide safety, comfort, and convenience to their employees.

Increasing vehicle congestion and pollution to foster Asia Pacific market

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The Asia Pacific car sharing market revenue valued at above USD 700 million in 2020. The increasing adoption of ride-sharing services can be accredited to the over congestion in public transport facilities in Asia Pacific. The growing population in countries including China and India has resulted in overcrowding of transit facilities and a rise in pollution levels. This has encouraged people to shift to vehicle-sharing for their daily commute. Moreover, factors such as reduced travel cost and less congestion are boosting the regional market demand.

High focus of market players on collaborations to propel urban mobility programs

Industry participants are emphasizing on launching new car-sharing platforms to provide urban mobility solutions enhancing the car sharing market growth. Companies are adopting various strategies including collaborations and partnerships to cater to the increasing consumer demand for these services. For instance, in January 2019, Zipcar and Honda entered a strategic partnership for cost-effective mobility solutions. Through this expansion, over two hundred new Honda vehicles will be added to Zipcar’s diverse fleet, ranging from Honda Civic to the Honda Odyssey, supporting Zipcar’s university program in California.

Prominent players in the car sharing market include Turo, Inc., Car Next Door, ShareNow., Zipcar, Regina Car Share Co-operative, BlueSG, Mobility Sharing and Corporation, Lyft, Inc., Communauto Inc, Getaround, Inc., Hertz Corporation, and Ekar Fz LLC.

This market research report on car sharing includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027 for the following segments:

Car Sharing Market, By Model

  • P2P
  • Station-based
  • Free-floating

Market, By Business Model

  • Round Trip
  • One Way

Market, By Application

  • Business
  • Private

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Spain
    • Germany
    • France
    • Italy
    • Turkey
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Malaysia
    • Singapore
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • GCC
    • South Africa
Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

Car sharing market value exceeded USD 2 billion in 2020 and will expand at a CAGR of more than 20% between 2021 and 2027.
P2P model recorded 25% of the overall car sharing industry revenue in 2020 and will register lucrative growth driven by easy access to private car rentals.
One-way business model will register a CAGR of almost 15% from 2021 to 2027 due to increased flexibility and customer convenience.
The car sharing industry from business application accounted for more than 80% of the market share in 2020 and will depict substantial growth propelled by the surging adoption of rental cars by numerous enterprises.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 15
  • Tables & Figures: 267
  • Countries covered: 21
  • Pages: 200
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