Car Sharing Market Size

Car Sharing Market Size

Car Sharing Market size was valued at USD 2.9 billion in 2022 and is projected to expand at over 20% CAGR from 2023 to 2032, attributed to the rising implementation of stringent government regulations for reducing emissions. attributed to the rising implementation of stringent government regulations for reducing emissions.

Favorable government initiatives and regulations aimed at decreasing emissions are contributing to the expansion of the car sharing industry, as car-sharing services provide a more sustainable mobility choice. In April 2023, the EPA proposed amending current rules for decreasing greenhouse gas emissions from heavy-duty vehicles for model year 2027, as well as setting more stringent limits for model years 2028 through 2032. This trend is anticipated to persist as governments all over the world continue to enact stricter rules designed to reduce emissions and promote environmentally friendly transportation and mobility on-demand options, thereby raising demand for car-sharing services.

Inadequate transport infrastructure limits the car sharing market expansion. For car-sharing services to be effective, a strong and dependable transportation infrastructure is necessary, including access to parking spaces, electric vehicle charging stations, and well-maintained roadways. Car-sharing businesses can find it difficult to offer customers a reliable and practical transportation choice in places with inadequate or insufficient transportation infrastructure, resulting in decreased utilization rates, thereby slowing down industry progression. However, increasing public and private investments in infrastructure improvement and development plans across developed and emerging countries will aid in overcoming this restraint in the coming years.