Carsharing Market size worth over $6.5 BN by 2027
Published Date: July 20, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Carsharing Market size is set to reach over USD 6.5 billion by 2027, according to a new research report by Global Market Insights Inc.
A rapid rise in the global population has increased the requirement for vehicles for short and & long-distance travel, contributing to the carsharing industry growth. Car sharing services offer various benefits to the users such as a reduction in travel cost and pay-by-hour. According to the market data reported by Zipcar, Inc., a car owner spends around USD 950 per month, whereas car-sharing services cost USD 320.
Governments are implementing various regulations & programs to increase the utilization of electric vehicles and overcome the pollution caused by ICE cars. For instance, in September 2020, E4TheFuture, a non-profit organization, partnered with Shared Mobility, Inc., the Metropolitan Area Planning Council, the City of Boston, Eversource, and Nuestra Comunidad to launch Good2Go, an electric vehicle car-sharing program, in Boston. This program offers affordable access to clean transportation, which is boosting the carsharing demand.
Some of the major factors challenging the industry growth include the unavailability of developed transport infrastructure in various countries along with adequate technological support. Similarly, the presence of on-demand taxi services, carpooling, and ridesharing are expected to increase competition in the industry. To overcome these industry challenges, companies are collaborating with technology providers including Apple, Google, and EasyMile to develop car-sharing apps.
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The widespread outbreak of COVID-19 has impacted the carsharing market negatively impelled by strict mobility restrictions and lockdowns implemented by governments across the world. The restricted movement has resulted in the low requirement for car sharing services. The high inclination of commuters toward personal mobility solutions over shared mobility owing to health & safety reasons has further decreased market revenues.
Analyst view: “The growing adoption of electric vehicles will reduce carbon footprints and increase memberships of the services provided by car-sharing service providers.”
A high share of station-based car-sharing services
The station-based model held more than 30% of the market share in 2020. This business model allows users to pick up the vehicle from a fixed rental station of the car-sharing service operator. The users can inspect the car physically before renting to avoid payment of dues and fines while returning it. The segment is expected to lose its market share due to the emergence of P2P sharing platforms.
Browse key industry insights spread across 200 pages with 245 market data tables & 22 figures & charts from the report, “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” in detail along with the table of contents:
Rising demand for car sharing in the private sector is positively impacting the industry statistics
The private application is anticipated to register above 25% CAGR through 2027 on account of the increasing usage of vehicle sharing services by commuters for routine travel of short distances. These services also provide tourists an affordable option for sightseeing in cities. The growing uptake of shared mobility services by individuals to reduce carbon emissions caused by personal vehicles is poised to provide a positive market outlook.
Peer-to-peer vehicle sharing is witnessing an upward market trend and driving the private application of vehicle sharing services. The emergence of new P2P sharing platforms is accelerating the market representation of private applications. For instance, in February 2020, Rent Yuh Ride (RYR), an online car rental and sharing platform, was launched in Jamaica. The country’s first rental & vehicle sharing platform will allow users to avail car sharing for private applications.
A shift in vehicle fleets from ICE to electric in Europe
The Europe carsharing market demand surpassed USD 700 million in 2020. The regional fleet size is forecast to cross about 200,000 vehicles by 2027. The high demand for electric vehicles in the region due to government regulations, increasing pollution, and rising disposable income is propelling the market revenue. The presence of several companies, such as Zity, Emov, and Share Now, in the region are boosting the regional industry statistics. These players are increasingly adopting new electric vehicles to reduce the carbon footprint of their business operations in the industry in 2021.
Market leaders are focusing on strategic partnerships with car manufacturers, new service launches, and acquisitions to enhance their penetration in the market. For instance, in June 2021, Toyota Motor Corporation launched KINTO, a car-sharing service in Australia. This service will assist the company in providing a wide range of mobility services to the customers from a time range of one hour to 24 hours.
Key carsharing industry players are Ekar Fz LLC, Turo, Inc., Zipcar, Inc., Regina Car Share Co-operative, BlueSG, Communauto Inc., Car Next Door, Lyft, Inc., ShareNow., Getaround, Inc., Zoomcar and Hertz Corporation.
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