Home > Pressrelease > Global Mobility on Demand Market worth $250bn by 2026

Global Mobility on Demand Market worth $250bn by 2026

  • Published Date: November 7, 2019

Mobility on Demand Market size is poised to reach USD 250 billion by 2026; according to a new research report by Global Market Insights Inc.

Growing demand for shared mobility services and the transformation from station-based options to app-based rise & car-sharing options are supporting the mobility on demand market expansion. The industry for personal mobility is changing rapidly owing to changing cultural and social trends coupled with technological advancements such as information processing, smartphones, and data connectivity. Traffic congestion problems attributed to the rising population and the growing number of cars are highlighting the importance of mobility on demand services. New mobility solutions and concepts are providing travelers with convenient & flexible transportation options. Developments in the sector are impacting the traditional transit market, further increasing the demand for public & private shared transportation.

Increase in flexibility of mobility services

Governments across the globe are focusing on increasing transportation efficiencies by promoting responsive, seamless, accessible, and agile multimodal services through innovative partnerships and advanced technologies. The market is majorly impacted by low consumer awareness in Latin American and the Middle East African countries. The lack of assurance of vehicle availability when needed may challenge growth. Mobility on demand model offers customers pick-up and drop from and to specific locations, leading to lesser congestion. However, the emergence of global companies and new shared mobility service providers in these regions will create a high consumer awareness.

Browse key industry insights spread across 320 pages with 554 market data tables and 31 figures & charts from the report, “Mobility on Demand Market Size By Service (Car Sharing [By Model {P2P, Station-Based, Free-Floating}, By Business Model {Round Trip, One Way}], Ride Hailing, Car Rental [By Vehicle Type {Luxury Car, Executive Car, Economy Car, SUV, MUV}]), By Application (Business, Private), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2026” in detail along with the table of contents:

High popularity of ride hailing services due to convenient travelling benefits

Ride hailing options are gaining high popularity with increasing competition among players offering enhanced ride hailing services in the mobility on demand market. Ride hailing services offer a modern option of getting private taxis for transport instead of the traditional way of standing and waiting at the bus stop. Ride hailing service providers ensure customer comfort by providing experienced drivers that facilitate smooth rides. These systems also eliminate the need of having cash at hand since all payment transactions can be done with the help of ride-hailing apps. Various companies are launching new services to gain a strong industry position. For instance, in November 2019, Daimler announced the launch of its new ride-hailing service in China in partnership with Geely, an automaker. The new service Staride will start by the end of 2019 in Hangzhou.

Peer-to-Peer (P2P) car sharing is predicted to provide opportunities for the growth of the mobility on demand industry. Websites featuring P2P solutions provide a platform for car owners to make their vehicles available to be shared by other individuals at a previously specified rental amount. This solution provides cost-saving and maximum utilization of the vehicle. The market is estimated to witness high growth and will boost the private mobility on demand, allowing users to choose their vehicles as per their preferences while providing convenience and on-time availability. These solutions can significantly reduce the idle time of a vehicle, where it is not used and consequently frees up the space. The private applications of car rental services are driven by the growing travel & tourism industry. The travelers availing these services in unknown areas are experiencing a high degree of convenience and safety.

High consumer awareness and government initiatives creates demand

European mobility on demand market value is growing rapidly owing to the presence of a developed automotive industry in Germany and other supportive government factors. The presence of several technology providers incorporating advanced technologies into automobiles in Germany will support the market growth. The developed countries such as France and Germany favor the growth of new industries in the region. Stringent regulations pertaining to vehicle emissions in European countries are further encouraging the entry of new players supporting the industry growth.

The growing popularity of electric & hybrid vehicles in Germany is attributed to the strict regulations pertaining to gas emissions, compelling mobility on demand service providers to expand their fleet of electric vehicles. Several European companies are launching new services to support the transformation in the mobility ecosystem. For instance, in February 2019, Daimler and BMW revealed their cooperation and investment of about USD 1.13 billion for creating five individual companies. These new companies will be related to car sharing, ride hailing, autonomous cars, electric car charging, and electric scooters.

Key companies present in the mobility on demand market are BMW, Daimler AG, Uber Technologies, Drivy, Grab, Lyft, Car2Go, Didi Chuxing, Delphi Automotive, General Motors, and Autolib, among others. These companies are making & gaining heavy financial investments for the development & expansion of various on-demand mobility services. Additionally, the companies are also making huge investments in R&D activities to offer better & flexible services to consumers globally. Companies are launching various mobility plans to add up to environmental conservation initiatives. For instance, in May 2019, The Federal Transit Administration announced an investment of USD 8 million to deploy the latest tools & service models in the MoD industry including mobile applications, convenient transit, etc.

Authors: Ankita Bhutani, Prasenjit Saha

Explore More on Related Topics: