GLOBAL SHARED MOBILITY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Global Shared Mobility Market Size and Trends

The shared mobility market is estimated to be valued at US$ 318.32 billion in 2024 and is expected to reach US$ 732.20 billion by 2031, growing at a compound annual growth rate (CAGR) of 12.6% from 2024 to 2031. The increasing preference for carpooling and ride-sharing services over private vehicle ownership, especially among the millennial population is driving the growth of this market.

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The market trend in the shared mobility space has shown tremendous shift towards sustainability and environmental friendliness in recent years. Major players in this market have invested heavily in electric vehicles and infrastructure to provide emission-free transportation options to consumers who are increasingly demanding greener solutions. Shared mobility services allows higher vehicle utilization which reduces emissions overall.

Rising congestion and pollution in cities

With rapid urbanization and more vehicles on road, cities around the world are struggling with increased traffic congestion and deteriorating air quality. traffic congestion costs certain major cities hundreds of hours in lost productivity annually due to time wasted in traffic jams. At the same time, vehicular emissions are a major source of air pollution in most urban centers. Nitrogen dioxide and particulate matter from vehicle exhaust are posing serious health risks. Shared mobility options are emerging as an effective way to reduce both these problems. When commuters switch to shared rides, bikes, or public transport, it results in fewer solo trips in private vehicles. This reduces the number of vehicles on road and helps ease traffic. It also curbs pollution as fewer vehicles mean lower emissions. As emissions from a single shared vehicle are distributed across multiple passengers, the per person pollution comes down significantly. With growing public awareness about climate change and environment protection, more people are inclined towards choosing shared transport modes for daily commute which produce lower carbon footprint than private vehicles. For policymakers in cities, promotion of shared mobility becomes important from perspectives of managing congestion as well as achieving environmental and sustainability goals.

Market Concentration and Competitive Landscape

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Advances in location-based technologies and connectivity have enabled the rise of digital platforms that connect drivers with passengers on-demand. Ride-hailing apps and peer-to-peer car sharing apps have made it extremely convenient to opt for shared mobility instead of owning a private vehicle. With just a few taps on the smartphone, commuters can now book a cab, shared rides, bike or scooter anytime, anywhere. Companies providing these on-demand services ensure adequate availability of vehicles across city centers through fleet operations. Digital payment options further simplify the usage. The smartphone acts as a single interface to access different mobility services. As connectivity and app-based services continue spreading to smaller cities and towns, more people are experiencing the ease of shared transportation driven by technology. The flexibility and accessibility offered through online platforms is driving significant shift away from private vehicle ownership especially among the younger generation. This has fast emerged as a major driver boosting shared mobility usage globally.

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One of the major challenges faced by the shared mobility market is lack of customers' trust in new technologies being adopted by shared mobility players. As shared mobility relies heavily on digital platforms and technologies like ride-hailing apps, self-driving vehicles etc., gaining customers' trust to adopt these new ways of transportation is a hurdle. Other challenges include high operating costs of fleet management for shared vehicles, lack of dedicated infrastructure and regulations supporting new business models, and threat from traditional taxi operators opposing shared mobility services.

Market Opportunities: Integration of Shared Mobility Services with public Transportation

The shared mobility market provides huge opportunities for players who are able to overcome the existing challenges. As more people are accepting new mobility solutions, the market size is expected to grow manifold in the coming years. The shared mobility concept can help reduce transportation costs for customers and support green initiatives like reduced pollution.

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In terms of service model, public transit contributes the highest share of 42.6% in 2024 of the market owing to its convenience and cost effectiveness for users. Public transit allows individuals to travel within cities without the hassle and expense of owning and maintaining a private vehicle. Commuters can rely on public buses, subways, and rail systems to take them where they need to go in an affordable manner. This makes public transit attractive for those seeking low-cost transportation options, such as students, elderly individuals, and low-income households.

Furthermore, many urban areas are increasingly experiencing road congestion and lack of parking availability. Using public transportation helps reduce traffic and allows more people to travel within limited road space. It provides an eco-friendly alternative as well by lowering greenhouse gas emissions from fewer privately-owned vehicles on the road. Several cities have expanded coverage of bus and rail networks in recent years to encourage greener commuting habits. Investments in advanced technologies have also improved the rider experience through mobile ticketing, real-time arrival updates and more seamless transfers between lines.

Governments play a key supporting role through subsidies that keep fares low and services widely accessible. However, dedicated funding streams for continued system improvements and expansions will be needed to attract even more choice riders away from personal vehicles. Improving reliability, frequency and connectivity of routes across different modes can help boost ridership over time. If executed well, public transit offers a sustainable, shared solution for urban mobility demands.

Insights, By Vehicle Type- Growing Adoption of Passenger Cars Drives Shared Mobility Market

In terms of vehicle type, passenger cars contribute the highest share of 37% in 2024 of the market due to their popularity and versatility. Cars provide flexibility for multi-passenger trips and transport of goods, making them highly suitable for shared mobility services. The growth of transportation network companies (TNCs) that facilitate ride-hailing and car-sharing has increased vehicle utilization rates. Drivers are able to offer rides to additional passengers through TNC platforms, earning supplementary income from their personal cars.

Individuals also find shared cars advantageous over a private vehicle which avoids issues like high insurance costs, maintenance responsibilities, and fluctuating fuel prices. This has led to robust demand especially among the youth who see car-sharing as a preferable alternative. Meanwhile, many fleet owners facilitate corporate car-sharing programs to reduce business travel expenditures. Hotels, retail establishments, and office parks provide on-demand access to shared cars parked on their premises for customer and employee transport needs.

As millennials continue exhibiting vehicle ownership trends different than previous generations, the shared car model is poised to grow further. Advancements in connectivity and autonomous driving technologies may one day enable shared self-driving cars which could redefine urban mobility. So long as shared passenger vehicles offer compelling financial and flexibility benefits over private cars, their shared use will continue gaining wider acceptance.

In terms of business model, P2P contributes the highest share of 65% in 2024 of the market owing to lower overheads and direct ownership benefits. In the P2P model, individuals listed on peer platforms can rent out their privately-owned vehicles, power sports vehicles, bikes or other items to other users when not in personal use. This allows owners to earn additional income from underutilized assets, while renters enjoy affordable access they would not be willing or able to purchase themselves.

No large vehicle fleets need managing since owners maintain direct control over scheduling, bookings and rental periods. As a result, P2P platforms have significantly lower fixed operational costs than traditional rental companies or fleet-based business models. This cost advantage has made P2P services highly competitive and appealing to both owners and renters alike. Some popular examples include Turo for car rentals, Spinlister for renting sports equipment, and Neighbor for miscellaneous household items.

Due to the inherent flexibility and profitability of the P2P structure, this business model has gained the most momentum in the shared mobility sector. Many transportation startups are now incorporating P2P components into their operations alongside fleet vehicles. So long as peer-to-peer marketplaces are able to address concerns around risk, insurance and verification, their domination of the shared goods and services space looks poised to continue.

Insights By Sales Channel- Growing adoption of smartphones and internet connectivity are driving online sales channel

The online sales channel contributes the highest share of 71% in 2024 of the shared mobility market due to the increasing smartphone and internet penetration. As digital technologies become more widespread, consumers are shifting their purchasing habits to access services through mobile apps and websites on-the-go. This allows them to easily compare options, book reservations, track vehicles, and make seamless digital payments for shared transportation services like taxis, car rentals, bike rentals, and ride-hailing apps from any location.

Smartphone ownership has greatly increased in recent years across demographics, providing an always-connected device to browse service offerings and complete transactions online. High-speed internet infrastructure upgrades have also expanded internet access into more rural and remote areas previously underserved. This has significantly expanded the potential customer pool that can be reached through digital platforms. International travel is also promoting digital engagement as visitors rely on their smartphones to navigate unfamiliar cities using mobility apps instead of printed maps or brochures.

Ride-hailing giants in particular have optimized their mobile experiences and logistics to attract more customers to book rides directly from phones rather than hailing vehicles on the street. User-friendly app designs, easy sign-up processes, live tracking and driver details, integrated payment options, and loyalty programs encourage repeat use and trials of different shared modes that may not have been considered previously. Large numbers of new consumers who were not using shared fleets before have been drawn in by the appeal and practicality of arranging travel solely through intuitive digital tools.

Insights By, Sector Type- Unorganized sector is capitalizing on convenience and affordability

The unorganized sector accounts for the highest share of 76% in 2024 of the shared mobility market due to its ability to offer affordable, flexible transportation solutions tailored for local needs better than organized operators. Informal community-run services fill gaps not met by regulated fleets through personalized, on-demand arrangements outside of fixed schedules and routes.

Things like privately-owned taxis, three-wheelers, cycle rickshaws, auto-rickshaws, homestays, and informal car/bike pools operated by individuals or small groups provide highly accessible shared transportation that blends seamlessly into people's daily routines without impediments of formal procedures, membership programs or pre-booking requirements. Their impromptu, flexible nature lets travelers make quicker travel plans without being restricted to set timetables unlike organized public transit.

Additionally, unbranded shared vehicles are able to undercut prices of licensed commercial services thanks to lower overheads without infrastructure, licenses and security costs. This price competitiveness expands mobility access to lower income segments for whom even occasional use of app-based taxis may not be financially viable compared to familiar, nearby informal fleets. The affordability, personalized local understanding and community bonds engender trust that has kept these grassroots services integral to many local areas, especially for shorter commutes, last-mile connections and ad-hoc travel needs.

Regional Insights

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North America has emerged as the clear dominant player with 48.9% in 2024 in the global shared mobility market. The large presence of ridesharing giants like Uber and Lyft has transformed urban transportation across major cities in the United States and Canada. The early developments and high adoption of smartphone technologies provided a fertile ground for the growth of mobility-as-a-service platforms. Additionally, American consumers have shown a strong preference towards flexible, on-demand transportation options compared to fixed schedules of public transit systems. This has enabled shared mobility services to achieve extremely high penetration rates in key metropolitan areas. However, companies now face challenges in smaller suburban and rural communities with lower population densities.

The Asia Pacific region is poised to be the fastest growing shared mobility market going forward. Several factors contribute to the immense potential seen in this region. Firstly, urbanization levels are rising at an unprecedented pace with millions moving into cities across developing nations each year. This massive influx is straining existing infrastructure and traditional transit systems. As a result, shared mobility provides a highly cost-effective solution to this urban mobility problem. Secondly, these rapidly developing economies are experiencing tremendous gains in disposable incomes. Combined with young demographic profiles, more people now have increased access to new mobility technologies. Countries like China and India also offer a huge investment advantage with their large geographical sizes and consumer bases. Local entrepreneurs and international players have thus prioritized expanding operations and partnerships within Asia Pacific. If supportive policies are adopted, the region may surpass Western markets within the next decade.

What makes India a promising emerging shared mobility hub is the 'Make in India' push by the government. To attract foreign direct investment, the government has eased policies for manufacturing units to set up shop locally. This has encouraged global automakers and tech giants like Uber to manufacture and assemble vehicles and fleet management systems at competitive prices to serve the Indian as well as exports markets. Another boost is given through programs like 'Smart City Mission' that aims to develop sustainable and walkable urban infrastructure integrated with public transit solutions, making Indian cities more amenable for shared mobility networks to flourish. With initiatives under these schemes ongoing and yielding results it is clear India is ascending as Asia Pacific's most vibrant shared mobility marketplace.

Market Report Scope

Global Shared Mobility Industry News

• In June 2022, the International Finance Corporation (IFC), the private sector arm of the World Bank Group, announced a partnership with BlaBlaCar, is a leading long-distance carpooling platform that connects drivers with empty seats to passengers looking for a ride to the same destination is investing US$ 15 million to support the growth of shared mobility platforms across Brazil. This investment aims to improve access to environmentally friendly and affordable travel options.
• In June 2022, Uber Technologies, Inc. is a multinational transportation network company based in San Francisco, California. introduced UberX Share, a service offering shared rides in cities like New York, San Francisco, Chicago, and Los Angeles in the U.S. The company intends to broaden the availability of UberX Share, enabling users to save money, maintain their schedules, and easily access rides.
• In March 2022, Chalo, a mobile app-based in Bengaluru, India, revealed its acquisition of Vogo, a startup focusing on shared mobility with two-wheelers. Chalo's app allows users to book cab rides for integrated travel between cities. Vogo plans to transition all its vehicles to electric vehicles (EVs), expand its services beyond two-wheelers, and introduce other models of EVs into the market.
• In 2022, The Toro Company, known for its outdoor solutions, acquired The Intimidator Group Inc., a U.S.-based manufacturer of side-by-side vehicles. Through this acquisition, The Toro Company aims to strengthen its position in the zero-turn mower market and become a major player globally.

*Definition: The shared mobility market involves services that enable users to gain short-term access to transportation modes on an as-needed basis. This includes bike sharing, car sharing (renting cars for short periods of time, often by the hour), ride-sharing services (like Lyft and Uber), shuttle services, and other modes of transportation that are shared among users and owned by companies or individuals. These services aim to offer an alternative to private vehicle ownership, with users able to book different types of vehicles using mobile apps for short-distance.

Market Segmentation

• Service Model Insights (Revenue, US$ BN, 2019 - 2031)
• • Bike Sharing
  • Car Sharing    
  • Ride-hailing
  • Public Transit
  • Microtransit
•  Vehicle Type Insights (Revenue, US$ BN, 2019 - 2031)
• • Passenger Cars
  • LCVs
  • Busses & Coaches
  • Micro Mobility
•  Business Model Insights (Revenue, US$ BN, 2019 - 2031)
• • P2P
  • B2B
  • B2C
•  Sales Channel Insights (Revenue, US$ BN, 2019 - 2031)
• • Offline
  • Online
•  Sector Type Insights (Revenue, US$ BN, 2019 - 2031)
• • Unorganized
  • Organized
• Regional Insights (Revenue, US$ BN, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • Uber Technologies Inc.
  • Lyft Inc.
  • Didi Chuxing Technology Co.
  • Grab Holdings Limited
  • Ola
  • BlaBlaCar
  • Lime
  • Bird Rides, Inc.
  • TIER Mobility
  • Mobike
  • Spin
  • JUMP Bikes
  • Yulu
  • Zipcar
  • Citymapper
  • Blu-Smart Mobility Pvt. Ltd.
  • Bolt Technology
  • Autocrypt Co., Ltd.
  • Cabify Espaa S.L.U.
  • EasyMile SAS
  • Meru Mobility Tech Pvt. Ltd.
  • Zoomcar India Private Limited
  • Getaround, Inc.
  • Free2move
  • Lyft, Inc.
  • Yandex LLC