PEER TO PEER CARSHARING MARKET ANALYSIS

The peer-to-peer (P2P) carsharing market size is estimated to be valued at US$ 2,214.2 Mn in 2023 and is projected to reach US$ 6,931 Mn by 2030, exhibiting a compound annual growth rate (CAGR) of 17.7% during the forecast period.

The growth of the P2P carsharing market is driven by the increasing demand for convenient and affordable transportation options, growing concerns over environmental pollution, and the rising adoption of mobility as a service (MaaS) models.

The P2P carsharing market is segmented into vehicle type, rental duration, user demographics, user behavior, platform preference, trust and verification level, service model, maturity, value-added services, geographic locations, and region. . By region, North America is expected to dominate the market during the forecast period, followed by Europe and Asia Pacific. The high adoption of P2P carsharing services in the U.S. and Canada is driving the growth of the market in North America.

Peer to Peer Carsharing Market Regional Insights

• North America: North America is the largest market for peer-to-peer carsharing accounting for a market share of over 35% in 2023, driven by the high penetration of smartphones, favorable regulations, and a growing preference for shared mobility The U.S. is the largest market in the region, followed by Canada and Mexico.
• Europe: Europe is the second-largest market for peer-to-peer carsharing accounting for a market share of over 25% in 2023, driven by the high population density, well-developed transportation infrastructure, and increasing environmental awareness. Germany, France, and the U.K. are the leading markets in the region.
• Asia Pacific: Asia Pacific is the third-largest market for peer-to-peer carsharing accounting for a market share of over 20% in 2023, driven by the rapid urbanization, growing smartphone penetration, and increasing demand for shared mobility solutions. China and India are the leading markets in the region.

Figure 1. Peer to Peer Carsharing Market Share (%), By Region, 2023

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Analyst Viewpoint:

The peer-to-peer carsharing market is expected to grow significantly over the year 2029. The key driver for this growth is the preference for access over ownership shown by millennials. Their willingness to utilize shared mobility services on-demand makes, peer-to-peer carsharing an attractive alternative to own a private vehicle. Another factor is the underutilization of personal vehicles which are parked for over 90% of the time. Peer-to-peer platforms provide an opportunity for individuals to earn some income by renting out their cars when not in use.

Global Peer to Peer Carsharing Market Drivers

• Cost savings: The main driver of peer-to-peer carsharing is the potential for cost savings. People who own cars can offset the cost of ownership by renting out their vehicles when they're not in use. At the same time, individuals looking for short-term car rentals can find more affordable options as compared to traditional car rental services or car ownership.

For instance, Turo, the world's largest peer-to-peer carsharing marketplace which connects car owners with renters across 285,000 cities in North America and Europe, witnessed its listings rise by nearly 44% year on year in the January-March quarter of 2022.

• Technological advancements: The advancements in technology, particularly in mobile applications and GPS (Global Positioning System) tracking, have made peer-to-peer carsharing platforms more accessible and user-friendly. These technological developments enable seamless communication between car owners and renters, allowing efficient booking processes, and reliable tracking and security features, thus enhancing the overall user experience.

For instance, according to a  recent survey by the Pew Research Center, amongst 18-29 year olds in the U.S., the percentage relying on private vehicle ownership dropped from 84% in 2010 to 76% in 2020. This age group is more likely to utilize shared vehicles on demand through their phones.

Global Peer to Peer Carsharing Market Opportunities

• Revenue generation: For individuals who own vehicles, peer-to-peer carsharing platforms offer an opportunity to generate additional income. By renting out their cars when they are not in use, owners can earn money and offset the costs of car ownership, such as maintenance, insurance, and parking fees.

For instance, according to data by the World Bank, the percentage of the global population living in absolute poverty has declined in recent years but was still estimated at about 10% in 2020.

• Cost savings for renters: Peer-to-peer carsharing provides an affordable alternative to traditional car rental services. Renters can access a wide range of vehicles at competitive prices, often lower than those offered by commercial rental companies. This cost savings can be particularly advantageous for people who need occasional access to a vehicle without the long-term commitment or expenses that are associated with car ownership.

For instance, according to a survey by the U.S. Department of Transportation in 2021, around 26% of respondents would be interested in renting vehicles through a carsharing network to save on transportation costs.

Global Peer to Peer Carsharing Market Trends

• Integration with mobility-as-a-service (MaaS): Peer-to-peer carsharing is being integrated into broader mobility-as-a-service platforms. MaaS aims to provide users with a seamless and integrated transportation experience by combining various modes of transport, including public transit, ridesharing, bike-sharing, and carsharing. Peer-to-peer carsharing contributes to the multimodal aspect of MaaS, thereby allowing users to easily incorporate carsharing into their overall travel plans.

For instance, in the U.S.  as well, according to a survey conducted by the American Association of State Highway and Transportation Officials, 13 states had operational MaaS pilot projects in 2022, up from only 3 states in 2020, reflecting how transportation demands are evolving with new mobility options.

• Shift towards electric and sustainable vehicles: With increasing environmental concerns, there is a growing demand for sustainable transportation solutions. Peer-to-peer carsharing platforms are recognizing this trend and incorporating electric and hybrid vehicles into their fleets. Availability of electric carsharing options not only aligns with sustainability goals but also introduces users to the experience of driving electric vehicles, thereby potentially influencing their future purchasing decisions.

For instance, according to the International Energy Agency, around 6.6 million electric vehicles were added globally in 2021 alone, a growth of over 50% from 2020. This transition to sustainable mobility is benefiting the peer-to-peer carsharing services.

Global Peer to Peer Carsharing Market Restraints

• Insurance and liability concerns: One of the primary challenges for peer-to-peer carsharing platforms is ensuring adequate insurance coverage and addressing liability issues. Determining responsibility in case of accidents or damages can be complex when multiple parties, including car owners, renters, and third parties, are involved. Insurance regulations and coverage requirements vary across jurisdictions, thereby ensuring comprehensive and affordable insurance for all participants remains a challenge.

Counterbalance: Companies can offer comprehensive insurance coverage for both the car owner and the renter during the rental period. This can include collision, liability, and comprehensive coverage. This not only protects both parties but also builds trust in the service.

• Trust and security: Building and maintaining trust among users is crucial for the success of peer-to-peer carsharing platforms. Concerns about vehicle damage, theft, and fraudulent activities can hinder user adoption. Platforms must implement robust verification processes, secure payment systems, and transparent reviews and ratings mechanisms to instill confidence in users. Any incidents of misuse or security breaches can undermine trust and negatively impact the market.

Counterbalance: User Verification: Implementing a robust user verification process can help ensure that only trustworthy individuals are allowed to rent or lend vehicles. This could include identity verification, driving license checks, and even criminal background checks.

Recent Developments

New product launches

• On March 29, 2023, Getaround, the groundbreaking connected carsharing platform, disclosed the integration of 83 new carshare locations as a key component of its expanded engagement in the carsharing program led by the New York City Department of Transportation ("DOT").
• Getaround launched a new feature called "Getaround Connect" in March 2023. This feature allows users to unlock and start Getaround cars without a key. Instead, they use their smartphone to unlock the car and start the engine. This makes it more convenient for users to rent cars, especially if they don't have a physical key.
• On October 3, 2023, Zipcar, the preeminent global campus car-sharing provider and the largest in its category, unveiled the commencement of its notable back-to-school grant campaign, Students with Drive. This initiative designed to champion and empowers the emerging cohort of purpose-driven leaders within the student community.

Acquisition and partnerships

• On May 16, 2023, Getaround, the pioneering connected carsharing marketplace, revealed the successful completion of its acquisition of a significant portion of HyreCar's assets, a leading platform in the gig carsharing industry.
• On November 1, 2022, Getaround, the global leader in digital peer-to-peer carsharing, revealed the initiation of the Get2ThePolls initiative. This program aims to facilitate voter access to transportation, thus ensuring individuals to reach polling stations or submit their ballots for the 2022 general election.

Figure 2. Peer to Peer Carsharing Market Share (%), By Vehicle Type, 2023

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Top Companies in Peer to Peer Carsharing Market

• Turo
• Getaround
• Zipcar
• SnappCar
• Maven
• HiyaCar
• DriveNow
• RelayRides

Definition: Peer-to-peer carsharing refers to a model in which individuals rent their personal vehicles to others on a short-term basis. It typically involves an online platform or mobile application that facilitates the connection and transactions between car owners and renters. The concept allows individuals to make their underutilized vehicles available for rent, while renters gain access to convenient and affordable transportation options. This model promotes resource sharing and can contribute to reduced vehicle ownership, congestion, and environmental impact.