Mobility on Demand Market Expected to Reach $1,694.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Mobility on Demand Market," The mobility on demand market was valued at $552.90 billion in 2021, and is estimated to reach $1694.7 billion by 2031, growing at a CAGR of 11.8% from 2022 to 2031.

The concept of mobility on demand is typically attributed to the transportation options that are accessed conveniently, on-demand, or in real time, at an individual's leisure when they request it. Mobility on Demand is achieved through a combination of private and public transportation assets and technologies, working together to allow commuters a customized way to travel with the aid of new software solutions. The technology can decongest urban transit systems while creating opportunities in rural areas where traditional mobility services are inadequate. Currently, various mobility on demand market players operating in the business are collaborating with automobile manufacturers to expand their taxi fleet of electric cars for mobility sharing or renting purposes. For instance, in February 2022, The Hertz Corporation partnered with UFODRIVE, a self-service electric vehicle rental company and eMobility service provider in Europe. This partnership allowed Hertz to grow its fleet of electric vehicles and offer the best rental and recharging experience for leisure and business customers worldwide.

In addition, the mobility on demand market has witnessed significant growth in recent years, owing to the emergence of technologies such as Mobility-as-a-Service (MaaS), electric vehicles, and autonomous cars. Also, shifting consumer preferences from car ownership to flexible & affordable transportation solutions is propelling the adoption of car-sharing services in the market. Furthermore, the companies operating in the market have adopted partnerships, acquisitions, and product launches to increase their market share and expand their geographical presence. For instance, in March 2021, Europcar Mobility Group announced the launch of a new range of subscriptions for renting out vehicles for business companies. These subscription packages were named “Flex”, “Superflex” and “DuoFlex”. These packages allowed them to expand their vehicle rental services to businesses, thereby increasing their revenues.

The factors such as proactive government initiatives for smart cities, rise in venture capital and strategic investments, and adoption of e-bikes in the sharing fleet supplement the growth of the mobility on demand market. However, low rate of internet penetration in developing regions and resistance from local transport services, coupled with varying government regulations in different countries are the factors expected to hamper the growth of the market. In addition, emergence of eco-friendly electric cab services and adoption of car rental management software creates market opportunities for the key players operating in the mobility on demand market.

COVID-19 Impact Analysis:

As a consequence of the coronavirus outbreak, the operating players had a negative impact on mobility on demand business owing to change in mobility patterns of people across the globe. Also, adoption of mobility services by people during the pandemic decreased significantly as well as number of visits to workplaces also decreased. In addition, during COVID-19 pandemic, public transit ridership and patronage of transportation network companies (TNC, also known as ride hailing and ride sourcing), ride sharing, and many shared micro mobility services plummeted due to stay-at-home orders, virus concerns, and business closures. Ride-hailing also declined due to the restraints of social distancing, fear of congestion and reduced commuting. In addition, major mobility on demand companies such as Ola, Uber, Grab, Didi, Lyft, and others are already feeling the pressure from the coronavirus pandemic as travel restrictions and lockdowns are increasing across the world. For instance, Lyft experienced a decrease in revenue by 36% year-on-year. However, other areas of mobility on demand such as micro mobility services witnessed a growth in demand for micro mobility services owing to growth in e-commerce business and last mile deliveries. In addition, private vehicles are not affordable by everyone, therefore commuters are looking to utilize micro mobility vehicles such as e-bikes, electric-pedal assisted bicycles, scooters, and others for daily travel, which in turn is expected to contribute to the growth of the mobility on demand market during the forecast period.

KEY FINDINGS OF THE STUDY

• By type, the renting segment dominated the global mobility on demand market in terms of growth rate.

• By vehicle type, the two-wheelers segment dominated the global mobility on demand market in terms of growth rate.

• By propulsion type, the electric and others segment dominated the global mobility on demand market in terms of growth rate.

• By booking type, the online segment dominated the global mobility on demand market in terms of growth rate.

• By commute type, the intracity segment dominated the global mobility on demand market in terms of growth rate.

The leading players operating in the mobility on demand market are Aptiv, BMW AG, Cabify España S.L.U., Car2go NA, LLC, Cityscoot, Europcar Mobility Group, Ford Motor Company, General Motors, Gett, The Hertz Corporation, Intel Corporation, IBM, Lyft, Inc., Robert Bosch GmbH, Toyota Motor Corporation, Uber Technologies Inc., and Yulu Bikes Pvt Ltd.