Sharing Economy Market Expected to Reach $827.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Sharing Economy Market," The sharing economy market size was valued at $387.1 billion in 2022, and is estimated to reach $827.1 billion by 2032, growing at a CAGR of 7.7% from 2023 to 2032.

The sharing economy, often referred to as a collaborative economy or peer economy, is a type of economic system, in which individuals and organizations lend or rent out their resources, such as products, services, or lodging, directly to other people, frequently via online markets or digital platforms. This approach places more emphasis on access than ownership, enabling consumers to utilize underutilized resources, cut down on waste, and frequently save money. Platforms for the sharing economy link suppliers (those who share their resources) and consumers (those who are looking for resources), establishing a market that allows for transactions and exchanges. The sharing economy has altered how individuals see access to products and services as well as established businesses.

Surge in popularity of online platforms yields substantial advantages for the sharing economy market. These platforms serve as powerful tools to extend the reach of sharing economy services offerings to a global audience, which allows the key players in the market to exhibit their services to a diverse range of potential guests and customers. As a result of the optimization of the booking process, these platforms have introduced a high level of convenience for consumers that has enabled them to effortlessly search, evaluate, and secure services such as accommodations, ride-sharing, and others, thus enriching the user experience and driving higher booking rates. In addition, these platforms enable direct and seamless communication between owners and guests, which cultivates trust and fosters tailored interactions. This digital realm also promotes transparency through the utilization of reviews and ratings, which bolsters credibility and aids travelers in making well-informed decisions. Thus, by leveraging data-driven mechanisms, these online platforms facilitate precise targeting in marketing efforts, empowering hosts to align their offerings with specific preferences and demographics. Furthermore, the enhanced visibility, convenience, transparency, and personalized engagement that online platforms facilitate play a pivotal role in providing the sharing economy market opportunities for growth

The sharing economy market growth is facing a hurdle in the form of pervasive issue of fraud attacks, which have grown in sophistication as fraudulent methods continue to evolve. Despite the convenience and flexibility of digital channels for booking services online, there has been a substantial rise in online booking scams. The growing popularity of sharing economy services and the shift toward digital booking platforms have provided fraudsters with new opportunities. These frauds have become more sophisticated, exploiting vulnerabilities in the online booking process. Scammers utilize a variety of strategies, including creating false listings, utilizing payment information that has been stolen, or posing as trustworthy service providers. In addition, consumers find it challenging to confirm the legitimacy of the listed services due to the absence of in-person contacts and the confidentiality of online transactions, which contributes to the growth in fraudulent instances. As a result, sharing economy platforms and consumers both face the challenge of implementing robust security measures to combat these increasingly intricate fraud attempts. This poses a significant challenge for both e-commerce merchants and the sharing economy business.

The sharing economy market is segmented into type, end user, and region. By type, the market is classified into sharing accommodation, sharing transportation, sharing finance, and others. By end user, the market is classified into generation Z, millennials, generation X, and boomers. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, UK, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and the rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, South Africa, UAE, Argentina, and rest of LAMEA).

Players operating in the global sharing economy market have adopted various developmental strategies to expand their sharing economy market share, increase profitability, and remain competitive in the market. Key players profiled in this report include Uber Technologies, Inc., Booking Holdings Inc., Airbnb, Inc., Accor S.A., eBay Inc., Lyft, Inc., Fiverr International Ltd., HubbleHQ, Avis Budget Group, Inc., and Stashbee Limited.

Key findings of the study

• According to sharing economy market analysis, on the basis of type, the sharing transportation segment dominated the sharing economy industry in 2022 and is expected to retain its dominance during the forecast period.
• According to sharing economy market trends, on the basis of end user, generation Z segment dominated the global market in 2022 and is expected to retain its dominance during the sharing economy market forecast period.
• According to sharing economy market demand, on the basis of North America accounted for the highest share in sharing economy market in 2022 and is expected to grow at a CAGR of 7.4% during the forecast period.