The shared mobility market was valued at US$177.517 billion in 2020 and will increase to US$516.541 billion by 2027. Over the forecast period, this market is estimated to increase at a compound yearly growth rate of 16.48%.
Shared mobility is a traveling service in which businesses arrange for commercial cars to transport people from one location to another. The owner of a fleet of commercial cars lends it to the organization, which utilizes it to deliver services including hiring, ride-sharing, and mobility. The charge is solely based on the passenger's travel time and distance to their destination. Due to various factors such as rapid urbanization, increased environmental concerns, limited energy resources, and economic concerns, the trend of shared transportation has exploded in recent years, and this trend is expected to continue to augment the global shared mobility market during the forecast period.
According to analysts, the increasing demand for shared mobility owing to its convenience and cost-effectiveness will be the driving force behind the market's robust growth over the forecasted timeframe.
Shared mobility is a growing market that is both cost-effective and environment-friendly. Peer-to-peer vehicle sharing, pooled ride-sharing, shared electric scooters, and other new modes and services have arisen. The possibilities for integration, automated operations, customized travel on demand, and environmental friendliness have all contributed to their rise. One of the primary aspects propelling the shared mobility market is the increasing adoption of linked cars and smartphones. The expense of road vehicles and fuel, combined with a reduction in parking, is expected to promote market growth in the coming years, particularly in industrialized countries around the world. Furthermore, compared to other forms of transportation, shared mobility solutions are less expensive and avoid limited parking issues.
Various governments throughout the world are developing programs to encourage the adoption of these solutions to minimize traffic congestion. This has a substantial impact on commuters' lifestyles and the market as a whole, such as enhanced accessibility, better transportation, less driving, and lower personal car ownership. The government's £ 3.4 million six-month pilot project for electric taxis in Nottingham City, which began in January 2020, is the best illustration of this growth factor. Through this effort, Nottingham City Council hopes to promote cleaner taxis in the city and achieve its objective of becoming environmentally safe by 2028.
Many competitors are employing strategic investments and alliances to satisfy this progressive paradigm shift and customer needs, increasing market growth. The best illustration of this is the Yamaha Motor. Yamaha Motor's shared mobility subsidiary, 'MBSI' (Moto Business Services India), joined the Indian two-wheeler services sector in February 2022, when it made an undisclosed investment in Royal Brothers, a motorbike rental company. By combining its financial and strategic experiences, the company hopes to work with numerous more mobility companies while altering India's shared mobility ecosystem. Chalo, a Bangalore-based smartphone app that books and tracks buses between cities, also purchased Vogo, a two-wheeler shared mobility business venture, in March 2022. As part of the deal, Vogo intends to convert all of its vehicles to EVs (electric vehicles), expand its services beyond two wheels, and provide additional EV models to meet market demand.
The shared mobility market has some limitations that could stymie its potential growth, such as a lack of preference for traveling with strangers while sharing transportation, as well as growing concerns about the theft of private information, and the requirement of taking a longer common route because of sharing transportation, all of which have the potential to stymie the market's growth in the above-mentioned ways.
The rise in the segment is attributable to the increasing use of the internet in emerging countries and by people all over the world. Uber, for example, provides a variety of business models, including UberSUV, Uber Black, UberTax, and UberLUX, all of which feature the use of specialized Uber vehicles and drivers in the rental sector. Easy bookings, higher traffic congestion, passenger comfort, and greater government campaigns to raise public awareness about air pollution all contribute to the growing demand for ride-hailing services.
During the projected period, the two-wheelers segment is expected to surge at an exponential rate in the market
The Shared Mobility market by vehicle type is divided into three categories: two-wheelers, cars, and others. Two-wheeler services are likely to grow in popularity in the next years, as they are regarded as the quickest and most efficient mode of transportation on congested city streets. The United States, China, Spain, and Italy are among the countries with the largest use of these services. In the ensuing years, many European municipal governments have issued tenders to implement Bicycle Sharing Schemes (BSS). Government initiatives like this are likely to enhance the demand for two-wheeled vehicles.
The Shared Mobility market is classified into five regions based on geography: North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The Asia Pacific region is expected to account for the largest revenue share in the Shared Mobility market over the projected period. Because of rising on-road vehicle traffic and car ownership prices in nations like China and India, the Asia-Pacific region leads the way in shared mobility. Furthermore, the region's prosperity is being fueled by widespread technology usage and the increasing proliferation of smart homes. These services have a strong growth potential in developing countries like India, where urban populations are expanding and transportation infrastructure is being constructed. As a result, a regulatory climate that is favorable to their adoption has emerged.
The COVID-19 epidemic has had a negative influence on Shared Mobility. During the pandemic, corporations implemented a lockdown and a work-from-home policy, which resulted in a reduction in shared mobility market sales. Customers' anxiety about traveling in enclosed automobiles has delayed the market even more.