Ride Sharing Market Analysis

Global Ride Sharing Market Overview:

Ride Sharing Market Size was valued at USD 47.6 billion in 2023. The ride sharing market industry is projected to grow from USD 56.7 billion in 2024 to USD 194.01 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 19.20% during the forecast period (2024 - 2032). Big data analytics, IoT, and AI have been introduced, which permit smart riding options and the expansion of the number of cab booking services, which are the main market drivers boosting the worldwide market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Ride sharing Market Trends

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  Rise in the cost of owning a car to propel the market growth

  
  

A vehicle's ownership involves a number of interrelated issues, including financing, gasoline, upkeep, registration/taxes, maintenance & repair, and depreciation. The price of owning a car goes up every year. Although the American Automobile Association (AAA) estimates that depreciation accounts for about 43% of the cost of ownership, additional expenses including maintenance and gasoline expenditures collectively account for -25%. The expense of fuel and maintenance has multiplied in recent years, and it is predicted that this trend will not reverse. Owning a car has shifted from being an asset to being more of a problem as cities get more and more congested with people and vehicles. In 2020, compared to 2019, the average cost to acquire and run a new car grew by USD 279 to reach USD 9,561.

Additionally, micromobility can be defined as the capacity to travel short distances in only one or two passenger cars. These include lightweight automobiles like mopeds, bicycles, scooters, and longboards. For commuters looking for a quick journey in the city without the hassle of public transit, shared micro-mobility is a wise choice. The concept of micro-mobility has a significant impact on how to use and profit from scooters and bikes. Growing congestion, particularly in metro areas, presents a huge opportunity for micromobility to solve these issues. For instance, as part of its strategy for electric mobility, the Volkswagen Group is supporting micro-mobility. In Geneva, the business unveiled Cityskater and Streetmate electric scooters. Together, Daimler and BMW are renting out scooters in more than six European cities. Thus, this factor is driving the market CAGR.

Furthermore, the growing use of smart devices like smartphones and smart wearables as well as the rising use of internet data have increased the demand for ride sharing services globally and accelerated the expansion of the Ride Sharing Market. The essential need for using ride-hailing services is internet connectivity. To access the information and navigation of the ride, passengers must download ride-providing programmes onto their cellphones through the internet. The proper operation of V2V communication, navigation, and telematics requires internet access. Additionally, the smartphone apps offer a lot of security measures like the driver's name, phone number, and photo, the vehicle's number, route tracing information, and records of previous rides.

However, the rate of vehicle emissions has been rising over time on a global scale. The global greenhouse gas emissions are significantly influenced by the car industry. The government, businesses, and automakers are making additional efforts to reduce the rising CO2 emissions. Many organisations, including the International Institute for Sustainable Development of Canada, the Ministry of Environment and Climate Change of India, and the Paris Agreement on Climate Change of the European Union, have established aspirational goals and standards, including increasing the amount of forest cover to reduce carbon footprints in the upcoming years. Therefore, rather than owning an own vehicle, these norms are likely to influence how these sharing services are used. Thus, it is anticipated that this aspect will accelerate car pool market revenue globally.

Ride Sharing Market Segment Insights:

Ride Sharing Type Insights

The Ride Sharing Market segmentation has been segmented by type into car sharing, e-hailing, car rental and station-based mobility. The e-hailing segment dominated the market growth in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032. Using a personal driver hired under a contract or as an employee, e-hailing ride services offer transportation to customers. Additionally, the demand for Ride Sharing, particularly e-hailing, is growing as a result of increased government initiatives to educate the public about issues such as air pollution, passenger comfort, growing traffic congestion, and simplicity of booking.

Ride Sharing Vehicle Type Insights

The Ride Sharing Market segmentation, based on vehicle type, ICE vehicle, electric vehicle and vehicle running on LPG or CNG. The electric vehicle segment dominated the ridesharing market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032. Due to recent advancements by major ride-hailing firms like Uber, Lyft, Bolt, In Driver, Ola, and Free now to power up their facility, the electric vehicle carpool market is expected to grow at the fastest rate during the anticipated time.

Figure 2: Ride Sharing Market by Business Model, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Ride Sharing Business Model Insights

The Ride Sharing Market data, based on business model, B2C, P2P and B2B. The P2P segment dominated the ride-sharing market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032. P2P car sharing is a type of vehicle sharing where people lend out their cars to other travelers. The P2P model also keeps the owner in the automobile for the duration of the trip. Automobile peer-to-peer sharing is becoming more and more popular.

Ride Sharing Membership Type Insights

The global ride sharing industry, based on membership type, fixed ridesharing, corporate ridesharing and dynamic ridesharing. The corporate ridesharing segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032 because more international corporations are using ride-sharing services for their employees' daily commutes. The popularity of ride-sharing services in the region is projected to accelerate due to rising industrialization and the relocation of IT companies' headquarters to the Asia Pacific region.

Ride Sharing Service Insights

The global ride sharing industry, based on service, app-based, web-based and web and app-based. The app-based segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032. Mobile cloud computing is used to construct ride-sharing apps. Due to its user-friendliness, the majority of people have an android-based smartphone. Consequently, a number of well-known ride-sharing businesses create apps that are compatible with the Android operating system.

Ride Sharing Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America ride sharing market accounted for USD 20.6 billion in 2021 and is expected to exhibit a 43.20% CAGR during the study period as a result of the quick growth of electric vehicles in nations like Canada, the United States, and Mexico. Moreover, the ride service companies' quick adoption of cutting-edge technology features. In Canada, Uber's company has been growing quickly.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Ride Sharing Market Share By Region 2021 (%)