Passenger Cars Shared Mobility Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Propulsion Type (ICE, Electric), By Mobility Type (Ride Sharing, Vehicle Leasing, Private), By Region, By Competition.
Published Date: May - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 93 billion |
| CAGR (2023-2028) | 10.7% |
| Fastest Growing Segment | Electric Propulsion |
| Largest Market | Asia-Pacific |
Market Overview
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Global Passenger Cars Shared Mobility Market has valued at USD 93 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 10.7% through 2028.
The passenger car shared mobility market represents a dynamic and evolving sector within the broader transportation landscape. This market is characterized by the concept of sharing vehicles, where individuals can access cars on a short-term basis, typically through smartphone applications, without the burdens of ownership. It has gained significant traction in urban areas worldwide, driven by factors such as urbanization, sustainability concerns, technological advancements, and changing consumer preferences. Shared mobility services offer users a cost-effective and convenient alternative to owning a private car, particularly in densely populated urban centers. They align with the growing emphasis on sustainability and environmental responsibility, with many operators incorporating electric vehicles into their fleets to reduce emissions and contribute to cleaner air in cities.
Key Market Drivers
Urbanization and Population Density
One of the key drivers of the passenger car shared mobility market is the worldwide trend towards urbanization and the consequent rise in population density in cities. As more individuals migrate to cities, cities experience serious issues concerning traffic congestion, parking space constraints, and air pollution. These issues have prompted people to look for alternative transport solutions that are more efficient and sustainable. Shared mobility services, such as car-sharing and ridesharing, have become popular in highly populated urban areas since they provide convenient alternatives to car ownership. With high population density, the need for transportation services that lower the number of vehicles on the road and reduce parking issues has fueled the development of passenger car shared mobility.
In addition, shared mobility services capture the aspirations of city dwellers to minimize the expenses and hassles of having a personal car in high-density cities. As cities expand and develop, the popularity of shared mobility services is likely to rise, becoming a core component of urban mobility ecosystems.
Technological Advancements and Connectivity
Technological advancements and connectivity have been at the center of fueling the growth of the passenger car shared mobility market. The universal penetration of smartphones and the creation of easy-to-use mobile apps have made it simpler than ever for people to access and utilize shared mobility services. Mobile apps enable users to find, reserve, and unlock shared cars by a few taps on their smartphones. Real-time vehicle tracking, digital payment facilities, and onboard navigation systems make the user experience better, hence increasing the attractiveness and convenience of shared mobility services. Additionally, telematics and Internet of Things (IoT) technology embedded in shared vehicles allows operators to monitor and manage their fleets cost-effectively. The technologies give operators rich information about the use of the vehicle, maintenance requirements, and customer behavior, and enable them to optimize operations and offer improved service.
Environmental Consciousness and Sustainability
Increasing environmental consciousness and concerns over climate change have become key drivers for the passenger car shared mobility market. As the world and individuals strive to decrease their carbon imprint, there is an increasing demand for more sustainable and environmentally friendlier transportation. Shared mobility solutions, especially those that integrate electric and hybrid cars into their fleet, are supportive of sustainability targets. Electric vehicles (EVs) are characterized by lower emissions and less environmental footprint over the lifecycle compared to conventional internal combustion engine (ICE) vehicles. By sharing their fleets with electric or hybrid vehicles, operators reduce greenhouse gas emissions and provide cleaner air. Additionally, shared mobility services encourage efficient utilization of vehicles, keeping the number of cars on the road lower, as well as reducing pollution and congestion levels. This has a beneficial effect on the air quality within cities and can help meet environmental standards by cities and governments.
Cost Savings and Affordability
Financial factors are an imperative driver of the passenger car shared mobility market. The expense of private car ownership, such as fuel, insurance, parking, and maintenance costs, can be significant. Shared mobility services offer an appealing option for those who wish to minimize transportation expenses. Users of shared mobility can utilize cars on a pay-as-you-go basis, negating the requirement for high initial costs involved with car ownership. This pay-per-use strategy is especially attractive to cost-conscious consumers who do not necessarily need a personal car for daily usage but do need access to transportation. In addition, shared mobility services tend to be priced competitively relative to traditional taxi service or ridesharing applications. The range of different vehicles, such as economy vehicles and larger vehicles for group travel, provides the consumer with the ability to select the most economical choice based on their individual requirements.
Shifting Mobility Habits and Preferences
Shifting mobility habits and preferences among consumers have contributed immensely to the growth of the passenger car shared mobility market. Most urban dwellers and millennials are reconsidering their modes of transportation and moving away from conventional car ownership patterns. The need for more flexible and convenient means of transportation, and the realization that private cars tend to sit idle and unused, has prompted people to seek out shared mobility alternatives. Shared mobility services provide the convenience of using a car only when necessary, without the obligations and expense of ownership. Additionally, the emerging trend of the sharing economy and the embracement of the idea of "access over ownership" have also changed people's mindsets toward transportation. Shared mobility is consistent with the tendency of prioritizing access to goods and services over permanent asset ownership.
Key Market Challenges
Economic Viability and Profitability
One of the fundamental challenges facing the passenger car shared mobility market is achieving economic viability and long-term profitability. Operating a shared mobility service involves substantial upfront investments in vehicle acquisition, maintenance, fleet management, insurance, and technology infrastructure. The costs associated with maintaining a reliable and efficient fleet can be substantial, making it challenging for operators to achieve profitability, particularly in highly competitive markets. Profitability is further complicated by pricing pressures and the need to strike a balance between affordability for users and the financial sustainability of the service. Operators often need to rely on venture capital funding to cover operational losses and expand their presence, which may not be a sustainable long-term strategy.
Regulatory Complexity and Fragmentation
The passenger car shared mobility market operates within a regulatory landscape that can vary significantly from one jurisdiction to another. This regulatory complexity and fragmentation present a substantial challenge for operators looking to expand their services across different regions and countries. Regulations affecting shared mobility services cover a wide range of areas, including safety standards, vehicle licensing, insurance requirements, data privacy, taxation, and driver background checks. Navigating this intricate web of rules and requirements is a resource-intensive task for operators and can lead to increased compliance costs. Efforts to standardize regulations and create a more predictable and consistent regulatory environment for passenger car shared mobility services are ongoing but have not been universally successful. This regulatory complexity remains a significant barrier to the industry's growth and expansion.
Technological Advancements and Integration
The rapid pace of technological advancements presents both opportunities and challenges for the passenger car shared mobility market. On one hand, technology has enabled the development of user-friendly mobile applications, real-time vehicle tracking, and convenient payment systems that enhance the user experience. On the other hand, the integration of emerging technologies, such as autonomous vehicles, presents complex challenges. Autonomous vehicles have the potential to reshape the shared mobility landscape by reducing the need for human drivers and offering 24/7 availability. However, integrating autonomous vehicles into shared mobility fleets requires substantial investments in research, development, and safety testing. Moreover, technological advancements also bring concerns related to data security and privacy. Shared mobility services collect a wealth of data about passengers and their travel patterns, raising questions about how this data is used, stored, and protected. Compliance with data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe, is a critical consideration for operators.
Behavioral and Cultural Shifts
Competition and Market Saturation
The passenger car shared mobility market has attracted a growing number of players, leading to increased competition in many urban areas. This competition can result in market saturation, where multiple operators vie for the same pool of potential users. Market saturation poses several challenges. It can lead to underutilized fleets, reduced profitability, and intense pricing pressures as operators strive to attract and retain customers. Overly aggressive competition may lead to unsustainable practices, including pricing wars that erode the economic viability of shared mobility services. Furthermore, market saturation can result in congestion, as numerous shared vehicles vie for limited parking spaces and roadway access. This congestion can have negative implications for urban mobility and user experience, potentially leading to regulatory interventions to manage the number of shared vehicles. Operators must carefully plan their market entry and expansion strategies, taking into account factors such as local demand, competition, and pricing dynamics. Moreover, differentiation through service quality, user experience, and technology integration is crucial for operators to thrive in a competitive landscape.
Environmental Considerations and Sustainability
While passenger car shared mobility services have the potential to reduce individual car ownership and promote more sustainable transportation modes, they also face environmental challenges. Shared vehicles, particularly those powered by internal combustion engines, can contribute to traffic congestion, emissions, and air pollution if not managed properly. Efforts to maintain and clean shared vehicles, including fueling or charging, can result in additional vehicle movements and emissions. Balancing the environmental benefits of shared mobility with operational realities is a complex challenge.
Key Market Trends
Electrification and Sustainable Mobility
One of the most significant trends in the passenger car shared mobility market is the increasing adoption of electric vehicles (EVs) and a growing commitment to sustainability. Electric vehicles offer numerous advantages for shared mobility services, including lower operating costs, reduced emissions, and quieter, more environmentally friendly transportation. Shared mobility operators are increasingly incorporating electric cars into their fleets, aligning with broader sustainability goals and environmental awareness. These EVs are not only eco-friendly but also contribute to improving air quality in urban areas, where pollution is a growing concern. Additionally, electric car-sharing services are gaining popularity in many cities, offering users access to clean and efficient transportation on a pay-per-use basis. The convenience of EV charging infrastructure, coupled with advancements in battery technology, has made electric car sharing a viable and attractive option for both operators and users.
Mobility as a Service (MaaS) Integration
Mobility as a Service (MaaS) is a growing trend that seeks to integrate various transportation options into a single, seamless platform accessible through a mobile app. MaaS platforms aim to provide users with comprehensive, door-to-door transportation solutions that combine shared mobility services, public transit, ride-sharing, and other modes of transportation. In the context of passenger car shared mobility, MaaS integration is transforming the user experience. Users can plan, book, and pay for a combination of transportation options through a single app, reducing the need for multiple apps or physical tickets. This integration enhances convenience, simplifies the travel planning process, and encourages users to consider shared mobility as part of their daily commute. MaaS platforms also enable operators to optimize their services by analyzing user preferences and travel patterns, which can lead to more efficient fleet management and improved service quality. By providing a holistic transportation solution, MaaS integration is enhancing the attractiveness of passenger car shared mobility services in the broader urban mobility landscape.
Autonomous Vehicles and Mobility on Demand
The development and deployment of autonomous vehicles (AVs) are poised to revolutionize the passenger car shared mobility market. AVs have the potential to reshape the way shared mobility services are provided, offering users mobility on demand without the need for human drivers. Autonomous shared mobility services promise several advantages, including 24/7 availability, reduced operating costs (as driver salaries are eliminated), improved safety through advanced sensor technology, and enhanced accessibility for individuals with limited mobility. While fully autonomous vehicles are still in the testing and development phase, pilot programs and partnerships between shared mobility operators and AV technology companies are underway. These programs offer a glimpse into the future of mobility on demand, where users can summon a shared autonomous vehicle through a mobile app for on-demand transportation. As AV technology matures and regulatory frameworks adapt to accommodate autonomous vehicles, passenger car shared mobility is expected to undergo a significant transformation, with AVs becoming an integral part of shared fleets.
Micro mobility and Last-Mile Solutions
Micro mobility solutions, such as shared electric scooters and bicycles, have gained significant traction within the passenger car shared mobility market, offering practical last-mile transportation options. These compact and eco-friendly vehicles are particularly well-suited for short trips within urban areas and for bridging the gap between public transit stops and final destinations.
Data-Driven Insights and Personalization
Data-driven insights and personalization are becoming essential components of the passenger car shared mobility market. Operators are leveraging data analytics to gain a deeper understanding of user behavior, preferences, and travel patterns. This data-driven approach allows operators to tailor their services to meet the specific needs and expectations of users. Through the analysis of user data, operators can optimize fleet distribution, pricing models, and vehicle availability. They can also identify peak usage times, popular routes, and user demographics, which inform marketing strategies and service expansion plans. Moreover, personalization enhances the user experience. Operators are using data to offer personalized recommendations, route planning, and incentives to encourage user loyalty. Customized services and targeted promotions contribute to a more engaging and user-centric shared mobility experience.
Segmental Insights
Mobility Type Analysis
The market is divided into three categories according to service typeride-hailing, car leasing, and private. During the mobility as a service market forecast period, the ride-hailing segment is predicted to rule the market. One of the key factors driving the demand for the ride-hailing industry is the variety of booking options and comfort provided by these services. Another factor influencing the market is how much easier ride-hailing services make it to pick up and drop off passengers than traditional taxis.
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Regional Insights
Europe, South America, Asia Pacific, North America, the Middle East, and Africa are among the areas studied for the market. Asia Pacific has emerged as the largest market for the worldwide Passenger Cars Shared Mobility industry, in 2022. China leads the global market for shared transportation. Around 33% of Chinese choose Passenger Cars Shared Mobility as a means of transportation, with private automobiles coming in second. In addition, they want to transition to robotaxi and shuttles in the future. Didi Chuxing of China and Uber of the United States are the biggest ride-hailing Passenger Cars Shared Mobility firms, accounting for over 40% of all Passenger Cars Shared Mobility reservations. In terms of revenue, the Asia Pacific area's Passenger Cars Shared Mobility market developed at a considerable rate . Ride sharing and ride sourcing services are popular in China, India, and ASEAN nations, which boosts the industry in the region. Service providers in Asia Pacific, such as OLA, UBER, Grab SG, and DIDI Chuxing, control a sizable portion of the Passenger Cars Shared Mobility industry. Furthermore, increased urban population, rising working-class customers, and overcrowded public transport are some of the primary elements driving demand for Passenger Cars Shared Mobility solutions. Furthermore, an increase in the number of daily commuters across the region, as well as a drop in the number of automobiles per thousand persons, are important variables driving the demand for shared transportation.
Recent Developments
- Uber Technologies Inc. announced thedebut of UberX Share in June 2022, which provides shared rides in New York, SanFrancisco, Chicago, Los Angeles, Portland, Phoenix, Pittsburgh, San Diego, andIndianapolis in the United States. The business intends to expand UberX Share,which allows users to share a ride, save money, remain on schedule, and make sustainabledecision.
- In June 2022, IFC, the World BankGroup's private sector arm, struck a deal with BlaBlaCar to invest around US$15 million to assist Passenger Cars Shared Mobility platform expansion acrossBrazil and provide access to environmentally friendly, accessible, andinexpensive travel.
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Key Market Players
- Uber Technologies Inc.
- ANI Technologies Pvt. Ltd.
- Lyft, Inc.
- Careem
- Bolt Technology OÜ
- Gett
- Enterprise Holdings Inc.
- Europcar
- Curb Mobility
- BlaBla Car
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By Propulsion Type |
By Mobility Type |
By Region |
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