Shared Mobility Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Vehicle Type (Two wheeler, Passenger Car), 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 163 billion |
| CAGR (2023-2028) | 14.7% |
| Fastest Growing Segment | Electric Propulsion |
| Largest Market | Asia-Pacific |
Market Overview
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Global Shared Mobility Market has valued at USD 163 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 14.7% through 2028.
The global shared mobility market is undergoing a significant transformation, reshaping how people access transportation services. This market, characterized by the sharing of vehicles and rides, has witnessed substantial growth in recent years due to a combination of urbanization, changing consumer preferences, technological advancements, environmental concerns, and regulatory support.
Shared mobility encompasses a wide range of services, including ridesharing, car sharing, bike sharing, scooter sharing, and even emerging forms of shared autonomous mobility. These services provide users with more flexible and cost-effective alternatives to traditional car ownership, reducing the need for private vehicle ownership in urban areas. The rapid urbanization of the world's population has driven the growth of shared mobility services. As more people move to cities, traffic congestion, air pollution, and parking challenges become increasingly problematic. Shared mobility offers a solution by providing convenient transportation options that reduce the number of private vehicles on the road. This trend is particularly evident in densely populated urban centers, where residents are seeking alternatives to car ownership.
Key Market Drivers
Urbanization and Congestion Relief
Shifting Consumer Preferences
One of the key drivers of the expansion of shared mobility is the shifting consumer preferences, especially among the younger generations. Millennials and Generation Z, who value experiences over ownership, have shown a declining appetite for car ownership. Instead, they prefer on-demand, app-based mobility services that resonate with their digital lifestyles. The cost savings and convenience of shared mobility services such as ride sharing, bike sharing, and scooter sharing are especially attractive to these groups. This consumer behavior is changing the face of transportation, with shared mobility becoming a top mode for urban transportation.
Technological Advancements
Technological progress is responsible largely for the accelerated development of the shared mobility market. Mobile applications, GPS tracking, and real-time optimization of data have transformed how individuals access and use transportation services. Smartphone applications enable users to simply book a ride, find available vehicles in their vicinity, and pay, all with the ease of their devices. In addition, sophisticated data analytics and algorithms optimize vehicle allocation, minimizing waiting times and improving overall user experiences. These technological advances have increased shared mobility's availability, efficiency, and ease of use, leading to its extensive adoption.
Green Issues and Sustainability
Rising environmental consciousness and issues regarding air pollution, greenhouse gas emissions, and climate change are key impetuses propelling shared mobility into the limelight. Several shared mobility suppliers are actively incorporating environmentally friendly alternatives into their fleets. These comprise the uptake of electric cars (EVs), hybrid vehicles, and other low-emission transport modes. In so doing, shared mobility not only decreases per-car emissions but also promotes cleaner transport choices. Governments and environmental agencies embrace such moves, offering incentives to providers and users to switch to cleaner shared mobility options in accordance with worldwide sustainability efforts.
Regulatory Support and Policy Initiatives
Governments and regulatory agencies across the globe are more and more acknowledging the advantages of shared mobility in helping to address urban mobility. In order to promote the development of shared mobility, several governments have introduced policies and regulations to encourage and support the services. Some cities have allocated special lanes or parking spaces to ride sharing or carsharing vehicles. Others have put in place pricing schemes to promote shared travel and dissuade single-occupancy vehicles. These regulatory reforms encourage the growth of shared mobility and encourage users to choose more sustainable modes of transport.
Collaboration and Partnerships
Shared mobility provider cooperation with different stakeholders is also a major driver. Collaboration between public transit agencies and shared mobility companies, for instance, develops seamless, multi-modal transport systems. This coordination enables users to plan and pay for complete trips, marrying shared mobility with conventional public transport modes such as buses and trains. Such cooperations increase the appeal of shared mobility services by offering users integrated and convenient transportation solutions, further propelling market growth.
Economic Considerations
Key Market Challenges
Regulatory Complexity and Compliance
One of the foremost challenges for shared mobility providers is navigating the complex regulatory landscape. Regulations governing transportation services, safety standards, data privacy, and employment relationships can vary significantly between regions and countries. Compliance with these regulations can be a complex and costly endeavor. For instance, ridesharing platforms often face legal battles and regulatory hurdles related to driver classification (as independent contractors or employees), insurance requirements, and licensing. Navigating these legal and regulatory complexities requires substantial resources and expertise.
Safety Concerns and Liability Issues
Safety is a paramount concern in shared mobility. Ensuring the safety of both passengers and drivers is a critical challenge. Ridesharing and other shared mobility services must implement robust safety protocols, including background checks for drivers, vehicle inspections, and incident response mechanisms. Liability issues can be particularly complex in the event of accidents or incidents involving shared mobility vehicles. Determining responsibility and insurance coverage can be contentious and legally challenging, requiring careful management and compliance with relevant regulations.
Labor Rights and Fair Compensation
Shared mobility providers often face scrutiny and legal challenges related to labor rights and fair compensation for drivers. The classification of drivers as independent contractors rather than employees has been a contentious issue in many regions. Some argue that drivers should receive benefits and protections akin to traditional employees, including minimum wages, healthcare, and workers' compensation. Balancing the need for affordability and flexibility for drivers with fair compensation and labor rights remains a complex and ongoing challenge.
Market Competition and Consolidation
The shared mobility market is highly competitive, with numerous startups and established companies vying for market share. This intense competition can lead to price wars and lower profit margins, making it challenging for providers to achieve sustainable profitability. Additionally, market consolidation is a trend, with larger companies acquiring or merging with smaller competitors to gain market dominance. Navigating this competitive landscape requires innovation, differentiation, and strategic partnerships to remain viable.
Infrastructure Limitations
Consumer Trust and Security
Building and maintaining consumer trust is crucial in the shared mobility market. Instances of safety breaches, fraud, or privacy concerns can erode trust in these services. Users must feel confident that their personal information is secure, their payments are processed safely, and their journeys are free from safety risks. Shared mobility providers must invest in robust security measures, data protection protocols, and transparency initiatives to build and maintain consumer trust.
Technological Challenges and Reliability
Shared mobility services heavily rely on technology platforms to connect users with vehicles, facilitate payments, and optimize operations. Technical glitches, app downtime, or cybersecurity threats can disrupt services and frustrate users. Maintaining the reliability and resilience of technology infrastructure is a continual challenge. Additionally, as shared mobility services explore emerging technologies like electric and autonomous vehicles, they must address technical challenges related to vehicle maintenance, charging infrastructure, and vehicle autonomy to ensure a seamless and reliable user experience.
Key Market Trends
Electrification and Sustainable Mobility
A prominent trend in shared mobility is the increasing adoption of electric vehicles (EVs) and a focus on sustainability. Shared mobility providers are transitioning their fleets to electric or hybrid vehicles to reduce carbon emissions and promote eco-friendly transportation options. This trend aligns with global environmental goals and demonstrates a commitment to reducing the ecological footprint of shared mobility services.
Multi-Modal Integration
Multi-modal integration is gaining traction to provide users with seamless, end-to-end transportation solutions. Shared mobility providers are collaborating with public transit agencies and other transportation modes such as buses, trains, and even micro mobility services like bike sharing and scooter sharing. These partnerships enable users to plan and pay for entire journeys, making shared mobility a convenient and comprehensive part of urban transportation networks.
Micro-Mobility and Last-Mile Solutions
Micro-mobility services, including bike sharing and scooter sharing, have seen significant growth. They address the "last-mile" challenge, bridging the gap between public transportation hubs and final destinations. Users appreciate the convenience of these services for short trips within cities. Many shared mobility providers have incorporated micro-mobility options into their platforms or have acquired specialized micro-mobility startups to offer diverse transportation choices.
Shared Autonomous Mobility
The development and deployment of autonomous vehicles (AVs) are gradually becoming a part of the shared mobility landscape. While widespread adoption is still on the horizon, pilot programs and testing are underway in various regions. Shared autonomous mobility has the potential to further reduce transportation costs and enhance accessibility. However, it comes with its own set of technological, regulatory, and safety challenges that must be addressed for successful implementation.
Subscription-Based Models
Subscription-based models are gaining popularity in shared mobility. Instead of paying per ride, users can subscribe to monthly plans that offer unlimited access to various transportation services within a defined area or network. This model enhances user loyalty and encourages more frequent use of shared mobility services while providing predictable revenue streams for providers.
Data-Driven Insights and Personalization
Shared mobility providers are increasingly relying on data analytics and artificial intelligence to optimize their services. They collect and analyze vast amounts of data related to user behavior, traffic patterns, and vehicle utilization. This data-driven approach helps providers improve operations, enhance user experiences, and personalize services. For instance, algorithms may suggest optimal routes or predict peak demand times, ensuring efficient resource allocation.
Evolving Business Models and Diversification
Shared mobility providers are exploring new business models and diversifying their offerings to remain competitive and adapt to changing user needs. Some providers have expanded beyond ride sharing into areas like food delivery or parcel delivery services. Additionally, innovative approaches such as peer-to-peer car sharing, where individuals can share their privately-owned vehicles, are emerging. These evolving business models reflect a commitment to innovation and flexibility within the shared mobility market.
Segmental Insights
Vehicle Type Analysis
Cars will dominate segment growth, but two-wheelers will grow at the fastest CAGR. Cars are predicted to dominate the Shared Mobility industry and grab the largest revenue share. The segment's dominance is likely to continue during the projection period, owing to the increasing popularity of four-wheelers due to their capacity to service several consumers at the same time. Furthermore, the growing EV fleet among the major companies is likely to drive segmental growth even further.After a user becomes acclimated to electric cars, they would see that the cost of travel per km is 4-5 times cheaper than that of its gas equivalent. Due to rising urbanisation, two-wheelers are predicted to expand at the quickest CAGR throughout the projection period.
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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 shared mobility industry,in 2022. China leads the global market for shared transportation. Around 33% of Chinese choose 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 shared mobility firms, accounting for over 40% of all shared mobility reservations. In terms of revenue, the Asia Pacific area's 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 shared mobility industry. Furthermore, increased urban population, rising working-class customers, and overcrowded public transport are some of the primary elements driving demand for 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 the debut of UberXShare in June 2022, which provides shared rides in New York, San Francisco,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 Bank Group's privatesector arm, struck a deal with BlaBlaCar to invest around US$ 15 million toassist shared mobility platform expansion across Brazil and provide access toenvironmentally friendly, accessible, and inexpensive travel.
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Key Market Players
- Uber Technologies Inc.
- ANITechnologies Pvt. Ltd.
- Lyft,Inc.
- Careem
- BoltTechnology OÜ
- Gett
- EnterpriseHoldings Inc.
- Europcar
- CurbMobility
- BlaBlaCar
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By Propulsion Type |
By Mobility Type |
By Region |
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