Ride Sharing Market All Set to Boom: Projected to Grow at a CAGR of over 16% by 2028
Published | 08 February 2022
The global ride sharing market is flourishing at a high rate because of the influencing factors, such as use of mobile apps or websites to provide users or passengers with access to vehicles or drivers for hire. Additionally, the increased mobile and internet penetration is also propelling the market forward….
A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global ridesharing market is projected to reach USD 85.1 billion by 2021 growing at a CAGR of 16.4% during the forecast period (2022-2028). The use of mobile apps or websites to provide users or passengers with access to vehicles or drivers for hire is known as ride - sharing. Ridesharing is beneficial for the environment and people in general as it involves more than one rider in the same vehicle. The demand for ride-sharing is growing globally because of increased mobile and internet penetration. In addition, the rising cost of vehicle ownership, combined with strict rules and regulations pertaining to the reduction of carbon dioxide is driving the demand for ride-sharing, globally. Furthermore, the industry is heavily influenced by the increasing demand for electric vehicles in ride-sharing services.
Increasing use of smartphone and internet
Since ride-sharing is an internet-based service, having access to the internet is a must to use in any part of the world. Users must download any ride-sharing app to their smartphone and use data services to navigate the app as well as to access other relevant information services. According to the International Telecommunication Union, the internet is used by 81% of developing countries. Also, 40% of people in developing countries now have internet access, and this figure is increasingly rising.
Rising cost of vehicle ownership
Due to rising fuel prices, as well as rising financing, insurance, and car registration costs, owning a personal vehicle has become prohibitively expensive. In addition to this, maintenance cost, such as repairs of parts and accessories and labor charges, is also added to the cost of vehicle ownership. Aside from that, stringent rules and regulations pertaining to pollution control, among other things, make owning a personal car a little more difficult, allowing customers to use ride-sharing services.
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Impact of COVID-19 in the global ride sharing market
Ride-sharing has been witnessing a major decrease in demand as a result of the COVID -19 outbreak. Owing to an increase in the number of cases of COVID-19, commuters are increasingly becoming concerned about using public transportation, which is negatively affecting the ride-sharing industry. Furthermore, government and healthcare authorities across the world have enforced social distancing norms as well as hygiene protocols that require people to maintain a two-meter distance from other people for safety reasons. These factors have stifled the use of ridesharing services for day-to-day transportation. Users nowadays prefer to travel in their cars due to health and safety concerns, which is likely to have a negative impact on market share. As ride-sharing companies strengthen their sanitization and safety measures, these issues are likely to diminish.
ICE accounts for the largest share in the global ride sharing market
Based on vehicle types, the global ride sharing market is segmented into ICE (internal combustion engine), CNG/LPG, electric vehicle, and micro-mobility vehicle. Out of these, ICE is the dominant segment. Currently, two types of ICEs are used in production: (i) the spark ignition gasoline engine and (ii) the compression ignition diesel engine. Most of these are four-stroke cycle engines, meaning four piston strokes are wanted to complete a cycle. The automotive ICE segment is expected to grow significantly due to high vehicle demand during the forecast period. The rising demand for high-capability engines with reduced carbon emissions is also likely to fuel the sector's growth.
North America is expected to witness significant growth in the market during the forecast period
North America dominated the ride-sharing market in 2021 and is expected to maintain its dominance during the forecast period. Market dynamics highlight a rising trend among commuters in these countries to reduce their reliance on fossil fuels for regular transportation needs. The implementation of strict pollution regulations by the US Environmental Protection Agency (EPA) is propelling the regional market revenue even further. To empower individual commuters to utilize carpooling services for day-to-day commuting, the EPA provides multiple carpool reward programs.
The Asia-Pacific is also predicted to expand at a significant growth rate over the forecast period of 2022 to 2028 due to the massive demand for ride- sharing services in countries such as India and China. The rising cost of vehicle ownership, strict CO2 reduction targets, and the demand for electric vehicles in ride-sharing services have been contributing significantly to the growth of the ride-sharing market in the APAC region. Also, the growing demand for cost-effective and alternative mobility solutions is a driving force in the growth of the ride-sharing industry, which is propelling the target market's development.
Global Ride Sharing Market - Competitive landscape
Key players in global ride sharing market are Uber Technologies Inc. (U.S.), Lyft, Inc. (U.S.), Didi Chuxing Technology Co. (China), Gett (Israel), ANI Technologies Pvt. Ltd. (India), GrabTaxi Holdings Pte. Ltd. (Singapore), Taxify (Estonia), Careem (UAE), Cabify (Spain) and car2go (Germany) and other noticeable players. Players in the market are constantly launching new products and adopting new strategies to gain traction in the market. In addition, competitive strategies like partnerships, mergers, acquisitions, joint ventures, etc., are common in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global ride sharing market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global ride sharing market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting (BWC) provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solution. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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