Global On-Demand Transportation Market by Vehicle Type (Micro Mobility, Four Wheeler), by Service Type (Car Rental, Car Sharing, E-Hailing) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

Global on-demand transport market was worth USD 75.0 billion in 2017. It is expected to grow at a CAGR of 19.8% between 2018 and 2025. Market growth is being driven by increasing traffic problems, rising fuel costs and fewer parking spaces. The adoption of on-demand transport services has increased due to the increasing use of smartphones and connected vehicles.

On-demand services allow users to cancel, pre-book, modify and change their bookings through apps at lower prices. This is in response to the high price of automobiles. Market growth will also be boosted by the rising use of car-sharing services by millennials over the forecast period.

On-demand transportation services allow users to travel more easily and offer a better experience. There are virtually no maintenance fees. With the rise of car-sharing apps, seamless internet connectivity is a growing concern. The lack of a robust IT infrastructure in the developing world hinders their adoption.

Uber and Gett, car sharing apps that use the internet to connect to their host servers for bookings, require seamless internet connectivity. The service providers developed apps that allow users to book a taxi without having to connect to the internet. This is done to improve the customer experience and prevent customers losing their business due to poor connectivity. OLA Offline, an Indian e-hailing startup, allows users to book a taxi via SMS using its mobile app. This app allows users to book a taxi even if they don't have an internet connection.

The market has been hampered by concerns about passenger safety in recent years. This has had a significant impact on the market's growth. These incidents are causing concern for governments and they may introduce strict regulations to ensure driver and passenger safety. Substandard connectivity is still a major problem for market players, particularly in developing countries like Africa, Mexico, Middle East and Africa (MEA).

Service Type Insights

E-hailing services are expected to be the fastest-growing segment during the forecast period. The growth is being aided by the increasing penetration of smartphones and car-sharing applications. Market growth will be boosted by the transport development programs of several governments. In Malaysia, the Taxi Industry Transform Programme (TITP) was launched in 2016. This plan aims to modernize and improve urban public transport.

Over the forecast period, car sharing services will see a 20.0% increase in demand. Daily commuters can make car sharing an economically viable option. This service allows passengers to split the bill with other passengers. By 2025, car rental will have a significant market share. To gain greater market share, all major players have shifted their focus to car rental.

Vehicle Type Insights

Micro mobility has many benefits, including reduced fuel consumption and more flexible mobility. It also offers improved fuel efficiency and cost, making it a popular choice. Micro-mobility will be a popular choice due to growing traffic congestion and stringent environmental regulations. This segment is expected to grow at the highest rate of CAGR between 2018 and 2025.

The four-wheeler segment has many benefits, including reduced noise pollution and a more comfortable ride. This is a crucial advantage in advanced countries. Additionally, the growth is being supported by rising disposable incomes in India and China. The segment is expected to continue its lead over the forecast period.

Regional Insights

The market is segmented by region into North America (Europe, Asia Pacific), Rest of the World, and Rest of the World. The growth of different regions is influenced by factors such as consumer behavior and rising disposable income. Fuel prices and government initiatives are also important. Asia Pacific was the largest regional segment in 2017, followed by North America, Europe and Canada. Growth will be aided by the presence of large players and their efforts to provide efficient driverless shuttles throughout North America.

This market has been well-received in Europe, such as France and Germany. The regional market is being driven by a supportive regulatory framework. Asia Pacific's market growth is supported by rising fuel prices, congestions in traffic, and strict emission standards. Asia Pacific will be the leading market by 2025.

Market Share in On-Demand Transportation

The market is dominated by International Business Machines Corporation (IBM), BMW Group, Daimler Group, Ford Motor Company, General Motor Company, Gett, Inc., and Robert Bosch GmbH. These companies are keen to collaborate with others and invest heavily in R&D to create innovative solutions that will give them an edge.

The market leaders face stiff competition from emerging players. OLA, an Indian e-hailing company, recently stated that it is interested in expanding its operations in Australia, New Zealand, and other countries. To gain market momentum, market leaders have turned to mergers and acquisitions. In 2015, BMW Group and Audi AG bought HERE, Nokia's digital mapping business and location business. This was worth USD 3.1 billion. This acquisition was made to improve the mapping capabilities of BMW Group.

The Report Covers Certain Segments

This report provides a forecast of revenue growth at the global, regional and country level and analyzes the most recent industry trends in each sub-segment from 2015 to 2025. Up Market Research has divided the global on-demand transport market report by service type, vehicle type and region.

• Service Type Outlook (Revenue, USD Billion, 2015 - 2025)

  • E-Hailing

  • Car sharing

  • Car Rental

  • Station-Based Mobility

• Vehicle Type Outlook (Revenue USD Billion, 2015-2025)

  • Four-wheeler

  • Micro Mobility

• Regional Outlook (Revenue USD Billion, 2015-2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • South Korea

  • Rest of the World

Up Market Research published a new report titled “On-Demand Transportation Market research report which is segmented by Vehicle Type (Micro Mobility, Four Wheeler), by Service Type (Car Rental, Car Sharing, E-Hailing), By Players/Companies International Business Machines Corporation (IBM); BMW Group; Daimler Group; Ford Motor Company; General Motor Company; Gett, Inc; and Robert Bosch GmbH The key companies are focusing on collaborations with other players and are also making substantial investments in R&D to develop innovative solutions to gain a competitive edge over others”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global On-Demand Transportation Market Report Segments:

The market is segmented by Vehicle Type (Micro Mobility, Four Wheeler), by Service Type (Car Rental, Car Sharing, E-Hailing).

On-Demand Transportation Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the On-Demand Transportation Market

Overview of the regional outlook of the On-Demand Transportation Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The On-Demand Transportation Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of On-Demand Transportation Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Micro Mobility

                2. Four Wheeler

                1. Car Rental

                2. Car Sharing

                3. E-Hailing

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the On-Demand Transportation Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the On-Demand Transportation Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.