Global On-Demand Transportation Market By Service (Car Sharing, Car Rental, E-Hailing, and Station-Based-Mobility), By Vehicle Type (Micro Mobility, and Four Wheeler), By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Nov. 2023
- Report ID: 98790
- Number of Pages: 340
- Format:
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Report Overview
In 2023, the Global On-Demand Transportation Market was valued at USD 187.6 Billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 19.4%. It is expected that this market will reach USD 885.0 Billion by 2032.
On-demand transportation is an internet-based service used to book a vehicle for traveling from one point to another in return for money. Transportation fare is based on factors like the distance of travel, vehicle type of transportation, route of transportation, and many other factors. On-demand transportation offers services to the direct request from the customer for traveling. The on-demand transportation industry uses different types of vehicles, like commercial and passenger vehicles.
Note: Actual Numbers Might Vary In The Final Report
The on-demand transportation service is highly popular in urban areas due to the increasing population in the urban area, which raises the need for on-demand transportation services in the area. The increasing fuel cost is forcing individuals to use public or on-demand transportation rather than private cars. With rising fuel and vehicle prices, individuals are switching to on-demand transportation like carpooling, connected vehicles, and cab services. Increasing penetration of the internet across the world is also boosting the growth of on-demand transportation services. By using the internet, individuals can pre-book the transportation service. All these growth factors are expected to drive the growth of the on-demand transportation market.
Key Takeaways
- The global on-demand transportation market was estimated to be valued at USD 157.1 Billion in 2022 and projected to experience compound annual growth rate between 2023-2032; to reach an expected value of USD 885.0 Billion by 2032.
- On-demand transportation (OT) is an internet-based service that enables users to book vehicles for travel from one point to another, with their fare being determined based on distance, vehicle type, and route.
- The market is driven primarily by an expanding urban population that requires on-demand transportation services; as well as rising fuel costs that push individuals toward cost-cutting transport options.
- Key restraining factors include safety concerns for users and a lack of connectivity in some remote areas, leading to government initiatives and regulations aimed at enhancing safety measures and expanding services to underserved regions.
- E-Hailing services are expected to dominate the market, supported by the increasing penetration of the internet and smartphones globally, while four-wheelers are preferred over micro-mobility vehicles due to factors like comfort and reduced noise pollution.
- North America led the market in 2022, with major players like Waymo and Uber, while the Asia Pacific region is anticipated to be the fastest-growing market, driven by increasing urbanization and strict pollution control regulations.
- Major companies deploying advanced technologies like artificial intelligence (AI) are creating opportunities in the market, enabling efficient management and coordination of transportation systems, including autonomous driving systems and traffic management.
- The trend of corporate individuals increasingly utilizing on-demand transportation services in urban areas is fueling market growth, as these services offer a means to avoid traffic congestion and reach destinations more quickly.
- Key players in the market include Ola Inc., Uber Technologies Inc., BlaBlaCar, Careem, Grab, Gett Inc., General Motor Company, Daimler AG, Ford Motor Company, BMW Group, Robert Bosch GmbH, and International Business Machines Corporation (IBM), among others.
Driving Factors
Low Costs and Rising Internet Penetration Are Driving the Growth of the Global On-Demand Transportation Market
The rising penetration of smartphones and the internet across the world has increased the demand for on-demand transportation in the market. Several market companies offer the services to customers, allowing them to modify their transportation service plan according to their convenience under some terms and conditions. This is boosting the growth of the on-demand transportation market.
Also, major companies in the on-demand transportation market are investing in developing advanced on-demand transportation services like combining technology with connectivity systems for better tracking axis. Along with these developments, it also improves the safety and security of the vehicles’ passengers. These developments are anticipated to drive the growth of the on-demand transportation market during the forecast period
Restraining Factors
Safety Concerns and Lack of Connectivity Are Hindering the Growth of the Global On-Demand Transportation Market
With the rising popularity of on-demand transportation services across the globe, safety and security concerns are restraining the growth of the on-demand transportation market. Increasing safety concerns for on-demand transportation users had a negative impact on the market. Many governments and higher authorities in several countries are taking various initiatives and regulations to improve and promote the safety of drivers and passengers.
Also, the unavailability of on-demand transportation services in many remote areas is challenging the growth of the on-demand transportation market. Countries like Mexico and Africa still lack the connectivity of on-demand transportation services in many needed places. This is expected to restrain the growth of the on-demand transportation market over the forecast period.
Service Analysis
E-Hailing is Anticipated to Dominate the On-Demand Transportation Market During the Forecast Period
Based on services, on-demand transportation is classified into car sharing, car rental, e-hailing, and station-based-mobility. From these services, the e-hailing service is the largest segment and is expected to be the fastest-growing service during the forecast period of 2023 to 2032. The growth of this segment is due to the increasing penetration of the internet and smartphones across the world.
By using the internet, individuals can book the vehicle from any remote location under the area of a service provider. Governments across the world are promoting the use of e-hailing to reduce traffic congestion by private vehicles. These factors are expected to drive the growth of the e-hailing segment in the on-demand transportation market.
After e-hailing, the car-sharing service is anticipated to grow significantly over the forecast period. Major companies like OLA Inc. and Uber offer such services at low costs. This is attracting customers to shift towards car sharing. With increasing population and urbanization, the growth of the car share segment is anticipated to boost the on-demand transportation market during the forecast period.
Vehicle Type Analysis
Individuals Prefer Four Wheelers over micro-mobility vehicles
On-demand services are divided into micro-mobility and four-wheelers based on vehicle type. Among these vehicles type, the four-wheelers segment dominates the market with a major revenue share. Individuals across the world prefer four-wheelers over micro-mobility due to the benefits like comfortable experience and less noise pollution than micro-mobility. These factors are driving the growth of four wheeler segment in the on-demand transportation market.
Moreover, rising disposable income in countries like India and China contributes a major share of the on-demand transportation market. Micro-mobility has advantages like low fuel consumption, better flexibility in congested areas, low cost, and high energy efficiency. These factors encourage individuals to use micro-mobility services for transportation. Governments are imposing heavy environmental regulations. This promotes the use of micro-mobility for transportation. Due to these factors, the micro-mobility segment is anticipated to grow at a significant CAGR over the forecast period.
Note: Actual Numbers Might Vary In The Final Report
Market Key Segments
Service
- Car Sharing
- Car Rental
- E-Hailing
- Station-Based Mobility
Vehicle Type
- Micro Mobility
- Four Wheeler
Growth Opportunity
Integration of Artificial Intelligence in the On Demand Transportation is Expected to Create Many Opportunities in the Global On-Demand Transportation Market. Major companies are using advanced technologies like artificial intelligence in their services. This helps the companies to manage and coordinate the transportation system connectivity very efficiently. The integration of artificial intelligence has created many opportunities in the on-demand transportation market.
Artificial intelligence is mainly used in the on-demand transportation services for autonomous driving systems in the transportation vehicles of companies. It allows the vehicles to monitor and evaluate the real-time environment around the vehicle and act accordingly. AI is also helping to avoid traffic congestion in urban areas. Due to all these factors, artificial intelligence is anticipated to create many opportunities in the on-demand transportation market.
Latest Trends
The Trend of Using On-Demand Transportation Services by Corporate Individuals is Driving the Growth of the Market
The rising trend of using on-demand transportation services by corporate individuals in urban areas is driving the growth of the on-demand transportation market. The increasing population in urban areas is significantly increasing the pressure on the transportation services in the urban area. This leads to traffic congestion, less time than average travel time, and accidents in urban areas.
To avoid these obstructions, many individuals opt for on-demand transportation services like car sharing, carpooling, and e-hailing. These services help corporate individuals avoid traffic problems and reach their destination quickly. Therefore, many corporate individuals are switching to on-demand transportation services. This is anticipated to boost the growth of the on-demand transportation market in the upcoming years.
Regional Analysis
North America Leads the Market in 2022
North America dominated the on-demand transportation market in 2022 by accounting for a major revenue share of 41.2%. The growth of the North American region is due to major players in the region, like Waymo, Uber, and many other companies.
These companies offer different schemes and discounts to attract customers towards on-demand vehicles. The expanded IT infrastructure across the North American region is increasing the demand for on-demand vehicle services. These factors are driving the growth of the North American region in the global on-demand transportation market.
After North America, Asia Pacific is anticipated to be the fastest-growing region in the on-demand transportation market. Increasing population and urbanization have forced the individuals in this region to choose on-demand transportation services to avoid the problems like traffic congestion, safety concerns, and pollution control. Many countries in the Asia Pacific region have introduced strict regulations for pollution control.
Note: Actual Numbers Might Vary In The Final Report
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Player Analysis
In order to expand the business worldwide, major players in the on-demand transportation market are deploying advanced technologies in the services to improve the user experience and service and increase the use of on-demand transportation in the market.
Market Key Players:
- Ola Inc.
- BlaBlaCar
- Uber Technologies Inc.
- Careem
- Grab
- Daimler AG
- Ford Motor Company
- General Motor Company
- Gett Inc.
- Robert Bosch GmbH.
- International Business Machines Corporation (IBM)
- Other Key Players
Recent Developments
- In May 2021, GrabCar Exec services and Grabpet XL announced that they were creating earning opportunities for drivers by offering options for Grab passengers in the mobility requirements.
- In April 2021, Uber Technologies Inc. partnered with Walgreens to launch their new feature, allowing customers to pre-book their vaccination appointments at Walgreens-permitted locations and reach by Uber taxi.
Report Scope
Report Features Description Market Value (2023) US$ 187.6 Bn Forecast Revenue (2032) US$ 885.0 Bn CAGR (2023-2032) 19.4% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Service – Car Sharing, Car Rental, E-Hailing, and Station-Based-Mobility; By Vehicle Type – Micro Mobility and Four Wheeler. Regional Analysis North America – The U.S. & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands & Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam & Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape Ola, Uber Technologies Inc., BlaBlaCar, Careem, Grab, Gett Inc., General Motor Company, Daimler Group, Ford Motor Company, BMW Group, Robert Bosch GmbH., International Business Machines Corporation (IBM), and other key players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What are the benefits of on-demand transportation?On-demand transportation offers several benefits, including convenience, affordability, and flexibility. Customers can easily request a ride from anywhere, and drivers can work flexible hours to earn extra income. On-demand transportation can also help reduce traffic congestion and promote sustainable transportation options.
How is the on-demand transportation market evolving?The on-demand transportation market is constantly evolving, with new companies and technologies emerging to meet changing customer needs. Some trends in the market include the rise of electric and autonomous vehicles, the expansion of services to rural areas, and the integration of on-demand transportation with public transportation systems.
What are some challenges facing the on-demand transportation market?The on-demand transportation market faces several challenges, including regulatory issues, safety concerns, and competition from traditional taxi services. Additionally, some drivers have raised concerns about pay and working conditions.
How is the on-demand transportation market adapting to the COVID-19 pandemic?The COVID-19 pandemic has had a significant impact on the on-demand transportation market, with many companies experiencing a decline in demand. To adapt, companies have implemented safety measures such as requiring masks for drivers and passengers, providing hand sanitizer in vehicles, and offering contactless payment options. Some companies have also expanded their services to include delivery of essential goods.
On-Demand Transportation MarketPublished date: Nov. 2023add_shopping_cartBuy Now get_appDownload Sample - Ola Inc.
- BlaBlaCar
- Uber Technologies Inc.
- Careem
- Grab
- Daimler AG
- Ford Motor Company
- General Motor Company
- Gett Inc.
- Robert Bosch GmbH.
- International Business Machines Corporation (IBM)
- Other Key Players
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