Global on-demand transportation market is anticipated to attain a value of around USD 302.86 billion by 2025, expanding at a CAGR of about 19.6% during the forecast period from 2019 to 2025.
Global On-Demand Transportation Market: Overview
On-demand transportation is an extremely advanced transportation system that aims to offer pioneering services for transport management systems as well as traffic. This type of transport system permits different users to be more synchronized, make smarter and safer utilization of transport networks.
Global on-demand transportation market was value at USD 104.99 billion in 2019 and is likely to reach USD 364.05 billion by 2026 with a CAGR of 19.43%.
Global On-Demand Transportation Market: Growth Factors
Increasing penetration of smartphones and the connected vehicles has increased the acceptance of the on-demand transportation services, for instance, car sharing, e-hailing, station-based mobility, and car rental. These services allow users to modify, pre-book, or cancel their cab reservations with the help of mobile applications, for instance, Gett and Uber. Developments in IT infrastructure and increasing utilization of cab/taxi sharing services by the individuals are projected to fuel the implementation of on-demand transportation. The global on-demand transportation market augmentation is driven by the factors such as fuel-saving and reduced time consumption. Furthermore, on-demand transportation systems are likely to offer improved security and safety by incorporating intelligent communication systems in it, therefore fuelling the market development.
On-demand transportation majorly utilizes artificial intelligence and information technology to efficiently coordinate and manage transportation systems. The function of on-demand transportation network permits the traveling inhabitants to be aware of the traffic for improved coordination and to guarantee the safety of the vehicle drivers. Increase in traffic congestions due to augment in the number of cars is likely to increase the development of the on-demand transportation.
Global On-Demand Transportation Market: Segmentation
The global on-demand transportation market is classified in terms of service type, vehicle connectivity, vehicle type, and region. In terms of service type, the global on-demand transportation market is categorized into car sharing, e-hailing, car rental, and station based mobility. In terms of vehicle type, the global on-demand transportation market is bifurcated into micro-mobility and four-wheeler. The global on-demand transportation market, in terms of vehicle connectivity, is fragmented into V2N, V2V, V2P, and V2I.
Global On-Demand Transportation Market: Regional Analysis
Factors such as disposable income, consumer behavior, several government initiatives, and fuel prices play a significant role in influencing the development of the market across various regions. North America is likely to dominate the global on-demand transportation market followed by Europe and the Asia Pacific. The existence of significant key players along with favorable government regulations and initiatives is propelling the growth of the on-demand transportation market in North America. The market is expected to witness high acceptance rate in European countries, for instance, Germany and France. The supportive authoritarian framework in the province is also fuelling the market. In Asia Pacific factors such as growing fuel prices, environmental emission regulations, and traffic congestions are supporting the development of the market.
Global On-Demand Transportation Market: Competitive Players
Some of the most important market players in the global on-demand transportation market are BMW Group, International Business Machines Corporation (IBM), Ford Motor Company, Daimler Group, Robert Bosch GmbH., and General Motor Company, and Gett, Inc., among others.
Global On-Demand Transportation Market: Regional Segment Analysis