Mobility On Demand Market By Type (Sharing, and Renting), Commute (Intracity, and Intercity), Vehicle Type (Luxury Car, Executive Car, Economy Car, SUV, and EV), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032

Market Perspective

The global Mobility on Demand Market was worth around USD 542.43 billion in 2022 and is expected to reach a valuation of USD 1,574 billion by 2032 at a CAGR of around 11.24% between 2023 and 2032.

Mobility on demand is provided by private businesses that allows consumers to rent and share any type of vehicle for intercity or intracity purposes. This service is particularly popular among business professionals and frequent travelers due to its convenience and cost-effectiveness. Compared to vehicle ownership, mobility on demand helps users avoid the high costs associated with maintenance, insurance, and parking.

The growth of the mobility-on-demand market is driven by several factors, including the rise in tourism activities, the increasing exposure to e-bikes and EVs, and the large-scale adoption of EVs. These factors are expected to continue driving market growth over the forecast period.

North America, Europe, and Asia Pacific are the top-performing regions in the mobility-on-demand market. Asia Pacific is expected to witness the fastest growth owing to the rapidly growing countries and high population density in the region. The increase in business hubs, tourism activities, and consumer awareness are the key driving factors in the region. 

Key Insights

• Based on the type, the renting segment held the largest market share
• Based on the commute, the Intercity segment dominated the market
• On the basis of region, North America accounted for the largest market share

Increasing Travel Activities to Drive Mobility on Demand Market

The market for mobility on demand is experiencing a surge in demand due to changing travel choices. Consumers are increasingly opting to rent vehicles instead of buying them, resulting in widespread awareness of mobility on demand globally, particularly in developed countries. The travel and tourism industry has witnessed significant growth in recent years, driven by internet penetration and the exploration of new travel destinations. Solo and group travelers prefer self-drive rental options, and the demand for mobility on demand is expected to grow significantly through the forecast period, owing to the availability of solutions provided by key players in the market.

Adoption of EVs to Provide Growth Opportunities for Operators

The exponential boost in demand for electric vehicles (EVs) in recent years, owing to rising fuel prices, the need for alternative energy, and carbon emissions control, has resulted in significant adoption of EVs by consumers for rental or sharing purposes. Key players in the mobility-on-demand market have implemented strategies and investments to have fleets of EVs, which are low-cost alternatives to traditional vehicles. The adoption of EVs is expected to provide growth opportunities for operators in the global market.

Inadequate Scalability of Resources and Investments May Pose a Challenge

Despite marketable options for smart and environmentally friendly mobility, scalability presents a significant barrier to the mobility-on-demand market. A lack of resources and investments in developing regions can limit the market's awareness and penetration, leading to an imbalance in regional market penetration. Investments are primarily attracted to urban mobility on demand and attracting consumers in developing cities or regions can be challenging due to simpler lifestyles and lower disposable incomes. Overcoming these scalability challenges is crucial to ensure the sustained growth of the mobility-on-demand market.

Recent Developments

July 2022: Share Now was acquired by Free2move completely. Share Now is amongst the leading companies in the free-floating sharing of cars in Europe. The acquisition strengthened Free2move’s reach globally.

October 2021: Uber Technologies Inc. made an announcement stating the completion of the acquisition of Drizly. The acquisition was with the aim of strengthening delivery services. The acquisition was valued at approximately USD 1.1 billion.

Segmentation Analysis

Based on type, the market is further categorized into sharing and renting. Renting category dominates the market due to the increasing number of such vehicles and growing demand among consumers. As per consumer trends, there is a slight shift from car ownership towards renting owing to convenient accessibility and renting options provided by key players in the market. Emerging players in developing countries are observed to provide cost-effective and lucrative rental services with promotional offers to attract more consumers. Wherein, the U.S., the U.K., Germany, India, and Australia emerged as the prominent contributor to the market revenue. The segment growth is further fuelled by the rapid adoption of e-bikes for sharing or renting activities.

Based on the commute, the market is further categorized into intracity and intercity. In 2022, the intercity category held the largest segmental share, reflecting the growing preference among consumers for sharing vehicles for intracity travel. This trend can be attributed to the increase in intercity travel, driven by the growth of the travel industry, the rise of business hubs, and improved road connectivity between cities. Furthermore, the mobility-on-demand market is set to benefit from the increasing infrastructure development in developing countries, which is anticipated to accelerate the demand for intercity commuting solutions.

North America Accounted Largest Share due to High Demand and Investments

North America dominated the mobility-on-demand market in 2022, accounting for over 31% of global revenues. The shift in consumer preferences towards renting or sharing vehicles is the key factor that has resulted in the region's dominance. Mobility on demand is preferred by people who travel continuously for work or leisure, as well as by people migrating to North America for education or work purposes. This has accelerated the requirement of mobility on demand in the region, with the U.S. being the prominent country contributing significantly to demand and revenue.

Asia Pacific Remain the Fastest Growing Market

Asia Pacific has observed a substantial increase in demand for the rental or sharing of cars and cabs in recent years, making it the fastest-growing market. Prominent countries contributing to revenues include India, China, Australia, and South East Asian countries. India is estimated to contribute significantly due to increasing tourism and a growing number of business hubs in the country. China is another prominent country in the Asia Pacific in terms of revenue generation. With high competition amongst established players and a growing number of small-scale start-ups entering the market, the variety of services provided has increased significantly.

Competitive Landscape

• BMG AG
• Cabify España S.L.U.
• CAR2GO NA, LLC
• CITYHOP
• Communauto
• Europcar Mobility Group SA
• GreenGo Car Europe Zrt.
• Uber Technologies Inc.
• Zipcar, Inc.
• Zoomcar™ Ltd.

The global Mobility On Demand market is segmented as follows:

By Type

• Sharing
• Renting

By Form

• Intracity
• Intercity

By Vehicle Type

• Luxury Car
• Executive Car
• Economy Car
• SUV
• EV

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America