According to a report by Grand View Research, Inc., global on-demand transportation market is anticipated to value USD 290.3 billion by 2025. Rising fuel prices and traffic on roads is anticipated to propel demand for on-demand transportation services. Such services are likely to offer comfortable travelling to consumers at minimum maintenance cost. In addition, advanced applications offered by these service providers allow consumers to pre-book, cancel, and modify their taxi bookings at convenient prices. Moreover, it can provide enhanced security to pedestrians by allowing them to connect with automated vehicles using network technology. Pedestrians can receive real-time information on cross traffic and lane changing alerts.
Growing adoption of third-party transportation among consumers attributed to reduced parking space and rising fuel costs can influence growth of market. Increasing penetration of smartphones and connected vehicles can augment market growth over next few years. Increasing use of car sharing services by millennials can influence growth of market. Supportive initiatives from governments globally to reduce traffic congestion on roads by promoting vehicle sharing among consumers can stimulate growth of market. Increasing prices of automobiles attributed to high demand among consumers can spur market growth during the forecast period (2014 to 2025).
Full Research Report On-Demand Transportation Market Analysis: https://www.grandviewresearch.com/industry-analysis/on-demand-transportation-market
High infrastructure cost and poor internet connectivity can restrict market growth. However, continual affords from service providers to develop car-sharing applications, which may not require internet connectivity can create lucrative opportunities for market.
The on-demand transportation market can be segregated on the basis of service type, vehicle type, vehicle connectivity, and region. Based on service type, the market can be categorized into car sharing, car rental, e-hailing, and station-based mobility. E-hailing segment is likely to grow fast over next few years attributed to rising adoption of smartphones and car sharing applications. In addition, rising fuel prices and traffic congestions on roads can foster market growth.
Based on vehicle type, the market can be bifurcated into micro mobility and four-wheeler. Micro mobility segment is estimated to witness growth at highest CAGR of 25.5% over the forecast period owing to high demand among consumers. Benefits such as flexible mobility and low fuel consumption can influence consumer demand. In addition, growing environmental concerns coupled with stringent regulations related to vehicle production can fuel growth of segment.
On the contrary, four-wheeler segment is expected to dominate the market over the forecast period. Benefits such as comfort and reduction in noise pollution offered by four-wheelers can fuel segment growth.
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Based on vehicle connectivity, the market can be classified into V2V, V2I, V2P, and V2N. V2P connectivity segment is predicted to grow at CAGR of 22.3% during the forecast period attributed to enhanced security and flexibility offered to consumers. In addition, V2I connectivity segment can also witness significant growth during the forecast period. This type of connectivity can allow vehicles to connect to country’s infrastructure such as radio-frequency identifications (RFIDs) and highways, which can enhance security of passengers and vehicles.
Regional segmentation includes, Europe, Asia Pacific, North America, and rest of the world (RoW). In 2016, North America dominated the market and accounted for largest market share. High prevalence of major market players can fuel market growth in the region. In addition, favorable initiatives from local governments can further influence growth of market.
In Europe, the market is expected to grow well during the forecast period. Growing adoption rate of on-demand transportation in countries such as Germany and France can spur growth. In addition, supportive regulatory framework can also stimulate growth of market in this region.
In Asia Pacific, the market is anticipated to grow fast during the forecast period attributed to rise in traffic congestions in the region. In addition, stringent environmental emission regulations coupled with high fuel prices can augment growth of market over the forecast period.
Some of the leading companies offering on-demand transportation are BMW Group, Ford Motor Company; General Motor Company, Robert Bosch GmbH, and Daimler Group. Most companies are expected to adopt strategic actions such on mergers & acquisitions to gain competitive edge. In addition, companies can also invest in R&D to develop innovative solutions and deliver best possible services to consumers.
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