Shared Vehicles Market To Hit Value 8.2 Billion By 2028 |Grand View Research, Inc.

Posted by Mrudula Karmarkar on December 13th, 2022

The global shared vehicles market size was estimated to reach USD 328.2 billion by 2028, registering a CAGR of 14.4% during the forecast period, according to a new report by Grand View Research, Inc. The growing demand for shared vehicles due to their flexibility, time efficiency, and convenience are some of the key factors that drive the growth of the shared vehicles market.

In addition, the reduction in maintenance cost and availability of personalized and high-quality travel options for those who do not own personal vehicles is also driving the shared vehicles market. The presence or availability of other various travel modes at low or convenient prices is hindering market growth. Most of the key players operating in the shared vehicles market are adopting partnership strategies to capture maximum global market share.

The COVID-19 pandemic has negatively impacted the shared vehicles market. The market witnessed a major decline due to the global lockdown, imposed to prevent the spread of infections across the globe. Most of the countries remained under strict restrictions which lead to the closure of shared vehicle services. The hold on supply chains and delay in the process of decision making by local partners, corporate, and authorities regarding new agreements have also affected the shared vehicles market, during the pandemic.

The car rental segment contributed to the global market revenue share of more than 90.0% in 2021. The rising popularity of online bookings for rental cars is boosting the market growth. Moreover, the factors such as time-saving and cost-effectiveness provide lucrative opportunities for the development and growth of the car rental segment. Thus, its demand is high and contributes more to the market revenue.

Asia Pacific accounted for the largest market share of more than 35.0% in 2021. Increasing travel & tourism and the growing availability of high-end luxury along with economy vehicles across the developing countries are driving the market within this region. The rise in the adoption of shared vehicles, due to the growing population, has led to an exponential growth in the national vehicle fleet, which is a reason for the growing demand for shared vehicles. India and China thereby have observed growth in the adoption of urban mobility solutions including ride sharing, car sharing, and car rental services. Thus, it contributes to more revenue generation in Asia Pacific.

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Increasing inclination toward shared vehicles as they are flexible, convenient, and saves travel cost are the factors expected to propel the market growth. Additionally, the usage of shared vehicles is increasing since they provide better, high-quality, and personalized travel options to the targeted population base, who does not own a vehicle, thus driving the market expansion.

COVID-19 outbreak had an adverse impact on the shared vehicles market. A significant fall-off has been observed due to the drop in the demand and usage of shared vehicles, during the COVID-19 pandemic, to maintain the regulatory norms imposed by the government.

Shared Vehicles Market Report Highlights

  • Europe is forecast to expand at the 2ndhighest CAGR of 14.5% from 2022 to 2028. This can be credited to increased business activities and educational tourism, especially in the central and eastern European countries
  • Bike sharing segment is likely to register the highest CAGR of 15.0% during the forecast period. The rising demand for fuel-efficient micro-mobility vehicles that are environment-friendly and increasing government support initiatives are the key reasons estimated to increase the growth of the bike sharing market 
  • Asia Pacific accounted for the major market revenue share of more than 35% in 2021. China has the highest number of active shared vehicle systems which is approximately more than half of the total which makes it the dominating region.

The various number of vehicles presented in a particular system that can be used by numerous individuals all day long is known as shared vehicles and the system is known as the shared vehicles system. Shared vehicles are highly flexible as they provide convenience equivalent to private automobiles. Shared vehicles can either be used by an individual or by a group of people by renting a particular vehicle as per their needs and choice.

Shared vehicles help the users to save money, enjoy several benefits associated with the cars, help in decreasing the emission of greenhouse gas, and reduce the maintenance cost of the vehicles along with space needed for parking infrastructure. Shared vehicles are proved to be a practical alternative for individuals with a limited budget and do not require a full-time vehicle. The above-mentioned factors increase the usage of shared vehicles in the market.

The COVID-19 pandemic had a severe negative impact on the shared vehicles market as the lockdown was imposed in all the countries, across the globe, to stop the further spread of SARS-CoV-2. Several restrictions were made, associated with the traveling. Break and hold on supply chains along with delay in the process of decision making by the corporate sector, local partners, and authorities regarding new agreements also furthermore harshly affected the shared vehicles market.

List of the Key Players in Shared Vehicles Market

  • Daimler AG
  • Avis Budget Group Inc.
  • Lyft, Inc.
  • Hertz Global Holdings, Inc.
  • Europcar Mobility Group SA
  • Avis Budget Group Inc.

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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