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Mobility as a Service Market Size, Share & COVID-19 Impact Analysis, By Service Type (Ride-Hailing, Car Sharing, Taxi Services, Others), By Application Type (iOS, Android, and Others), and Regional Forecasts, 2022-2029

Region : Global | Format: PDF | Report ID: FBI102066

 

KEY MARKET INSIGHTS

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The global mobility as a service market size was valued at USD 187.31 billion in 2021. The market is projected to grow from USD 236.42 billion in 2022 to USD 774.93 billion by 2029, exhibiting a CAGR of 18.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with mobility as a service experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global mobility as a service market exhibited a decline of 25.7% in 2020 as compared to 2019.


The transportation sector holds a substantial share in contributing to air pollution worldwide. Increasing air pollution globally owing to heavy vehicular traffic is, in turn, creating a need for an alternative form of transportation. The rising popularity and adoption of shared mobility are expected to drive the market growth over the forecast period. Car sharing is considered to be a cost-effective alternative to car ownership as it reduces the maintenance and fuel cost of consumers and also helps to reduce the air pollution level


Additionally, an increasing disposable income of consumers and rising investments in transportation infrastructure are fueling the growth of the market. In developing countries, various initiatives taken by the governments initiatives to promote the use of Mobility as a Service (MaaS) are beneficial for the transportation industry. Further, increasing the use of e-bike sharing by daily office commuters is also another factor driving the market as this saves a lot of time and helps to reduce the emissions caused by conventional taxis.


COVID-19 IMPACT


COVID-19 Pandemic Severely Disrupted the Mobility as a Service Industry


The lockdown and economic crisis induced by the COVID-19 pandemic have severely impacted various mobility as a service providers. Many service providers have experienced significant resource bottlenecks in the global supply and logistics chains in the year that had a perceptibly negative effect on their businesses. With the spread of the pandemic, countries worldwide implemented social distancing, contact tracing, self-quarantining, testing, and other norms to prevent the further spread. This resulted in massive ride drops for companies such as Uber and Lyft.


For instance, in May 2020, Uber announced the layoff of 600 employees in India as part of a cost-cutting initiative in the face of the coronavirus pandemic. Similarly, Lyft announced in April 2020 that it would be decreasing its staff numbers by 17%, to 982 people, due to the impacts of the COVID-19 pandemic and its impact on Lyft's business. Moreover, Uber and Lyft have seen customer drops of around 40%-50% due to the COVID-19 effect. Also, customers were reluctant to use shared mobility services due to increasing COVID-19 cases.


People were avoiding these services due to growing concerns about the virus's spread. Additionally, with most of the population working from home, public transportation utilization has decreased by 70-80% worldwide. It has negatively impacted the market, resulting in a revenue decline across all areas. However, after easing the restrictions on transportation across various countries, the demand for shared mobility and ride hailing services witnessed a significant rise, further contributing to market recovery.


Mobility as a service providers have gained fast acceptance and popularity due to two factors, their pricing and the quality of their customer service. These are the distinguishing characteristics. The rise of ride-sharing firms has been both fast and easy, as they have acquired acceptance in society while functioning as a marketplace with social media dimensions (ratings, post-experience in social media).


LATEST TRENDS


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Fleet Electrification is an Ongoing Trend in the Market


As conventional vehicles cause a high amount of carbon emission, governments worldwide are imposing stringent emission norms to curb rising pollution. Therefore, to reduce carbon emissions and expand business in economies with stringent emission norms, various leading mobility as a service providers are transforming their fleet to electric to offer clean future mobility solutions for the urban populace. For instance, in September 2020, Uber Technologies Inc. announced that by 2040, 100% of its rides in the U.S. will take place in electric vehicles.


One Transportation Ticket is One of the Rising Trends in the Market


Frequent travelers for inter-state and inter-city have to face a tough time with regard to planning and boarding various modes of transportation and reaching their destination. Governments of developing countries are making plans to implement the French Mobility Act, i.e., one ticket or smartcard for mobility as a service app. One transportation ticket program offers a wide range of services, such as single-pass, which would replace the current subscription of consumers from every service (free float bike subscription, bus sharing, and taxis). Ruling bodies are focusing on developing strategies with stakeholders and mobility operators to maintain the privacy and security of the data exchange. One transportation service app is expected to save the time of consumers and ease consumers' efforts as it brings all the apps under one roof.


DRIVING FACTORS


Growing Focus on Digitalization and Digital Payment Solutions to Drive the Growth of the Market


Governments across the globe are taking initiatives to promote digital payments. For example, the Indian government launched the Digital-India initiative that focuses on fostering cashless transactions and digital payment methods across the country. The rising number of e-commerce companies and the growing use of e-wallets for making transactions are driving the mobility as a service market growth. The development of highly secured and safe payment gateways is also expected to drive the market during the forecast period. Various MaaS companies, such as Uber, Lyft, and Ola, are offering cashback and shopping coupons on payments made by e-wallets.


Growing Inclination Toward Micro-Mobility and Rising Trend of On-demand Transportation Services are Expected to Drive the Market


Micro mobility, particularly in developing countries, is expected to be the future of shared transportation. Micro-mobility is the short-distance usage of light vehicles such as bicycles and scooters. For instance, in the U.S., motorcycles and bicycles account for a significant portion of short-distance transport (under 5 miles).


Consumers' growing interest in micro-mobility has sparked essential manufacturers, such as Daimler and BMW, in micro-mobility transportation. Scooters are available for rent in six European cities through MaaS. Uber is also planning to integrate leased bikes and scooters into its app through Getaround and Lyft. In April 2018, Uber acquired Jump, a company that rents out electric scooters and bikes on a short-term contract. Growing usage of micro-mobility saves customers time and money compared to traditional taxi journeys.


Taxi, passenger vehicles, and charter vehicles are examples of on-demand services that offer flexibility and additional features to end customers such as real-time feedback, vehicle tracking, and rating. Numerous mobile applications make it easier to find available passenger cars and compare fares with neighbors. In March 2022, a newly launched company called Alto started offering ride-sharing services similar to Uber and Lyft. The customers can call by using a smartphone application. Furthermore, such services give clients access to a wide range of features. In addition, the ability to identify a customer's exact location and the ability to match demand with available supply are essential elements driving the smart mobility market.


RESTRAINING FACTORS


Low Internet Penetration in Some Underdeveloped Economies is Restraining Market Growth


Low internet penetration across some developing and underdeveloped economies is anticipated to restrain the growth of the market during the forecast period. Additionally, increasing data privacy and security-related concerns among the populace regarding the use of ride-share or ride-hailing apps and services is likely to hamper the market growth in the near future.


SEGMENTATION


By Service Type Analysis


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Ride-Hailing Segment to Dominate Market as it Offers Various Options for Making Payments


By service type, the market is segmented into ride-hailing, car sharing, taxi services, and others. The ride-hailing segment is anticipated to dominate the market during the mobility as a service market forecast period. Various options for booking and comfort offered by ride-hailing services is one of the major reasons fueling the demand for the ride-hailing segment. Ease of pick and drop facility offered by ride-hailing services compared to conventional taxis is also one of the reasons driving the market.


The car sharing segment is expected to hold the second-largest position in the market during the forecast period. Shifting the preferences of consumers from car ownership to affordable and flexible solutions is propelling the growth of the car sharing segment. Furthermore, growing consumer awareness regarding emissions and traffic congestion is also one of the reasons helping to maintain the second-largest position in the car sharing segment over the forecast period.


By Application Type Analysis


Low Price of Android OS Compared to Others to Boost the Segment Growth


By application type, the MaaS market is segmented into iOS, Android, and others. Among them, the Android segment is expected to show dominance in the MaaS market during the forecast period. The low price of Android OS as compared to iOS is one of the major reasons attributed to the growth of this segment. The iOS segment is expected to witness significant growth rate in the market during the forecast period. Even though its pricing is much higher compared to the Android operating system, many consumers are inclined toward iOS, owing to its high security and data protection privacy.


REGIONAL INSIGHTS


Asia Pacific Mobility as a Service Market Size, 2021 (USD Billion)

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By region, the market is segmented into Europe, North America, Asia Pacific, and the Rest of the World.


Asia Pacific is expected to dominate the mobility as a service market share during the forecast period and was valued at USD 74.45 billion in 2021. The rising cost of vehicle ownership, rapid urbanization, and increasing fuel prices, especially in countries, such as India and China, are some of the market growth factors expected to help Asia Pacific continue dominating the market in the forecast period. The lack of public transportation to accommodate the continually growing population is also one of the reasons fueling the growth of MaaS services in this region.


On the other side, North America is anticipated to hold the second-largest position in the market during the forecast period. Growing awareness among consumers regarding rising emission and growing traffic congestion are the major factors helping this region maintain its position in the market. Further, several countries in Europe are progressively adopting Electric Vehicles (EVs) and installing charging stations to charge these EVs. Such major factors are increasingly impacting the market growth.


KEY INDUSTRY PLAYERS


The market is highly competitive in nature, with the presence of public and private key market players such as Uber Technologies Inc., Lyft, Inc., Didi Chuxing Technology Co., ANI Technologies Pvt. Ltd., Grab, Shuttl, BMW Group, Moovel Group GmbH, Moovit Inc., and Citymapper.


Uber to Hold a Leading Position in the Market due to Industry-Leading Diversifying MaaS Services


Uber Technologies Inc. is one of the leading transport services providers headquartered in California, U.S. The company provides ride-hailing, ride sharing, and food delivery services across more than 85 countries worldwide. Uber’s ride-hailing app is highly popular for its ride-booking convenience. For instance, Uber was the most downloaded ride-sharing and taxi app worldwide for January 2020, with 12.5 million installs. Uber has utilized a variety of business strategies over the years to achieve sustainable growth. For instance, by early utilizing digitalization in ride-hailing and payment processes, the company provided convenience and enhanced ride-hailing service experience. The company is highly focused on electrification. For instance, in January 2021, the company rolled out its Uber Green services across 1,400 towns and cities in North America to accelerate electrification.


However, Didi Chuxing, Lyft, and Grab have also retained their positions in the competitive landscape with Didi Chuxing, mostly dominating the Asian market compared to its competitors. This is projected to positively influence the global market as these companies are anticipated to drive innovation during the forecast period.


LIST OF KEY COMPANIES PROFILED:



  • Uber Technologies Inc. (U.S.)

  • Lyft, Inc. (U.S.)

  • Didi Chuxing Technology Co. (China)

  • ANI Technologies Pvt. Ltd. (India)

  • Grab (Singapore)

  • Shuttl. (India)

  • BMW Group (Germany)

  • Moovel Group GmbH (Germany)


KEY INDUSTRY DEVELOPMENTS:



  • February 2022: Uber announced the expansion of its offering to include a B2B service called “Uber Bus for Business” as a global first from Egypt. The service offers companies a tailored transport program for everyday commute of their staff. The service also addresses Cairo’s congestion challenge by reducing traffic on the street.

  • May 2021: Uber announced a strategic partnership with Arrival, the global technology company creating electric vehicles. Uber entered into the partnership to develop and deploy an electric fleet on its ride-hailing platform. This will also support Uber’s plan to become a fully emission-free platform by 2040.

  • December 2020: Uber announced the sale of Apparate USA LLC. (ATG Business), a subsidiary focused on the development and commercialization of autonomous vehicle technologies to Aurora Innovation, Inc. The company’s ATG Business was included in Uber’s ATG & other technology platform segment.

  • March 2022: Lyft announced a strategic partnership with Spin to offer Spin scooters through the Lyft app in 60 markets across the U.S. The initial rollout began in Tennessee and Nashville, followed by 13 additional cities launching in April. The company plans to roll out the service in other cities in the coming months.

  • April 2021: Swedish automaker Volvo signed an agreement to supply cars to develop Didi’s global autonomous driving fleet. The company’s plans for the adoption of autonomous mobility will assist it in attracting more customer bases and expanding in the international market.

  • April 2021: Ola Electric Mobility announced its plans to set up a 100,000 network of EV chargers called Hypercharger Network across 400 Indian cities in the next five years. The company is highly focused on electrification. To accelerate the electrification, Ola Electric Mobility is a new electric two-wheeler manufacturing subsidiary established by ANI Technologies Pvt. Ltd. in 2017 to sell and deploy an electric vehicle fleet on its ride-hailing platform.


REPORT COVERAGE


An Infographic Representation of Mobility as a Service (MaaS) Market

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The global report provides a detailed analysis of the market and focuses on key aspects such as leading mobility as a service companies, service types, and leading mobility as a service application types. Besides this, the research report offers insights into the current market trends, highlights key industry developments, and statistics. In addition, the report encompasses several factors that have contributed to the growth of the market in recent years.


Report Scope & Segmentation












































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD billion)



Segmentation



By Service Type



  • Ride-Hailing

  • Car Sharing

  • Taxi Services

  • Others



By Application Type



  • iOS

  • Android

  • Others



By Geography



  • North America (By Service Type, By Application Type)

    • U.S. (By Service Type, By Application Type)

    • Canada (By Service Type, By Application Type)

    • Mexico (By Service Type, By Application Type)



  • Europe (By Service Type, By Application Type)

    • U.K. (By Service Type, By Application Type)

    • Germany (By Service Type, By Application Type)

    • France (By Service Type, By Application Type)

    • Rest of Europe (By Service Type, By Application Type)



  • Asia Pacific (By Service Type, By Application Type)

    • China (By Service Type, By Application Type)

    • India (By Service Type, By Application Type)

    • Japan (By Service Type, By Application Type)

    • South Korea (By Service Type, By Application Type)

    • Singapore (By Service Type, By Application Type)

    • Australia (By Service Type, By Application Type)

    • Rest of Asia Pacific (By Service Type, By Application Type)



  • Rest of the World (By Service Type, By Application Type)



Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 187.31 billion in 2021, and is projected to reach USD 774.93 billion by 2029

The market is projected to grow at a CAGR of 18.5% and will exhibit steady growth in the forecast period (2022-2029).

In 2021, the Asia Pacific market value stood at USD 74.45 billion.

In terms of service type, the ride-hailing segment will dominate the global market during the forecast period.

Growing focus on digitalization and rising digital payments are vital market drivers.

Uber Technologies Inc., Didi Chuxing Technology Co., and Lyft, Inc. are among the top companies in the global market.

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