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Mobility as a Service Market Trends, Emerging Opportunities, And Top Key Players

On account of the rising concerns regarding vehicular pollution, governments across the world are making efforts to introduce various regulations and policies to encourage the deployment of electric vehicles (EVs) in shared mobility services. Additionally, private companies are taking initiatives to induct EVs in these services. For example, Volkswagen AG, in 2018, announced the introduction of an all-electric carsharing service in Europe and North America, under the brand name WeShare. The company initially launched the service in Germany (Berlin) in June 2019, with 1,500 Volkswagen e-Golf cars.

Moreover, the cost-effectiveness and convenience offered by shared mobility services will fuel the mobility as a service (MaaS) market growth at a CAGR of 11.9% during the forecast period (2019–2024). At this rate, the value of the market is expected to surge from $171.5 billion in 2018 to $347.6 billion in 2024. Owning a private vehicle requires a high investment, which includes the vehicle cost, insurance premium, fuel cost, maintenance charges, and parking expenses. In this regard, shared mobility enables customers to enjoy the perks of personal vehicles without owning them, asusers are only obligated to pay based on the usage.

Owing to the soaring demand for mobility services, companies including Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing), Europcar Mobility Group S.A., Hertz Global Holdings Inc., ANI Technologies Pvt. Ltd. (Ola), Grab Holdings Inc., Enterprise Holdings Inc., Car2Go Ltd., Avis Budget Group Inc., Lyft Inc., and Sixt SE are introducing new and better services. Moreover, these companies are engaging in partnerships, mergers, and acquisitions to make public transportation more convenient and readily available. For example, in July 2019, Ridecell Inc. was selected by BLU Smart Mobility to introduce the Blu Smart Mobility ridesharing service in India.

The commuting pattern segment of the MaaS market is categorized into daily commuting, occasional commuting, last-mile connectivity, and others. In 2018, the daily commuting category accounted for the largest market share, and it is projected to maintain its dominance in the forecast period. This can be primarily attributed to the spurring demand for shared mobility services among the youth, such as young professionals and students, to meet their daily commuting needs. Shared mobility services offer a more-convenient transportation option than the crowded rapid transit trains and city buses.

In recent years, the Asia-Pacific (APAC) region witnessed the most-rapidproliferation of shared mobility services on account of the rising disposable income and growing concerns over air pollution, especially in India and Taiwan. Moreover, the rapid urbanization and industrialization in the region will fuel the demand for these services , as these developments are a big cause of the increasing pollution levels. To curb pollution and reduce the rate of personal vehicle ownership, several governments have started focusing on developing the road network and infrastructure and adding more EVs to the Maas fleets.

Furthermore, P&S Intelligence projects that the European MaaS market will register the fastest growth during the forecast period. This can be ascribed to the implementation of an array of individual business models, which is leading to an expansion in the customer base and more competition. This has improved the overall pricing structure, which has further improvedthe customer perception toward the services. Moreover, most European countries are bound by the Paris Agreement, which mandates them to reduce the emission of greenhouse gases.

Thus, the growing population of the youth and rising need to cut down fuel expenses, along with the favorable government policies for EV adoption, are expected to expand the customer base for shared mobility services.

Read More: https://www.psmarketresearch.com/market-analysis/maas-market

  • Rahul Gautam
  • Apr 14 2022
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