What Factors Propelled The Growth Of The On-demand transportation Market In The Past?
The on-demand transportation market has seen considerable growth due to a variety of factors.
• The size of the on-demand transportation market has seen a significant rise in recent years. Expected to rise from $195.08 billion in 2024 to $236.86 billion in 2025, this equates to a compound annual growth rate (CAGR) of 21.4%.
Factors contributing to this growth throughout the historic period include the widespread use of smartphones and mobile apps, heightened urbanization and city congestion, changes in consumer preferences favoring convenience and flexibility, expansion of the gig economy and freelance jobs, as well as advancements in GPS and navigation technology.
What Is The Projected Growth And Market Size For The On-demand transportation Sector?
The on-demand transportation market is expected to maintain its strong growth trajectory in upcoming years.
• The market for on-demand transportation is projected to experience significant growth over the upcoming years, increasing to $506.99 billion by 2029 with a compound annual growth rate (CAGR) of 21.0%.
This anticipated rise during the forecast period can be linked to the growing acceptance of autonomous and electric vehicles, increased use of multimodal transportation, escalating demand for sustainable and environmentally-friendly transportation methods, and the surge of ride-hailing services, coupled with the rise in fuel prices. Key trends anticipated in the forecast period encompass the application of artificial intelligence for demand prediction and route efficiency, the creation of on-demand transportation services aimed at particular demographics, focus on cashless and contactless payment alternatives on on-demand platforms, customization of on-demand services for specialty markets and specific needs, along with the incorporation of instant communication and feedback functions.
What Factors Are Driving Growth In The On-demand transportation Market?
The on-demand transportation market anticipates growth propelled by an increasing working-class population and a surge in tourism. The concept of tourism is defined as an economic and social phenomenon that involves people traveling to places or countries outside their regular environment for personal, business, or professional reasons. Such tourism and the working-class demographic are aided by on-demand transportation which allows journeys to be booked at a suitable time and pick-up from a specified location, offering ease and speed. For example, the United Nations World Tourism Organization (UNWTO), a non-profit organization based in Spain, reported that an estimated 975 million international tourists had travelled from January to September 2023, marking a 38% increase compared to the same period in 2022. Furthermore, there was a 22% growth in international tourist arrivals in the third quarter of 2023. Thus, the expanding working-class population and tourism are fueling the growth of the on-demand transportation market.
What Are The Main Segments Of The Global On-demand transportation Market?
The on-demand transportation market covered in this report is segmented –
1) By Type: Ride-Sharing, Vehicle Rental Or Leasing, Ride Sourcing
2) By Vehicle: Four-Wheeler, Micro Mobility
3) By Application: Passenger Transportation, Goods Transportation
Subsegments:
1) By Ride-Sharing: Carpooling Services, Shuttle Services, Luxury Ride-Sharing, Pooling Services
2) By Vehicle Rental Or Leasing: Short-Term Rentals, Long-Term Rentals, Peer-To-Peer Rentals, Corporate Rentals
3) By Ride Sourcing: E-Hailing Services, App-Based Booking Platforms, Taxi Dispatch Services, Limousine Services
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What Emerging Trends Are Influencing The Growth Of The On-demand transportation Market?
Key players in the on-demand transportation market are concentrating on technological advancements such as public transport trials to enhance service effectiveness, user satisfaction, and accessibility. They aim to assess the feasibility of on-demand services as a potential public transport solution that is both efficient and sustainable, impacting regional transportation plans in the future. For example, in May 2024, Skånetrafiken, an organization based in Sweden, in charge of public transportation in the Skåne region including bus and train services, initiated a new experiment with on-demand public transport. This trial involves a flexible transit service where passengers can request rides through a mobile app, providing a customised transportation solution that can adapt to real-time demand.
Who Are the Key Players in the On-demand transportation Market?
Major companies operating in the on-demand transportation market include:
• Avis Budget Group Inc.
• BlaBlaCar SA
• Bolt Financial Inc.
• Cabify SA
• Careem Inc.
• Curb Mobility Private Ltd.
• Daimler AG
• Europcar Mobility Group SA
• Ford Motor Company
• General Motor Company
• Grab Holdings Inc.
• Hyundai Motor Company
• Lyft Inc.
• Didi Chuxing Technology Co
• Enterprise Holdings Inc.
• Jugnoo
• Uber Technologies Inc
• Bird Global Inc.
• MOIA GmbH
• ANI Technologies Pvt Ltd.
• PT Gojek
• Bolt Mobility
What Is The Most Dominant Region In The On-demand transportation Market?
Asia-Pacific was the largest region in the on-demand transportation market in 2024. North America is expected to be the fastest growing region in the forecast period. The regions covered in the on-demand transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
