On-demand Transportation Market Estimated to Exceed US$ 350 Bn, Globally, by 2026
Transparency Market Research has released a new market report titled “On-demand Transportation Market (Type: Ride Sharing, Vehicle Leasing/Rental, and Ride Sourcing; Business Model: P2P, B2B, and B2C; Vehicle Type: Passenger Cars, LCVs, HCVs, Buses & Coaches, and Micro-mobility; Autonomy Level: Manual, Semi-Autonomous, and Autonomous; Power Source: Fuel Powered, HEV, PHEV, and BEV; Application: Passenger Transportation and Goods Transportation, and Region: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.” According to the report, the global on-demand transportation market is expected to expand at a CAGR of about 14% during the forecast period.
The transportation industry is undergoing significant transformation and people are adopting online booking applications in order to book a mode or means of transportation. Rising traffic congestion and high fuel cost are key factors driving the adoption of on-demand transportation services. Adoption of smartphone-based internet services is rising among consumers, primarily due to the increased usage of smartphones, ease of operating the app, faster internet connectivity, and presence of globally leading and local service providers coupled with lower charges of services. High cost of vehicle ownership is encouraging people to prefer on-demand transportation services owing to their cost effectiveness and availability as per the requirement.
Furthermore, on-demand transportation is an effective solution for the rising traffic congestion, as higher vehicle ownership is likely to boost the number of vehicles on road. Less number of vehicles per 100 people, increase in number of daily commuters heading to workplaces and homes, increased burden on public transportation facilities due to rapid urbanization, and lack of proper connectivity of public transportation systems are fueling the demand for on-demand transportation services. On the other hand, public transportation facilities across the globe are failing to cater to the demand, due to increasing urbanization and rising population. Increase in number of working class people, rise in income opportunities, increase in per capita income coupled with increased tendency to travel for work and holidays are fueling the demand for on-demand transportation services across the globe.
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In terms of type, ride sourcing is an emerging trend across the globe, in which consumers can book a ride via a smartphone-based app. Ease of operating the app, increased penetration of smartphone users, and availability of reliable internet services are fueling the demand for ride sourcing services. Ride sourcing services are flexible and hence, a large number of consumers traveling to workplaces, homes, to restaurants, and colleges prefer ride sourcing services. Thus, the demand for ride sourcing services is increasing owing to an increase in the working class population. Low rate of motorization, lack of adequate public transportation facility, crowded public transportation, and increase in fuel prices coupled with elimination of driving are fueling the ride sourcing segment of the global on-demand transportation market. The ride sourcing segment of the market is anticipated to expand at a CAGR of about 20% during the forecast period.