Car Sharing Market Overview
The global car sharing market is expected to witness significant growth in the coming years due to high cost of personal vehicle ownership, rising traffic congestion in cities, and increasing number of smartphones and other mobile devices, that provide platform for accessing car sharing services. Apart from this, the stringent emission norms in several countries coupled with government support for shared mobility are further expected to benefit the car sharing market during the forecast period.
On the basis of business model, the car sharing market is segmented into one-way and round-trip. The one-way category is expected to dominate the car sharing market in terms of size, during the forecast period, owing to customer flexibility and its operational advantages over round-trip. Based on application, the market is r segmented into business and private. Business application is expected to hold a larger share in the market during the forecast period, owing to the rising on-demand mobility in corporate sector.
The car sharing market in North America has seen considerable growth in the last decade owing to high adoption of internet technology, and increased funding activities from various automakers and authorities. However, Asia-Pacific is expected to be the largest car sharing market during the forecast period owing to wide customer base, growing urbanization, growing middle-class population, and the growing preference of young generation for car sharing services. Apart from this, the shortage of parking space in the region will further benefit the industry during the forecast period.
Car Sharing Market Dynamics
Stringent emission norms in many countries coupled with government support and initiatives for shared mobility are expected to drive the car sharing market during the forecast period. For instance, many states in the U.S., such as California, Oregon, Wisconsin have enacted legislation regarding car sharing, including initiatives to encourage car sharing and electrification of car sharing fleets. Similarly, the European Union co-financed Momo Car-Sharing and Intelligent Energy Europe projects, to promote car sharing in the region.
Government and various regulatory authorities see car sharing as a crucial element to make the transportation sector more environment-friendly. Apart from this, with the development of electric and autonomous vehicles, the car sharing market is expected to grow further in the coming years. Autonomous vehicles can be repositioned according to the density of rider and helps to provide adequate coverage to fleet; thereby benefiting the market.
As mobility service providers such as Lyft Inc., Car2go Ltd. enter the industry, they face strong competition from similar transport modes and public transport systems, which are usually more affordable and accessible. In addition, the poor transport infrastructure coupled with traffic congestion, especially in developing countries, poses a challenge for the car sharing market.
Car Sharing Market Competitiveness
Owing to the high future growth potential of the car sharing market, the competition among the key players in market is expected to increase. In recent years, many automakers have actively engaged themselves in car sharing services, through tie-ups with mobility providers. For example, in 2016, General Motors invested in Yi Wei Xing, a Chinese mobility-provider company. The company also invested $500 million in the U.S. based mobility-provider company Lyft Inc. Similarly, in May 2016, Toyota Motor Corporation formed a strategic partnership with Uber Technologies Inc. to provide its vehicles for ride hailing services.
Major key players in the market are Car2go Ltd., Hertz24/7, Getaround Inc., Zipcar Inc., and RelayRides Inc. Other important players in the industry are Austin Car Share, Buffalo Car Share, Ithaca Car Share, Timecar, Car Share Vermont, City CarShare Inc., Uhaul Car Share, eGo CarShare, and HOURCAR.